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Company registration number: 00296213

Knoll House Hotel Limited

Filleted Annual Report and Financial Statements

for the Year Ended 28 December 2022

 

Knoll House Hotel Limited

Contents

Balance Sheet

1

Notes to the Financial Statements

2 to 9

 

Knoll House Hotel Limited

(Registration number: 00296213)
Balance Sheet as at 28 December 2022

Note

2022
£

2021
£

Fixed assets

 

Tangible assets

5

2,236,505

1,813,260

Current assets

 

Stocks

6

24,132

25,671

Debtors

7

823,160

148,905

Cash at bank and in hand

 

53,442

776,158

 

900,734

950,734

Creditors: Amounts falling due within one year

8

(923,724)

(963,784)

Net current liabilities

 

(22,990)

(13,050)

Total assets less current liabilities

 

2,213,515

1,800,210

Creditors: Amounts falling due after more than one year

8

(322,500)

(352,500)

Net assets

 

1,891,015

1,447,710

Capital and reserves

 

Called up share capital

30,000

30,000

Capital redemption reserve

33,991

33,991

Profit and loss account

1,827,024

1,383,719

Total equity

 

1,891,015

1,447,710

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. The option not to file the profit and loss account and directors’ report has been taken.

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


A J B Nares
Director

   
 

Knoll House Hotel Limited

Notes to the Financial Statements
for the Year Ended 28 December 2022

1

General information

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

The address of its registered office is:
Hyde Park House
5 Manfred Road
London
SW15 2RS
United Kingdom

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 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

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.

These financial statements are presented in Sterling (£).

 

Knoll House Hotel Limited

Notes to the Financial Statements
for the Year Ended 28 December 2022

Going concern

The company operates the Knoll House Hotel Ltd, a unique property in Studland in Dorset and alongside its parent company, Kingfisher Resorts Studland Ltd, is seeking to obtain planning permission to develop the hotel. The hotel continues to be profitable with results in 2023 in line with those in 2022 and strong cash generation. The directors expect this level of profitability to be at least maintained in 2024.

The company has invested significant sums in the planning process to date (which are included within Assets in the course of construction) and on 24 January 2024, the latest planning application was turned down. The Directors are now preparing a revised application and believe there is strong political support for approval and remain positive about obtaining approval for a revised application.

The company has a balance due from its parent company at the year end of £662k and this has risen to £1,151k at 31 January 2024. Subsequent to the year end and prior to the date of approval of these accounts, the company has drawn down additional bank and lease finance of £434k. The forecasts prepared by the Directors show that the expected cash generation of this company will be sufficient to continue its operations, service its debt and to fund expected capital expenditure. However, the parent company is reliant on funding which is provided on a rolling 3 month basis. The directors have obtained confirmation from the lender to the parent company that their intention is that this funding will continue to be available to the company until at least 30 April 2024. Whilst this confirmation does not provide certainty, alongside the previous history of this funding being rolled over, the strong trading position of the company and the assets of the group to support a re-financing should that be necessary, the directors consider that the Company has adequate resources to continue in operational existence for a period of at least 12 months from the approval of these financial statements and therefore they continue to adopt the going concern basis of accounting in preparing these financial statements.

The Directors therefore consider that the Company has adequate resources to continue in operational existence for a period of at least 12 months from the approval of these accounts and therefore they continue to adopt the going concern basis of accounting in preparing these financial statements.

Turnover 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.

Room sales are recognised at the point that the room is used by the customer. Food and drink sales are recognised at the point of sale.

Government grants

Government grants are recognised under the accruals model resulting in income being recognised on a systematic basis over the period in which the related costs are incurred for which the grant is compensating. The income from the scheme is recognised as other income in the profit and loss and timing differences presented as other debtors or deferred income within the balance sheet.

Tangible assets

Tangible assets are stated at cost, less accumulated depreciation and accumulated impairment losses.

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

 

Knoll House Hotel Limited

Notes to the Financial Statements
for the Year Ended 28 December 2022

Depreciation of tangible assets

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

Fixtures, fittings and equipment

5%-25% straight line

Buildings - assets under construction

Not depreciated until work complete

Buildings

2% straight line

Motor vehicles

10% straight line

Cash and cash equivalents

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

Debtors

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

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

Stocks

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

At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Creditors

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

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

 

Knoll House Hotel Limited

Notes to the Financial Statements
for the Year Ended 28 December 2022

Borrowings

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

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

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

Reserves

Called up share capital represents the nominal value of shares that have been issued.

Profit and loss account includes all current and prior period profits and losses.

Capital redemption reserve records the nominal value of shares repurchased by the company.

Leases

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

Share capital

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

Defined contribution pension obligation

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payments obligations.

The contributions are recognised as an expense in the profit and loss account when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.

 

Knoll House Hotel Limited

Notes to the Financial Statements
for the Year Ended 28 December 2022

Critical accounting judgments and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount 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 where the revision affects only that period, or in the period of revision and future period where the revision affects both current and future periods.

Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Assets in the course of construction
Expenditure that relates to the assets in the course of construction of the company is judged by management as that which is incurred in the development of the property assets, will enhance those property assets and which will in future provide returns over a reasonable economic life.


Key sources of estimation uncertainty
The directors have made an assessment that no impairment of the assets in the course of construction is required. The company has applied for planning permission to further develop the hotel site owned by the company and continues to incur costs to obtain that planning permission as well as to develop the existing hotel. The directors have assumed that planning permission will be obtained when making their assessment as this is their expectation. Should planning permission for development not be obtained, the level of future returns from the property will need re-evaluating. This could result in an impairment being required although the directors consider this unlikely.
 

3

Staff numbers

The average number of persons employed by the company (including directors) during the year was 61 (2021 - 54).

4

Government grants

During the year, other income of £Nil (2021 - £190,379) was received from the government under the coronavirus job retention scheme. In addition, £Nil (2021 - £36,214) was received from the government under grants payable to companies operating in the hospitality industry.

The amount of grants recognised in the financial statements was £Nil (2021 - £226,593).

 

Knoll House Hotel Limited

Notes to the Financial Statements
for the Year Ended 28 December 2022

5

Tangible assets

Land and buildings
£

Furniture, fittings and equipment
 £

Motor vehicles
 £

Assets under construction
 £

Total
£

Cost or valuation

At 29 December 2021

737,349

585,719

5,850

1,147,370

2,476,288

Additions

-

116,086

-

374,738

490,824

Disposals

-

-

(5,850)

-

(5,850)

At 28 December 2022

737,349

701,805

-

1,522,108

2,961,262

Depreciation

At 29 December 2021

115,457

541,721

5,850

-

663,028

Charge for the year

14,747

52,832

-

-

67,579

Eliminated on disposal

-

-

(5,850)

-

(5,850)

At 28 December 2022

130,204

594,553

-

-

724,757

Carrying amount

At 28 December 2022

607,145

107,252

-

1,522,108

2,236,505

At 28 December 2021

621,892

43,998

-

1,147,370

1,813,260

Included within the net book value of land and buildings above is £607,145 (2021 - £621,892) in respect of freehold land and buildings.
 

 

Knoll House Hotel Limited

Notes to the Financial Statements
for the Year Ended 28 December 2022

6

Stocks

2022
£

2021
£

Finished goods and goods for resale

24,132

25,671

7

Debtors

Current

2022
£

2021
£

Trade debtors

4,907

35,425

Amounts owed by group undertakings and undertakings in which the company has a participating interest

662,902

-

Prepayments

99,963

78,790

Other debtors

55,388

34,690

 

823,160

148,905

8

Creditors

Note

2022
£

2021
£

Loans and borrowings

9

30,000

30,000

Trade creditors

 

287,908

126,868

Amounts owed to group undertakings and undertakings in which the company has a participating interest

-

187,233

Taxation and social security

 

238,473

61,251

Other creditors

 

367,343

558,432

 

923,724

963,784

Due after one year

 

Loans and borrowings

9

322,500

352,500

9

Loans and borrowings

2022
£

2021
£

Current loans and borrowings

Bank borrowings

30,000

30,000

2022
£

2021
£

Non-current loans and borrowings

Bank borrowings

322,500

352,500

 

Knoll House Hotel Limited

Notes to the Financial Statements
for the Year Ended 28 December 2022

Bank borrowings

The bank borrowings are secured on all assets of the Company.

10

Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

2022
£

2021
£

Not later than one year

34,893

28,910

Later than one year and not later than five years

23,907

25,085

58,800

53,995

The amount of non-cancellable operating lease payments recognised as an expense during the year was £43,708 (2021 - £57,102).

11

Relationship between entity and parents

The parent of the smallest group in which these financial statements are consolidated is Kingfisher Resorts Studland Limited, incorporated in England and Wales.

The address of Kingfisher Resorts Studland Limited is:
Hyde Park
5 Manfred Road
London

12

Audit Report

The Independent Auditor's Report was unqualified. The name of the Senior Statutory Auditor who signed the audit report on 4 April 2024 was Alison Kerr FCA, who signed for and on behalf of Albert Goodman LLP.