Company registration number 03841689 (England and Wales)
ST GILES HOTEL (HEATHROW) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
ST GILES HOTEL (HEATHROW) LIMITED
COMPANY INFORMATION
Directors
Dato' Seri R C M Tan
Mr S Y Chua
Mr C B Oh
Ms A H X Tan
Secretary
Boodle Hatfield Secretarial Limited
Company number
03841689
Registered office
St Giles Hotel
12 Bedford Avenue
London
WC1B 3GH
Auditor
Silver Levene (UK) Limited
Chartered Certified Accountants
37 Warren Street
London
W1T 6AD
Business address
Hounslow Road
Feltham
TW14 9AD
ST GILES HOTEL (HEATHROW) LIMITED
CONTENTS
Page
Directors' report
1 - 2
Independent auditor's report
3 - 5
Statement of comprehensive income
6
Statement of financial position
7
Statement of changes in equity
8
Notes to the financial statements
9 - 19
ST GILES HOTEL (HEATHROW) LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

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

Principal activities

The principal activity of the company continued to be that of the operation of a hotel.

Directors

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

Dato' Seri R C M Tan
Mr S Y Chua
Mr C B Oh
Ms A H X Tan
Future developments

The property continues to be contracted with the Home Office via a 3rd party for full occupancy, recently extended for 18 months, effective 1 May 2023.

 

While our contract with the Home Office continues to run for the next 18 months with the potential of being extended for another term, we are beginning our exploration of the feasibility of converting the old wing into a co-work/co-living model plus maintaining the 3-star hotel in the new wing. We are looking at ways to maximise the revenue stream and value of the property, while continuing to create new live/stay experiences for our guests. If our study shows that the co-work/co-live model is feasible, we would begin construction at the end of the Home Office contract for a period of 12 months to re-opening.

Auditor

In accordance with the company's articles, a resolution proposing that Silver Levene (UK) Limited be reappointed as auditor of the company will be put at a General Meeting.

Statement of directors' responsibilities

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

 

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

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the 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.

Statement of disclosure to auditor

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

ST GILES HOTEL (HEATHROW) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Small companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

On behalf of the board
Ms A H X Tan
Director
21 March 2024
ST GILES HOTEL (HEATHROW) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ST GILES HOTEL (HEATHROW) LIMITED
- 3 -
Opinion

We have audited the financial statements of St Giles Hotel (Heathrow) Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

 

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

 

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

Other information

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

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

ST GILES HOTEL (HEATHROW) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ST GILES HOTEL (HEATHROW) LIMITED
- 4 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in 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:

 

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the 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'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.

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

Discussions were held with, and enquiries made of, management and those charged with governance with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity.

 

The following laws and regulations were identified as being of significance to the entity:

 

 

ST GILES HOTEL (HEATHROW) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF ST GILES HOTEL (HEATHROW) LIMITED
- 5 -

Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; review of board minutes; testing the appropriateness of entries in the nominal ledger, including journal entries; reviewing transactions around the end of the reporting period; and the performance of analytical procedures to identify unexpected movements in account balances which may be indicative of fraud.

 

No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity’s controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).

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

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.

Goh Yong Chong
Senior Statutory Auditor
For and on behalf of Silver Levene (UK) Limited
Chartered Certified Accountants
Statutory Auditor
37 Warren Street
London
W1T 6AD
22 March 2024
ST GILES HOTEL (HEATHROW) LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
2023
2022
Notes
£
£
Turnover
2
10,024,830
8,056,007
Cost of sales
(391,346)
(329,274)
Gross profit
9,633,484
7,726,733
Administrative expenses
(7,522,140)
(6,078,183)
Operating profit
3
2,111,344
1,648,550
Interest receivable and similar income
5
26,403
3,641
Interest payable and similar expenses
6
(21,147)
(84,583)
Profit before taxation
2,116,600
1,567,608
Tax on profit
7
(431,146)
(112,015)
Profit for the financial year
1,685,454
1,455,593

The income statement has been prepared on the basis that all operations are continuing operations.

ST GILES HOTEL (HEATHROW) LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 7 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
9
2,656,640
2,960,794
Investments
10
9,000
9,000
2,665,640
2,969,794
Current assets
Stocks
11
22,591
7,515
Debtors
12
332,393
149,584
Cash at bank and in hand
1,995,519
1,305,916
2,350,503
1,463,015
Creditors: amounts falling due within one year
13
(3,335,180)
(4,420,050)
Net current liabilities
(984,677)
(2,957,035)
Total assets less current liabilities
1,680,963
12,759
Provisions for liabilities
Deferred tax liability
15
229,520
246,770
(229,520)
(246,770)
Net assets/(liabilities)
1,451,443
(234,011)
Capital and reserves
Called up share capital
17
111,000
111,000
Profit and loss reserves
1,340,443
(345,011)
Total equity
1,451,443
(234,011)

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

The financial statements were approved by the board of directors and authorised for issue on 21 March 2024 and are signed on its behalf by:
Ms A H X Tan
Director
Company registration number 03841689 (England and Wales)
ST GILES HOTEL (HEATHROW) LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2022
111,000
(1,800,604)
(1,689,604)
Year ended 31 December 2022:
Profit and total comprehensive income
-
1,455,593
1,455,593
Balance at 31 December 2022
111,000
(345,011)
(234,011)
Year ended 31 December 2023:
Profit and total comprehensive income
-
1,685,454
1,685,454
Balance at 31 December 2023
111,000
1,340,443
1,451,443
ST GILES HOTEL (HEATHROW) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
1
Accounting policies
Company information

St Giles Hotel (Heathrow) Limited is a private company limited by shares incorporated in England and Wales. The registered office is St Giles Hotel, 12 Bedford Avenue, London, WC1B 3GH.

1.1
Accounting convention

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

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

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

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

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable and is derived from the operation of the hotel and comprises income from rooms and catering. Turnover shown in the profit and loss account represents amounts receivable during the year exclusive of Value Added Tax.

Revenue derived from hire of rooms is recognised over the period of hiring.

1.4
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

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

Software
5 years straight line
1.5
Tangible fixed assets

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

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

Leasehold improvements
15 years straight line
Fixtures and fittings
5 - 10 years straight line

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

ST GILES HOTEL (HEATHROW) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 10 -
1.6
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

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

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

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

1.7
Impairment of fixed assets

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

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

 

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

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

1.8
Stocks

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

1.9
Cash and cash equivalents

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

ST GILES HOTEL (HEATHROW) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 11 -
1.10
Financial instruments

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

 

Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

 

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

Basic financial assets

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

Impairment of financial assets

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

 

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

 

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

Derecognition of financial assets

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

Classification of financial liabilities

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

ST GILES HOTEL (HEATHROW) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 12 -
Basic financial liabilities

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

 

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

 

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

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.11
Equity instruments

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

1.12
Taxation

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

Current tax

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

Deferred tax

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

 

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

ST GILES HOTEL (HEATHROW) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 13 -
1.13
Employee benefits

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

 

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

 

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

1.14
Retirement benefits

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

1.15
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

1.16
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Room sales
9,980,916
8,026,637
Others
43,914
29,370
10,024,830
8,056,007
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
10,024,830
8,056,007
2023
2022
£
£
Other revenue
Interest income
26,403
3,641
ST GILES HOTEL (HEATHROW) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
3
Operating profit
2023
2022
Operating profit for the year is stated after charging:
£
£
Depreciation of owned tangible fixed assets
319,475
318,913
Amortisation of intangible assets
-
12,026
Operating lease charges
3,916,600
3,367,609
4
Employees

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

2023
2022
Number
Number
Hotel staff
23
22
Administrative staff
4
5
Total
27
27

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
525,328
541,208
Social security costs
70,204
53,585
Pension costs
12,490
10,639
608,022
605,432
5
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
26,403
3,641
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
26,403
3,641
6
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Other interest on financial liabilities
21,147
84,583
ST GILES HOTEL (HEATHROW) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
7
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
448,396
50,887
Deferred tax
Origination and reversal of timing differences
(17,250)
61,128
Total tax charge
431,146
112,015

During the year, the corporation tax rate increased from current 19% to 25%, starting from 1 April 2023 for companies with profits over £250,000. Therefore, the effective tax rate is 23.52%. For the purposes of deferred tax, this has been provided at the standard corporation tax rate of 25%.

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

2023
2022
£
£
Profit before taxation
2,116,600
1,567,608
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
497,835
297,846
Tax effect of expenses that are not deductible in determining taxable profit
(92,057)
9,665
Tax effect of utilisation of tax losses not previously recognised
-
0
(277,310)
Permanent capital allowances in excess of depreciation
25,368
81,814
Taxation charge for the year
431,146
112,015
8
Intangible fixed assets
Software
£
Cost
At 1 January 2023 and 31 December 2023
82,922
Amortisation and impairment
At 1 January 2023 and 31 December 2023
82,922
Carrying amount
At 31 December 2023
-
0
At 31 December 2022
-
0
ST GILES HOTEL (HEATHROW) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
9
Tangible fixed assets
Leasehold improvements
Assets under construction
Fixtures and fittings
Total
£
£
£
£
Cost
At 1 January 2023
4,150,832
49,596
2,655,001
6,855,429
Additions
22,433
-
0
42,484
64,917
Disposals
-
0
(49,596)
-
0
(49,596)
At 31 December 2023
4,173,265
-
0
2,697,485
6,870,750
Depreciation and impairment
At 1 January 2023
1,567,409
-
0
2,327,226
3,894,635
Depreciation charged in the year
260,922
-
0
58,553
319,475
At 31 December 2023
1,828,331
-
0
2,385,779
4,214,110
Carrying amount
At 31 December 2023
2,344,934
-
0
311,706
2,656,640
At 31 December 2022
2,583,423
49,596
327,775
2,960,794
10
Fixed asset investments
2023
2022
£
£
Unlisted investments
9,000
9,000
11
Stocks
2023
2022
£
£
Finished goods and goods for resale
22,591
7,515
12
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
-
0
987
Other debtors
178,591
-
0
Prepayments and accrued income
153,802
148,597
332,393
149,584
ST GILES HOTEL (HEATHROW) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 17 -
13
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Other borrowings
14
-
0
963,830
Trade creditors
358,214
444,331
Corporation tax
448,396
50,887
Other taxation and social security
-
0
144,148
Other creditors
153,508
169,554
Accruals and deferred income
2,375,062
2,647,300
3,335,180
4,420,050
14
Loans and overdrafts
2023
2022
£
£
Loans from related parties
-
0
963,830
Payable within one year
-
0
963,830
15
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
229,520
246,770
2023
Movements in the year:
£
Liability at 1 January 2023
246,770
Credit to profit or loss
(17,250)
Liability at 31 December 2023
229,520
ST GILES HOTEL (HEATHROW) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 18 -
16
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
12,490
10,639

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

17
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
111,000
111,000
111,000
111,000

The company's ordinary shares, which carry no right to fixed income, each carry the right to one vote at general meetings of the company.

18
Financial commitments, guarantees and contingent liabilities

The company is part of the corporate guarantee over a total bank loan of £16.7 million as of the end of the reporting date obtained by related parties in which the shareholders of the related parties are substantially the same as those of the company. There is also a legal charge over the company's assets in favour of this loan.

19
Operating lease commitments
Lessee

The operating leases represent leases of property from a related party by virtue of common ownership. The leases are negotiated over terms of 35 years from 7 May 1999. The lease included a provision for five-yearly upward rent reviews according to prevailing market conditions. There are no options in place for either party to extend the lease terms. Additional contingent rents are also payable on the basis of 50% of the profit before taxation of the lessee for the accounting period less the basic rent of £1.8 million. Contingent rents and any increase in rental payment due to rent reviews are excluded from the disclosure below.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£
£
Within one year
1,800,000
1,800,000
Between two and five years
7,200,000
7,200,000
In over five years
11,700,000
13,500,000
20,700,000
22,500,000
20
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

ST GILES HOTEL (HEATHROW) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
20
Related party transactions
(Continued)
- 19 -
Rent payable
Interest payable
2023
2022
2023
2022
£
£
£
£
Entities with substantially the same shareholders
3,916,600
3,367,609
21,147
84,583

The following amounts were outstanding at the reporting end date:

2023
2022
Amounts due to related parties
£
£
Entities with substantially the same shareholders
2,257,950
3,478,429

Other information

 

During the year, the company also paid management cross charge of £858,468 (2022: £553,000) to a connected company, for services rendered.

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