Company registration number 09169505 (England and Wales)
ZEAL HOTEL (BRIDGWATER) LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2022
PAGES FOR FILING WITH REGISTRAR
ZEAL HOTEL (BRIDGWATER) LIMITED
CONTENTS
Page
Statement of financial position
1
Notes to the financial statements
2 - 6
ZEAL HOTEL (BRIDGWATER) LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 AUGUST 2022
31 August 2022
- 1 -
2022
2021
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
4
12,324,313
12,515,139
Current assets
Inventories
6,974
5,869
Trade and other receivables
5
288,064
187,152
Cash and cash equivalents
978,937
1,103,456
1,273,975
1,296,477
Current liabilities
6
(6,229,178)
(5,477,485)
Net current liabilities
(4,955,203)
(4,181,008)
Total assets less current liabilities
7,369,110
8,334,131
Non-current liabilities
7
(11,110,000)
(11,435,000)
Net liabilities
(3,740,890)
(3,100,869)
Equity
Called up share capital
8
100
100
Retained earnings
(3,740,990)
(3,100,969)
Total equity
(3,740,890)
(3,100,869)
The directors of the company have elected not to include a copy of the income statement within the financial statements.true
For the financial year ended 31 August 2022 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The member has not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered 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 19 April 2024 and are signed on its behalf by:
S S Richard
Director
Company registration number 09169505 (England and Wales)
ZEAL HOTEL (BRIDGWATER) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 AUGUST 2022
- 2 -
1
Accounting policies
Company information
Zeal Hotel (Bridgwater) Limited is a private company limited by shares incorporated in England and Wales. The registered office is First Floor, 5 Fleet Place, London, EC4M 7RD.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
At the reporting date the company had net current liabilities of £4,955,203 which included £5,230,744 due to the company's parent company. Whilst this funding is repayable on demand, bank approval is required for any repayment.true
The company's ultimate parent company has confirmed that it will continue to provide such financial support as is necessary for the company to continue to meet its obligations as they fall due.
Covid-19 had a major impact on the hospitality industry in which the company as a hotel owner operates. However, since the UK lockdown restrictions were lifted the company’s revenues continue to increase significantly. Furthermore, at the date of approval of these financial statements the company’s forecasts show that it has sufficient financial resources to continue to trade for the foreseeable future.
Accordingly, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Revenue
The company is a hotel operator and revenue is recognised at the fair value of the consideration receivable for goods and services provided in the normal course of business, and is shown net of VAT.
Revenue from room sales is recognised when the room is occupied.
Revenue from from other goods or services provided to guests is recognised when the goods have been provided or the service rendered.
1.4
Property, plant and equipment
Property, plant and equipment are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:
Long land leasehold buildings
50 years
Plant and equipment
5 years
Long leasehold land is not depreciated.
ZEAL HOTEL (BRIDGWATER) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2022
1
Accounting policies
(Continued)
- 3 -
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to the statement of income.
1.5
Impairment of non-current assets
At each reporting period end date, the company reviews the carrying amounts of its tangible 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.
1.6
Inventories
Inventories are stated at the lower of cost and net realisable value.
1.7
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.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include trade and other receivables 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.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including trade and other payables, 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 payables 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
ZEAL HOTEL (BRIDGWATER) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2022
1
Accounting policies
(Continued)
- 4 -
1.9
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.10
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.
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.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.12
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to the statement of income so as to produce a constant periodic rate of interest on the remaining balance of the liability.
1.13
Government grants
Government grants are recognised at the fair value of the asset receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
2
Judgements 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 the revision and future periods where the revision affects both current and future periods.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2022
2021
Number
Number
Total
25
19
ZEAL HOTEL (BRIDGWATER) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2022
- 5 -
4
Property, plant and equipment
Long land leasehold buildings
Plant and equipment
Total
£
£
£
Cost
At 1 September 2021 and 31 August 2022
12,846,823
97,674
12,944,497
Depreciation and impairment
At 1 September 2021
385,405
43,953
429,358
Depreciation charged in the year
171,291
19,535
190,826
At 31 August 2022
556,696
63,488
620,184
Carrying amount
At 31 August 2022
12,290,127
34,186
12,324,313
At 31 August 2021
12,461,418
53,721
12,515,139
5
Trade and other receivables
2022
2021
£
£
Amounts falling due within one year:
Trade receivables
115,905
33,867
Other receivables
172,159
153,285
288,064
187,152
6
Current liabilities
2022
2021
£
£
Bank loans
325,000
325,000
Trade payables
139,106
94,465
Amount owed to parent undertaking
5,230,744
4,731,398
Taxation and social security
203,772
46,407
Other payables
330,556
280,215
6,229,178
5,477,485
The bank loans are secured by a charge over the long leasehold land and buildings.
The amount owed to parent undertaking is unsecured, with interest charged at a commercial rate and whilst repayable on demand any repayments require bank approval.
Other payables include amounts due to T J Wheeldon, A P Clark and J W Scott of £9,430 (2021 - £9,430), £6,820 (2021 - £6,820) and £12,450 (2021 - £12,450) respectively. These amounts are unsecured, provided interest free and are repayable on demand.
ZEAL HOTEL (BRIDGWATER) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 AUGUST 2022
- 6 -
7
Non-current liabilities
2022
2021
Notes
£
£
Bank loans
4,825,000
5,150,000
Obligations under finance leases
6,285,000
6,285,000
11,110,000
11,435,000
The bank loans are secured by charges over the long leasehold land and buildings.
On 28 February 2018 the company entered into a sale for £6,285,000 and leaseback agreement of its hotel. Under the terms of this agreement the company was granted a 150 lease of the hotel with rent payable of £215,000 per annum. The rent payable is then subject to an 5 yearly rent reviews with an RPI increase of between 0% and 4% per annum.
8
Called up share capital
2022
2021
2022
2021
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100