Global Reach Hotels Limited 12254128 false 2022-01-01 2022-12-31 2022-12-31 The principal activity of the company is investment, either directly or indirectly, in real estate, hotels and hospitality. Digita Accounts Production Advanced 6.30.9574.0 true true true Class 1 Class 2 Class 3 false true true true true true true true true true true true true true true true true true true true true true true true true true true true true true true true true true 12254128 2022-01-01 2022-12-31 12254128 2022-12-31 12254128 bus:Director5 2022-12-31 12254128 bus:Director7 2022-12-31 12254128 bus:OrdinaryShareClass1 bus:Non-cumulativeNon-redeemableShares 2022-12-31 12254128 bus:Consolidated 2022-12-31 12254128 core:RetainedEarningsAccumulatedLosses 2022-12-31 12254128 core:ShareCapital 2022-12-31 12254128 core:CurrentFinancialInstruments 2022-12-31 12254128 core:CurrentFinancialInstruments core:WithinOneYear 2022-12-31 12254128 core:Non-currentFinancialInstruments 2022-12-31 12254128 core:Non-currentFinancialInstruments core:AfterOneYear 2022-12-31 12254128 core:Non-currentFinancialInstruments core:Secured 2022-12-31 12254128 core:AdditionsToInvestments 2022-12-31 12254128 core:CostValuation 2022-12-31 12254128 bus:FRS102 2022-01-01 2022-12-31 12254128 bus:Audited 2022-01-01 2022-12-31 12254128 bus:FullAccounts 2022-01-01 2022-12-31 12254128 bus:RegisteredOffice 2022-01-01 2022-12-31 12254128 bus:Director3 2022-01-01 2022-12-31 12254128 bus:Director4 2022-01-01 2022-12-31 12254128 bus:Director5 2022-01-01 2022-12-31 12254128 bus:Director6 2022-01-01 2022-12-31 12254128 bus:Director7 2022-01-01 2022-12-31 12254128 bus:OrdinaryShareClass1 bus:Non-cumulativeNon-redeemableShares 2022-01-01 2022-12-31 12254128 bus:Consolidated 2022-01-01 2022-12-31 12254128 bus:PrivateLimitedCompanyLtd 2022-01-01 2022-12-31 12254128 1 2022-01-01 2022-12-31 12254128 core:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 12254128 core:ShareCapital 2022-01-01 2022-12-31 12254128 core:ReportableOperatingSegment1 2022-01-01 2022-12-31 12254128 core:ReportableOperatingSegment2 2022-01-01 2022-12-31 12254128 core:ReportableOperatingSegment3 2022-01-01 2022-12-31 12254128 core:OtherRelatedParties 2022-01-01 2022-12-31 12254128 core:Subsidiary1 2022-01-01 2022-12-31 12254128 core:Subsidiary1 1 2022-01-01 2022-12-31 12254128 core:Subsidiary10 2022-01-01 2022-12-31 12254128 core:Subsidiary10 1 2022-01-01 2022-12-31 12254128 core:Subsidiary11 2022-01-01 2022-12-31 12254128 core:Subsidiary11 1 2022-01-01 2022-12-31 12254128 core:Subsidiary12 2022-01-01 2022-12-31 12254128 core:Subsidiary12 1 2022-01-01 2022-12-31 12254128 core:Subsidiary13 2022-01-01 2022-12-31 12254128 core:Subsidiary13 1 2022-01-01 2022-12-31 12254128 core:Subsidiary14 2022-01-01 2022-12-31 12254128 core:Subsidiary14 1 2022-01-01 2022-12-31 12254128 core:Subsidiary15 2022-01-01 2022-12-31 12254128 core:Subsidiary15 1 2022-01-01 2022-12-31 12254128 core:Subsidiary16 2022-01-01 2022-12-31 12254128 core:Subsidiary16 1 2022-01-01 2022-12-31 12254128 core:Subsidiary17 2022-01-01 2022-12-31 12254128 core:Subsidiary17 1 2022-01-01 2022-12-31 12254128 core:Subsidiary18 2022-01-01 2022-12-31 12254128 core:Subsidiary18 1 2022-01-01 2022-12-31 12254128 core:Subsidiary19 2022-01-01 2022-12-31 12254128 core:Subsidiary19 1 2022-01-01 2022-12-31 12254128 core:Subsidiary2 2022-01-01 2022-12-31 12254128 core:Subsidiary2 1 2022-01-01 2022-12-31 12254128 core:Subsidiary20 2022-01-01 2022-12-31 12254128 core:Subsidiary20 1 2022-01-01 2022-12-31 12254128 core:Subsidiary21 2022-01-01 2022-12-31 12254128 core:Subsidiary21 1 2022-01-01 2022-12-31 12254128 core:Subsidiary22 2022-01-01 2022-12-31 12254128 core:Subsidiary22 1 2022-01-01 2022-12-31 12254128 core:Subsidiary23 2022-01-01 2022-12-31 12254128 core:Subsidiary23 1 2022-01-01 2022-12-31 12254128 core:Subsidiary24 2022-01-01 2022-12-31 12254128 core:Subsidiary24 1 2022-01-01 2022-12-31 12254128 core:Subsidiary25 2022-01-01 2022-12-31 12254128 core:Subsidiary25 1 2022-01-01 2022-12-31 12254128 core:Subsidiary26 2022-01-01 2022-12-31 12254128 core:Subsidiary26 1 2022-01-01 2022-12-31 12254128 core:Subsidiary27 2022-01-01 2022-12-31 12254128 core:Subsidiary27 1 2022-01-01 2022-12-31 12254128 core:Subsidiary28 2022-01-01 2022-12-31 12254128 core:Subsidiary28 1 2022-01-01 2022-12-31 12254128 core:Subsidiary29 2022-01-01 2022-12-31 12254128 core:Subsidiary29 1 2022-01-01 2022-12-31 12254128 core:Subsidiary3 2022-01-01 2022-12-31 12254128 core:Subsidiary3 1 2022-01-01 2022-12-31 12254128 core:Subsidiary30 2022-01-01 2022-12-31 12254128 core:Subsidiary30 1 2022-01-01 2022-12-31 12254128 core:Subsidiary31 2022-01-01 2022-12-31 12254128 core:Subsidiary31 1 2022-01-01 2022-12-31 12254128 core:Subsidiary4 2022-01-01 2022-12-31 12254128 core:Subsidiary4 1 2022-01-01 2022-12-31 12254128 core:Subsidiary5 2022-01-01 2022-12-31 12254128 core:Subsidiary5 1 2022-01-01 2022-12-31 12254128 core:Subsidiary6 2022-01-01 2022-12-31 12254128 core:Subsidiary6 1 2022-01-01 2022-12-31 12254128 core:Subsidiary7 2022-01-01 2022-12-31 12254128 core:Subsidiary7 1 2022-01-01 2022-12-31 12254128 core:Subsidiary8 2022-01-01 2022-12-31 12254128 core:Subsidiary8 1 2022-01-01 2022-12-31 12254128 core:Subsidiary9 2022-01-01 2022-12-31 12254128 core:Subsidiary9 1 2022-01-01 2022-12-31 12254128 core:UKTax 2022-01-01 2022-12-31 12254128 1 2022-01-01 2022-12-31 12254128 countries:EnglandWales 2022-01-01 2022-12-31 12254128 2021-12-31 12254128 core:RetainedEarningsAccumulatedLosses 2021-12-31 12254128 core:RetainedEarningsAccumulatedLosses core:PriorPeriodIncreaseDecrease 2021-12-31 12254128 core:RetainedEarningsAccumulatedLosses core:RestatedAmount 2021-12-31 12254128 core:ShareCapital 2021-12-31 12254128 core:ShareCapital core:PriorPeriodIncreaseDecrease 2021-12-31 12254128 core:ShareCapital core:RestatedAmount 2021-12-31 12254128 core:CostValuation 2021-12-31 12254128 core:PriorPeriodIncreaseDecrease 2021-12-31 12254128 core:RestatedAmount 2021-12-31 12254128 2021-01-01 2021-12-31 12254128 2021-12-31 12254128 bus:OrdinaryShareClass1 bus:Non-cumulativeNon-redeemableShares 2021-12-31 12254128 core:RetainedEarningsAccumulatedLosses core:RestatedAmount 2021-12-31 12254128 core:ShareCapital 2021-12-31 12254128 core:CurrentFinancialInstruments 2021-12-31 12254128 core:CurrentFinancialInstruments core:WithinOneYear 2021-12-31 12254128 core:Non-currentFinancialInstruments 2021-12-31 12254128 core:Non-currentFinancialInstruments core:AfterOneYear 2021-12-31 12254128 core:Non-currentFinancialInstruments core:Secured 2021-12-31 12254128 core:RestatedAmount 2021-12-31 12254128 1 2021-01-01 2021-12-31 12254128 core:RetainedEarningsAccumulatedLosses core:RestatedAmount 2021-01-01 2021-12-31 12254128 core:ShareCapital 2021-01-01 2021-12-31 12254128 core:RestatedAmount 2021-01-01 2021-12-31 12254128 core:Subsidiary1 1 2021-01-01 2021-12-31 12254128 core:Subsidiary10 1 2021-01-01 2021-12-31 12254128 core:Subsidiary11 1 2021-01-01 2021-12-31 12254128 core:Subsidiary12 1 2021-01-01 2021-12-31 12254128 core:Subsidiary13 1 2021-01-01 2021-12-31 12254128 core:Subsidiary14 1 2021-01-01 2021-12-31 12254128 core:Subsidiary15 1 2021-01-01 2021-12-31 12254128 core:Subsidiary16 1 2021-01-01 2021-12-31 12254128 core:Subsidiary17 1 2021-01-01 2021-12-31 12254128 core:Subsidiary18 1 2021-01-01 2021-12-31 12254128 core:Subsidiary19 1 2021-01-01 2021-12-31 12254128 core:Subsidiary2 1 2021-01-01 2021-12-31 12254128 core:Subsidiary20 1 2021-01-01 2021-12-31 12254128 core:Subsidiary21 1 2021-01-01 2021-12-31 12254128 core:Subsidiary22 1 2021-01-01 2021-12-31 12254128 core:Subsidiary23 1 2021-01-01 2021-12-31 12254128 core:Subsidiary24 1 2021-01-01 2021-12-31 12254128 core:Subsidiary25 1 2021-01-01 2021-12-31 12254128 core:Subsidiary26 1 2021-01-01 2021-12-31 12254128 core:Subsidiary27 1 2021-01-01 2021-12-31 12254128 core:Subsidiary28 1 2021-01-01 2021-12-31 12254128 core:Subsidiary29 1 2021-01-01 2021-12-31 12254128 core:Subsidiary3 1 2021-01-01 2021-12-31 12254128 core:Subsidiary30 1 2021-01-01 2021-12-31 12254128 core:Subsidiary31 1 2021-01-01 2021-12-31 12254128 core:Subsidiary4 1 2021-01-01 2021-12-31 12254128 core:Subsidiary5 1 2021-01-01 2021-12-31 12254128 core:Subsidiary6 1 2021-01-01 2021-12-31 12254128 core:Subsidiary7 1 2021-01-01 2021-12-31 12254128 core:Subsidiary8 1 2021-01-01 2021-12-31 12254128 core:Subsidiary9 1 2021-01-01 2021-12-31 12254128 core:UKTax 2021-01-01 2021-12-31 12254128 2020-12-31 12254128 core:RetainedEarningsAccumulatedLosses 2020-12-31 12254128 core:RetainedEarningsAccumulatedLosses core:PriorPeriodIncreaseDecrease 2020-12-31 12254128 core:RetainedEarningsAccumulatedLosses core:RestatedAmount 2020-12-31 12254128 core:ShareCapital 2020-12-31 12254128 core:ShareCapital core:PriorPeriodIncreaseDecrease 2020-12-31 12254128 core:ShareCapital core:RestatedAmount 2020-12-31 12254128 core:PriorPeriodIncreaseDecrease 2020-12-31 12254128 core:RestatedAmount 2020-12-31 iso4217:GBP xbrli:pure xbrli:shares

Global Reach Hotels Limited

Annual Report and Financial Statements
Year Ended 31 December 2022

Registration number: 12254128

 

Global Reach Hotels Limited

Contents

Company Information

1

Strategic Report

2 to 5

Directors' Report

6 to 7

Statement of Directors' Responsibilities

8

Independent Auditor's Report

9 to 12

Profit and Loss Account

13

Balance Sheet

14

Statement of Changes in Equity

15

Notes to the Financial Statements

16 to 28

 

Global Reach Hotels Limited

Company Information

Directors

Mr S W Mcluckie

Mr R M Capraro

Mr D Rudge

Mr W J Visser

Registered office

C/O Zedra Booths Hall
Booths Park 3
Chelford Road
Knutsford
Cheshire
WA16 8GS

Auditors

Fiander Tovell Limited
Statutory Auditor
Stag Gates House
63 - 64 The Avenue
Southampton
SO17 1XS

 

Global Reach Hotels Limited

Strategic Report for the Year Ended 31 December 2022

The directors present their strategic report for the year ended 31 December 2022.

Principal activity

The principal activity of the company is investment, either directly or indirectly, in real estate, hotels and hospitality.

Fair review of the business

Global Reach Hotels Limited is a holding company, ultimately exposed to the hospitality market within the UK. The Group is one of the leading privately owned luxury lifestyle hotel groups in the UK offering guests an unparalleled experience of consistent quality with premium spa and pool facilities, fine dining options, open terraces and attractive function spaces. The Group's principal operating activities during the year continued to be to own and operate hotels and restaurants.

As the first full year of uninterrupted trading since the COVID pandemic, 2022 could loosely be described as a return to “business as usual”. The figures make for positive reading and show significant year on year improvement in sales activity. In reality it is unlikely “business as usual” will return in the near future. The challenges faced by the hospitality sector appear relentless and ensure the Group needs to remain agile in an ever-changing environment. Shifts in consumer behaviour, workforce shortages and supply chain disruptions represent just some of the issues faced, notwithstanding the instability witnessed in the UK economy over the past twelve months. Coupled with the removal of UK Government led support, the Group has seen a marked rise in costs that will need to be managed even more closely.

Despite the challenges faced in the past year, the Group has successfully navigated its way through to achieve commendable results. The Group’s strategic focus on luxury lifestyle hotels in both coastal and city locations, coupled with its adaptability to changing consumer preferences has been key to its success. Looking ahead the Group will continue to prioritise the delivery of exceptional guest experiences to maintain its competitive position in the market.

This strategic report serves as a foundation for future decision-making and reinforces the commitment of the Group to deliver value to its stakeholders in the coming years.

Principal risks and uncertainties

The UK is currently in a period of well understood economic uncertainty with the recent departure from the European Union, the COVID-19 pandemic and significant regulatory and other inflationary cost pressures.

While the current economic conditions give rise to risk within the business, the Group’s continued solid trading performance and the well regarded reputation amongst its peers put it in a good position to mitigate such risks that may arise.

The Group operates in a competitive marketplace, however the Directors believe the ongoing investment in the hotel facilities, standards and service and the proactive approach taken by management, mitigate this risk, helping to attract both new and returning customers.

The main financial risks arising from the Group's activities are broadly grouped as credit risk, interest rate risk and liquidity risk, these are monitored by the Board of Directors continuously. Financial risk management objectives and policies are detailed in the directors’ report.

 

Global Reach Hotels Limited

Strategic Report for the Year Ended 31 December 2022

Key performance indicators

The Group uses a wide range of performance measures to manage and monitor the business. The most significant of these are the key performance indicators, which for the Group are turnover, operating profit and occupancy, as they are the most effective measure of performance against the Group ’s objectives.

‌2022

‌2021

Turnover

£80.2m

£58.2m

Operating Profit

£5.7m

£11.9m

Occupancy

73%

70%

Going concern

In accordance with the requirements of the Companies Act 2006, this strategic report aims to provide a comprehensive overview of the Group's performance, financial position, and prospects. As part of this report, we consider the concept of going concern, which is fundamental to assessing the Group's ability to continue operating in the foreseeable future.

The Directors have carried out a thorough assessment of the Group’s financial position and performance, taking into account various factors, including current and projected cash flows, financial obligations, and available resources. Based on this assessment, the Directors have formed the opinion that the Group has adequate financial resources to meet its obligations and continue operating for the foreseeable future, at least for the next 12 months from the date of this report.

In making this assessment, the Directors have considered both internal and external factors that may impact the Group's ability to continue as a going concern. These factors include market conditions, competitive landscape, regulatory changes, and potential risks and uncertainties. The Directors have also considered the Group's current and future liquidity position, including its ability to generate sufficient cash flows, access additional funding if required, and manage its working capital requirements.

It is important to note that the assessment of going concern is based on various assumptions, estimates, and judgments, which are inherently uncertain and subject to change. The Directors will continue to monitor the Group's financial performance and position, regularly reviewing its ability to operate as a going concern and taking appropriate actions if circumstances change.

In conclusion, based on the Directors' assessment, the Group is considered to be a going concern, as it has adequate financial resources, liquidity, and operational plans in place to support its ongoing operations for the foreseeable future.

For more information regarding the basis of preparation see note 1 to the financial statements.

 

Global Reach Hotels Limited

Strategic Report for the Year Ended 31 December 2022

Section 172(1) statement - Promoting the success of the company

Dealing with the recovery to a successful trading position following the pandemic has been the main focus of the Board’s decision making in the past twelve months. The Directors have guided, supported and challenged management, giving them, where appropriate, a clear mandate to take short-term decisions at pace whilst still maintaining a focus on the long term strategic impact, helping to weigh competing priorities, and ensuring that all factors and stakeholders were taken into consideration.

Section 172 of the Companies Act 2006 requires a director of a company to act in the way he or she considers, in good faith, would be most likely to promote the success of the company for the benefit of its members as a whole. In doing this, Section 172 requires directors to have regard, amongst other matters to: the likely consequences of any decision in the longer term; the interests of the company’s employees; the need to foster the company’s business relationships with suppliers, customers and others; the impact of the company’s operations on the community and the environment; the desirability of the company maintaining a reputation for high standards of business conduct; and the need to act fairly between members of the company.

The Directors give careful consideration to the factors set out above in discharging their duties under Section 172 including in taking decisions of strategic importance to the Group. The information set out below describes the importance of each factor set out in Section 172(1)(a) - (f) to the group and gives examples of how the Directors have had regard to each of those factors in certain decisions taken during the year.

The likely consequences of any decisions in the long-term

There are a number of key decisions and matters the Board is responsible for, including the Group’s overall business and commercial strategy, annual operating and capital expenditure budget and financial plans. The Board focuses on strategic and operational matters, corporate governance, investor relations and risk management. Board reports and presentations are structured to include relevant stakeholder considerations and the likely consequences of each decision for the long term success of the Group.

The Board, in the face of the challenges outlined previously in this report and their impact on the business, took decisions throughout the year to ensure the Group could take advantage of opportunities that would generate a positive outcome. In taking these decisions, the Board considered both the short and long term impact on its people, owners and investors.

The interests of the company’s employees

The Group’s workforce is made up of employees working across corporate offices, reservation centre and hotels. The Board acknowledges that their key concerns include continued employment, remuneration and career development. The designated Executive Committee member with responsibility for workforce engagement provides a key link for the Board to hear employee views and receive their feedback, alongside regular Board and Executive Committee agenda items relating to employee matters. In addition, wherever and whenever possible all Directors directly engage with employees.

During the year, the Board made decisions and supported management to ensure employee retention and recruitment strategies were prioritised in order to protect a key resource of the business. Regular internal communications are in place to make sure employees are kept up to date on business performance and developments.

The Board continuously monitors rates of pay in key locations to ensure businesses remain competitive in a challenging labour market. The Board keeps all measures under regular review, and is able to react quickly to ensure it can strike a balance between increased rates of pay and sufficient labour resource to operate the business in a cost-effective manner.

 

Global Reach Hotels Limited

Strategic Report for the Year Ended 31 December 2022

The need to foster the company’s business relationships with suppliers, customers and others

Building and maintaining relationships with critical suppliers and others within our supply chain, and focusing on guest experiences and loyalty are vital to our continued success. We also recognise the importance of environmental sustainability and the impact of our operations on society. We are dedicated to minimising our environmental footprint by implementing sustainable practices, reducing waste, and promoting responsible resource management. We strive to contribute positively to the communities in which we operate through various initiatives, such as philanthropic programs and supporting local businesses and organisations.

In conclusion, the Group has given due regard to the factors outlined in Section 172(1)(a) to (f) of the Companies Act 2006 during the financial year ended 31 December 2022. We remain committed to promoting the long-term success of the Group while considering the interests of our stakeholders and the wider society. By adopting responsible business practices, we aim to create value, sustain growth, and contribute positively to the economy and the communities we serve.

Approved by the Board on 4 March 2024 and signed on its behalf by:

.........................................
Mr W J Visser
Director

   
     
 

Global Reach Hotels Limited

Directors' Report for the Year Ended 31 December 2022

The directors present their report and the financial statements for the year ended 31 December 2022.

Directors of the company

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

Mr S W Mcluckie

Mr R M Capraro

Mr B R Buys (ceased 30 April 2023)

Mr D Rudge

The following director was appointed after the year end:

Mr W J Visser (appointed 30 April 2023)

Directors' Insurance

The group maintains policies on behalf of all the Directors against liability arising from negligence, breach of duty and breach of trust in relation to the Group.

Financial Instruments

The business's principal financial instruments comprise bank balances, bank overdrafts, trade debtors, trade creditors and loans to the business from shareholders. The main purpose of these instruments is to finance the business's operations.

Trade debtors are managed in respoct of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. The amounts presented in the balance sheet are net of allowances for doubtful debtors.

Trade creditors liquidity is managed by ensuring sufficient funds are available to meet amounts due.

Loans comprise borrowings from both shareholders and third party institutions. Budgets are being used to ensure that sufficient funds continue to be available in the future and repayments can be met in the long term. Cash flow risk is reviewed and the loans are repaid on dates as set out in the facility documents, with support continuing when required to meet liquidity needs as they arise.

Employee Involvement

During the year, the policy of providing employees with information about the Group has been continued through internal media methods in which employees have also been encouraged to present their suggestions and views on the Group's performance. Regular meetings are held between local management and employees to allow a free flow of information and ideas.

Future Development

The Directors propose to continue their strategy of investing in the physical resources of the Group through maintaining and upgrading the facilities, and investing in the human resources of the Group by ensuring the business remains a workplace our teams are proud to be assoiated with. Doing this will ensure the standards delivered meet the expectations of our guests.

 

Global Reach Hotels Limited

Directors' Report for the Year Ended 31 December 2022

Energy and Carbon Report

The 2018 Regulations introduced requirements under Part 15 of the Companies Act 2006 for large unquoted companies to disclose their annual energy use and greenhouse gas emissions, and related information. However, the group has applied the option permitted to exclude any energy and carbon information relating to its subsidiaries as they qualify as medium or small sized entities and this applies to all subsidiaries within the Group. Therefore it is not required to make the detailed disclosures of energy and carbon information.

As the Company has not consumed more than 40,000kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.

Information included in the Strategic Report

The Company has chosen in accordance with Companies Act 2006, S.414C(11) to set out the Company's and Group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch 7 to be contained in the directors' report. It has done so in respoct of the business review and the principal risks and uncertainties.

Reappointment of auditors

The auditors Fiander Tovell Limited are deemed to be reappointed under section 487(2) of the Companies Act 2006.

Disclosure of information to the auditors

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 auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Approved by the Board on 4 March 2024 and signed on its behalf by:

.........................................
Mr W J Visser
Director

   
     
 

Global Reach Hotels 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 United Kingdom 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.

 

Global Reach Hotels Limited

Independent Auditor's Report to the Members of Global Reach Hotels Limited

Opinion

We have audited the financial statements of Global Reach Hotels Limited (the 'company') for the year ended 31 December 2022, which comprise the Profit and Loss Account, Balance Sheet, Statement of Changes in Equity, 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 31 December 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 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 director's 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 company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were 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 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.

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.

 

Global Reach Hotels Limited

Independent Auditor's Report to the Members of Global Reach Hotels Limited

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, or returns adequate for our audit have not been received from branches not visited by us; or

the 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 8, 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.

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

 

Global Reach Hotels Limited

Independent Auditor's Report to the Members of Global Reach Hotels Limited

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

• the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations.
• we identified the laws and regulations applicable to the Company through discussions with Di rectors and other management, and from our commercial knowledge and experience.
• we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the Company, i ncluding the Companies Act 2006, taxation legislation, data protection, employment, environmental and health and safety legislation.
• we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management.

We assessed the susceptibility of the Company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

• making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud.
• considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

• performed analytical procedures to identify any unusual or unexpected relationships.
• tested journal entries to identify unusual transactions.
• tested a sample of BACS payments to identify payments being made to unexpected bank accounts.
• performed testing on payroll costs in respect of those employees with responsibility or authority in connection with the payroll function.
• assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias.
• investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

• agreeing financial statement disclosures to underlying supporting documentation.
• enquiring of management as to actual and potential litigation and claims.

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. This risk increases the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements as we are less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment, 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.

 

Global Reach Hotels Limited

Independent Auditor's Report to the Members of Global Reach Hotels Limited

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.

......................................
Andrew Jay ACA FCCA (Senior Statutory Auditor)
Fiander Tovell Limited, Statutory Auditor

Stag Gates House
63 - 64 The Avenue
Southampton
SO17 1XS

4 March 2024

 

Global Reach Hotels Limited

Profit and Loss Account

Year Ended 31 December 2022

Note

2022
£

(As restated)

2021
£

Turnover

3

7,359,437

6,632,615

Gross profit

 

7,359,437

6,632,615

Administrative expenses

 

(8,452,277)

(913,205)

Operating (loss)/profit

4

(1,092,840)

5,719,410

Amounts written off investments

 

(215)

-

Interest payable and similar expenses

6

(8,352,187)

(7,421,007)

   

(8,352,402)

(7,421,007)

Loss before tax

 

(9,445,242)

(1,701,597)

Tax on loss

7

30,992

(517,822)

Loss for the financial year

 

(9,414,250)

(2,219,419)

The above results were derived from continuing operations.

The company has no recognised gains or losses for the year other than the results above.

 

Global Reach Hotels Limited

Balance Sheet

31 December 2022

Note

2022
£

(As restated)

2021
£

Fixed assets

 

Investments

8

26,852,151

26,452,151

Current assets

 

Debtors

9

83,564,843

74,455,374

Cash at bank and in hand

 

2,111,096

1,012,954

 

85,675,939

75,468,328

Creditors: Amounts falling due within one year

11

(21,180)

(782,315)

Net current assets

 

85,654,759

74,686,013

Total assets less current liabilities

 

112,506,910

101,138,164

Creditors: Amounts falling due after more than one year

11

(121,714,242)

(100,931,246)

Net (liabilities)/assets

 

(9,207,332)

206,918

Capital and reserves

 

Called up share capital

1

1

Profit and loss account

(9,207,333)

206,917

Shareholders' (deficit)/funds

 

(9,207,332)

206,918

Approved and authorised by the Board on 4 March 2024 and signed on its behalf by:
 

.........................................
Mr W J Visser
Director

   
     

Company Registration Number: 12254128

 

Global Reach Hotels Limited

Statement of Changes in Equity

Year Ended 31 December 2022

Share capital
£

Profit and loss account
£

Total
£

At 1 January 2022

1

(4,400,183)

(4,400,182)

Prior period adjustment

-

4,607,100

4,607,100

At 1 January 2022 (As restated)

1

206,917

206,918

Loss for the year

-

(9,414,250)

(9,414,250)

At 31 December 2022

1

(9,207,333)

(9,207,332)

Share capital
£

Profit and loss account
£

Total
£

At 1 January 2021

1

772,445

772,446

Prior period adjustment

-

1,653,891

1,653,891

At 1 January 2021 (As restated)

1

2,426,336

2,426,337

Loss for the year

-

(2,219,419)

(2,219,419)

At 31 December 2021

1

206,917

206,918

 

Global Reach Hotels Limited

Notes to the Financial Statements

Year Ended 31 December 2022

1

General information

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

The address of its registered office is:
C/O Zedra Booths Hall
Booths Park 3
Chelford Road
Knutsford
Cheshire
WA16 8GS
England

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

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

•Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
•Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
•Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;
•Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
.

 

Global Reach Hotels Limited

Notes to the Financial Statements

Year Ended 31 December 2022

Name of parent of group

These financial statements are consolidated in the financial statements of Global Reach UK Holdings Limited.

The financial statements of Global Reach UK Holdings Limited may be obtained from c/o Zedra Booths Hall, Booths Park, 3 Chelford Road, Knutsford. WA16 8GS

Going concern

At the year end date, the company had net liabilities of £9,207,332

The directors believe, with the support of the parent company and the directors, the company has sufficient working capital to continue to trade for the foreseeable future.

Therefore the directors continue to adopt a going concern basis in preparing the financial statements.

The financial statements do not include any adjustments that would result from any change in the company's circumstances such that the going concern basis would no longer be appropriate.

Prior period errors

The company owns 49% of the shares in Harbour International Limited and this has previously been accounted for as an associate. It has now been determined that the company has control of the investment and we have made a prior year adjustment to account for this as a subsidiary.

The table below illustrates the increase/(decrease) in each financial statement line.

 

Relating to the current period disclosed in these financial statements
£

Relating to the prior period disclosed in these financial statements
£

Relating to periods before the prior period disclosed in these financial statements
£

Share of loss in P&L

-

1,125,059

1,653,891

Share of loss in OCI

-

1,828,150

-

Investment

(4,607,100)

(4,607,100)

(1,653,891)

P&L Reserve

4,607,100

1,653,891

-

    

 

Global Reach Hotels Limited

Notes to the Financial Statements

Year Ended 31 December 2022

Income and expenses

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

The company 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 company's activities.

Interest income is recognised in the period which it relates on an accruals basis

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

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.

The current corporation 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 company operates and generates taxable income.

Deferred tax is recognised on all timing differences at the balance sheet date unless indicated below. Timing differences are differences between taxable profits and the results as stated in the profit and loss account and other comprehensive income. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

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.

 

Global Reach Hotels Limited

Notes to the Financial Statements

Year Ended 31 December 2022

Financial instruments

Classification
The company holds the following financial instruments:

• Short term trade and other debtors and creditors;
• Loans with group and entities under common control; and
• Cash and bank balances.

All financial instruments are classified as basic.

 Recognition and measurement
The company has chosen to apply the recognition and measurement principles in FRS102.

Financial instruments are recognised when a company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are
cancelled.

Except for loans with group and entities under common control, such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.

Loans with group and entities under common control are initially measured at transaction price, including transaction costs, and are subsequently carried at amortised cost using the effective interest method.

 

3

Turnover

The analysis of the company's Turnover for the year from continuing operations is as follows:

2022
£

2021
£

Interest income

7,359,437

6,632,615

4

Operating (loss)/profit

Arrived at after charging/(crediting)

2022
£

2021
£

Foreign exchange losses

8,303,845

766,794

5

Staff costs

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

 

Global Reach Hotels Limited

Notes to the Financial Statements

Year Ended 31 December 2022

2022
No.

2021
No.

Administration and support

4

4

4

4

6

Interest payable and similar expenses

2022
£

2021
£

Interest expense on group finance liabilities

8,352,187

7,421,007

7

Taxation

Tax charged/(credited) in the profit and loss account

2022
£

2021
£

Current taxation

UK corporation tax

-

517,822

UK corporation tax adjustment to prior periods

(30,992)

-

(30,992)

517,822

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
£

(As restated)

2021
£

Loss before tax

(9,445,242)

(1,701,597)

Corporation tax at standard rate

(1,794,596)

(323,303)

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

178,812

258,642

Effect of tax losses

-

264,493

Deferred tax (credit)/expense relating to changes in tax rates or laws

(506,427)

18,234

Deferred tax expense from unrecognised tax loss or credit

2,122,210

-

(Decrease)/increase in UK and foreign current tax from adjustment for prior periods

(30,992)

517,822

Other tax effects for reconciliation between accounting profit and tax expense (income)

1

(218,066)

Total tax (credit)/charge

(30,992)

517,822

 

Global Reach Hotels Limited

Notes to the Financial Statements

Year Ended 31 December 2022

Deferred tax

There are £2,122,210 of unused tax losses (2021 - £12,000) for which no deferred tax asset is recognised in the balance sheet.

Factors that may affect future tax charges

The main rate of UK corporation tax remained at 19% throughout 2022. The corporation tax main rate will rise to 25% with effect from 1 April 2023.

8

Investments

2022
£

(As restated)

2021
£

Investments in subsidiaries

26,852,151

26,452,151

Subsidiaries

£

Cost or valuation

At 1 January 2022

26,452,151

Additions

400,000

At 31 December 2022

26,852,151

Provision

Carrying amount

At 31 December 2022

26,852,151

At 31 December 2021

26,452,151

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

Harbour International Limited

see below

Ordinary *

49%

49%

 

Global Reach Hotels Limited

Notes to the Financial Statements

Year Ended 31 December 2022

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

Alexandra Dock Limited

see below

Ordinary

49%

49%

Bond Street Estates (Brighton) Limited

see below

Ordinary

49%

49%

Brighton Harbour Hotel Limited

see below

Ordinary

49%

49%

Bristol Harbour Hotel Limited

see below

Ordinary

49%

49%

Bristol Harbour Rooms Limited

see below

Ordinary

49%

49%

Chichester Harbour Hotel Limited

see below

Ordinary

49%

49%

Christchurch Hotels Limited

see below

Ordinary

49%

49%

Christchurch Restaurants Limited

see below

Ordinary

49%

49%

Estuary View Limited

see below

Ordinary

49%

49%

Fowey Harbour Hotel Limited

see below

Ordinary

49%

49%

Froyle Harbour Hotel Limited

see below

Ordinary

49%

49%

Harbour Hospitality Group Limited

see below

Ordinary

49%

49%

Harbour Hotels Group Limited

see below

Ordinary

49%

49%

Harbour Hotels Management Limited

see below

Ordinary

49%

49%

Kings Harbour Hotel Limited

see below

Ordinary

49%

49%

Padstow Harbour Hotel Limited

see below

Ordinary

49%

49%

Porthminster Hotel Company Limited

see below

Ordinary

49%

49%

Residence (Guildford) Limited

see below

Ordinary

49%

49%

Richmond Harbour Hotel Limited

see below

Ordinary

49%

49%

 

Global Reach Hotels Limited

Notes to the Financial Statements

Year Ended 31 December 2022

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

Richmond Harbour Hotel Management Limited

see below

Ordinary

49%

49%

RMH (Guildford) Limited

see below

Ordinary

49%

49%

RMH (Guildford) LLP

see below

Ordinary

49%

49%

RMH (Guildford) Management Limited

see below

Ordinary

49%

49%

RMH (Guildford) Residential Developments Limited

see below

Ordinary

49%

49%

Salcombe Harbour Hotel Limited

see below

Ordinary

49%

49%

Sands Reach Limited

see below

Ordinary

49%

49%

Southampton Harbour Hotel Limited

see below

Ordinary

49%

49%

The Willow Garden (Fowey) Limited

see below

Ordinary

49%

49%

Westcliff Hall (Sidmouth) Limited

see below

Ordinary

49%

49%

White Truffle Events Limited

see below

Ordinary

49%

49%

Subsidiary undertakings

Harbour International Limited

The principal activity of Harbour International Limited is owning and operating a group of hotels.

Alexandra Dock Limited

The principal activity of Alexandra Dock Limited is property investment.

Bond Street Estates (Brighton) Limited

The principal activity of Bond Street Estates (Brighton) Limited is owning and operating a hotel.

Brighton Harbour Hotel Limited

The principal activity of Brighton Harbour Hotel Limited is a holding company.

 

Global Reach Hotels Limited

Notes to the Financial Statements

Year Ended 31 December 2022

Bristol Harbour Hotel Limited

The principal activity of Bristol Harbour Hotel Limited is owning and operating a hotel.

Bristol Harbour Rooms Limited

The principal activity of Bristol Harbour Rooms Limited is dormant.

Chichester Harbour Hotel Limited

The principal activity of Chichester Harbour Hotel Limited is owning and operating a hotel.

Christchurch Hotels Limited

The principal activity of Christchurch Hotels Limited is owning and operating a hotel.

Christchurch Restaurants Limited

The principal activity of Christchurch Restaurants Limited is dormant.

Estuary View Limited

The principal activity of Estuary View Limited is dormant.

Fowey Harbour Hotel Limited

The principal activity of Fowey Harbour Hotel Limited is owning and operating a hotel.

Froyle Harbour Hotel Limited

The principal activity of Froyle Harbour Hotel Limited is owning and operating a hotel.

Harbour Hospitality Group Limited

The principal activity of Harbour Hospitality Group Limited is a holding company.

Harbour Hotels Group Limited

The principal activity of Harbour Hotels Group Limited is a holding company.

Harbour Hotels Management Limited

The principal activity of Harbour Hotels Management Limited is a management company.

Kings Harbour Hotel Limited

The principal activity of Kings Harbour Hotel Limited is owning and operating a hotel.

Padstow Harbour Hotel Limited

The principal activity of Padstow Harbour Hotel Limited is owning and operating a hotel.

Porthminster Hotel Company Limited

The principal activity of Porthminster Hotel Company Limited is owning and operating a hotel.

Residence (Guildford) Limited

The principal activity of Residence (Guildford) Limited is dormant.

 

Global Reach Hotels Limited

Notes to the Financial Statements

Year Ended 31 December 2022

Richmond Harbour Hotel Limited

The principal activity of Richmond Harbour Hotel Limited is owning a hotel.

Richmond Harbour Hotel Management Limited

The principal activity of Richmond Harbour Hotel Management Limited is operating a hotel.

RMH (Guildford) Limited

The principal activity of RMH (Guildford) Limited is owning a hotel.

RMH (Guildford) LLP

The principal activity of RMH (Guildford) LLP is owning and operating a hotel.

RMH (Guildford) Management Limited

The principal activity of RMH (Guildford) Management Limited is dormant.

RMH (Guildford) Residential Developments Limited

The principal activity of RMH (Guildford) Residential Developments Limited is property investment.

Salcombe Harbour Hotel Limited

The principal activity of Salcombe Harbour Hotel Limited is owning and operating a hotel.

Sands Reach Limited

The principal activity of Sands Reach Limited is owning and operating a hotel.

Southampton Harbour Hotel Limited

The principal activity of Southampton Harbour Hotel Limited is owning and operating a hotel.

The Willow Garden (Fowey) Limited

The principal activity of The Willow Garden (Fowey) Limited is dormant.

Westcliff Hall (Sidmouth) Limited

The principal activity of Westcliff Hall (Sidmouth) Limited is owning and operating a hotel.

White Truffle Events Limited

The principal activity of White Truffle Events Limited is event catering.

On 1 June 2023 Harbour International limited sold its entire interest in subsidiary Froyle Harbour Hotel Limited and on 30 June 2023 sold its entire interest in Sands Reach Limited.

 

Global Reach Hotels Limited

Notes to the Financial Statements

Year Ended 31 December 2022

9

Debtors

Non-current

2022
£

2021
£


 

Note

2022
£

2021
£

Amounts owed by related parties

15

83,269,358

74,190,881

Other debtors

 

295,485

264,493

 

83,564,843

74,455,374

10

Cash and cash equivalents

2022
£

2021
£

Cash at bank

2,111,096

1,012,954

11

Creditors

Note

2022
£

2021
£

Due within one year

 

Accruals

 

21,180

-

Corporation tax

7

-

782,315

 

21,180

782,315

Due after one year

 

Loans and borrowings

12

91,797,949

100,535,432

Amounts owed by related parties

 

29,916,293

395,814

 

121,714,242

100,931,246

 

Global Reach Hotels Limited

Notes to the Financial Statements

Year Ended 31 December 2022

12

Loans and borrowings

2022
£

2021
£

Non-current loans and borrowings

Secured debentures

-

25,000,000

Other borrowings

91,797,949

75,535,432

91,797,949

100,535,432

Other borrowings

Within amounts due to group undertakings is a loan from Fidem Finance Limited, a group entity, it is denominated in USD with a nominal interest rate of 10%, and the final instalment is due on 30 June 2030. The carrying amount at year end is £91,797,949 (2021 - £75,535,432).

13

Share capital

Allotted, called up and fully paid shares

 

2022

2021

 

No.

£

No.

£

Ordinary share of £1 each

1

1

1

1

         

Rights, preferences and restrictions

Ordinary have the following rights, preferences and restrictions:
The shares have attached to them full voting, dividend and capital distribution (including on a winding up) rights. They do not confer any rights of redemption.

14

Parent and ultimate parent undertaking

The company's immediate parent is Global Reach UK Holdings Limited, incorporated in England and Wales.

 The ultimate parent is Global Reach Holdings Limited, incorporated in Isle of Man.

 The most senior parent entity producing publicly available financial statements is Global Reach UK Holdings Limited. These financial statements are available upon request from c/o Zedra Booths Hall, Booths Park, 3 Chelford Road, Knutsford. WA16 8GS

 

Global Reach Hotels Limited

Notes to the Financial Statements

Year Ended 31 December 2022

15

Related party transactions

Summary of transactions with other related parties

At the end of the financial year the company held a debt due by Harbour International Limited, a 49% owned subsidary of the company, of £80,915,457 (2021 - £72,956,023). Interest is being charged at 10% and compounded annually.

Up to £12,000,000 of the debt is currently repayable on written demand. The final repayment date for the remainder of the loan is July 2024.

In addition to the above there are amounts of £2,353,901 (2021 - £1,234,858) due from wholly owned members of the group.