Registration number:
Langstone Quays Hotel Limited
for the Year Ended 30 November 2022
Langstone Quays Hotel Limited
Contents
Company Information |
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Strategic Report |
|
Directors' Report |
|
Statement of Directors' Responsibilities |
|
Independent Auditor's Report |
|
Consolidated Profit and Loss Account |
|
Consolidated Statement of Comprehensive Income |
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Consolidated Balance Sheet |
|
Balance Sheet |
|
Consolidated Statement of Changes in Equity |
|
Statement of Changes in Equity |
|
Consolidated Statement of Cash Flows |
|
Statement of Cash Flows |
|
Notes to the Financial Statements |
Langstone Quays Hotel Limited
Company Information
Directors |
Dr Ashok Bansal Paula Walker Swarnlata Bansal |
Registered office |
|
Auditors |
|
Langstone Quays Hotel Limited
Strategic Report for the Year Ended 30 November 2022
The directors present their strategic report for the year ended 30 November 2022.
Principal activity
The principal activity of the group is the running of Langstone Quays Resort.
Fair review of the business
During the period under review the company has seen the first full year of trading since the COVID 19 restrictions have lifted. During the year, the refurbishment program has included the executive and family bedrooms. The improvements saw ARR increase over pre COVID levels driving overall revenue £550k ahead of 2019 for the year.
The significant increase in utility costs and the resultant cost of living crisis during 2022 had an impact on profits, although revenue remained strong with budgets for the year being exceeded.
Principal risks and uncertainties
The Directors acknowledge responsibility for the systems and controls of the company and continue to strengthen and develop those in place. The company aims to mitigate liquidity risk and cash flow risk by managing working capital, and as a result, it continues to closely monitor the working capital requirements, and work with the company's bank to ensure that these working capital requirements are met.
Approved and authorised by the
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Langstone Quays Hotel Limited
Directors' Report for the Year Ended 30 November 2022
The directors present their report and the for the year ended 30 November 2022.
Director of the group
The directors who held office during the year were as follows:
Financial instruments
Objectives and policies
The company has continued to invest in Staff welfare, training and development, and improved staff communication. This is to ensure the key policy of maintaining high customer service and satisfaction. Emphasis on fostering business relationships with suppliers to maintain cost control.
Ongoing centralisation and restructure of resources for cost saving and efficiencies along with a continuing program of refurbishment to maintain standards and drive rates.
Price risk, credit risk, liquidity risk and cash flow risk
The company aims to mitigate liquidity risk and cash flow risk by managing working capital, and as a result, it continues to closely monitor the working capital requirements, and work with the company's bank to ensure that these working capital requirements are met.
Going concern
Owing to a plan of refinancing over the next year, the company will be able to meet its liabilities as they fall due. Accordingly, the Directors have the expectation of sufficient resources to continue in operational existence for the foreseeable future. Therefore, they adopt the “going concern” basis in preparing the Strategic Report and the financial statements.
Disclosure of information to the auditor
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
Approved and authorised by the
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Langstone Quays Hotel Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
• |
select suitable accounting policies and apply them consistently; |
• |
make judgements and accounting estimates that are reasonable and prudent; |
• |
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
• |
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Langstone Quays Hotel Limited
Independent Auditor's Report to the Members of Langstone Quays Hotel Limited
Opinion
We have audited the financial statements of Langstone Quays Hotel Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 November 2022, which comprise the Consolidated Profit and Loss Account, Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, Statement of Cash Flows, and Notes to the Financial Statements, including a summary of 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:
• | give a true and fair view of the state of the company's affairs as at 30 November 2022 and of its loss for the year then ended; |
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• | have been prepared in accordance with the requirements of the Companies Act 2006. |
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 responsibilities for the audit of the financial statements section of our report. We are independent of the group 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.
Material uncertainty related to going concern
We draw attention to Note 2 in the financial statements, which indicates that the group incurred a net loss of £439,122 during the year ended 30 November 2022 and, as of that date, the company’s net asset position was £2,887,547. As stated in Note 2, these events or conditions, along with other matters as set forth in Note 2, indicate that a material uncertainty exists that may cast significant doubt on the company’s ability to continue as a going concern. Owing to a plan of refinancing over the next year, the directors have the expectation of sufficient resources to continue in operational existence for the foreseeable future. Therefore, they adopt the “going concern” basis in preparing the Strategic Report and the financial statements. Our opinion is not modified in respect of this matter.
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.
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 directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. 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.
Langstone Quays Hotel Limited
Independent Auditor's Report to the Members of Langstone Quays Hotel Limited
In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
• |
the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
• |
the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the parent company financial statements are not in agreement with the accounting records and returns; or |
• | certain disclosures of directors’ remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities [set out on page 4], the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor 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.
Langstone Quays Hotel Limited
Independent Auditor's Report to the Members of Langstone Quays Hotel Limited
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:
- the nature of the industry and sector, control environment and business performance including the design of the Group remuneration policies, key drivers for directors’ remuneration, bonus levels and performance targets;
- results of our enquiries of management about their own identification and assessment of the risks of irregularities;
- any matters we identified having obtained and reviewed the Group documentation of their policies and procedures relating to:
- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of noncompliance;
- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;
- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;
- the matters discussed among the audit engagement team and involving relevant internal specialists, including tax specialists, regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.
As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in relation to valuation of fixed assets. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.
We also obtained an understanding of the legal and regulatory frameworks that the Group operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act and tax legislation.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the Group’s ability to operate or to avoid a material penalty. These included compliance with GDPR regulation.
Audit response to risks identified:
As a result of performing the above, we identified valuation of fixed assets as a key audit matter related to the potential risk of fraud.
Langstone Quays Hotel Limited
Independent Auditor's Report to the Members of Langstone Quays Hotel Limited
Our procedures to respond to risks identified included the following:
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A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
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For and on behalf of
29 Wood Street
Warwickshire
CV37 6JG
Langstone Quays Hotel Limited
Consolidated Profit and Loss Account for the Year Ended 30 November 2022
Note |
2022 |
2021 |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Administrative expenses |
( |
( |
|
Other operating income |
- |
|
|
Operating profit |
|
|
|
Interest payable and similar expenses |
( |
( |
|
Loss before tax |
( |
( |
|
Tax on loss |
( |
( |
|
Loss for the financial year |
( |
( |
|
Profit/(loss) attributable to: |
|||
Owners of the company |
( |
( |
Langstone Quays Hotel Limited
Consolidated Statement of Comprehensive Income for the Year Ended 30 November 2022
2022 |
2021 |
|
Loss for the year |
( |
( |
Surplus on property, plant and equipment revaluation |
|
- |
Total comprehensive income for the year |
|
( |
Total comprehensive income attributable to: |
||
Owners of the company |
|
( |
Langstone Quays Hotel Limited
(Registration number: 11145841)
Consolidated Balance Sheet as at 30 November 2022
Note |
2022 |
2021 |
|
Fixed assets |
|||
Intangible assets |
|
|
|
Tangible assets |
|
|
|
|
|
||
Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current liabilities |
( |
( |
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Provisions for liabilities |
( |
( |
|
Net assets/(liabilities) |
|
( |
|
Capital and reserves |
|||
Called up share capital |
100 |
100 |
|
Revaluation reserve |
4,699,877 |
- |
|
Profit and loss account |
(1,812,430) |
(1,373,308) |
|
Equity attributable to owners of the company |
2,887,547 |
(1,373,208) |
|
Shareholders' funds/(deficit) |
2,887,547 |
(1,373,208) |
Approved and authorised by the
......................................... |
Langstone Quays Hotel Limited
(Registration number: 11145841)
Balance Sheet as at 30 November 2022
Note |
2022 |
2021 |
|
Fixed assets |
|||
Intangible assets |
|
|
|
Tangible assets |
|
|
|
Investments |
|
|
|
|
|
||
Current assets |
|||
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current liabilities |
( |
( |
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Provisions for liabilities |
( |
( |
|
Net assets/(liabilities) |
|
( |
|
Capital and reserves |
|||
Called up share capital |
100 |
100 |
|
Revaluation reserve |
4,699,877 |
- |
|
Profit and loss account |
(4,556,444) |
(3,437,155) |
|
Shareholders' funds/(deficit) |
143,533 |
(3,437,055) |
The company made a loss after tax for the financial year of £1,119,289 (2021 - loss of £1,011,706).
Approved and authorised by the
......................................... |
Langstone Quays Hotel Limited
Consolidated Statement of Changes in Equity for the Year Ended 30 November 2022
Equity attributable to the parent company
Share capital |
Revaluation reserve |
Profit and loss account |
Total |
|
At 1 December 2021 |
|
- |
( |
( |
Loss for the year |
- |
- |
( |
( |
Other comprehensive income |
- |
|
- |
|
Total comprehensive income |
- |
|
( |
|
At 30 November 2022 |
|
|
( |
|
Total equity |
|
At 1 December 2021 |
( |
Loss for the year |
( |
Other comprehensive income |
|
Total comprehensive income |
|
At 30 November 2022 |
|
Share capital |
Profit and loss account |
Total |
Total equity |
|
At 1 December 2020 |
|
( |
( |
( |
Loss for the year |
- |
( |
( |
( |
Total comprehensive income |
- |
( |
( |
( |
At 30 November 2021 |
|
( |
( |
( |
Langstone Quays Hotel Limited
Statement of Changes in Equity for the Year Ended 30 November 2022
Share capital |
Revaluation reserve |
Profit and loss account |
Total |
|
At 1 December 2021 |
|
- |
( |
( |
Loss for the year |
- |
- |
( |
( |
Other comprehensive income |
- |
|
- |
|
Total comprehensive income |
- |
|
( |
|
At 30 November 2022 |
|
|
( |
|
Share capital |
Profit and loss account |
Total |
|
At 1 December 2020 |
|
( |
( |
Loss for the year |
- |
( |
( |
Total comprehensive income |
- |
( |
( |
At 30 November 2021 |
|
( |
( |
Langstone Quays Hotel Limited
Consolidated Statement of Cash Flows for the Year Ended 30 November 2022
Note |
2022 |
2021 |
|
Cash flows from operating activities |
|||
Loss for the year |
( |
( |
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
|
Finance costs |
|
|
|
Income tax expense |
|
|
|
|
|
||
Working capital adjustments |
|||
Increase in stocks |
( |
( |
|
Decrease/(increase) in trade debtors |
|
( |
|
Increase in trade creditors |
|
|
|
Net cash flow from operating activities |
|
|
|
Cash flows from investing activities |
|||
Acquisitions of tangible assets |
( |
( |
|
Cash flows from financing activities |
|||
Interest paid |
( |
( |
|
Proceeds from bank borrowing draw downs |
- |
|
|
Repayment of bank borrowing |
( |
( |
|
Proceeds from other borrowing draw downs |
- |
|
|
Net cash flows from financing activities |
( |
|
|
Net (decrease)/increase in cash and cash equivalents |
( |
|
|
Cash and cash equivalents at 1 December |
|
( |
|
Cash and cash equivalents at 30 November |
373,057 |
1,094,863 |
Langstone Quays Hotel Limited
Statement of Cash Flows for the Year Ended 30 November 2022
Note |
2022 |
2021 |
|
Cash flows from operating activities |
|||
Loss for the year |
( |
( |
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
|
Finance costs |
|
|
|
Income tax expense |
|
|
|
( |
( |
||
Working capital adjustments |
|||
Decrease in trade debtors |
|
|
|
Increase/(decrease) in trade creditors |
|
( |
|
Net cash flow from operating activities |
|
( |
|
Cash flows from financing activities |
|||
Interest paid |
( |
( |
|
Proceeds from bank borrowing draw downs |
( |
|
|
Repayment of bank borrowing |
- |
( |
|
Proceeds from other borrowing draw downs |
- |
|
|
Net cash flows from financing activities |
( |
|
|
Net (decrease)/increase in cash and cash equivalents |
( |
|
|
Cash and cash equivalents at 1 December |
|
|
|
Cash and cash equivalents at 30 November |
47,555 |
220,364 |
Langstone Quays Hotel Limited
Notes to the Financial Statements for the Year Ended 30 November 2022
General information |
The company is a private company limited by share capital, incorporated in England & Wales.
The address of its registered office is:
The principal place of business is:
Langstone Hotel
Northney Road
Hayling Island
PO11 0NQ
These financial statements were authorised for issue by the
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 were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
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.
Summary of disclosure exemptions
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements..
Basis of consolidation
The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 30 November 2022.
Langstone Quays Hotel Limited
Notes to the Financial Statements for the Year Ended 30 November 2022
A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
The results of subsidiaries acquired or disposed of during the year are included in the Profit and Loss Account from the effective date of acquisition or up to the effective date of disposal, as appropriate. Where necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with those used by the group.
The purchase method of accounting is used to account for business combinations that result in the acquisition of subsidiaries by the group. The cost of a business combination is measured as the fair value of the assets given, equity instruments issued and liabilities incurred or assumed at the date of exchange, plus costs directly attributable to the business combination. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination are measured initially at their fair values at the acquisition date. Any excess of the cost of the business combination over the acquirer’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities recognised is recorded as goodwill.
Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.
Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group. Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from the group’s equity therein. Non-controlling interests consist of the amount of those interests at the date of the original business combination and the non-controlling shareholder’s share of changes in equity since the date of the combination.
Going concern
The financial statements have been prepared on a going concern basis. As at 30 November 2022 the group has net assets of £2,887,547. At the date of signing these financial statements the company, and its related companies, are negotiating with financial institutions to refinance its debt finance. The Directors are confident that a new finance facility will be in place by 31 December 2023 and this will support the company in achieving its budget in the next 12 months.
Langstone Quays Hotel Limited
Notes to the Financial Statements for the Year Ended 30 November 2022
Key sources of estimation uncertainty
Goodwill
The determination of whether goodwill should be impaired requires the estimation of future cash flows, based on management's judgement and expectations.
Investments
The Group assesses the carrying values of investments annually or more frequently if warranted by a change in circumstances. If it is determined that the carrying values of investments cannot be recovered, the unrecoverable amounts are charged to the profit and loss. Recoverability is dependent upon assumptions and judgements regarding discount rates, future cash flows and profit margins. A material change in assumptions may significantly impact the potential impairment of these assets.
Operating lease commitments
As a lessee, the Group obtains the use of property, plant and equipment. The classification of such leases as operating or finance lease requires the Group to determine, based on an evaluation of the terms and conditions of the arrangement, whether it retains or acquires the significant risks and rewards of ownership of these assets and accordingly whether the lease requires an asset and liability to be recognised in the statement of financial position.
Useful economic life of non-current assets
Management estimate the useful economic life of non-current assets based on the period over which the asset is expected to be used and provide for depreciation accordingly. Where an indication of impairment is identified the estimation of recoverable value requires estimation.
Deferred tax
Management estimation is required to determine the amount of deferred tax asset that can be recognised, based upon likely timing and level of future taxable profits.
Accrued and deferred income
In recognising accrued income in the financial statements, management estimate work completed but not billed to the client. In recognising deferred income in the financial statements management estimate work billed to the client but not completed. These estimates are based on project contracts, project knowledge and professional judgement..
Revenue 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 group’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts and after eliminating sales within the company.
The group recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the group's activities.
Government grants
Income based government grants are recognised in the period to which they relate.
Tax
The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
Langstone Quays Hotel Limited
Notes to the Financial Statements for the Year Ended 30 November 2022
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the group operates and generates taxable income.
Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the consolidated financial statements.
Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses with the exception of land and buildings which is stated at fair value under the revaluation model.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
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 |
Buildings |
2% straight line |
Plant and machinery |
20% straight line |
Fixtures and fittings |
20% straight line |
Office equipment |
20% straight line |
Computer equipment |
25% straight line |
Business combinations
Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.
Goodwill
Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.
Langstone Quays Hotel Limited
Notes to the Financial Statements for the Year Ended 30 November 2022
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
Asset class |
Amortisation method and rate |
Goodwill |
10 years |
Investments
Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.
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 group will not be able to collect all amounts due according to the original terms of the receivables.
Inventories
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.
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. 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. Accounts payable are classified as current liabilities if the group 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.
Langstone Quays Hotel Limited
Notes to the Financial Statements for the Year Ended 30 November 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 group has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
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
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Related party exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.
Revenue |
The analysis of the group's revenue for the year from continuing operations is as follows:
2022 |
2021 |
|
Sale of goods |
|
|
Other operating income |
The analysis of the group's other operating income for the year is as follows:
Langstone Quays Hotel Limited
Notes to the Financial Statements for the Year Ended 30 November 2022
2022 |
2021 |
|
Government grants |
- |
|
Operating profit |
Arrived at after charging/(crediting)
2022 |
2021 |
|
Depreciation expense |
|
|
Amortisation expense |
|
|
Interest payable and similar expenses |
2022 |
2021 |
|
Interest on bank overdrafts and borrowings |
|
|
Interest expense on other finance liabilities |
|
|
|
|
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
2022 |
2021 |
|
Wages and salaries |
|
|
Other post-employment benefit costs |
|
|
Other employee expense |
|
|
|
|
The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:
The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:
2022 |
2021 |
|
Hotel and front of house services |
|
|
Management and administration |
|
|
Research and development |
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
Langstone Quays Hotel Limited
Notes to the Financial Statements for the Year Ended 30 November 2022
2022 |
2021 |
|
Remuneration |
|
|
Auditors' remuneration |
2022 |
2021 |
|
Audit of these financial statements |
2,800 |
2,000 |
Audit of the financial statements of subsidiaries of the company pursuant to legislation |
8,500 |
8,500 |
|
|
Taxation |
Tax charged/(credited) in the income statement
2022 |
2021 |
|
Current taxation |
||
UK corporation tax |
|
- |
Deferred taxation |
||
Arising from origination and reversal of timing differences |
|
|
Tax expense in the income statement |
|
|
The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2021 - the same as the standard rate of corporation tax in the UK) of
The differences are reconciled below:
2022 |
2021 |
|
Loss before tax |
( |
( |
Corporation tax at standard rate |
( |
( |
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
Effect of tax losses |
( |
|
Tax increase/(decrease) from effect of capital allowances and depreciation |
|
( |
Total tax charge |
|
|
Langstone Quays Hotel Limited
Notes to the Financial Statements for the Year Ended 30 November 2022
Deferred tax
Group
Deferred tax assets and liabilities
2022 |
Liability |
Accelerated tax depreciation |
183,060 |
Tax losses available for carry forward |
- |
Revaluation of property |
1,566,626 |
1,749,686 |
2021 |
Asset |
Liability |
Accelerated tax depreciation |
- |
|
Tax losses available for carry forward |
|
- |
Revaluation of property |
- |
- |
|
|
Company
Deferred tax assets and liabilities
2022 |
Liability |
Accelerated tax depreciation |
|
Tax losses available for carry forward |
- |
Revaluation of property |
|
|
2021 |
Asset |
Liability |
Accelerated tax depreciation |
- |
|
Tax losses available for carry forward |
|
- |
Revaluation of property |
- |
- |
|
|
At the balance sheet date the company had £nil (2021: £289,617) of tax losses available for carry forward against future profits.
Langstone Quays Hotel Limited
Notes to the Financial Statements for the Year Ended 30 November 2022
Intangible assets |
Group
Goodwill |
Total |
|
Cost or valuation |
||
At 1 December 2021 |
|
|
At 30 November 2022 |
|
|
Amortisation |
||
At 1 December 2021 |
|
|
Amortisation charge |
|
|
At 30 November 2022 |
|
|
Carrying amount |
||
At 30 November 2022 |
|
|
At 30 November 2021 |
|
|
Company
Goodwill |
Total |
|
Cost or valuation |
||
At 1 December 2021 |
|
|
At 30 November 2022 |
|
|
Amortisation |
||
At 1 December 2021 |
|
|
Amortisation charge |
|
|
At 30 November 2022 |
|
|
Carrying amount |
||
At 30 November 2022 |
|
|
At 30 November 2021 |
|
|
Langstone Quays Hotel Limited
Notes to the Financial Statements for the Year Ended 30 November 2022
Tangible assets |
Group
Land and buildings |
Fixtures and fittings |
Plant and machinery |
Office equipment |
Total |
|
Cost or valuation |
|||||
At 1 December 2021 |
|
|
|
|
|
Revaluations |
|
- |
- |
- |
|
Additions |
- |
|
- |
- |
|
At 30 November 2022 |
|
|
|
|
|
Depreciation |
|||||
At 1 December 2021 |
|
|
|
|
|
Charge for the year |
- |
|
|
|
|
Impairment |
( |
- |
- |
- |
( |
At 30 November 2022 |
- |
|
|
|
|
Carrying amount |
|||||
At 30 November 2022 |
|
|
|
|
|
At 30 November 2021 |
|
|
|
|
|
Included within the net book value of land and buildings above is £14,500,000 (2021 - £8,233,497) in respect of freehold land and buildings.
Langstone Quays Hotel Limited
Notes to the Financial Statements for the Year Ended 30 November 2022
Revaluation
The fair value of the group's Land and buildings was revalued on
Had this class of asset been measured on a historical cost basis, the carrying amount would have been £
Company
Land and buildings |
Fixtures and fittings |
Plant and machinery |
Total |
|
Cost or valuation |
||||
At 1 December 2021 |
|
|
|
|
Revaluations |
|
- |
- |
|
At 30 November 2022 |
|
|
|
|
Depreciation |
||||
At 1 December 2021 |
|
|
|
|
Charge for the year |
- |
|
|
|
Impairment |
( |
- |
- |
( |
At 30 November 2022 |
- |
|
|
|
Carrying amount |
||||
At 30 November 2022 |
|
|
|
|
At 30 November 2021 |
|
|
|
|
Included within the net book value of land and buildings above is £14,500,000 (2021 - £8,233,497) in respect of freehold land and buildings.
Revaluation
The fair value of the company's Land and buildings was revalued on
Had this class of asset been measured on a historical cost basis, the carrying amount would have been £
Langstone Quays Hotel Limited
Notes to the Financial Statements for the Year Ended 30 November 2022
Investments |
Company
2022 |
2021 |
|
Investments in subsidiaries |
|
|
Subsidiaries |
£ |
Cost or valuation |
|
At 1 December 2021 |
|
Provision |
|
Carrying amount |
|
At 30 November 2022 |
|
At 30 November 2021 |
|
Details of undertakings
Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
2022 |
2021 |
|||
Subsidiary undertakings |
||||
|
Lions Quays Hotel & Spa
England & Wales |
Ordinary shares |
|
|
Subsidiary undertakings |
Langstone Quays Limited The principal activity of Langstone Quays Limited is |
Stocks |
Group |
Company |
|||
2022 |
2021 |
2022 |
2021 |
|
Other inventories |
|
|
- |
- |
Langstone Quays Hotel Limited
Notes to the Financial Statements for the Year Ended 30 November 2022
Debtors |
Group |
Company |
|||
2022 |
2021 |
2022 |
2021 |
|
Trade debtors |
|
|
- |
- |
Other debtors |
|
|
|
|
Prepayments |
|
|
- |
- |
|
|
|
|
Cash and cash equivalents |
Group |
Company |
|||
2022 |
2021 |
2022 |
2021 |
|
Cash on hand |
|
|
- |
- |
Cash at bank |
|
|
|
|
|
|
|
|
Creditors |
Group |
Company |
||||
Note |
2022 |
2021 |
2022 |
2021 |
|
Due within one year |
|||||
Loans and borrowings |
|
|
|
|
|
Trade creditors |
|
|
- |
- |
|
Amounts due to related parties |
- |
- |
- |
|
|
Social security and other taxes |
|
|
- |
- |
|
Other payables |
|
|
- |
|
|
Accruals |
|
|
|
|
|
Income tax liability |
2,314 |
- |
- |
- |
|
|
|
|
|
||
Due after one year |
|||||
Loans and borrowings |
|
|
|
|
|
Other non-current financial liabilities |
|
- |
|
- |
|
12,388,260 |
12,489,078 |
14,645,300 |
12,489,078 |
Langstone Quays Hotel Limited
Notes to the Financial Statements for the Year Ended 30 November 2022
Deferred tax and other provisions |
Group
Deferred tax |
Total |
|
At 1 December 2021 |
|
|
Additional provisions |
|
|
Increase (decrease) in existing provisions |
|
|
At 30 November 2022 |
|
|
|
Company
Deferred tax |
Total |
|
At 1 December 2021 |
|
|
Additional provisions |
|
|
Increase (decrease) in existing provisions |
|
|
At 30 November 2022 |
|
|
|
Share capital |
Allotted, called up and fully paid shares
2022 |
2021 |
|||
No. |
£ |
No. |
£ |
|
|
|
100 |
|
100 |
Rights, preferences and restrictions
Ordinary have the following rights, preferences and restrictions: |
Loans and borrowings |
Group |
Company |
|||
2022 |
2021 |
2022 |
2021 |
|
Non-current loans and borrowings |
||||
Bank borrowings |
|
|
|
|
Other borrowings |
|
|
|
|
|
|
|
|
Langstone Quays Hotel Limited
Notes to the Financial Statements for the Year Ended 30 November 2022
Group |
Company |
|||
2022 |
2021 |
2022 |
2021 |
|
Current loans and borrowings |
||||
Bank borrowings |
|
|
|
|
Group
Bank borrowings
The bank loan and overdraft are secured as detailed below:
|
The bank loan and overdraft are secured as detailed below:
|
Other borrowings
Dr A Bansal is denominated in Sterling with a nominal interest rate of 2.5%%, and the final instalment is due on 1 November 2036. The carrying amount at year end is £2,415,353 (2021 - £2,415,353).
There is no set repayment schedule for this loan however, the terms of the bank loan preclude any draw down before settlement of amounts due to bank.
Langstone Quays Hotel Limited
Notes to the Financial Statements for the Year Ended 30 November 2022
Company
Bank borrowings
The bank loan and overdraft are secured as detailed below:
|
The bank loan and overdraft are secured as detailed below:
|
Other borrowings
Dr A Bansal is denominated in Sterling with a nominal interest rate of 2.5%, and the final instalment is due on 1 November 2036. The carrying amount at year end is £2,415,353 (2021 - £2,415,353).
There is no set repayment schedule for this loan however, the terms of the bank loan preclude any draw down before settlement of amounts due to bank.
Langstone Quays Hotel Limited
Notes to the Financial Statements for the Year Ended 30 November 2022
Obligations under leases and hire purchase contracts |
Group
Operating leases
The total of future minimum lease payments is as follows:
2022 |
2021 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
Commitments |
Group
Pension commitments |
The company operates a defined contribution pension scheme for its employees. Included in the balance sheet are pensions commitments of £4,730 (2021 - £3,648). The pension expenses recognised in the year was £19,415 (2021: £16,505).
Related party transactions |
Group
Summary of transactions with other related parties
Purchases from £884,671 (2021: £322,894)
Sales to £7,904 (2021: £1,699)
At the balance sheet date the group owed £1,131,451 (2021: £1,131,451) to Lion Quays Hotel Limited. No interest is charged on this loan which is repayable on demand.
During the period the group had the following transactions with Ufford Park Limited:
Purchases £51,762 (2021: £nil)
Sales £51,762 (2021: £nil)
At the balance sheet date the group owed £nil (2021: £nil) to Ufford Park Limited.
Langstone Quays Hotel Limited
Notes to the Financial Statements for the Year Ended 30 November 2022
Company
Loans from related parties
2022 |
Subsidiary |
Total |
At start of period |
|
|
Advanced |
|
|
At end of period |
|
|
|
2021 |
Subsidiary |
Total |
At start of period |
|
|
Advanced |
|
|
At end of period |
|
|
|
Terms of loans from related parties
Summary of transactions with other related parties
Parent and ultimate parent undertaking |
The ultimate controlling party is