Company registration number 08120464 (England and Wales)
WARWICK HOTEL CAMBRIDGE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
WARWICK HOTEL CAMBRIDGE LIMITED
COMPANY INFORMATION
Directors
R Chiu
E Soukiassian
Company number
08120464
Registered office
22-24 Basil Street
London
SW3 1AT
Auditor
Glazers
843 Finchley Road
London
NW11 8NA
WARWICK HOTEL CAMBRIDGE LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Group statement of comprehensive income
8
Group balance sheet
9
Company balance sheet
10
Group statement of changes in equity
11
Company statement of changes in equity
12
Group statement of cash flows
13
Company statement of cash flows
14
Notes to the financial statements
15 - 34
WARWICK HOTEL CAMBRIDGE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 1 -

The directors present the strategic report for the year ended 31 December 2023.

Review of the business

Business review and future developments

The principal activity of the group is to operate luxury hotels, restaurants and contract catering.

The loss for the year after taxation was £3.03m (2022: £905k). The directors do not recommend the payment of a dividend (2022: £Nil).

The turnover in 2023 was £7.19m (2022: £6.68m). The Board are satisfied with the performance since acquisition.

The group invested £1.47m (2022: £359k) on capital expenditure during the year, with the majority spent on bedrooms and public areas.

The group has a strong management team and the Board would like to take this opportunity to thank all of its staff.

Principal risks and uncertainties

Events that adversely impact domestic or international travel

The ability to sustain given levels of occupancy and room rates can be adversely affected by events that reduce domestic or international travel. Such events may include acts of terrorism, war or perceived increased risk of armed conflict, epidemics, natural disasters, increased cost of travel and industrial action. The group has in place a contingency and recovery plan to enable it to respond to major incidents. See additional information included in recent events below.

Key personnel

Implementation of the group’s strategy depends on its ability to attract, develop and retain employees with appropriate skills, experience and aptitude. Implementation and development of a group induction scheme as well as ongoing training and development combined with attractive compensation, benefit and incentive schemes all help minimise this risk.

Information technology systems and infrastructure

The group invests in systems that are appropriate to the business so as to maximise client relationships, provide effective communication internally and externally and provide comprehensive reporting capability. The monitoring and development of such systems are outsourced to provide continuity and a cost-effective solution.

WARWICK HOTEL CAMBRIDGE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Development and performance

Litigation

The group may be at risk of litigation from various parties with which it interacts either through direct contractual arrangements, the provision of services or the failure to comply with regulatory requirements or legal obligations to third parties. The board ensures that key personnel are aware of such risks so as to minimise likely exposure whilst ensuring with particular regard to public liability that adequate insurance is in place.

 

Insurance

The group maintains insurance cover appropriate to its risk profile but not all risks are insured either because the cover is not available in the market or is not commercially viable. The Board believes it has assessed the material insurable risks and it ensures that these are properly covered and reviewed on a regular basis.

 

Political and economic developments

Major events affecting either economic or political stability represent an exposure to the group’s revenues and profitability. These are assessed on a regular basis and modes of operation adapted accordingly.

 

The hotel industry supply and demand cycle

The hotel industry operates in an inherently cyclical market place. A weakening in demand or an increase in market supply may lead to downward pressure on room rates and/or occupancies. The group has systems in place that are designed to minimise the impact of such fluctuations as far as possible to optimise operating profits.

 

Recent events

Since the financial year end the outlook for the UK has improved, however the global economy remains uncertain due to the ongoing war in Ukraine and increase in energy pricing. The hotel has seen a good demand in the bedrooms and since the re-opening of the restaurant in September 2022 there has been good demand shown from local residents for the dining in the restaurant.

Key performance indicators

The key financial performance indicators for the group and subsidiaries are considered to be turnover, profit/loss, hotel occupancy, average room rate and revenue per available room.

 

Turnover: £7,187,459 (2022: £6,675,781)

Loss: £3,029,705 (2022: £905,229)

Occupancy: 78.66% (2022: 76.62%)

Average Rooms Rate: £296.60 (2022: £290.35)

Revenue per Available Rooms: £233.29 (2022: £222.47)

On behalf of the board

R Chiu
Director
5 April 2024
WARWICK HOTEL CAMBRIDGE LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -

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

Principal activities

The principal activity of the group is to operate luxury hotels and restaurants.

Results and dividends

The results for the year are set out on page 8.

No ordinary dividends were paid. The directors do not recommend payment of a dividend.

Directors

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

R Chiu
E Soukiassian
Auditor

Glazers were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

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 auditor of the company 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 auditor of the company is aware of that information.

Medium-sized companies exemption

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

On behalf of the board
R Chiu
Director
5 April 2024
WARWICK HOTEL CAMBRIDGE LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

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 group and company, and of the profit or loss of the group 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 group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

WARWICK HOTEL CAMBRIDGE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF WARWICK HOTEL CAMBRIDGE LIMITED
- 5 -
Opinion

We have audited the financial statements of Warwick Hotel Cambridge Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows 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 group and parent 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 group's and parent 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:

WARWICK HOTEL CAMBRIDGE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WARWICK HOTEL CAMBRIDGE LIMITED
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' 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:

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 parent 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 parent 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.

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that 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.

We focused on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation, enquiries with management and enquiries of legal counsel. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

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.

WARWICK HOTEL CAMBRIDGE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF WARWICK HOTEL CAMBRIDGE LIMITED
- 7 -

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.

Benjamin Allen ACCA (Senior Statutory Auditor)
For and on behalf of Glazers
17 April 2024
Chartered Accountants
Statutory Auditor
843 Finchley Road
London
NW11 8NA
WARWICK HOTEL CAMBRIDGE LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2023
2022
as restated
Notes
£
£
Turnover
3
7,187,459
6,675,781
Cost of sales
(3,284,329)
(3,277,575)
Gross profit
3,903,130
3,398,206
Administrative expenses
(3,550,726)
(3,270,537)
Other operating income
-
6,000
Exceptional item
4
-
0
245,276
Operating profit
5
352,404
378,945
Interest receivable and similar income
8
3,190
-
0
Interest payable and similar expenses
9
(2,964,430)
(2,077,516)
Amounts written off investments
10
(385,089)
785,846
Loss before taxation
(2,993,925)
(912,725)
Tax on loss
11
(35,780)
7,496
Loss for the financial year
(3,029,705)
(905,229)
Loss for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
WARWICK HOTEL CAMBRIDGE LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 9 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Goodwill
12
41,647,328
42,202,626
Other intangible assets
12
9,940,630
10,205,683
Total intangible assets
51,587,958
52,408,309
Tangible assets
13
12,157,427
11,590,436
63,745,385
63,998,745
Current assets
Stocks
17
69,728
58,729
Debtors
18
1,333,307
1,690,991
Cash at bank and in hand
421,337
1,701,099
1,824,372
3,450,819
Creditors: amounts falling due within one year
19
(6,414,017)
(5,174,900)
Net current liabilities
(4,589,645)
(1,724,081)
Total assets less current liabilities
59,155,740
62,274,664
Creditors: amounts falling due after more than one year
20
(72,241,150)
(72,366,150)
Provisions for liabilities
Deferred tax liability
22
116,104
80,323
(116,104)
(80,323)
Net liabilities
(13,201,514)
(10,171,809)
Capital and reserves
Called up share capital
24
1,000
1,000
Other reserves
999,000
999,000
Profit and loss reserves
(14,201,514)
(11,171,809)
Total equity
(13,201,514)
(10,171,809)

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

The financial statements were approved by the board of directors and authorised for issue on 5 April 2024 and are signed on its behalf by:
05 April 2024
R  Chiu
Director
Company registration number 08120464 (England and Wales)
WARWICK HOTEL CAMBRIDGE LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 10 -
2023
2022
as restated
Notes
£
£
£
£
Fixed assets
Intangible assets
12
2,133,332
2,399,998
Tangible assets
13
11,238,747
11,389,384
Investments
14
42,323,981
42,323,981
55,696,060
56,113,363
Current assets
Debtors
18
10,392,852
10,792,696
Cash at bank and in hand
27,728
1,570,495
10,420,580
12,363,191
Creditors: amounts falling due within one year
19
(7,874,334)
(6,237,949)
Net current assets
2,546,246
6,125,242
Total assets less current liabilities
58,242,306
62,238,605
Creditors: amounts falling due after more than one year
20
(72,241,150)
(72,366,150)
Net liabilities
(13,998,844)
(10,127,545)
Capital and reserves
Called up share capital
24
1,000
1,000
Other reserves
999,000
999,000
Profit and loss reserves
(14,998,844)
(11,127,545)
Total equity
(13,998,844)
(10,127,545)

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £3,871,300 (2022 - £1,722,443 loss).

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 5 April 2024 and are signed on its behalf by:
05 April 2024
R  Chiu
Director
Company registration number 08120464 (England and Wales)
WARWICK HOTEL CAMBRIDGE LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
Share capital
Other reserves
Profit and loss reserves
Total
£
£
£
£
As restated for the period ended 31 December 2022:
Balance at 1 January 2022
1,000
999,000
(14,846,418)
(13,846,418)
Correction of deferred tax error
-
-
4,579,838
4,579,838
As restated
1,000
999,000
(10,266,580)
(9,266,580)
Year ended 31 December 2022:
Loss and total comprehensive income
-
-
(905,229)
(905,229)
Balance at 31 December 2022
1,000
999,000
(11,171,809)
(10,171,809)
Year ended 31 December 2023:
Loss and total comprehensive income
-
-
(3,029,705)
(3,029,705)
Balance at 31 December 2023
1,000
999,000
(14,201,514)
(13,201,514)
WARWICK HOTEL CAMBRIDGE LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 12 -
Share capital
Other reserves
Profit and loss reserves
Total
£
£
£
£
As restated for the period ended 31 December 2022:
Balance at 1 January 2022
1,000
999,000
(9,405,102)
(8,405,102)
Year ended 31 December 2022:
Loss and total comprehensive income for the year
-
-
(1,722,443)
(1,722,443)
Balance at 31 December 2022
1,000
999,000
(11,127,545)
(10,127,545)
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
(3,871,299)
(3,871,299)
Balance at 31 December 2023
1,000
999,000
(14,998,844)
(13,998,844)
WARWICK HOTEL CAMBRIDGE LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
2023
2022
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
28
2,271,091
1,681,099
Interest paid
(2,666,975)
(1,486,830)
Net cash (outflow)/inflow from operating activities
(395,884)
194,269
Investing activities
Purchase of tangible fixed assets
(1,469,979)
(358,827)
Interest received
3,190
-
0
Net cash used in investing activities
(1,466,789)
(358,827)
Financing activities
Proceeds from borrowings
1,280,000
1,505,000
Repayment of borrowings
(500,000)
-
Repayment of bank loans
(530,000)
-
Proceeds of derivatives
411,111
93,297
Purchase of derivatives
(78,200)
-
Net cash generated from financing activities
582,911
1,598,297
Net (decrease)/increase in cash and cash equivalents
(1,279,762)
1,433,739
Cash and cash equivalents at beginning of year
1,701,099
267,360
Cash and cash equivalents at end of year
421,337
1,701,099
WARWICK HOTEL CAMBRIDGE LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
29
538,107
1,388,874
Interest paid
(2,666,975)
(1,486,830)
Net cash outflow from operating activities
(2,128,868)
(97,956)
Investing activities
Interest received
3,190
-
0
Net cash generated from/(used in) investing activities
3,190
-
Financing activities
Proceeds from borrowings
1,280,000
1,505,000
Repayment of borrowings
(500,000)
-
Repayment of bank loans
(530,000)
-
Proceeds of derivatives
411,111
93,297
Purchase of derivatives
(78,200)
-
Net cash generated from financing activities
582,911
1,598,297
Net (decrease)/increase in cash and cash equivalents
(1,542,767)
1,500,341
Cash and cash equivalents at beginning of year
1,570,495
70,154
Cash and cash equivalents at end of year
27,728
1,570,495
WARWICK HOTEL CAMBRIDGE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
1
Accounting policies
Company information

Warwick Hotel Cambridge Limited ("the company") is a private limited company domiciled and incorporated in England and Wales. The registered office is 22-24 Basil Street, London, SW3 1AT.

 

The group consists of Warwick Hotel Cambridge Limited and all of its subsidiaries.

 

These accounts replace the original accounts and are now the statutory accounts. These accounts are prepared as they were at the date of the original accounts.

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 modified to include the revaluation of leasehold properties. The principal accounting policies adopted are set out below.

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Warwick Hotel Cambridge Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

WARWICK HOTEL CAMBRIDGE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.4
Going concern

The group has additionally obtained confirmation from Warwick Amusement Corporation (a US parent company) that it will continue to provide such financial support as the group requires for its continued operations for a period of not less than one year from the issuance and signing of these financial statements.

 

Based on these forecasts, events and assumptions, the Board believes that it remains appropriate to prepare financial statements on a going concern basis as the Board anticipates that the group will access adequate funds to meet its liabilities as and when they fall due and for a period of at least 12 months from the date of signing of these financial statements.

1.5
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is considered to be the remaining term of the favourable leasehold.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

WARWICK HOTEL CAMBRIDGE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.7
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:

Other intangibles
Up to 15 years straight line
1.8
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 land and buildings
the remaining term of the lease
Fixtures and fittings
5 -12 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 recognised in the profit and loss account.

1.9
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

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

WARWICK HOTEL CAMBRIDGE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -

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 group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

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

1.10
Impairment of fixed assets

At each reporting period end date, the group 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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.

WARWICK HOTEL CAMBRIDGE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
1.11
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.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.12
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.

1.13
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

WARWICK HOTEL CAMBRIDGE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
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 group 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 group after deducting all of its liabilities.

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.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

WARWICK HOTEL CAMBRIDGE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 21 -
Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.14
Equity instruments

Equity instruments issued by the group 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 group.

1.15
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 profit and loss account 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 group’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 profit and loss account, 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 if, and only if, there is 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.

1.16
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.

1.17
Retirement benefits

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

WARWICK HOTEL CAMBRIDGE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 22 -
1.18
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.19
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
Judgements and key sources of estimation uncertainty

In the application of the group’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 the revision and future periods where the revision affects both current and future periods.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Hotel and restaurant sevices
7,187,459
6,675,781
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
7,187,459
6,675,781
2023
2022
£
£
Other revenue
Interest income
3,190
-
Grants received
-
6,000
WARWICK HOTEL CAMBRIDGE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
4
Exceptional item
2023
2022
£
£
Expenditure
Onerous lease provision
-
(245,276)

The onerous lease provision relates to an operating lease within The London Bakery Company Limited, a former subsidiary of the Group.

5
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses
5,667
1,644
Government grants
-
(6,000)
Depreciation of owned tangible fixed assets
902,988
818,748
(Profit)/loss on disposal of tangible fixed assets
-
27,692
Amortisation of intangible assets
820,351
820,351
6
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
10,000
10,000
Audit of the financial statements of the company's subsidiaries
10,000
10,000
20,000
20,000
7
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
61
51
-
0
-
0
WARWICK HOTEL CAMBRIDGE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
7
Employees
(Continued)
- 24 -

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
2,043,439
1,912,040
-
0
-
0
Social security costs
186,162
183,733
-
-
Pension costs
35,808
20,771
-
0
-
0
2,265,409
2,116,544
-
0
-
0
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
3,190
-
0
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
3,190
-
9
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
2,255,865
1,393,533
Interest payable to group undertakings
708,565
680,000
2,964,430
2,073,533
Other finance costs:
Unwinding of discount on provisions
-
3,983
Total finance costs
2,964,430
2,077,516
10
Amounts written off investments
2023
2022
£
£
Fair value gains/(losses) on financial instruments
(Loss)/gain on financial assets held at fair value through profit or loss
(385,089)
785,846

 

 

 

WARWICK HOTEL CAMBRIDGE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
11
Taxation
2023
2022
£
£
Deferred tax
Origination and reversal of timing differences
35,780
(7,496)

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

2023
2022
£
£
Loss before taxation
(2,993,925)
(912,725)
Expected tax credit based on the standard rate of corporation tax in the UK of 23.50% (2022: 19.00%)
(703,572)
(173,418)
Tax effect of expenses that are not deductible in determining taxable profit
6,768
90,432
Tax effect of utilisation of tax losses not previously recognised
(88,117)
(301,020)
Unutilised tax losses carried forward
382,458
138,593
Permanent capital allowances in excess of depreciation
(28,735)
(109,927)
Depreciation on assets not qualifying for tax allowances
238,415
199,473
Amortisation on assets not qualifying for tax allowances
192,782
155,867
Other non-reversing timing differences
35,781
(7,496)
Taxation charge/(credit)
35,780
(7,496)
12
Intangible fixed assets
Group
Goodwill
Other intangibles
Total
£
£
£
Cost
At 1 January 2023 and 31 December 2023
45,534,412
12,243,000
57,777,412
Amortisation and impairment
At 1 January 2023
3,331,786
2,037,317
5,369,103
Amortisation charged for the year
555,298
265,053
820,351
At 31 December 2023
3,887,084
2,302,370
6,189,454
Carrying amount
At 31 December 2023
41,647,328
9,940,630
51,587,958
At 31 December 2022
42,202,626
10,205,683
52,408,309
WARWICK HOTEL CAMBRIDGE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
12
Intangible fixed assets
(Continued)
- 26 -
Company
Other intangibles
£
Cost
At 1 January 2023 and 31 December 2023
4,000,000
Amortisation and impairment
At 1 January 2023
1,600,002
Amortisation charged for the year
266,666
At 31 December 2023
1,866,668
Carrying amount
At 31 December 2023
2,133,332
At 31 December 2022
2,399,998
13
Tangible fixed assets
Group
Leasehold land and buildings
Fixtures and fittings
Total
£
£
£
Cost
At 1 January 2023
11,432,817
4,183,632
15,616,449
Additions
918,484
551,495
1,469,979
At 31 December 2023
12,351,301
4,735,127
17,086,428
Depreciation and impairment
At 1 January 2023
1,598,270
2,427,743
4,026,013
Depreciation charged in the year
297,308
605,680
902,988
At 31 December 2023
1,895,578
3,033,423
4,929,001
Carrying amount
At 31 December 2023
10,455,723
1,701,704
12,157,427
At 31 December 2022
9,834,547
1,755,889
11,590,436
WARWICK HOTEL CAMBRIDGE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
13
Tangible fixed assets
(Continued)
- 27 -
Company
Leasehold land and buildings
£
Cost
At 1 January 2023 and 31 December 2023
12,293,206
Depreciation and impairment
At 1 January 2023
903,822
Depreciation charged in the year
150,637
At 31 December 2023
1,054,459
Carrying amount
At 31 December 2023
11,238,747
At 31 December 2022
11,389,384
14
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
42,323,981
42,323,981
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023 and 31 December 2023
42,323,981
Carrying amount
At 31 December 2023
42,323,981
At 31 December 2022
42,323,981

 

 

 

 

 

 

 

WARWICK HOTEL CAMBRIDGE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 28 -
15
Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Indirect
The Capital Group Limited
UK
Management
Ordinary
100.00
-
Capital Hotels (Knightsbridge) Limited
UK
Hoteliers
Ordinary
-
100.00

The London Bakery Company Limited, Capital Group Restaurants Limited and Capital Group Management Limited have been wound down and dissolved in 2023.

16
Financial instruments
Group
Company
2023
2022
2023
2022
£
£
£
£
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
625,955
1,011,045
625,955
1,011,045
17
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods and goods for resale
69,728
58,729
-
0
-
0
18
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
88,887
155,246
-
0
-
0
Amounts owed by group undertakings
233,569
-
9,764,797
9,774,797
Derivative financial instruments
625,955
1,011,045
625,955
1,011,045
Other debtors
189,170
241,292
-
0
554
Prepayments and accrued income
195,726
283,408
2,100
6,300
1,333,307
1,690,991
10,392,852
10,792,696
WARWICK HOTEL CAMBRIDGE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 29 -
19
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
21
375,000
-
0
375,000
-
0
Trade creditors
556,783
450,033
623
-
0
Amounts owed to group undertakings
383,569
210,000
3,045,406
2,495,979
Other taxation and social security
342,601
397,196
2,771
-
Other creditors
80,731
69,688
-
0
-
0
Accruals and deferred income
4,675,333
4,047,983
4,450,534
3,741,970
6,414,017
5,174,900
7,874,334
6,237,949
20
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
21
36,545,000
37,450,000
36,545,000
37,450,000
Other borrowings
21
35,696,150
34,916,150
35,696,150
34,916,150
72,241,150
72,366,150
72,241,150
72,366,150

Amounts due to group undertakings consists of a loan from the immediate parent company, Warwick UK Corporation.

 

Interest is accrued on the loan at an annual rate of 2% on the principle of the loan.

 

The capital shall be repaid on the maturity of the loan.

21
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
36,920,000
37,450,000
36,920,000
37,450,000
Loans from group undertakings
35,696,150
34,916,150
35,696,150
34,916,150
72,616,150
72,366,150
72,616,150
72,366,150
Payable within one year
375,000
-
0
375,000
-
0
Payable after one year
72,241,150
72,366,150
72,241,150
72,366,150
WARWICK HOTEL CAMBRIDGE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
21
Loans and overdrafts
(Continued)
- 30 -

The long-term loans are secured by fixed charges over the leasehold property known as the Capital Hotel and the leasehold property known as the Levin Hotel, located at 22-24, 26 & 28 Basil Street, Knightsbridge, London, SW3.

The rate of interest on the loan is a margin of 2.65% plus SONIA compounded daily and paid quarterly.

 

Capital repayments will commence on 31 March 2024 for £125,000 per quarter, with the outstanding balance repaid on maturity of the loan on 16 October 2025.

22
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
116,104
80,323
The company has no deferred tax assets or liabilities.
Group
Company
Notes
2023
2022
2023
Movements:
£
£
£
Liability at 1 January as originally reported
6,986,085
4,667,657
-
Prior period adjustment
32
(6,905,762)
(4,579,838)
-
Liability at 1 January as restated
80,323
87,819
-
Charge to profit or loss
35,781
(7,496)
-
Liability at 31 December
116,104
80,323
-
23
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
35,808
20,771

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

WARWICK HOTEL CAMBRIDGE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 31 -
24
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
1,000
1,000
1,000
1,000
25
Operating lease commitments

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

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
26,000
26,000
-
-
Between two and five years
104,000
104,000
-
-
In over five years
3,063,441
3,089,441
-
-
3,193,441
3,219,441
-
-

The operating leases represent leases for The Capital Hotel. The leases are negotiated over a term of 99 years and the rentals are currently fixed until 2099.

26
Related party transactions
Transactions with related parties

The company has taken advantage of the exemption available under FRS 102 not to disclose related party transactions with entities that are part of the group.

27
Controlling party

The ultimate parent undertaking is Warwick Holdings S.A. a company incorporated in Luxembourg.

 

The smallest group in which the company is included which prepares consolidated accounts is Warwick Amusement Corporation, a company incorporated in the USA, but these accounts are not publicly available.

 

The immediate parent undertaking is Warwick UK Corporation, a company incorporated in the USA.

 

The directors consider Richard Chiu to be the ultimate controlling party.

WARWICK HOTEL CAMBRIDGE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 32 -
28
Cash generated from group operations
2023
2022
£
£
Loss for the year after tax
(3,029,705)
(905,229)
Adjustments for:
Taxation charged/(credited)
35,780
(7,496)
Finance costs
2,964,430
2,077,516
Investment income
(3,190)
-
0
Purchase of derivatives
78,200
-
(Gain)/loss on disposal of tangible fixed assets
-
27,692
Amortisation and impairment of intangible assets
820,351
820,351
Depreciation and impairment of tangible fixed assets
902,988
818,748
Other gains and losses
385,089
(785,846)
Decrease in provisions
-
(163,148)
Movements in working capital:
(Increase)/decrease in stocks
(10,998)
16,896
Increase in debtors
(27,406)
(283,164)
Increase in creditors
155,552
64,779
Cash generated from operations
2,271,091
1,681,099
29
Cash generated from operations - company
2023
2022
£
£
Loss for the year after tax
(3,871,299)
(1,722,443)
Adjustments for:
Taxation charged/(credited)
-
0
(66,335)
Finance costs
2,964,430
2,073,533
Investment income
(3,190)
-
0
Non-operating income treated as financing activity
78,200
-
Amortisation and impairment of intangible assets
266,666
266,667
Depreciation and impairment of tangible fixed assets
150,637
150,637
Other gains and losses
385,089
(785,846)
Movements in working capital:
Decrease in debtors
14,754
25,646
Increase in creditors
552,820
1,447,015
Cash generated from operations
538,107
1,388,874
WARWICK HOTEL CAMBRIDGE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 33 -
30
Analysis of changes in net debt - group
1 January 2023
Cash flows
Market value movements
31 December 2023
£
£
£
£
Cash at bank and in hand
1,701,099
(1,279,762)
-
421,337
Borrowings excluding overdrafts
(72,366,150)
(958,565)
708,565
(72,616,150)
(70,665,051)
(2,238,327)
708,565
(72,194,813)
31
Analysis of changes in net debt - company
1 January 2023
Cash flows
Market value movements
31 December 2023
£
£
£
£
Cash at bank and in hand
1,570,495
(1,542,767)
-
27,728
Borrowings excluding overdrafts
(72,366,150)
(958,565)
708,565
(72,616,150)
(70,795,655)
(2,501,332)
708,565
(72,588,422)
32
Prior period adjustment
Reconciliation of changes in equity - group
1 January
31 December
2022
2022
£
£
Adjustments to prior year
Historical deferred taxation correction
4,579,838
6,905,762
Equity as previously reported
(13,846,418)
(17,077,571)
Equity as adjusted
(9,266,580)
(10,171,809)
Analysis of the effect upon equity
Revaluation reserve
-
2,384,763
Profit and loss reserves
4,579,838
4,520,999
4,579,838
6,905,762
WARWICK HOTEL CAMBRIDGE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
32
Prior period adjustment
(Continued)
- 34 -
Reconciliation of changes in loss for the previous financial period - group
2022
£
Adjustments to prior year
Historical deferred taxation correction
(58,839)
Loss as previously reported
(846,390)
Loss as adjusted
(905,229)
Reconciliation of changes in equity - company
The prior period adjustments do not give rise to any effect upon equity.
Reconciliation of changes in profit for the previous financial period - company
The prior period adjustments do not give rise to any effect upon loss.
Notes to reconciliation
Historical deferred taxation correction

The prior year adjustment solely pertains to the correction of an error in the accounting treatment of deferred tax. Historically, this particular amount was not reevaluated during consolidation. This adjustment has been made exclusively to rectify the taxation timing difference within the group and does not alter any other figures.

2023-12-312023-01-01falseCCH SoftwareCCH Accounts Production 2024.100R ChiuE SoukiassianMr Vahid Afsaripourfalsefalse08120464bus:Consolidated2023-01-012023-12-31081204642023-01-012023-12-3108120464bus:Director12023-01-012023-12-3108120464bus:Director22023-01-012023-12-3108120464bus:CompanySecretary12023-01-012023-12-3108120464bus:RegisteredOffice2023-01-012023-12-31081204642023-12-3108120464bus:Consolidated2022-01-012022-12-3108120464core:Exceptionalbus:Consolidated12023-01-012023-12-3108120464core:Exceptionalbus:Consolidated12022-01-012022-12-31081204642022-01-012022-12-3108120464bus:Consolidated2023-12-3108120464core:Goodwillbus:Consolidated2023-12-3108120464core:Goodwillbus:Consolidated2022-12-3108120464core:OtherResidualIntangibleAssetsbus:Consolidated2023-12-3108120464core:OtherResidualIntangibleAssetsbus:Consolidated2022-12-3108120464core:OtherResidualIntangibleAssets2023-12-3108120464core:OtherResidualIntangibleAssets2022-12-3108120464core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwillbus:Consolidated2023-12-3108120464core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwillbus:Consolidated2022-12-3108120464bus:Consolidated2022-12-3108120464core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2023-12-3108120464core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2022-12-31081204642022-12-3108120464core:LandBuildingscore:LeasedAssetsHeldAsLesseebus:Consolidated2023-12-3108120464core:FurnitureFittingsbus:Consolidated2023-12-3108120464core:LandBuildingscore:LeasedAssetsHeldAsLesseebus:Consolidated2022-12-3108120464core:FurnitureFittingsbus:Consolidated2022-12-3108120464core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-12-3108120464core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-12-3108120464core:ShareCapitalbus:Consolidated2023-12-3108120464core:ShareCapitalbus:Consolidated2022-12-3108120464core:OtherMiscellaneousReservebus:Consolidated2023-12-3108120464core:OtherMiscellaneousReservebus:Consolidated2022-12-3108120464core:ShareCapital2023-12-3108120464core:ShareCapital2022-12-3108120464core:OtherMiscellaneousReserve2023-12-3108120464core:OtherMiscellaneousReserve2022-12-3108120464core:RetainedEarningsAccumulatedLosses2023-12-3108120464core:ShareCapitalbus:Consolidated2021-12-3108120464core:RetainedEarningsAccumulatedLossesbus:Consolidated2021-12-3108120464core:RetainedEarningsAccumulatedLossesbus:Consolidated2022-12-3108120464core:RetainedEarningsAccumulatedLossesbus:Consolidated2023-12-3108120464core:ShareCapital2021-12-3108120464core:RetainedEarningsAccumulatedLosses2021-12-3108120464core:RetainedEarningsAccumulatedLosses2022-12-3108120464bus:Consolidated2021-12-31081204642021-12-3108120464core:Goodwill2023-01-012023-12-3108120464core:IntangibleAssetsOtherThanGoodwill2023-01-012023-12-3108120464core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2023-01-012023-12-3108120464core:LandBuildingscore:LongLeaseholdAssets2023-01-012023-12-3108120464core:FurnitureFittings2023-01-012023-12-3108120464bus:Consolidated12023-01-012023-12-3108120464bus:Consolidated12022-01-012022-12-3108120464core:Goodwillbus:Consolidated2022-12-3108120464core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwillbus:Consolidated2022-12-3108120464bus:Consolidated2022-12-3108120464core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwill2022-12-3108120464core:Goodwillbus:Consolidated2023-01-012023-12-3108120464core:Non-standardIntangibleAssetClass1ComponentIntangibleAssetsOtherThanGoodwillbus:Consolidated2023-01-012023-12-3108120464core:LandBuildingscore:LeasedAssetsHeldAsLesseebus:Consolidated2022-12-3108120464core:FurnitureFittingsbus:Consolidated2022-12-3108120464core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-12-3108120464core:LandBuildingscore:LeasedAssetsHeldAsLesseebus:Consolidated2023-01-012023-12-3108120464core:FurnitureFittingsbus:Consolidated2023-01-012023-12-3108120464core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-01-012023-12-3108120464core:CurrentFinancialInstruments2023-12-3108120464core:CurrentFinancialInstruments2022-12-3108120464core:CurrentFinancialInstrumentsbus:Consolidated2023-12-3108120464core:CurrentFinancialInstrumentsbus:Consolidated2022-12-3108120464core:WithinOneYearbus:Consolidated2023-12-3108120464core:WithinOneYearbus:Consolidated2022-12-3108120464core:CurrentFinancialInstrumentscore:WithinOneYear2023-12-3108120464core:CurrentFinancialInstrumentscore:WithinOneYear2022-12-3108120464core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated2023-12-3108120464core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated2022-12-3108120464core:Non-currentFinancialInstrumentscore:AfterOneYear2023-12-3108120464core:Non-currentFinancialInstrumentscore:AfterOneYear2022-12-3108120464core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2023-12-3108120464core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2022-12-3108120464core:Non-currentFinancialInstrumentsbus:Consolidated2023-12-3108120464core:Non-currentFinancialInstrumentsbus:Consolidated2022-12-3108120464core:Non-currentFinancialInstruments2023-12-3108120464core:Non-currentFinancialInstruments2022-12-3108120464bus:PrivateLimitedCompanyLtd2023-01-012023-12-3108120464bus:FRS1022023-01-012023-12-3108120464bus:Audited2023-01-012023-12-3108120464bus:ConsolidatedGroupCompanyAccounts2023-01-012023-12-3108120464bus:FullAccounts2023-01-012023-12-31xbrli:purexbrli:sharesiso4217:GBP