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Providence Hotels Limited (formerly known as Providence Hospitality Limited)

Annual Report and Unaudited Financial Statements
Year Ended 31 March 2023

Registration number: 10233190

 

Providence Hotels Limited (formerly known as Providence Hospitality Limited)

Contents

Company Information

1

Directors' Report

2

Statement of Income and Retained Earnings

3

Balance Sheet

4

Notes to the Unaudited Financial Statements

5 to 11

Non-statutory pages

12 to 13

Accountants' Report

14

 

Providence Hotels Limited (formerly known as Providence Hospitality Limited)

Company Information

Directors

J J Bester

J A Nel

Registered office

2nd Floor
10 Bridge Street
Bath
Somerset
BA2 4AS

Accountants

Francis Clark LLP
Lowin House
Tregolls Road
Truro
Cornwall
TR1 2NA

 

Providence Hotels Limited (formerly known as Providence Hospitality Limited)

Directors' Report for the Year Ended 31 March 2023

The directors present their report and the financial statements for the year ended 31 March 2023.

Directors of the company

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

J J Bester

J A Nel

Principal activity

The principal activity of the company is that of hospitality management.

Small companies provision statement

This report has been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

Approved and authorised by the Board on 28 March 2024 and signed on its behalf by:
 

.........................................
J J Bester
Director

 

Providence Hotels Limited (formerly known as Providence Hospitality Limited)

Statement of Income and Retained Earnings

Year Ended 31 March 2023

2023
£

2022
£

Turnover

1,057,240

965,944

Cost of sales

(1,339,526)

(863,827)

Gross (loss)/profit

(282,286)

102,117

Administrative expenses

(314,604)

(231,500)

Operating loss

(596,890)

(129,383)

Other interest receivable and similar income

5

3,157

Interest payable and similar charges

(12,768)

(26,341)

Loss before tax

(609,653)

(152,567)

Taxation

35,938

-

Loss for the financial year

(573,715)

(152,567)

Retained earnings brought forward

(443,321)

(290,754)

Retained earnings carried forward

(1,017,036)

(443,321)

 

Providence Hotels Limited (formerly known as Providence Hospitality Limited)

Balance Sheet

31 March 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

4

36,056

29,385

Investments

5

100

100

 

36,156

29,485

Current assets

 

Debtors

6

930,167

1,017,428

Cash at bank and in hand

 

20,109

15,358

 

950,276

1,032,786

Creditors: Amounts falling due within one year

7

(2,003,368)

(1,505,492)

Net current liabilities

 

(1,053,092)

(472,706)

Net liabilities

 

(1,016,936)

(443,221)

Capital and reserves

 

Called up share capital

8

100

100

Profit and loss account

(1,017,036)

(443,321)

Shareholders' deficit

 

(1,016,936)

(443,221)

For the financial year ending 31 March 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared and delivered in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

Approved and authorised by the Board on 28 March 2024 and signed on its behalf by:
 

.........................................
J J Bester
Director

Company Registration Number: 10233190

 

Providence Hotels Limited (formerly known as Providence Hospitality Limited)

Notes to the Unaudited Financial Statements

Year Ended 31 March 2023

1

General information

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

The address of its registered office is:
2nd Floor
10 Bridge Street
Bath
Somerset
BA2 4AS

These financial statements were authorised for issue by the Board on 28 March 2024.

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 have been prepared in accordance with Financial Reporting Standard 102 - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of Section 1A of FRS102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in pounds sterling which is the functional currency of the company.

Monetary amounts in these financial statements are rounded to the nearest pound.

Basis of preparation

These financial statements have been prepared using the historical cost convention.

Going concern

At the balance sheet date the company had net liabilities of £1,016,936 (2022 - net liabilities of £443,221).

Management have assessed a number of factors in respect of the appropriateness of the going concern assertion, and in particular the ongoing management contracts of the company and the wider group that it is a head of. In addition management have considered the availability of additional support from the shareholders and wider Fairtree group should it be required.

After due consideration of these factors the Directors continue to apply the going concern basis to the preparation of the financial statements. In particular the company has considered the support given to it by its connected undertaking, which continues to be forthcoming for a period of no less than 12 months from the approval of the financial statements.

 

Providence Hotels Limited (formerly known as Providence Hospitality Limited)

Notes to the Unaudited Financial Statements

Year Ended 31 March 2023

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the provision of hospitality management 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.

Government grants

During the prior year the company recognised Coronavirus Job Retention Scheme (“CJRS”) grant income from the Government designed to mitigate the impact of Covid 19. The company elected to account for such grants under the accruals model as permitted by FRS 102. Grants of a revenue nature are recognised in “other operating income” within profit or loss in the same period as the related expenditure.

The company has not directly benefited from any other forms of government assistance in the current or prior year.

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.

Tangible assets

Tangible assets are stated in the balance sheet 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.

 

Providence Hotels Limited (formerly known as Providence Hospitality Limited)

Notes to the Unaudited Financial Statements

Year Ended 31 March 2023

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

Furniture, fittings and equipment

20% - 33% straight line

Motor vehicles

20% straight line

Investments

Investments in subsidiaries are carried at cost.

Financial instruments

Classification
The company holds the following financial instruments:

• Short term trade and other debtors and creditors;
• 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 the 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.

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.


 

 

Providence Hotels Limited (formerly known as Providence Hospitality Limited)

Notes to the Unaudited Financial Statements

Year Ended 31 March 2023

Critical judgements and estimation uncertainty

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

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

In the opinion of the Directors the following areas are where key judgements have been made in the preparation of the financial statements:

i) Recoverability of amounts due from group undertakings and other debtors
Management have carefully reviewed the carrying amounts included in amounts due from group undertakings and other debtors. In their opinion all amounts are recoverable and no provision is required to be recognised.

The carrying value of these assets at the balance sheet date, as disclosed in note 6, was £850,669 (2022 - £848,662).

ii) Recognition of deferred tax asset
At the balance sheet date the company has tax losses which have been carried forward. No deferred tax asset has been recognised on these losses on the basis that there is uncertainty over the timing of their utilisation.

The deferred tax asset not recognised at the balance sheet date was £206,260 (2022 - £101,482).

3

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 28 (2022 - 17).

 

Providence Hotels Limited (formerly known as Providence Hospitality Limited)

Notes to the Unaudited Financial Statements

Year Ended 31 March 2023

4

Tangible assets

Furniture, fittings and equipment
 £

Motor vehicles
 £

Total
£

Cost or valuation

At 1 April 2022

32,491

22,495

54,986

Additions

22,978

-

22,978

At 31 March 2023

55,469

22,495

77,964

Depreciation

At 1 April 2022

10,859

14,742

25,601

Charge for the year

11,808

4,499

16,307

At 31 March 2023

22,667

19,241

41,908

Carrying amount

At 31 March 2023

32,802

3,254

36,056

At 31 March 2022

21,632

7,753

29,385

 

Providence Hotels Limited (formerly known as Providence Hospitality Limited)

Notes to the Unaudited Financial Statements

Year Ended 31 March 2023

5

Investments

2023
£

2022
£

Investments in subsidiaries

100

100

Subsidiaries

£

Cost or valuation

At 1 April 2022

100

Carrying amount

At 31 March 2023

100

At 31 March 2022

100

Details of undertakings

Details of the investments 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

     

2023

2022

Subsidiary undertakings

Fairtree Hospitality Private Equity Limited

England and Wales

Ordinary

100%

100%

The principal activity of Fairtree Hospitality Private Equity Limited is that of hospitality management. Its registered office is 2nd Floor 10 Bridge Street, Bath, Somerset, United Kingdom, BA2 4AS.

The company will currently present its first set of financial statements for the year to 31 December 2022.

 

Providence Hotels Limited (formerly known as Providence Hospitality Limited)

Notes to the Unaudited Financial Statements

Year Ended 31 March 2023

6

Debtors

2023
£

2022
£

Debtors

51,331

145,173

Amounts due from group undertakings

578,137

596,207

Other debtors

278,701

258,442

Prepayments

21,998

17,606

930,167

1,017,428

7

Creditors

Creditors: amounts falling due within one year

2023
£

2022
 £

Due within one year

Trade creditors

41,194

75,856

Social security and other taxes

32,240

58,141

Outstanding defined contribution pension costs

3,340

1,483

Other creditors

1,926,594

1,370,012

2,003,368

1,505,492

8

Share capital

Allotted, called up and not fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary 0.50 shares of £0.50 each

200

100.00

200

100.00

         
 

Providence Hotels Limited (formerly known as Providence Hospitality Limited)

Detailed Profit and Loss

Year Ended 31 March 2023

2023
£

2022
£

Turnover

Other revenue

1,057,240

965,944

Cost of sales

Wages and salaries

(1,339,526)

(863,827)

Gross (loss)/profit

(282,286)

102,117

Gross profit (%)

(26.7)%

10.57%

Administrative expenses

Administrative expenses

(314,604)

(231,500)

Operating loss

(596,890)

(129,383)

Other interest receivable and similar income

Interest income on bank deposits

5

-

Other finance income

-

3,157

5

3,157

Interest payable and similar charges

Interest expense on other finance liabilities

(12,768)

(26,341)

Loss before tax

(609,653)

(152,567)

 

Providence Hotels Limited (formerly known as Providence Hospitality Limited)

Detailed Profit and Loss

Year Ended 31 March 2023

2023
£

2022
£

Administration costs

Medical insurance

7,808

1,899

Staff training

520

-

Staff welfare

44,600

47,888

Rent

56,722

19,740

Insurance

3,796

5,023

Telephone and fax

8,466

5,645

Computer software and maintenance costs

1,691

2,066

Printing, postage and stationery

844

286

Trade subscriptions

10,119

3,215

Sundry expenses

10,660

22,741

Cleaning

800

-

Motor expenses

5,261

765

Travel and subsistence

72,945

32,626

Advertising

32,526

1,073

Staff entertaining (allowable for tax)

11,789

8,128

Accountancy fees

1,225

1,900

Legal and professional fees

28,069

68,575

Bank charges

456

369

Depreciation of plant and machinery (owned)

11,808

5,062

Depreciation of motor vehicles (owned)

4,499

4,499

314,604

231,500

 

Chartered Accountants' Report to the Board of Directors on the Preparation of the Unaudited Statutory Accounts of
Providence Hotels Limited (formerly known as Providence Hospitality Limited)

Year Ended 31 March 2023

In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the accounts of Providence Hotels Limited (formerly known as Providence Hospitality Limited) for the year ended 31 March 2023 as set out on pages 3 to 11 from the company's accounting records and from information and explanations you have given us.

As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at
http://www.icaew.com/regulation.

This report is made solely to the Board of Directors of Providence Hotels Limited (formerly known as Providence Hospitality Limited), as a body, in accordance with the terms of our engagement letter dated 2 November 2016. Our work has been undertaken solely to prepare for your approval the accounts of Providence Hotels Limited (formerly known as Providence Hospitality Limited) and state those matters that we have agreed to state to the Board of Directors of Providence Hotels Limited (formerly known as Providence Hospitality Limited), as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Providence Hotels Limited (formerly known as Providence Hospitality Limited) and its Board of Directors as a body for our work or for this report.

It is your duty to ensure that Providence Hotels Limited (formerly known as Providence Hospitality Limited) has kept adequate accounting records and to prepare statutory accounts that give a true and fair view of the assets, liabilities, financial position and loss of Providence Hotels Limited (formerly known as Providence Hospitality Limited). You consider that Providence Hotels Limited (formerly known as Providence Hospitality Limited) is exempt from the statutory audit requirement for the year.

We have not been instructed to carry out an audit or a review of the accounts of Providence Hotels Limited (formerly known as Providence Hospitality Limited). For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory accounts.

......................................

Francis Clark LLP
Lowin House
Tregolls Road
Truro
Cornwall
TR1 2NA

28 March 2024