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Registration number: 09900574

AJL Hotel Holdings Limited

Annual Report and Consolidated Financial Statements

for the Year Ended 28 February 2023

 

AJL Hotel Holdings Limited

Contents

Company Information

1

Strategic Report

2

Director's Report

3

Statement of Director's Responsibilities

4

Independent Auditor's Report

5 to 7

Consolidated Statement of Comprehensive Income

8

Consolidated Balance Sheet

9

Balance Sheet

10

Consolidated Statement of Changes in Equity

11

Statement of Changes in Equity

12

Consolidated Statement of Cash Flows

13 to 14

Notes to the Financial Statements

15 to 27

 

AJL Hotel Holdings Limited

Company Information

Director

A J Lavin

Registered office

Hellaby Hall Hotel,
Old Hellaby Lane,
Rotherham
S66 8SN

Auditors

Hawsons Chartered Accountants
5 Sidings Court
White Rose Way
Doncaster
South Yorkshire
DN4 5NU

 

AJL Hotel Holdings Limited

Strategic Report for the Year Ended 28 February 2023

The director presents his strategic report for the year ended 28 February 2023.

Principal activity

The principal activity of the group is is that of a holding company to a group operating hotels with bars, restaurants and health spa open to non residents

Fair review of the business

We aim to present a balanced and comprehensive review of the development and performance of our business during the year and its position at the year end. Our review is consistent with the size and non-complex nature of our and is written in the context of the risks and uncertainties we face.

The director considers the profit achieved on ordinary activities before taxation to be satisfactory taking into consideration the competition in the local market and the current economic climate. Gross profit percentage has been maintained at 36%.

Adequate finance has been obtained to take advantage of business opportunities, and the director consider the state of affairs to be satisfactory.

Principal risks and uncertainties

In order to manage the company successfully, the strategic and operational risks facing the company are regularly reviewed and the group's risk management procedures are updated to reflect the process.

Approved and authorised by the director on 28 February 2024
 

.........................................
A J Lavin
Director

 

AJL Hotel Holdings Limited

Director's Report for the Year Ended 28 February 2023

The director presents his report and the for the year ended 28 February 2023.

Director of the group

The director who held office during the year was as follows:

A J Lavin

Financial instruments
The group is exposed to interest rate risk from borrowings with the bank. The group operates the bank account in credit at all times and maintains sufficient funds to meet all the business needs including bank loan and interest payments.

The bank is currently satisfied with the group's performance and the director is of the opinion that all risks are well managed.
 

Disclosure of information to the auditor

The director of the company who held office at the date of the approval of this Annual Report, as set out above, confirms that:

• so far as he are aware, there is no relevant audit information (information needed by the company's auditors in connection with preparing their report) of which the company's auditors are unaware, and

• he has taken all the steps that they ought to have taken as director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

Reappointment of auditors

The auditors Hawsons Chartered Accountants are deemed to be reappointed under section 487(2) of the Companies Act 2006.

Approved and authorised by the director on 28 February 2024
 

.........................................
A J Lavin
Director

 

AJL Hotel Holdings Limited

Statement of Director's Responsibilities

The director acknowledges his responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the group and the company and of the profit or loss of the group for that period. In preparing these financial statements, the director is 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 director is responsible for keeping adequate accounting records that are sufficient to show and explain the group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and the company and enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 

AJL Hotel Holdings Limited

Independent Auditor's Report to the Members of AJL Hotel Holdings Limited

Opinion

We have audited the financial statements of AJL Hotel Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 28 February 2023, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Balance Sheet, the Consolidated Statement of Changes in Equity, the Statement of Changes in Equity, the Consolidated Statement of Cash Flows, and the 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 group's and the parent company's affairs as at 28 February 2023 and of the group's profit 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’s 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.

Conclusions relating to going concern

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

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

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

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The director is responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

 

AJL Hotel Holdings Limited

Independent Auditor's Report to the Members of AJL Hotel Holdings 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 Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Director's 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Director's Report.

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

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 the director

As explained more fully in the Statement of Director's Responsibilities set out on page 4, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

 

AJL Hotel Holdings Limited

Independent Auditor's Report to the Members of AJL Hotel Holdings Limited

The company is subject to laws and regulations that directly and indirectly affect the financial statements. Based on our understanding of the company and the environment it operates within, we determined that the laws and regulations which were most significant included FRS 102, Companies Act 2006 and Health and Safety regulations. We considered the extent to which non-compliance with these laws and regulations might have a material effect on the financial statements, including how fraud might occur. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to the posting of inappropriate journal entries to improve the company’s result for the period, and management bias in key accounting estimates.

Audit procedures performed by the engagement team included:

Discussions with management and those responsible for legal compliance procedures within the company to obtain an understanding of the legal and regulatory framework applicable to the company and how the company complies with that framework, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud;

Identifying and assessing the design effectiveness of controls that management has in place to prevent and detect fraud and non-compliance with laws and regulations;

Challenging assumptions and judgements made by management in their significant accounting estimates;

Identifying and testing journal entries, in particular any journal entries posted with unusual account combinations or posted by senior management.

There are inherent limitations in the audit procedures described above and the more removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it. Also, 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 by, for example, forgery or intentional misrepresentations, or through collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk. 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.

......................................
Daniel Wood (Senior Statutory Auditor)
For and on behalf of Hawsons Chartered Accountants, Statutory Auditor

5 Sidings Court
White Rose Way
Doncaster
South Yorkshire
DN4 5NU

29 February 2024

 

AJL Hotel Holdings Limited

Consolidated Statement of Comprehensive Income for the Year Ended 28 February 2023

Note

2023
 £

2022
 £

turnover

7,468,972

5,691,843

Cost of sales

 

(4,758,665)

(3,648,478)

Gross profit

 

2,710,307

2,043,365

Administrative expenses

 

(1,429,066)

(1,292,184)

Other operating income

 

-

272,964

Exceptional items

 

429,335

-

Operating profit

 

1,710,576

1,024,145

Interest payable and similar charges

6

(154,059)

(136,592)

Profit before tax

 

1,556,517

887,553

Taxation

10

(265,992)

(212,795)

Profit for the financial year

 

1,290,525

674,758

Other comprehensive income

 

Surplus/deficit on property, plant and equipment revaluation

 

(163,335)

-

Total comprehensive income for the financial year

 

1,127,190

674,758

Profit attributable to:

 

Owners of the company

 

1,290,525

674,758

Total comprehensive income attributable to:

 

Owners of the company

 

1,127,190

674,758

As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the Parent Company is not presented as part of these Financial Statements.

 

AJL Hotel Holdings Limited

(Registration number: 09900574)
Consolidated Balance Sheet as at 28 February 2023

Note

2023
£

2022
£

Fixed assets

 

Intangible assets

11

212,500

295,333

Tangible assets

12

10,809,431

10,942,555

 

11,021,931

11,237,888

Current assets

 

Stocks

14

64,189

54,703

Debtors

15

681,921

248,804

Cash at bank and in hand

 

1,210,607

888,067

 

1,956,717

1,191,574

Creditors: Amounts falling due within one year

17

(2,355,915)

(2,609,660)

Net current liabilities

 

(399,198)

(1,418,086)

Total assets less current liabilities

 

10,622,733

9,819,802

Creditors: Amounts falling due after more than one year

17

(5,066,021)

(5,491,184)

Provisions for liabilities

(533,928)

(433,024)

Net assets

 

5,022,784

3,895,594

Capital and reserves

 

Called up share capital

19

100

100

Revaluation reserve

1,455,720

1,619,055

Retained earnings

3,566,964

2,276,439

Equity attributable to owners of the company

 

5,022,784

3,895,594

Shareholders' funds

 

5,022,784

3,895,594

Approved and authorised by the director on 28 February 2024
 

.........................................
A J Lavin
Director

 

AJL Hotel Holdings Limited

(Registration number: 09900574)
Balance Sheet as at 28 February 2023

Note

2023
£

2022
£

Fixed assets

 

Investments

13

3

3

Current assets

 

Cash at bank and in hand

 

97

97

Net assets

 

100

100

Capital and reserves

 

Called up share capital

19

100

100

Shareholders' funds

 

100

100

The company made a loss after tax for the financial year of £- (2022 - profit of £-).

Approved and authorised by the director on 28 February 2024
 

.........................................
A J Lavin
Director

 

AJL Hotel Holdings Limited

Consolidated Statement of Changes in Equity for the Year Ended 28 February 2023
Equity attributable to the parent company

Share capital
£

Revaluation reserve
£

Retained earnings
£

Total
£

Total equity
£

At 1 March 2022

100

1,619,055

2,276,439

3,895,594

3,895,594

Profit for the year

-

-

1,290,525

1,290,525

1,290,525

Other comprehensive income

-

(163,335)

-

(163,335)

(163,335)

Total comprehensive income

-

(163,335)

1,290,525

1,127,190

1,127,190

At 28 February 2023

100

1,455,720

3,566,964

5,022,784

5,022,784

Share capital
£

Revaluation reserve
£

Retained earnings
£

Total
£

Total equity
£

At 1 March 2021

100

1,619,055

1,601,681

3,220,836

3,220,836

Profit for the year

-

-

674,758

674,758

674,758

At 28 February 2022

100

1,619,055

2,276,439

3,895,594

3,895,594

 

AJL Hotel Holdings Limited

Statement of Changes in Equity for the Year Ended 28 February 2023

Share capital
£

Total
£

At 1 March 2022

100

100

At 28 February 2023

100

100

Share capital
£

Total
£

At 1 March 2021

100

100

At 28 February 2022

100

100

 

AJL Hotel Holdings Limited

Consolidated Statement of Cash Flows for the Year Ended 28 February 2023

Note

2023
£

2022
£

Cash flows from operating activities

Profit for the year

 

1,290,525

674,758

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

5

266,355

323,007

Loss on disposal of tangible assets

4

-

10,465

Finance costs

6

154,059

136,592

Income tax expense

10

265,992

212,795

 

1,976,931

1,357,617

Working capital adjustments

 

Increase in stocks

14

(9,486)

(38,119)

Increase in trade debtors

15

(395,966)

(128,259)

(Decrease)/increase in trade creditors

17

(420,396)

405,361

Cash generated from operations

 

1,151,083

1,596,600

Income taxes paid

10

(205,291)

(33,864)

Net cash flow from operating activities

 

945,792

1,562,736

Cash flows from investing activities

 

Acquisitions of tangible assets

(50,397)

(88,875)

Cash flows from financing activities

 

Interest paid

6

(154,059)

(136,592)

Repayment of bank borrowing

 

(418,796)

(638,722)

Net cash flows from financing activities

 

(572,855)

(775,314)

Net increase in cash and cash equivalents

 

322,540

698,547

Cash and cash equivalents at 1 March

 

888,067

189,520

Cash and cash equivalents at 28 February

 

1,210,607

888,067

 

AJL Hotel Holdings Limited

Consolidated Statement of Cash Flows for the Year Ended 28 February 2023


Analysis of net debt
 

At 1 March 2022

Cashflows

Other non-cash changes

At 28 February 2023

£

£

£

£

Cash and cash equivalents

Cash

888,067

322,540

-

1,210,607

Borrowings

Debt due within one year

(355,820)

355,820

(399,338)

(399,338)

Debt due after one year

(5,491,184)

62,976

362,187

(5,066,021)

Total

(4,958,937)

741,336

(37,151)

(4,254,752)

 

AJL Hotel Holdings Limited

Notes to the Financial Statements for the Year Ended 28 February 2023

1

Accounting policies

AJL Hotel Holdings Limited is a private company, limited by shares, domiciled in England and Wales, company number 09900574. The registered office is at Hellaby Hall Hotel,, Old Hellaby Lane,, Rotherham , S66 8SN, England.

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. The presentation currency is United Kingdom pounds sterling, which is the functional currency of the company. The financial statements are those of an individual entity.

Summary of disclosure exemptions

The parent company satisfies the criteria of being a qualifying entity as defnined by FRS102. As such, advantage is taken of the following reduced disclosures under FRS102:

a. Disclosures in respect of each class of share capital have not been presented.
b. No cashflow statement has been presented for the parent company.
c. Disclosures in respect of financial instruments have not been presented.
d. No disclosure has been given for the aggregate remuneration of key management personel.

Basis of consolidation

The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 28 February 2023.

 

AJL Hotel Holdings Limited

Notes to the Financial Statements for the Year Ended 28 February 2023

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

After due consideration of all relevant factors, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, they continue to adopt the going concern basis in preparing the annual report and accounts.

Judgements

No significant judgements or ley assumptions have ad to be made by management in preparing these financial statements.

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 company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

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.

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.

 

AJL Hotel Holdings Limited

Notes to the Financial Statements for the Year Ended 28 February 2023

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.

Tangible assets

Tangible assets are stated in the statement of financial position at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

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

Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly.

An increase in the carrying value of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss.

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

Property improvements

20% reducing balance

Plant and machinery

16% straight line and 20% reducing balance

Fixtures and fittings

20% reducing balance

Equipment

20% reducing balance

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.

 

AJL Hotel Holdings Limited

Notes to the Financial Statements for the Year Ended 28 February 2023

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% straight line

Stocks

Stocks are stated at the lower of cost and net realisable value and the valuations are undertaken by an independent professional valuer.

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.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group 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.

Financial instruments

Classification
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the company is presented as a liability in the balance sheet. The corresponding dividends relating to the liability component are charged as interest expense in the statement of comprehensive income.
 

 

AJL Hotel Holdings Limited

Notes to the Financial Statements for the Year Ended 28 February 2023

2

Other operating income

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

2023
£

2022
£

Government grants

-

272,964

3

Exceptional items

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

2023
£

2022
£

Exceptional items

429,335

-

Income of £429,335 has been recognised in respect of insurance claims receivable.

4

Other gains and losses

The analysis of the group's other gains and losses for the year is as follows:

2023
£

2022
£

Loss on disposal of tangible assets

-

(10,465)

5

Operating profit

Arrived at after charging/(crediting)

2023
£

2022
£

Depreciation expense

183,522

201,007

Amortisation expense

82,833

122,000

Loss on disposal of property, plant and equipment

-

10,465

6

Interest payable and similar expenses

2023
£

2022
£

Interest on bank overdrafts and borrowings

154,059

136,592

 

AJL Hotel Holdings Limited

Notes to the Financial Statements for the Year Ended 28 February 2023

7

Staff costs

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

2023
£

2022
£

Wages and salaries

2,565,105

2,034,197

Social security costs

138,069

115,923

Pension costs, defined contribution scheme

40,949

30,191

2,744,123

2,180,311

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

2023
No.

2022
No.

Production

157

146

Administration and support

15

12

172

158

8

Director's remuneration

The director's remuneration for the year was as follows:

2023
£

2022
£

Remuneration

29,833

36,050

9

Auditors' remuneration

2023
£

2022
£

Audit of these financial statements

12,500

11,500


 

 

AJL Hotel Holdings Limited

Notes to the Financial Statements for the Year Ended 28 February 2023

10

Taxation

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

2023
£

2022
£

Current taxation

UK corporation tax

328,423

205,291

UK corporation tax adjustment to prior periods

-

12,786

328,423

218,077

Deferred taxation

Arising from origination and reversal of timing differences

(62,431)

(5,282)

Tax expense in the income statement

265,992

212,795

The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2022 - higher than the standard rate of corporation tax in the UK) of 19% (2022 - 19%).

The differences are reconciled below:

2023
£

2022
£

Profit before tax

1,556,517

887,553

Corporation tax at standard rate

295,738

168,635

Deferred tax expense relating to changes in tax rates or laws

27,798

-

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

(57,544)

44,160

Total tax charge

265,992

212,795

 

AJL Hotel Holdings Limited

Notes to the Financial Statements for the Year Ended 28 February 2023

Deferred tax

Group

Deferred tax assets and liabilities

2023

Asset
£

Liability
£

Accelerated capital allowances

-

48,688

Revaluation of tangible assets

-

485,240

-

533,928

2022

Asset
£

Liability
£

Accelerated capital allowances

-

129,175

Revaluation of tangible assets

-

303,849

-

433,024

 

AJL Hotel Holdings Limited

Notes to the Financial Statements for the Year Ended 28 February 2023

11

Intangible assets

Group

Goodwill
 £

Total
£

Cost or valuation

At 1 March 2022

1,220,000

1,220,000

At 28 February 2023

1,220,000

1,220,000

Amortisation

At 1 March 2022

924,667

924,667

Amortisation charge

82,833

82,833

At 28 February 2023

1,007,500

1,007,500

Carrying amount

At 28 February 2023

212,500

212,500

At 28 February 2022

295,333

295,333

 

AJL Hotel Holdings Limited

Notes to the Financial Statements for the Year Ended 28 February 2023

12

tangible assets

Group

Land and buildings
£

Fixtures and fittings
£

Plant and machinery
£

Motor vehicles
 £

Total
£

Cost or valuation

At 1 March 2022

10,316,735

721,051

1,301,264

2,195

12,341,245

Additions

-

23,316

27,081

-

50,397

At 28 February 2023

10,316,735

744,367

1,328,345

2,195

12,391,642

Depreciation

At 1 March 2022

10,422

644,692

741,946

1,630

1,398,690

Charge for the year

1,378

67,534

114,496

113

183,521

At 28 February 2023

11,800

712,226

856,442

1,743

1,582,211

Carrying amount

At 28 February 2023

10,304,935

32,141

471,903

452

10,809,431

At 28 February 2022

10,306,313

76,359

559,318

565

10,942,555

The freehold land and buildings were revalued during December 2015 by Colliers International, an independent firm of chartered surveyors, their valuation was £4,800,000 on a fair value basis on behalf of Natwest. The director is not aware of any material change in value since the date of the valuation and review this annually.

In respect of the tangible assets held at valuation, the aggregate cost, depreciation and comparable carrying amount that would have been recognised if the asset had been carried under the historical cost model are, historic cost £4,237,051 (2022: £4,237,051), depreciation £NIL (2022: £NIL).

 

AJL Hotel Holdings Limited

Notes to the Financial Statements for the Year Ended 28 February 2023

13

Investments

Company

2023
£

2022
£

Investments in subsidiaries

3

3

Subsidiaries

£

Cost

At 1 March 2022 and 28 February 2023

3

Carrying amount

At 28 February 2023

3

At 28 February 2022

3

14

Stocks

 

Group

Company

2023
£

2022
£

2023
£

2022
£

Finished goods and good for resale

64,189

54,703

-

-

15

Debtors

 

Group

Company

Current

2023
£

2022
£

2023
£

2022
£

Trade debtors

107,115

121,526

-

-

Other debtors

470,917

-

-

-

Prepayments

103,889

127,278

-

-

 

681,921

248,804

-

-

16

Cash and cash equivalents

 

Group

Company

2023
£

2022
£

2023
£

2022
£

Cash on hand

250

2,727

-

-

Cash at bank

1,210,357

885,340

97

97

1,210,607

888,067

97

97

 

AJL Hotel Holdings Limited

Notes to the Financial Statements for the Year Ended 28 February 2023

17

Creditors

   

Group

Company

Note

2023
£

2022
£

2023
£

2022
£

Due within one year

 

Loans and borrowings

20

399,338

355,820

-

-

Trade creditors

 

261,188

340,060

-

-

Amounts due to related parties

21

-

116,731

-

-

Social security and other taxes

 

302,175

214,271

-

-

Outstanding defined contribution pension costs

 

10,249

9,153

-

-

Other payables

 

228,142

378,681

-

-

Accruals

 

826,400

989,653

-

-

Income tax liability

10

328,423

205,291

-

-

 

2,355,915

2,609,660

-

-

Due after one year

 

Loans and borrowings

20

4,881,795

5,294,109

-

-

Other non-current financial liabilities

 

184,226

197,075

-

-

 

5,066,021

5,491,184

-

-

Included within creditors: amounts falling due after more than one year is an amount of £200,000 (2022: £200,000) in respect of liabilities payable or repayable otherwise than by instalments which fall due for payment after more than five years from the reporting date.
The bank loans are secured by a fixed and floating charge over the group’s assets. Interest is charged at 2% over base rate.
Of the amounts falling due over more than 5 years, £200,000 is repayable after 5 years at an interest rate of 6%
 

 

AJL Hotel Holdings Limited

Notes to the Financial Statements for the Year Ended 28 February 2023

18

Pension and other schemes

Defined contribution pension scheme

The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £40,949 (2022 - £30,191).

Contributions totalling £10,249 (2022 - £9,153) were payable to the scheme at the end of the year and are included in creditors.

19

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary shares of £1 each

100

100

100

100

         

20

Loans and borrowings

 

Group

Company

2023
£

2022
£

2023
£

2022
£

Non-current loans and borrowings

Bank borrowings

4,881,795

5,294,109

-

-

 

Group

Company

2023
£

2022
£

2023
£

2022
£

Current loans and borrowings

Bank borrowings

399,338

355,820

-

-

21

Related party transactions

At the year end, Mr A J Lavin had a directors loan account balance of £nil (2022: £110,680) which is repayable on demand.
 

22

Parent and ultimate parent undertaking

The ultimate controlling party is Mr A J Lavin by virtue of his 100% shareholding.