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Registration number: 11145841

Langstone Quays Hotel Limited

Annual Report and Consolidated Financial Statements

for the Year Ended 30 November 2022

 

Langstone Quays Hotel Limited

Contents

Company Information

1

Strategic Report

2

Directors' Report

3

Statement of Directors' Responsibilities

4

Independent Auditor's Report

5 to 8

Consolidated Profit and Loss Account

9

Consolidated Statement of Comprehensive Income

10

Consolidated Balance Sheet

11

Balance Sheet

12

Consolidated Statement of Changes in Equity

13

Statement of Changes in Equity

14

Consolidated Statement of Cash Flows

15

Statement of Cash Flows

16

Notes to the Financial Statements

17 to 35

 

Langstone Quays Hotel Limited

Company Information

Directors

Dr Ashok Bansal

Paula Walker

Swarnlata Bansal

Registered office

Lion Quays Hotel Limited
Weston Rhyn
Gobowen
Oswestry
SY11 3EN

Auditors

Fruition Accountancy LLP
29 Wood Street
Stratford-Upon-Avon
Warwickshire
CV37 6JG

 

Langstone Quays Hotel Limited

Strategic Report for the Year Ended 30 November 2022

The directors present their strategic report for the year ended 30 November 2022.

Principal activity

The principal activity of the group is the running of Langstone Quays Resort.

Fair review of the business

During the period under review the company has seen the first full year of trading since the COVID 19 restrictions have lifted. During the year, the refurbishment program has included the executive and family bedrooms. The improvements saw ARR increase over pre COVID levels driving overall revenue £550k ahead of 2019 for the year.

The significant increase in utility costs and the resultant cost of living crisis during 2022 had an impact on profits, although revenue remained strong with budgets for the year being exceeded.

Principal risks and uncertainties

The Directors acknowledge responsibility for the systems and controls of the company and continue to strengthen and develop those in place. The company aims to mitigate liquidity risk and cash flow risk by managing working capital, and as a result, it continues to closely monitor the working capital requirements, and work with the company's bank to ensure that these working capital requirements are met.

Approved and authorised by the Board on 30 November 2023 and signed on its behalf by:
 

.........................................
Paula Walker
Director

 

Langstone Quays Hotel Limited

Directors' Report for the Year Ended 30 November 2022

The directors present their report and the for the year ended 30 November 2022.

Director of the group

The directors who held office during the year were as follows:

Dr Ashok Bansal

Paula Walker

Swarnlata Bansal

Financial instruments

Objectives and policies

The company has continued to invest in Staff welfare, training and development, and improved staff communication. This is to ensure the key policy of maintaining high customer service and satisfaction. Emphasis on fostering business relationships with suppliers to maintain cost control.

Ongoing centralisation and restructure of resources for cost saving and efficiencies along with a continuing program of refurbishment to maintain standards and drive rates.

Price risk, credit risk, liquidity risk and cash flow risk

The company aims to mitigate liquidity risk and cash flow risk by managing working capital, and as a result, it continues to closely monitor the working capital requirements, and work with the company's bank to ensure that these working capital requirements are met.

Going concern

Owing to a plan of refinancing over the next year, the company will be able to meet its liabilities as they fall due. Accordingly, the Directors have the expectation of sufficient resources to continue in operational existence for the foreseeable future. Therefore, they adopt the “going concern” basis in preparing the Strategic Report and the financial statements.

Disclosure of information to the auditor

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.

Approved and authorised by the Board on 30 November 2023 and signed on its behalf by:
 

.........................................
Paula Walker
Director

 

Langstone Quays Hotel Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities 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 company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the 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 company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 

Langstone Quays Hotel Limited

Independent Auditor's Report to the Members of Langstone Quays Hotel Limited

Opinion

We have audited the financial statements of Langstone Quays Hotel Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 November 2022, which comprise the Consolidated Profit and Loss Account, Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of 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:

give a true and fair view of the state of the company's affairs as at 30 November 2022 and of its loss for the year then ended;

have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

have been prepared in accordance with the requirements of the Companies Act 2006.

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 responsibilities for the audit of the financial statements section of our report. We are independent of the group 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.

Material uncertainty related to going concern

We draw attention to Note 2 in the financial statements, which indicates that the group incurred a net loss of £439,122 during the year ended 30 November 2022 and, as of that date, the company’s net asset position was £2,887,547. As stated in Note 2, these events or conditions, along with other matters as set forth in Note 2, indicate that a material uncertainty exists that may cast significant doubt on the company’s ability to continue as a going concern. Owing to a plan of refinancing over the next year, the directors have the expectation of sufficient resources to continue in operational existence for the foreseeable future. Therefore, they adopt the “going concern” basis in preparing the Strategic Report and the financial statements. Our opinion is not modified in respect of this matter.

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.

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 directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.

 

Langstone Quays Hotel Limited

Independent Auditor's Report to the Members of Langstone Quays Hotel Limited

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Opinion on other matter prescribed by the Companies Act 2006

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

the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.

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

adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

the parent company financial statements are not in agreement with the accounting records and returns; or

certain disclosures of directors’ remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities [set out on page 4], 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 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 company or to cease operations, or have no realistic alternative but to do so.

Auditor 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.

 

Langstone Quays Hotel Limited

Independent Auditor's Report to the Members of Langstone Quays Hotel Limited

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

- the nature of the industry and sector, control environment and business performance including the design of the Group remuneration policies, key drivers for directors’ remuneration, bonus levels and performance targets;
- results of our enquiries of management about their own identification and assessment of the risks of irregularities;
- any matters we identified having obtained and reviewed the Group documentation of their policies and procedures relating to:
- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of noncompliance;
- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;
- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;
- the matters discussed among the audit engagement team and involving relevant internal specialists, including tax specialists, regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in relation to valuation of fixed assets. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory frameworks that the Group operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act and tax legislation.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the Group’s ability to operate or to avoid a material penalty. These included compliance with GDPR regulation.

Audit response to risks identified:
As a result of performing the above, we identified valuation of fixed assets as a key audit matter related to the potential risk of fraud.

 

Langstone Quays Hotel Limited

Independent Auditor's Report to the Members of Langstone Quays Hotel Limited

 

Our procedures to respond to risks identified included the following:
- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
- enquiring 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 and reviewing internal reports;
- obtained an understanding of provisions and held discussions with management to understand the basis of recognition or non-recognition of tax provisions; and
- in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members including internal specialists, and remained alert to any indications of fraud or noncompliance with laws and regulations throughout the audit.

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: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

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.

......................................
Michelle Vincent (Senior Statutory Auditor)
For and on behalf of Fruition Accountancy LLP, Statutory Auditor

29 Wood Street
Stratford-Upon-Avon
Warwickshire
CV37 6JG

30 November 2023

 

Langstone Quays Hotel Limited

Consolidated Profit and Loss Account for the Year Ended 30 November 2022

Note

2022
£

2021
£

Turnover

3

5,399,979

3,937,950

Cost of sales

 

(2,858,957)

(2,223,202)

Gross profit

 

2,541,022

1,714,748

Administrative expenses

 

(2,489,304)

(1,939,352)

Other operating income

4

-

329,245

Operating profit

5

51,718

104,641

Interest payable and similar expenses

6

(406,315)

(273,229)

Loss before tax

 

(354,597)

(168,588)

Tax on loss

10

(84,525)

(72,097)

Loss for the financial year

 

(439,122)

(240,685)

Profit/(loss) attributable to:

 

Owners of the company

 

(439,122)

(240,685)

 

Langstone Quays Hotel Limited

Consolidated Statement of Comprehensive Income for the Year Ended 30 November 2022

2022
£

2021
£

Loss for the year

(439,122)

(240,685)

Surplus on property, plant and equipment revaluation

4,699,877

-

Total comprehensive income for the year

4,260,755

(240,685)

Total comprehensive income attributable to:

Owners of the company

4,260,755

(240,685)

 

Langstone Quays Hotel Limited

(Registration number: 11145841)
Consolidated Balance Sheet as at 30 November 2022

Note

2022
£

2021
£

Fixed assets

 

Intangible assets

11

2,380,000

2,800,000

Tangible assets

12

15,967,994

9,550,723

 

18,347,994

12,350,723

Current assets

 

Stocks

14

60,744

50,308

Debtors

15

228,745

233,089

Cash at bank and in hand

 

373,057

1,094,863

 

662,546

1,378,260

Creditors: Amounts falling due within one year

17

(1,985,047)

(2,512,264)

Net current liabilities

 

(1,322,501)

(1,134,004)

Total assets less current liabilities

 

17,025,493

11,216,719

Creditors: Amounts falling due after more than one year

17

(12,388,260)

(12,489,078)

Provisions for liabilities

18

(1,749,686)

(100,849)

Net assets/(liabilities)

 

2,887,547

(1,373,208)

Capital and reserves

 

Called up share capital

19

100

100

Revaluation reserve

4,699,877

-

Profit and loss account

(1,812,430)

(1,373,308)

Equity attributable to owners of the company

 

2,887,547

(1,373,208)

Shareholders' funds/(deficit)

 

2,887,547

(1,373,208)

Approved and authorised by the Board on 30 November 2023 and signed on its behalf by:
 

.........................................
Paula Walker
Director

 

Langstone Quays Hotel Limited

(Registration number: 11145841)
Balance Sheet as at 30 November 2022

Note

2022
£

2021
£

Fixed assets

 

Intangible assets

11

2,380,000

2,800,000

Tangible assets

12

14,646,667

8,600,164

Investments

13

100

100

 

17,026,767

11,400,264

Current assets

 

Debtors

15

25,750

41,200

Cash at bank and in hand

 

47,555

220,364

 

73,305

261,564

Creditors: Amounts falling due within one year

17

(677,403)

(2,600,076)

Net current liabilities

 

(604,098)

(2,338,512)

Total assets less current liabilities

 

16,422,669

9,061,752

Creditors: Amounts falling due after more than one year

17

(14,645,300)

(12,489,078)

Provisions for liabilities

18

(1,633,836)

(9,729)

Net assets/(liabilities)

 

143,533

(3,437,055)

Capital and reserves

 

Called up share capital

19

100

100

Revaluation reserve

4,699,877

-

Profit and loss account

(4,556,444)

(3,437,155)

Shareholders' funds/(deficit)

 

143,533

(3,437,055)

The company made a loss after tax for the financial year of £1,119,289 (2021 - loss of £1,011,706).

Approved and authorised by the Board on 30 November 2023 and signed on its behalf by:
 

.........................................
Paula Walker
Director

 

Langstone Quays Hotel Limited

Consolidated Statement of Changes in Equity for the Year Ended 30 November 2022
Equity attributable to the parent company

Share capital
£

Revaluation reserve
£

Profit and loss account
£

Total
£

At 1 December 2021

100

-

(1,373,308)

(1,373,208)

Loss for the year

-

-

(439,122)

(439,122)

Other comprehensive income

-

4,699,877

-

4,699,877

Total comprehensive income

-

4,699,877

(439,122)

4,260,755

At 30 November 2022

100

4,699,877

(1,812,430)

2,887,547

Total equity
£

At 1 December 2021

(1,373,208)

Loss for the year

(439,122)

Other comprehensive income

4,699,877

Total comprehensive income

4,260,755

At 30 November 2022

2,887,547

Share capital
£

Profit and loss account
£

Total
£

Total equity
£

At 1 December 2020

100

(1,132,623)

(1,132,523)

(1,132,523)

Loss for the year

-

(240,685)

(240,685)

(240,685)

Total comprehensive income

-

(240,685)

(240,685)

(240,685)

At 30 November 2021

100

(1,373,308)

(1,373,208)

(1,373,208)

 

Langstone Quays Hotel Limited

Statement of Changes in Equity for the Year Ended 30 November 2022

Share capital
£

Revaluation reserve
£

Profit and loss account
£

Total
£

At 1 December 2021

100

-

(3,437,155)

(3,437,055)

Loss for the year

-

-

(1,119,289)

(1,119,289)

Other comprehensive income

-

4,699,877

-

4,699,877

Total comprehensive income

-

4,699,877

(1,119,289)

3,580,588

At 30 November 2022

100

4,699,877

(4,556,444)

143,533

Share capital
£

Profit and loss account
£

Total
£

At 1 December 2020

100

(2,425,449)

(2,425,349)

Loss for the year

-

(1,011,706)

(1,011,706)

Total comprehensive income

-

(1,011,706)

(1,011,706)

At 30 November 2021

100

(3,437,155)

(3,437,055)

 

Langstone Quays Hotel Limited

Consolidated Statement of Cash Flows for the Year Ended 30 November 2022

Note

2022
£

2021
£

Cash flows from operating activities

Loss for the year

 

(439,122)

(240,685)

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

5

1,060,900

1,012,709

Finance costs

6

406,315

273,229

Income tax expense

10

84,525

72,097

 

1,112,618

1,117,350

Working capital adjustments

 

Increase in stocks

14

(10,436)

(15,474)

Decrease/(increase) in trade debtors

15

4,344

(127,687)

Increase in trade creditors

17

486,012

128,768

Net cash flow from operating activities

 

1,592,538

1,102,957

Cash flows from investing activities

 

Acquisitions of tangible assets

(791,668)

(166,862)

Cash flows from financing activities

 

Interest paid

6

(406,315)

(273,229)

Proceeds from bank borrowing draw downs

 

-

1,050,000

Repayment of bank borrowing

 

(1,116,361)

(515,000)

Proceeds from other borrowing draw downs

 

-

76,910

Net cash flows from financing activities

 

(1,522,676)

338,681

Net (decrease)/increase in cash and cash equivalents

 

(721,806)

1,274,776

Cash and cash equivalents at 1 December

 

1,094,863

(179,913)

Cash and cash equivalents at 30 November

 

373,057

1,094,863

 

Langstone Quays Hotel Limited

Statement of Cash Flows for the Year Ended 30 November 2022

Note

2022
£

2021
£

Cash flows from operating activities

Loss for the year

 

(1,119,289)

(1,011,706)

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

5

640,000

647,545

Finance costs

406,315

273,109

Income tax expense

10

57,481

74,911

 

(15,493)

(16,141)

Working capital adjustments

 

Decrease in trade debtors

15

15,450

15,450

Increase/(decrease) in trade creditors

17

1,349,910

(117,825)

Net cash flow from operating activities

 

1,349,867

(118,516)

Cash flows from financing activities

 

Interest paid

(406,315)

(273,109)

Proceeds from bank borrowing draw downs

 

(1,116,361)

1,050,000

Repayment of bank borrowing

 

-

(515,000)

Proceeds from other borrowing draw downs

 

-

76,910

Net cash flows from financing activities

 

(1,522,676)

338,801

Net (decrease)/increase in cash and cash equivalents

 

(172,809)

220,285

Cash and cash equivalents at 1 December

 

220,364

79

Cash and cash equivalents at 30 November

 

47,555

220,364

 

Langstone Quays Hotel Limited

Notes to the Financial Statements for the Year Ended 30 November 2022

1

General information

The company is a private company limited by share capital, incorporated in England & Wales.

The address of its registered office is:
Lion Quays Hotel Limited
Weston Rhyn
Gobowen
Oswestry
SY11 3EN

The principal place of business is:
Langstone Hotel
Northney Road
Hayling Island
PO11 0NQ

These financial statements were authorised for issue by the Board on 30 November 2023.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Summary of disclosure exemptions

As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements..

Basis of consolidation

The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 30 November 2022.

 

Langstone Quays Hotel Limited

Notes to the Financial Statements for the Year Ended 30 November 2022

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

The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.

The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.

Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.

Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.

Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.

Going concern

The financial statements have been prepared on a going concern basis. As at 30 November 2022 the group has net assets of £2,887,547. At the date of signing these financial statements the company, and its related companies, are negotiating with financial institutions to refinance its debt finance. The Directors are confident that a new finance facility will be in place by 31 December 2023 and this will support the company in achieving its budget in the next 12 months.

 

Langstone Quays Hotel Limited

Notes to the Financial Statements for the Year Ended 30 November 2022

Key sources of estimation uncertainty

Goodwill
The determination of whether goodwill should be impaired requires the estimation of future cash flows, based on management's judgement and expectations.

Investments
The Group assesses the carrying values of investments annually or more frequently if warranted by a change in circumstances. If it is determined that the carrying values of investments cannot be recovered, the unrecoverable amounts are charged to the profit and loss. Recoverability is dependent upon assumptions and judgements regarding discount rates, future cash flows and profit margins. A material change in assumptions may significantly impact the potential impairment of these assets.

Operating lease commitments
As a lessee, the Group obtains the use of property, plant and equipment. The classification of such leases as operating or finance lease requires the Group to determine, based on an evaluation of the terms and conditions of the arrangement, whether it retains or acquires the significant risks and rewards of ownership of these assets and accordingly whether the lease requires an asset and liability to be recognised in the statement of financial position.

Useful economic life of non-current assets
Management estimate the useful economic life of non-current assets based on the period over which the asset is expected to be used and provide for depreciation accordingly. Where an indication of impairment is identified the estimation of recoverable value requires estimation.

Deferred tax
Management estimation is required to determine the amount of deferred tax asset that can be recognised, based upon likely timing and level of future taxable profits.

Accrued and deferred income
In recognising accrued income in the financial statements, management estimate work completed but not billed to the client. In recognising deferred income in the financial statements management estimate work billed to the client but not completed. These estimates are based on project contracts, project knowledge and professional judgement..

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the group’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the company.

The group recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the group's activities.

Government grants

Income based government grants are recognised in the period to which they relate.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

 

Langstone Quays Hotel Limited

Notes to the Financial Statements for the Year Ended 30 November 2022

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the group operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the consolidated financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses with the exception of land and buildings which is stated at fair value under the revaluation model.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Buildings

2% straight line

Plant and machinery

20% straight line

Fixtures and fittings

20% straight line

Office equipment

20% straight line

Computer equipment

25% straight line

Business combinations

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

 

Langstone Quays Hotel Limited

Notes to the Financial Statements for the Year Ended 30 November 2022

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Goodwill

10 years

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.


Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the group will not be able to collect all amounts due according to the original terms of the receivables.

Inventories

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the group does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

 

Langstone Quays Hotel Limited

Notes to the Financial Statements for the Year Ended 30 November 2022

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Related party exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.
 

3

Revenue

The analysis of the group's revenue for the year from continuing operations is as follows:

2022
£

2021
£

Sale of goods

5,399,979

3,937,950

4

Other operating income

The analysis of the group's other operating income for the year is as follows:

 

Langstone Quays Hotel Limited

Notes to the Financial Statements for the Year Ended 30 November 2022

2022
£

2021
£

Government grants

-

329,245

5

Operating profit

Arrived at after charging/(crediting)

2022
£

2021
£

Depreciation expense

640,900

592,709

Amortisation expense

420,000

420,000

6

Interest payable and similar expenses

2022
£

2021
£

Interest on bank overdrafts and borrowings

347,404

214,318

Interest expense on other finance liabilities

58,911

58,911

406,315

273,229

7

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2022
£

2021
£

Wages and salaries

1,703,387

1,363,932

Other post-employment benefit costs

19,634

15,905

Other employee expense

10,941

3,731

1,733,962

1,383,568

The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

2022
 No.

2021
 No.

Hotel and front of house services

13

10

Management and administration

97

88

Research and development

4

4

114

102

8

Directors' remuneration

The directors' remuneration for the year was as follows:

 

Langstone Quays Hotel Limited

Notes to the Financial Statements for the Year Ended 30 November 2022

2022
£

2021
£

Remuneration

99,996

44,007

9

Auditors' remuneration

2022
£

2021
£

Audit of these financial statements

2,800

2,000

Audit of the financial statements of subsidiaries of the company pursuant to legislation

8,500

8,500

11,300

10,500


 

10

Taxation

Tax charged/(credited) in the income statement

2022
£

2021
£

Current taxation

UK corporation tax

2,314

-

Deferred taxation

Arising from origination and reversal of timing differences

82,211

72,097

Tax expense in the income statement

84,525

72,097

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2021 - the same as the standard rate of corporation tax in the UK) of 19% (2021 - 19%).

The differences are reconciled below:

2022
£

2021
£

Loss before tax

(354,597)

(168,588)

Corporation tax at standard rate

(67,373)

(32,032)

Effect of expense not deductible in determining taxable profit (tax loss)

79,800

79,800

Effect of tax losses

(55,027)

74,911

Tax increase/(decrease) from effect of capital allowances and depreciation

127,125

(50,582)

Total tax charge

84,525

72,097

 

Langstone Quays Hotel Limited

Notes to the Financial Statements for the Year Ended 30 November 2022

Deferred tax

Group

Deferred tax assets and liabilities

2022

Liability
£

Accelerated tax depreciation

183,060

Tax losses available for carry forward

-

Revaluation of property

1,566,626

 

1,749,686

2021

Asset
£

Liability
£

Accelerated tax depreciation

-

155,876

Tax losses available for carry forward

55,027

-

Revaluation of property

-

-

 

55,027

155,876

Company

Deferred tax assets and liabilities

2022

Liability
£

Accelerated tax depreciation

67,210

Tax losses available for carry forward

-

Revaluation of property

1,566,626

 

1,633,836

2021

Asset
£

Liability
£

Accelerated tax depreciation

-

64,757

Tax losses available for carry forward

55,027

-

Revaluation of property

-

-

 

55,027

64,757

At the balance sheet date the company had £nil (2021: £289,617) of tax losses available for carry forward against future profits.

 

Langstone Quays Hotel Limited

Notes to the Financial Statements for the Year Ended 30 November 2022

11

Intangible assets

Group

Goodwill
 £

Total
£

Cost or valuation

At 1 December 2021

4,200,000

4,200,000

At 30 November 2022

4,200,000

4,200,000

Amortisation

At 1 December 2021

1,400,000

1,400,000

Amortisation charge

420,000

420,000

At 30 November 2022

1,820,000

1,820,000

Carrying amount

At 30 November 2022

2,380,000

2,380,000

At 30 November 2021

2,800,000

2,800,000

Company

Goodwill
 £

Total
£

Cost or valuation

At 1 December 2021

4,200,000

4,200,000

At 30 November 2022

4,200,000

4,200,000

Amortisation

At 1 December 2021

1,400,000

1,400,000

Amortisation charge

420,000

420,000

At 30 November 2022

1,820,000

1,820,000

Carrying amount

At 30 November 2022

2,380,000

2,380,000

At 30 November 2021

2,800,000

2,800,000

 

Langstone Quays Hotel Limited

Notes to the Financial Statements for the Year Ended 30 November 2022

12

Tangible assets

Group

Land and buildings
£

Fixtures and fittings
£

Plant and machinery
£

Office equipment
£

Total
£

Cost or valuation

At 1 December 2021

8,259,497

2,116,428

658,083

197,999

11,232,007

Revaluations

6,240,503

-

-

-

6,240,503

Additions

-

791,668

-

-

791,668

At 30 November 2022

14,500,000

2,908,096

658,083

197,999

18,264,178

Depreciation

At 1 December 2021

26,000

1,091,611

433,916

129,757

1,681,284

Charge for the year

-

464,532

131,625

44,743

640,900

Impairment

(26,000)

-

-

-

(26,000)

At 30 November 2022

-

1,556,143

565,541

174,500

2,296,184

Carrying amount

At 30 November 2022

14,500,000

1,351,953

92,542

23,499

15,967,994

At 30 November 2021

8,233,497

1,025,017

224,167

68,042

9,550,723

Included within the net book value of land and buildings above is £14,500,000 (2021 - £8,233,497) in respect of freehold land and buildings.
 

 

Langstone Quays Hotel Limited

Notes to the Financial Statements for the Year Ended 30 November 2022

Revaluation

The fair value of the group's Land and buildings was revalued on 30 November 2022 by an independent valuer.
Had this class of asset been measured on a historical cost basis, the carrying amount would have been £8,225,952 (2021 - £8,233,497).
 

Company

Land and buildings
£

Fixtures and fittings
£

Plant and machinery
£

Total
£

Cost or valuation

At 1 December 2021

8,259,497

500,000

600,000

9,359,497

Revaluations

6,240,503

-

-

6,240,503

At 30 November 2022

14,500,000

500,000

600,000

15,600,000

Depreciation

At 1 December 2021

26,000

333,333

400,000

759,333

Charge for the year

-

100,000

120,000

220,000

Impairment

(26,000)

-

-

(26,000)

At 30 November 2022

-

433,333

520,000

953,333

Carrying amount

At 30 November 2022

14,500,000

66,667

80,000

14,646,667

At 30 November 2021

8,233,497

166,667

200,000

8,600,164

Included within the net book value of land and buildings above is £14,500,000 (2021 - £8,233,497) in respect of freehold land and buildings.
 

Revaluation

The fair value of the company's Land and buildings was revalued on 30 November 2022 by an independent valuer.
Had this class of asset been measured on a historical cost basis, the carrying amount would have been £8,225,952 (2021 - £8,233,497).
 

 

Langstone Quays Hotel Limited

Notes to the Financial Statements for the Year Ended 30 November 2022

13

Investments

Company

2022
£

2021
£

Investments in subsidiaries

100

100

Subsidiaries

£

Cost or valuation

At 1 December 2021

100

Provision

Carrying amount

At 30 November 2022

100

At 30 November 2021

100

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

     

2022

2021

Subsidiary undertakings

Langstone Quays Limited

Lions Quays Hotel & Spa
Weston Rhyn
Oswestry

England & Wales

Ordinary shares

100%

100%

Subsidiary undertakings

Langstone Quays Limited

The principal activity of Langstone Quays Limited is the running of Langstone Quays Hotel..

14

Stocks

 

Group

Company

2022
£

2021
£

2022
£

2021
£

Other inventories

60,744

50,308

-

-

 

Langstone Quays Hotel Limited

Notes to the Financial Statements for the Year Ended 30 November 2022

15

Debtors

 

Group

Company

2022
£

2021
£

2022
£

2021
£

Trade debtors

76,297

94,504

-

-

Other debtors

25,750

41,200

25,750

41,200

Prepayments

126,698

97,385

-

-

228,745

233,089

25,750

41,200

16

Cash and cash equivalents

 

Group

Company

2022
£

2021
£

2022
£

2021
£

Cash on hand

5,938

4,500

-

-

Cash at bank

367,119

1,090,363

47,555

220,364

373,057

1,094,863

47,555

220,364

17

Creditors

   

Group

Company

Note

2022
£

2021
£

2022
£

2021
£

Due within one year

 

Loans and borrowings

20

630,908

515,000

630,908

515,000

Trade creditors

 

330,728

48,411

-

-

Amounts due to related parties

23

-

-

-

1,885,928

Social security and other taxes

 

203,474

32,687

-

-

Other payables

 

59,965

1,185,937

-

179,678

Accruals

 

757,658

730,229

46,495

19,470

Income tax liability

10

2,314

-

-

-

 

1,985,047

2,512,264

677,403

2,600,076

Due after one year

 

Loans and borrowings

20

11,256,809

12,489,078

11,256,809

12,489,078

Other non-current financial liabilities

 

1,131,451

-

3,388,491

-

 

12,388,260

12,489,078

14,645,300

12,489,078

 

Langstone Quays Hotel Limited

Notes to the Financial Statements for the Year Ended 30 November 2022

18

Deferred tax and other provisions

Group

Deferred tax
£

Total
£

At 1 December 2021

100,849

100,849

Additional provisions

1,566,626

1,566,626

Increase (decrease) in existing provisions

82,211

82,211

At 30 November 2022

1,749,686

1,749,686

Company

Deferred tax
£

Total
£

At 1 December 2021

9,729

9,729

Additional provisions

1,566,626

1,566,626

Increase (decrease) in existing provisions

57,481

57,481

At 30 November 2022

1,633,836

1,633,836

19

Share capital

Allotted, called up and fully paid shares

 

2022

2021

 

No.

£

No.

£

Ordinary shares of £1 each

100

100

100

100

         

Rights, preferences and restrictions

Ordinary have the following rights, preferences and restrictions:
All shares hold one vote.

20

Loans and borrowings

 

Group

Company

2022
£

2021
£

2022
£

2021
£

Non-current loans and borrowings

Bank borrowings

8,841,456

10,073,725

8,841,456

10,073,725

Other borrowings

2,415,353

2,415,353

2,415,353

2,415,353

11,256,809

12,489,078

11,256,809

12,489,078

 

Langstone Quays Hotel Limited

Notes to the Financial Statements for the Year Ended 30 November 2022

 

Group

Company

2022
£

2021
£

2022
£

2021
£

Current loans and borrowings

Bank borrowings

630,908

515,000

630,908

515,000

Group

Bank borrowings

AIB loan is denominated in sterling with a nominal interest rate of 5.4627%%, and the final instalment is due on 31 July 2024. The carrying amount at year end is £9,023,725 (2021 - £9,538,725).

The bank loan and overdraft are secured as detailed below:
Freehold 1st legal charge over the property at Langstone Quays Hotel, Northney Road, Hayling Island, PO11 0NQ;
Fixed and floating charge over the other assets of the company;
Deed of subordination in respect of the directors loan granted by Dr A Bansal.
The following financial covenants apply and are calculated using the company's financial information:
Loan to value does not excedd 70%;
Cashflow cover shall not be less than 1.3:1;
Leverage shall not exceed 7.0:1; and
Capital expenditure shall not exceed the amount set out in the budget for the year.
The loan is being repaid in quarterly instalments of £128,750.

Coronavirus Business Interuption Loan is denominated in sterling with a nominal interest rate of 6.50%%, and the final instalment is due on 1 December 2026. The carrying amount at year end is £4,484,638 (2021 - £1,050,000).

The bank loan and overdraft are secured as detailed below:
Freehold 1st legal charge over the property at Langstone Quays Hotel, Northney Road, Hayling Island, PO11 0NQ;
Fixed and floating charge over the other assets of the company;
Deed of subordination in respect of the directors loan granted by Dr A Bansal.
Repayments will commence 1 December 2021.

Other borrowings

Dr A Bansal is denominated in Sterling with a nominal interest rate of 2.5%%, and the final instalment is due on 1 November 2036. The carrying amount at year end is £2,415,353 (2021 - £2,415,353).

There is no set repayment schedule for this loan however, the terms of the bank loan preclude any draw down before settlement of amounts due to bank.

 

Langstone Quays Hotel Limited

Notes to the Financial Statements for the Year Ended 30 November 2022

Company

Bank borrowings

AIB loan is denominated in sterling with a nominal interest rate of 5.4627%%, and the final instalment is due on 31 July 2024. The carrying amount at year end is £9,023,725 (2021 - £9,538,725).

The bank loan and overdraft are secured as detailed below:
Freehold 1st legal charge over the property at Langstone Quays Hotel, Northney Road, Hayling Island, PO11 0NQ;
Fixed and floating charge over the other assets of the company;
Deed of subordination in respect of the directors loan granted by Dr A Bansal.
The following financial covenants apply and are calculated using the company's financial information:
Loan to value does not excedd 70%;
Cashflow cover shall not be less than 1.3:1;
Leverage shall not exceed 7.5:1; and
Capital expenditure shall not exceed the amount set out in the budget for the year.
The loan is being repaid in quarterly instalments of £128,750.

Coronavirus Business Interuption Loan is denominated in sterling with a nominal interest rate of 6.50%%, and the final instalment is due on 1 December 2026. The carrying amount at year end is £448,638 (2021 - £1,050,000).

The bank loan and overdraft are secured as detailed below:
Freehold 1st legal charge over the property at Langstone Quays Hotel, Northney Road, Hayling Island, PO11 0NQ;
Fixed and floating charge over the other assets of the company;
Deed of subordination in respect of the directors loan granted by Dr A Bansal.

Other borrowings

Dr A Bansal is denominated in Sterling with a nominal interest rate of 2.5%, and the final instalment is due on 1 November 2036. The carrying amount at year end is £2,415,353 (2021 - £2,415,353).

There is no set repayment schedule for this loan however, the terms of the bank loan preclude any draw down before settlement of amounts due to bank.

 

Langstone Quays Hotel Limited

Notes to the Financial Statements for the Year Ended 30 November 2022

21

Obligations under leases and hire purchase contracts

Group

Operating leases

The total of future minimum lease payments is as follows:

2022
£

2021
£

Not later than one year

3,949

31,848

Later than one year and not later than five years

3,291

8,074

7,240

39,922

The amount of non-cancellable operating lease payments recognised as an expense during the year was £31,848 (2021 - £37,787).

22

Commitments

Group

Pension commitments

The company operates a defined contribution pension scheme for its employees. Included in the balance sheet are pensions commitments of £4,730 (2021 - £3,648). The pension expenses recognised in the year was £19,415 (2021: £16,505).

23

Related party transactions

Group

Summary of transactions with other related parties

During the period the group had the following transactions with Lion Quays Hotel Limited:
Purchases from £884,671 (2021: £322,894)
Sales to £7,904 (2021: £1,699)

At the balance sheet date the group owed £1,131,451 (2021: £1,131,451) to Lion Quays Hotel Limited. No interest is charged on this loan which is repayable on demand.

During the period the group had the following transactions with Ufford Park Limited:
Purchases £51,762 (2021: £nil)
Sales £51,762 (2021: £nil)

At the balance sheet date the group owed £nil (2021: £nil) to Ufford Park Limited.

 

 

Langstone Quays Hotel Limited

Notes to the Financial Statements for the Year Ended 30 November 2022

Company

Loans from related parties

2022

Subsidiary
£

Total
£

At start of period

1,885,928

1,885,928

Advanced

1,322,886

1,322,886

At end of period

3,208,814

3,208,814

2021

Subsidiary
£

Total
£

At start of period

1,757,183

1,757,183

Advanced

128,745

128,745

At end of period

1,885,928

1,885,928

Terms of loans from related parties

No interest is charged on group loans.
 

Summary of transactions with other related parties

At the balance sheet date the company owed £179,677 (2021: £179,677) to Lion Quays Hotel Limited, a company under common control. No interest is charged on this loan which is repayable on demand.
 

24

Parent and ultimate parent undertaking

The ultimate controlling party is Mr and Mrs A Bansal.