Company registration number:
for the Year Ended
Knoll House Hotel Limited
(Registration number: 00296213)
Balance Sheet as at 28 December 2022
Note |
2022 |
2021 |
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Fixed assets |
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Tangible assets |
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Current assets |
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Stocks |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
( |
( |
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Net current liabilities |
( |
( |
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Total assets less current liabilities |
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Creditors: Amounts falling due after more than one year |
( |
( |
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Net assets |
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Capital and reserves |
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Called up share capital |
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Capital redemption reserve |
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Profit and loss account |
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Total equity |
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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
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Knoll House Hotel Limited
Notes to the Financial Statements
for the Year Ended 28 December 2022
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
United Kingdom
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.
Staff numbers |
The average number of persons employed by the company (including directors) during the year was
Government grants |
The amount of grants recognised in the financial statements was £Nil (2021 - £
Knoll House Hotel Limited
Notes to the Financial Statements
for the Year Ended 28 December 2022
Tangible assets |
Land and buildings |
Furniture, fittings and equipment |
Motor vehicles |
Assets under construction |
Total |
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Cost or valuation |
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At 29 December 2021 |
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Additions |
- |
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- |
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Disposals |
- |
- |
( |
- |
( |
At 28 December 2022 |
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- |
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Depreciation |
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At 29 December 2021 |
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- |
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Charge for the year |
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- |
- |
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Eliminated on disposal |
- |
- |
( |
- |
( |
At 28 December 2022 |
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- |
- |
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Carrying amount |
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At 28 December 2022 |
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- |
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At 28 December 2021 |
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- |
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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
Stocks |
2022 |
2021 |
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Finished goods and goods for resale |
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Debtors |
Current |
2022 |
2021 |
Trade debtors |
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Amounts owed by group undertakings and undertakings in which the company has a participating interest |
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- |
Prepayments |
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Other debtors |
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Creditors |
Note |
2022 |
2021 |
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Loans and borrowings |
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Trade creditors |
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Amounts owed to group undertakings and undertakings in which the company has a participating interest |
- |
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Taxation and social security |
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Other creditors |
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Due after one year |
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Loans and borrowings |
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Loans and borrowings |
2022 |
2021 |
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Current loans and borrowings |
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Bank borrowings |
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2022 |
2021 |
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Non-current loans and borrowings |
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Bank borrowings |
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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. |
Obligations under leases and hire purchase contracts |
Operating leases
The total of future minimum lease payments is as follows:
2022 |
2021 |
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Not later than one year |
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Later than one year and not later than five years |
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The amount of non-cancellable operating lease payments recognised as an expense during the year was £
Relationship between entity and parents |
The parent of the smallest group in which these financial statements are consolidated is
The address of Kingfisher Resorts Studland Limited is:
5 Manfred Road
London
Audit Report |