Company registration number 12384653 (England and Wales)
CARBIS BAY HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023
CARBIS BAY HOLDINGS LIMITED
COMPANY INFORMATION
Directors
SP Baker
TCG Baker
(Appointed 28 July 2022)
EJM Baker
(Appointed 17 May 2023)
Company number
12384653
Registered office
Peat House
Newham Road
TRURO
Cornwall
TR1 2DP
Auditor
RRL LLP
Peat House
Newham Road
TRURO
Cornwall
TR1 2DP
CARBIS BAY HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 8
Profit and loss account
9
Group statement of comprehensive income
10
Group balance sheet
11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Company statement of cash flows
16
Notes to the financial statements
17 - 36
CARBIS BAY HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 1 -

The directors present the strategic report for the year ended 28 February 2023.

Principal activities

Dating back to the 19th Century and overlooking its privately owned beach, Carbis Bay Hotel, Spa and Estate offers a luxurious holiday destination.

 

The Hotel and Estate comprise of 35 individually-furnished hotel bedrooms, 4 serviced cottages, 7 apartments, 8 beach suites, 2 beach houses and 8 beachside lodges.

 

Also part of the Estate is the Gannet Inn and neighbouring Gannet House situated close to the main Estate comprising of a further 28 bedrooms.

 

The Estate offers guests a choice of three restaurants: The Orangery, The Beach Club and Walters on the Beach and a Deli offering local produce and gifts.

 

The on-site Spa consists of 5 treatment rooms, a hydrotherapy pool, sauna, a fitness suite and yoga studio.

 

The Group undertook a restructure in the year ended 28 February 2023, whereby some of the property was transferred from Carbis Bay Hotel Limited to Atlantic Bay Hotel Limited.

 

The Group also includes Carbis Bay Holiday Lets Limited, a holiday letting service for a portfolio of privately-owned properties across Cornwall.

 

The group employed an average of 164 employees in the year, many of whom are local to the area. The management group regularly review the remuneration and benefits package offered to all employees to ensure this is fair and reasonable and in line with market conditions.

 

Due to the Hotel being located in the heart of West Cornwall, we are very fortunate to have a vast number of excellent local suppliers and produce on our doorstep. We always endeavour to utilise these wherever possible.

 

As well as contributing significantly towards the local economy, this also ensures that we are offering our guests a true Cornish experience when they visit.

Review of the business

With the impact of the Coronavirus pandemic on the hospitality industry in 2020 and early 2021 and the selection of the Estate as the venue for the G7 Summit in July 2021, trading performance has fluctuated over the last two years. In May 2021 when lockdown restrictions meant that UK travel was possible, Cornwall became a premium holiday destination, even for those who would normally travel overseas.

 

The significant increase in demand led to unprecedented booking and occupancy levels and strong trading performance across all areas of our business.

 

In additional to the buoyancy of the market, the hospitality industry continued to be supported by a reduced rate of VAT for some of 2022 which was also reflected in the increase in turnover.

 

In the year ended 28 February 2023 room rates continued to remain high following the steep rise post pandemic however revenues were impacted by reduced demand and the return to the 20% VAT regime.

CARBIS BAY HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 2 -
Principal risks and uncertainties

Carbis Bay Estate is exposed to the same risks as all businesses in the hospitality sector.

 

Competition

Economic factors impacting on guests disposable income

Labour resource post Brexit

Rising costs of food, wages and utilities

Weather

 

The hotel has developed a strong reputation and with the exposure of the Estate during the G7 Summit the brand is now recognised both domestically and internationally.

 

From a brand perspective and, based on tariff and guest profile, the directors feel that the Estate has moved away from its historic competitor set and is keen to sustain its current position in the market place. Although the Senior Management Team are constantly reviewing market trends and availability both internally and with local competitors to ensure all revenues are maximised they would prefer to avoid significant rate erosion.

 

Directors and Senior Management monitor both financial and non-financial key performance indicators on a day by day basis and have the infrastructure in place to react quickly to any exceptional results.

 

Unfortunately, even the weather plays a role in the success of a coastal property for families, the hotel offers an extremely popular “kids club” over the holiday periods offering crafts, pizza making and film nights to entertain the children during a typical Cornish summer.

 

Key performance indicators

The Group's operating profit for the year was £1,479,757 (2022: £6,469,547).

 

The results for the year and the financial position at the year end are considered satisfactory by the directors.

 

Key Financial Performance and Other Indicators are as follows:

 

 

2023

2022

 

 

 

Total Turnover

£13.326m

£23.803m

EBITDA

£1.877m

£7.129m

 

 

 

 

 

 

Food and Beverage revenue increased by 24% year on year with sales including the Gannet at £5.3m for the year ended 28 February 2023 compared to £4.3m in the year ended 28 February 2022.

 

With the launch of the new Carbis Bay Spa in the year ended 28 February 2022, Spa revenue increased by 26% year on year, £570k in the year to 28 February 2023 (£454k in the year ended 28 February 2022).

 

Key performance indicators also include customer satisfaction, occupancy rates, profitability and a number of other relevant factors.

On behalf of the board

SP Baker
Director
24 November 2023
CARBIS BAY HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 3 -

The directors present their annual report and financial statements for the year ended 28 February 2023.

Results and dividends

The results for the year are set out on page 9.

Ordinary dividends were paid amounting to £11,007. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

MWG Baker
(Resigned 3 April 2023)
SP Baker
Mrs J Baker
(Resigned 19 July 2022)
TCG Baker
(Appointed 28 July 2022)
EJM Baker
(Appointed 17 May 2023)
Financial instruments

The group manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the group has sufficient liquid resources to meet the operating needs of the business.

Investments of cash surpluses, borrowings and derivative instruments are made through banks and companies which must fulfil credit rating criteria approved by the Board.

 

All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

Future developments

As discussed within the Strategic Report, the directors anticipate that the business environment will remain competitive.  Identified risks will continue to be well managed and the directors have a clear strategy to continue to maintain the brand’s strong reputation.  The group is in a good financial position and the directors are confident in the company’s ability to maintain and build on this position.

Auditor

RRL LLP were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

Medium sized companies exemption

This report has been prepared in accordance with the provisions applicable to the companies entitled to medium-sized companies exemptions.true

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

CARBIS BAY HOLDINGS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 4 -
On behalf of the board
SP Baker
Director
24 November 2023
CARBIS BAY HOLDINGS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 5 -

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

CARBIS BAY HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CARBIS BAY HOLDINGS LIMITED
- 6 -
Opinion

We have audited the financial statements of Carbis Bay Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 28 February 2023 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

CARBIS BAY HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CARBIS BAY HOLDINGS LIMITED
- 7 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.

 

As part of our audit work, we obtained an understanding of the legal and regulatory frameworks applicable to the group and parent company and the sector in which they operate. We determined that the laws and regulations most significant to the group and parent company, as well as the laws and regulations that have a direct impact on the preparation of the financial statements are: Health & Safety regulations, employment legislation, General Data Protection Regulation, Food Safety & Hygiene regulations and compliance with the Companies Act 2006.

 

The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud is detailed below:

 

•    Discussion with management as to how compliance with these laws and regulations is monitored;

•    Review of the disclosures in the financial statements and testing to supporting documentation;

•    Enquiries of management concerning actual and potential litigation and claims;

•    Performing analytical procedures to identify any unusual or unexpected relationships that may indicate

risks of material misstatement due to fraud;

•    Reviewing minutes of directors’ meetings and correspondence with regulators;

•    Performing audit work in connection with the risk of management override of controls, including testing

journal entries for reasonableness and evaluating the business rationale of significant transactions

outside the normal course of business.

 

We also communicate relevant identified laws and regulations and potential fraud risk to all engagement team members and remain alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

CARBIS BAY HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CARBIS BAY HOLDINGS LIMITED
- 8 -

Our audit approach also considered the opportunities and incentives that may exist within the group and parent company for fraud and identified the greatest potential for fraud being in respect of cut off and completion risk around revenue recognition. Under ISA (UK) we are also required to undertake procedures to respond to the risk of management override of controls. Our procedures included the following:

 

 

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation.  This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Other matters which we are required to address

The financial statements for the year ended 28 February 2022, forming the corresponding figures of the financial statements for the year ended 28 February 2023, are unaudited as the directors' claimed exemption from audit under section 479 of the Companies Act 2006 relating to small groups.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Josh Stevens ACA (Senior Statutory Auditor)
For and on behalf of RRL LLP
24 November 2023
Chartered Accountants
Statutory Auditor
Peat House
Newham Road
TRURO
Cornwall
TR1 2DP
CARBIS BAY HOLDINGS LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
13,326,050
23,803,021
Cost of sales
(2,583,968)
(10,247,111)
Gross profit
10,742,082
13,555,910
Administrative expenses
(8,292,477)
(7,445,387)
Other operating income
4,000
359,024
Exceptional item - demolishing property
4
(973,848)
-
0
Operating profit
5
1,479,757
6,469,547
Share of profits of joint ventures
60,471
-
Interest receivable and similar income
9
17,473
-
0
Interest payable and similar expenses
10
(477,817)
(308,189)
Change in value of property
11
-
200,000
Profit before taxation
1,079,884
6,361,358
Tax on profit
12
(942,048)
(895,599)
Profit for the financial year
137,836
5,465,759
Profit for the financial year is all attributable to the owners of the parent company.
CARBIS BAY HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 10 -
2023
2022
£
£
Profit for the year
137,836
5,465,759
Other comprehensive income
-
-
Total comprehensive income for the year
137,836
5,465,759
Total comprehensive income for the year is all attributable to the owners of the parent company.
CARBIS BAY HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
28 FEBRUARY 2023
28 February 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
14
30,526,662
30,721,424
Investments
15
60,473
34,066
30,587,135
30,755,490
Current assets
Stocks
18
127,030
104,214
Debtors
19
1,305,535
1,590,647
Cash at bank and in hand
1,211,596
2,487,908
2,644,161
4,182,769
Creditors: amounts falling due within one year
20
(5,102,169)
(7,477,995)
Net current liabilities
(2,458,008)
(3,295,226)
Total assets less current liabilities
28,129,127
27,460,264
Creditors: amounts falling due after more than one year
21
(12,214,376)
(12,287,805)
Provisions for liabilities
Deferred tax liability
24
1,720,635
1,105,172
(1,720,635)
(1,105,172)
Net assets
14,194,116
14,067,287
Capital and reserves
Called up share capital
26
101
101
Revaluation reserve
1,714,860
1,755,523
Profit and loss reserves
12,479,155
12,311,663
Total equity
14,194,116
14,067,287
The financial statements were approved by the board of directors and authorised for issue on 24 November 2023 and are signed on its behalf by:
24 November 2023
SP Baker
Director
Company registration number 12384653 (England and Wales)
CARBIS BAY HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 28 FEBRUARY 2023
28 February 2023
- 12 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
15
502,706
502,705
Current assets
Debtors
19
1,316,633
510,452
Cash at bank and in hand
10,310
9,910
1,326,943
520,362
Creditors: amounts falling due within one year
20
(1,123,997)
(1,001,503)
Net current assets/(liabilities)
202,946
(481,141)
Net assets
705,652
21,564
Capital and reserves
Called up share capital
26
101
101
Profit and loss reserves
705,551
21,463
Total equity
705,652
21,564

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £695,095 (2022 - £33,210 ).

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 24 November 2023 and are signed on its behalf by:
24 November 2023
SP Baker
Director
Company registration number 12384653 (England and Wales)
CARBIS BAY HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 13 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 March 2021
101
1,593,523
7,073,692
8,667,316
Year ended 28 February 2022:
Profit and total comprehensive income
-
-
5,465,759
5,465,759
Dividends
13
-
-
(65,788)
(65,788)
Transfers
-
162,000
(162,000)
-
Balance at 28 February 2022
101
1,755,523
12,311,663
14,067,287
Year ended 28 February 2023:
Profit and total comprehensive income
-
-
137,836
137,836
Dividends
13
-
-
(11,007)
(11,007)
Transfers
-
(40,663)
40,663
-
Balance at 28 February 2023
101
1,714,860
12,479,155
14,194,116
CARBIS BAY HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 14 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 March 2021
101
41
142
Year ended 28 February 2022:
Profit and total comprehensive income for the year
-
33,210
33,210
Dividends
13
-
(11,788)
(11,788)
Balance at 28 February 2022
101
21,463
21,564
Year ended 28 February 2023:
Profit and total comprehensive income
-
695,095
695,095
Dividends
13
-
(11,007)
(11,007)
Balance at 28 February 2023
101
705,551
705,652
CARBIS BAY HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 15 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
30
819,128
8,297,371
Interest paid
(477,817)
(308,189)
Income taxes paid
(438,436)
(11,531)
Net cash (outflow)/inflow from operating activities
(97,125)
7,977,651
Investing activities
Purchase of tangible fixed assets
(1,365,317)
(4,694,129)
Proceeds from disposal of tangible fixed assets
335,000
40,500
Purchase of subsidiaries, net of cash acquired
-
(61)
Proceeds from disposal of investments
30,000
-
Repayment of loans
(127,598)
(500,000)
Interest received
17,473
-
0
Net cash used in investing activities
(1,110,442)
(5,153,690)
Financing activities
Issue of preference shares
-
500,000
Proceeds from borrowings
192,522
13,435
Repayment of borrowings
(9,374)
(10,158)
Proceeds from new bank loans
13,000,000
-
Repayment of bank loans
(12,777,542)
(291,852)
Payment of finance leases obligations
(463,344)
(530,534)
Dividends paid to equity shareholders
(11,007)
(65,788)
Net cash used in financing activities
(68,745)
(384,897)
Net (decrease)/increase in cash and cash equivalents
(1,276,312)
2,439,064
Cash and cash equivalents at beginning of year
2,487,908
48,844
Cash and cash equivalents at end of year
1,211,596
2,487,908
CARBIS BAY HOLDINGS LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 16 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
31
(691,632)
(514,241)
Income taxes refunded
2,040
-
0
Net cash outflow from operating activities
(689,592)
(514,241)
Investing activities
Purchase of subsidiaries
(1)
(61)
Dividends received
701,000
36,000
Net cash generated from investing activities
700,999
35,939
Financing activities
Repayment of preference shares
-
500,000
Dividends paid to equity shareholders
(11,007)
(11,788)
Net cash (used in)/generated from financing activities
(11,007)
488,212
Net increase in cash and cash equivalents
400
9,910
Cash and cash equivalents at beginning of year
9,910
-
0
Cash and cash equivalents at end of year
10,310
9,910
CARBIS BAY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 17 -
1
Accounting policies
Company information

Carbis Bay Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Carbis Bay Hotel Limited, Carbis Bay, ST IVES, Cornwall, TR26 2NP.

 

The group consists of Carbis Bay Holdings Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention modified to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Carbis Bay Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 28 February 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

CARBIS BAY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 18 -

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and buildings
2% straight line
Plant and machinery
20% straight line
Fixtures and fittings
20% straight line
Motor vehicles
20% straight line

No depreciation has been charged on the freehold property on the basis that the residual values are in excess of the book amounts, Freehold land is not depreciated.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

CARBIS BAY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 19 -
1.7
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.8
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

CARBIS BAY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 20 -

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.9
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.10
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.11
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

CARBIS BAY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 21 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

CARBIS BAY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 22 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.12
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.13
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.14
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.15
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

CARBIS BAY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 23 -
1.16
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

1.17
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Hotel
13,326,050
23,803,021
2023
2022
£
£
Turnover analysed by geographical market
UK
13,326,050
23,803,021
2023
2022
£
£
Other revenue
Interest income
17,473
-
Grants received
4,000
359,024
CARBIS BAY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 24 -
4
Exceptional item
2023
2022
£
£
Expenditure
Exceptional item - demolishing property
973,848
-

Exceptional item includes the costs of building and subsequently demolishing property as retrospective planning permission was denied.

5
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Government grants
(4,000)
(359,024)
Depreciation of owned tangible fixed assets
667,127
659,149
Profit on disposal of tangible fixed assets
(335,000)
(9,264)
Amortisation of intangible assets
-
383
Loss on disposal of intangible assets
4,064
-
6
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
2,250
-
Audit of the financial statements of the company's subsidiaries
31,750
-
34,000
-

 

 

 

 

 

 

 

 

 

 

 

CARBIS BAY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 25 -
7
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
164
149
3
2

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
3,493,886
3,073,764
-
0
-
0
Social security costs
324,179
260,487
-
-
Pension costs
56,034
44,000
-
0
-
0
3,874,099
3,378,251
-
0
-
0
8
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
308,282
262,599
Company pension contributions to defined contribution schemes
1,871
2,642
310,153
265,241
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
242,385
178,522
Company pension contributions to defined contribution schemes
1,321
1,321

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounts to 2 (2022 - 2).

9
Interest receivable and similar income
2023
2022
£
£
Interest income
Other interest income
17,473
-
CARBIS BAY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 26 -
10
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
455,974
253,269
Other finance costs:
Interest on finance leases and hire purchase contracts
21,843
54,034
Other interest
-
886
Total finance costs
477,817
308,189
11
Amounts written off investments
2023
2022
£
£
Changes in the fair value of properties
-
200,000
12
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
327,200
135,049
Adjustments in respect of prior periods
1,425
-
0
Group tax relief
(2,040)
-
0
Total current tax
326,585
135,049
Deferred tax
Origination and reversal of timing differences
615,463
760,550
Total tax charge
942,048
895,599
CARBIS BAY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
12
Taxation
(Continued)
- 27 -

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
1,079,884
6,361,358
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
205,178
1,208,658
Tax effect of expenses that are not deductible in determining taxable profit
199,822
10,344
Tax effect of income not taxable in determining taxable profit
(11,315)
(38,040)
Tax effect of utilisation of tax losses not previously recognised
1,510
(304,747)
Unutilised tax losses carried forward
-
0
530
Adjustments in respect of prior years
1,425
-
0
Group relief
(2,040)
-
0
Permanent capital allowances in excess of depreciation
(68,457)
(741,696)
Deferred tax
615,925
760,550
Taxation charge
942,048
895,599
13
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Final paid
11,007
11,788
CARBIS BAY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 28 -
14
Tangible fixed assets
Group
Freehold land and buildings
Plant and machinery
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost or valuation
At 1 March 2022
28,177,283
13,160
5,104,982
111,628
33,407,053
Additions
1,162,496
-
0
171,371
31,450
1,365,317
Disposals
(854,317)
(1,000)
(38,635)
-
0
(893,952)
At 28 February 2023
28,485,462
12,160
5,237,718
143,078
33,878,418
Depreciation and impairment
At 1 March 2022
-
0
5,857
2,648,216
31,556
2,685,629
Depreciation charged in the year
-
0
2,432
640,544
24,151
667,127
Eliminated in respect of disposals
-
0
(1,000)
-
0
-
0
(1,000)
At 28 February 2023
-
0
7,289
3,288,760
55,707
3,351,756
Carrying amount
At 28 February 2023
28,485,462
4,871
1,948,958
87,371
30,526,662
At 28 February 2022
28,177,283
7,303
2,456,766
80,072
30,721,424
The company had no tangible fixed assets at 28 February 2023 or 28 February 2022.

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2023
2022
2023
2022
£
£
£
£
Plant and machinery
-
0
7,303
-
0
-
0
Fixtures and fittings
610,870
678,466
-
0
-
0
Motor vehicles
65,174
50,745
-
0
-
0
676,044
736,514
-
-

The company has applied the transitional arrangements of Section 35 of FRS 102 and used a previous valuation as the deemed cost for freehold properties.

If revalued assets were stated on an historical cost basis rather than at valuation, the carrying amounts would have been as follows:

 

2023
2022
£
£
Group
Cost
26,727,859
25,862,988
CARBIS BAY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 29 -
15
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
16
-
0
-
0
502,706
502,705
Investments in joint ventures
17
60,473
2
-
0
-
0
Unlisted investments
-
0
34,064
-
0
-
0
60,473
34,066
502,706
502,705
Movements in fixed asset investments
Group
Shares in joint ventures
Other investments
Total
£
£
£
Cost or valuation
At 1 March 2022
2
34,447
34,449
Additions
60,471
-
60,471
Disposals
-
(34,447)
(34,447)
At 28 February 2023
60,473
-
60,473
Impairment
At 1 March 2022
-
383
383
Disposals
-
(383)
(383)
At 28 February 2023
-
-
-
Carrying amount
At 28 February 2023
60,473
-
60,473
At 28 February 2022
2
34,064
34,066
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 March 2022
502,705
Additions
1
At 28 February 2023
502,706
Carrying amount
At 28 February 2023
502,706
At 28 February 2022
502,705
CARBIS BAY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 30 -
16
Subsidiaries

Details of the company's subsidiaries at 28 February 2023 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Carbis Bay Holiday Lets Limited
Peat House, Newham Road, Truro, Cornwall TR1 2DP
Management of real estate
Ordinary shares
100.00
CB Building & Developments
Peat House, Newham Road, Truro, Cornwall TR1 2DP
Development of building projects
Ordinary shares
100.00
Atlantic Bay Hotel Limited
Peat House, Newham Road, Truro, Cornwall TR1 2DP
Other letting and operating of own real estate
Ordinary shares
100.00
Carbis Bay Hotel Hospitality Limited
Peat House, Newham Road, Truro, Cornwall TR1 2DP
Other activities of employment placement agencies
Ordinary shares
100.00
Carbis Bay Hotel Limited
Peat House, Newham Road, Truro, Cornwall TR1 2DP
Hotel and similar accommodation
Ordinary shares
100.00
Carbis Bay Property Limited
Peat House, Newham Road, Truro, Cornwall TR1 2DP
Development of building projects
Ordinary shares
100.00
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
Carbis Bay Holiday Lets Limited
17,667
53,653
CB Building & Developments
1,252
(894)
Atlantic Bay Hotel Limited
(329,507)
(1,066,271)
Carbis Bay Hotel Hospitality Limited
7,896
5,810
Carbis Bay Hotel Limited
14,234,303
1,091,888

 

 

 

17
Joint ventures

Details of joint ventures at 28 February 2023 are as follows:

Name of undertaking
Registered office
Nature of business
Interest
% Held
held
Direct
Adam Handling at Carbis Bay Limited
34-35 Southampton Street, London, England WC2E 7HG
Licensed restaurant
Ordinary shares
50.00
Carbis Bay Studio Limited
Peat House, Newham Road, Truro, Cornwall TR1 2DP
Video production activities
Ordinary shares
50.00
CARBIS BAY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 31 -
18
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Raw materials and consumables
127,030
104,214
-
-
19
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
290,510
1,222,713
-
0
-
0
Corporation tax recoverable
94,154
-
0
-
0
-
0
Amounts owed by group undertakings
-
-
1,285,399
360,550
Other debtors
779,784
187,673
31,234
149,902
Prepayments and accrued income
141,087
180,261
-
0
-
0
1,305,535
1,590,647
1,316,633
510,452
20
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
22
663,435
480,394
-
0
-
0
Obligations under finance leases
23
287,092
477,732
-
0
-
0
Other borrowings
22
538,140
514,850
500,000
500,000
Trade creditors
452,570
414,811
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
617,872
2
Corporation tax payable
117,353
135,050
-
0
-
0
Other taxation and social security
470,801
554,021
-
-
Other creditors
1,806,718
4,100,142
500
500,001
Accruals and deferred income
766,060
800,995
5,625
1,500
5,102,169
7,477,995
1,123,997
1,001,503
21
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
22
11,858,366
11,818,949
-
0
-
0
Obligations under finance leases
23
196,152
468,856
-
0
-
0
Other borrowings
22
159,858
-
0
-
0
-
0
12,214,376
12,287,805
-
-
CARBIS BAY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 32 -
22
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
12,521,801
12,299,343
-
0
-
0
Preference shares
500,000
500,000
500,000
500,000
Other loans
197,998
14,850
-
0
-
0
13,219,799
12,814,193
500,000
500,000
Payable within one year
1,201,575
995,244
500,000
500,000
Payable after one year
12,018,224
11,818,949
-
0
-
0

 

Bank loans are secured by fixed and floating charges over the group's assets. The aggregate amount of borrowings is £12,521,801 (2022: £12,299,343).

23
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
310,712
477,732
-
0
-
0
In two to five years
172,532
468,856
-
0
-
0
483,244
946,588
-
-

Finance lease payments represent rentals payable by the company or group for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

 

Finance leases are secured on the assets to which they relate,

CARBIS BAY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 33 -
24
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
1,680,016
1,105,216
Tax losses
(44)
(44)
Revaluations
40,663
-
1,720,635
1,105,172
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 March 2022
1,105,172
-
Charge to profit or loss
615,463
-
Liability at 28 February 2023
1,720,635
-

 

25
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
56,034
44,000

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

At the year end the group owed the pension scheme £12,538 (2022: £11,690).

CARBIS BAY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 34 -
26
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of £1 each
67
67
67
67
Ordinary B shares of £1 each
13
13
13
13
Ordinary C shares of £1 each
20
20
20
20
Ordinary D shares of £1 each
1
1
1
1
101
101
101
101

A, B and C shares hold equal voting rights. The D shares have no voting rights but carry a right to a fixed income.

27
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2023
2022
£
£
Aggregate compensation
656,831
557,506
Other information

On 5 August 2011 MWG Baker, director and owner of the freehold of the hotel site, granted a 999 year lease to SP Baker, as nominee for Carbis Bay Hotel Limited, subsidiary of Carbis Bay Holdings Limited. SP Baker is therefore the legal tenant under the lease but Carbis Bay Hotel Limited has the beneficial interest in the tenancy. The freehold is now held by the estate of MWG Baker.

 

During the year properties owned by directors and close family members were rented to Carbis Bay Hotel Limited, subsidiary of Carbis Bay Holdings Limited, for staff accommodation. The rent paid by the hotel was £34,000 (2022: £45,025).

 

During the year properties owned by directors and close family members were also rented by Carbis Bay Holiday Lets Limited, subsidiary of Carbis Bay Holdings Limited, on behalf of the directors. The commission earned by the company was £2,800 (2022: £2,800).

 

During the year salaries were paid to close family members of the directors amounting to £85,036 (2022: £59,416).

 

During the year a loan was made to a close family member totalling £534,961. Interest was charged at the rate of 6%. The amount still outstanding at the year end was £551,171.

 

In the prior year a loan due from a director was converted to redeemable preference shares.  As these can be redeemed on demand, they are recognised as a financial liability and included within creditors within 1 year.  Dividends totalling £500 were received in the year (2022: £Nil). The balance due to the director as at 28 February was £500,500 (2022: £500,000).

 

CARBIS BAY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 35 -
28
Directors' transactions

Dividends totalling £0 (2022 - £0) were paid in the year in respect of shares held by the company's directors.

Description
% Rate
Opening balance
Amounts advanced
Interest charged
Amounts repaid
Closing balance
£
£
£
£
£
MWG Baker -
2.00
(42,387)
132,127
651
(24,599)
65,792
SP Baker -
2.00
(119,958)
880,185
612
(699,032)
61,807
(162,345)
1,012,312
1,263
(723,631)
127,599
29
Contingent assets

As at 28 February 2023, the company had a significant ongoing insurance claim in relation to a past storm.  This has not been recognised within the financial statements as at date of approval of the accounts, a reliable estimate of the value of the claim was not available and conditions for recognition had not been met.

 

 

30
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
137,836
5,465,759
Adjustments for:
Share of results of associates and joint ventures
(60,471)
-
Taxation charged
942,048
895,599
Finance costs
477,817
308,189
Investment income
(17,473)
-
0
Gain on disposal of tangible fixed assets
(335,000)
(9,264)
Loss on disposal of intangible assets
4,064
-
Fair value gain on investment properties
-
0
(200,000)
Depreciation and impairment of tangible fixed assets
667,127
659,149
Movements in working capital:
Increase in stocks
(22,816)
(47,680)
Decrease in debtors
506,864
2,042,451
Decrease in creditors
(1,480,868)
(816,832)
Cash generated from operations
819,128
8,297,371
CARBIS BAY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 36 -
31
Cash absorbed by operations - company
2023
2022
£
£
Profit for the year after tax
695,095
33,210
Adjustments for:
Taxation credited
(2,040)
-
0
Investment income
(701,000)
(36,000)
Movements in working capital:
Increase in debtors
(806,181)
(510,452)
Increase/(decrease) in creditors
122,494
(999)
Cash absorbed by operations
(691,632)
(514,241)
32
Analysis of changes in net debt - group
1 March 2022
Cash flows
28 February 2023
£
£
£
Cash at bank and in hand
2,487,908
(1,276,312)
1,211,596
Borrowings excluding overdrafts
(12,814,193)
(405,606)
(13,219,799)
Obligations under finance leases
(946,588)
463,344
(483,244)
(11,272,873)
(1,218,574)
(12,491,447)
33
Analysis of changes in net debt - company
1 March 2022
Cash flows
28 February 2023
£
£
£
Cash at bank and in hand
9,910
400
10,310
Borrowings excluding overdrafts
(500,000)
-
(500,000)
(490,090)
400
(489,690)
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