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REGISTERED NUMBER: 12495150 (England and Wales)















GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023

FOR

FLAT ROCK HOLDINGS LIMITED

FLAT ROCK HOLDINGS LIMITED (REGISTERED NUMBER: 12495150)

CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023










Page

Company Information 1

Group Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 5

Consolidated Income Statement 9

Consolidated Other Comprehensive Income 10

Consolidated Balance Sheet 11

Company Balance Sheet 12

Consolidated Statement of Changes in Equity 13

Company Statement of Changes in Equity 14

Consolidated Cash Flow Statement 15

Notes to the Consolidated Cash Flow Statement 16

Notes to the Consolidated Financial Statements 18


FLAT ROCK HOLDINGS LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 30 JUNE 2023







DIRECTORS: L W Jones
Mrs L Jones





REGISTERED OFFICE: The Gwbert Hotel
Gwbert On Sea
Cardigan
Ceredigion
SA43 1PP





REGISTERED NUMBER: 12495150 (England and Wales)





AUDITORS: LHP Auditors
Llys Deri
Parc Pensarn
Carmarthen
Carmarthenshire
SA31 2NF

FLAT ROCK HOLDINGS LIMITED (REGISTERED NUMBER: 12495150)

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2023


The directors present their strategic report of the company and the group for the year ended 30 June 2023.

REVIEW OF BUSINESS
The Group companies continue to trade within the hospitality sector with income generated from hotel accommodation, restaurant and spa facilities. The Cliff Hotel & Spa generates the material sales income with over 80 available rooms and numerous bars and restaurant areas which cater for large events such as weddings as well as holiday accommodation.

Visitor numbers continued to increase through this trading year but customers demanded more for their money given the economic downturn and this forced margins to be reviewed and amended, dictated by market conditions. Room rates ranged from £99 per night B&B to £350 per night B&B and were reduced to maintain high occupancy levels of circa 83.5%. However, the food and beverage margins and sales were adjusted upwards slightly to compensate for this.

Capital expenditure and improvements of the hotel establishments were reviewed at the beginning of the year and the planning of work to be done was brought forward to ensure full advantage was taken of the generous Super Deduction Allowances given by the Government to encourage investment. All work was standard improvement of the hotel premises while full refurbishment of some of the rooms was planned for future years.

The Group maintained the same suppliers in the main but, as prices increased due to inflationary pressures, it was important to monitor any changes and renegotiate as and when required, to maintain margins in the F&B section in particular.

Staffing pressures remained high due to post-COVID effects but by the end of the financial year the pressures had eased and costly agency staff were not relied upon to fill any labour gap. The recruitment of a small group of overseas staff stabilised the local workforce and made the management of peak season easier. As recruitment difficulties continue to ease, it is hoped that the coming year will see wages costs plateau or reduce slightly given the made efficiencies made by not employing agency staff.

PRINCIPAL RISKS AND UNCERTAINTIES
The principal risks facing the Group mirror most of the businesses in the same sector and the economy as a whole. Inflation and interest rate increases have proved difficult to navigate in hospitality as domestic disposable income reduced significantly. Visitor numbers have been extremely pleasing given the economic downturn and maintaining these are paramount.

With inflation and interest hikes also affecting others in the supply chain, as well as global difficulties such as war and reductions in supply, it is important to monitor prices and availability of staffing and goods. Any purchasing and staffing policy has to be adapted in real time to ensure any adverse consequences are kept ot a minimum.

ON BEHALF OF THE BOARD:





Mrs L Jones - Director


23 January 2024

FLAT ROCK HOLDINGS LIMITED (REGISTERED NUMBER: 12495150)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 30 JUNE 2023


The directors present their report with the financial statements of the company and the group for the year ended 30 June 2023.

DIVIDENDS
Interim dividends per share were paid as follows:

Ordinary £1 A share
£25,000 - 31 December 2022

Ordinary £1 B share
£25,000 - 31 December 2022

The directors recommend that no final dividend be paid on these shares.

No interim nor final dividend was paid on the £1 ordinary shares.

The total distribution of dividends for the year ended 30 June 2023 was £50,000.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 July 2022 to the date of this report.

L W Jones
Mrs L Jones

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;
- make judgements and accounting estimates that are reasonable and prudent;
- 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

FLAT ROCK HOLDINGS LIMITED (REGISTERED NUMBER: 12495150)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 30 JUNE 2023


AUDITORS
The auditors, LHP Auditors, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





Mrs L Jones - Director


23 January 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
FLAT ROCK HOLDINGS LIMITED


Opinion
We have audited the financial statements of Flat Rock Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 group's and of the parent company affairs as at 30 June 2023 and of the group's profit 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 Auditors' 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.

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 the 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 directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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.

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 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 the audit:
- the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
FLAT ROCK HOLDINGS LIMITED


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 its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

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 three, 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 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 group's and 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 group or the parent company or to cease operations, or have no realistic alternative but to do so.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
FLAT ROCK HOLDINGS LIMITED


Auditors' 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 a Report of the Auditors 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:

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council's website, to detect material misstatements in respect of irregularities, including fraud.

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

- Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud;
- Reviewing minutes of meetings of those charged with governance;
- Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the entity through enquiry and inspection;
- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;
- Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course course of business and reviewing accounting estimates for indicators of potential bias.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
FLAT ROCK HOLDINGS LIMITED


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 a Report of the Auditors 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.




Mr Matthew Williams (Senior Statutory Auditor)
for and on behalf of LHP Auditors
Llys Deri
Parc Pensarn
Carmarthen
Carmarthenshire
SA31 2NF

7 March 2024

FLAT ROCK HOLDINGS LIMITED (REGISTERED NUMBER: 12495150)

CONSOLIDATED INCOME STATEMENT
FOR THE YEAR ENDED 30 JUNE 2023

30.6.23 30.6.22
Notes £    £   

TURNOVER 3 7,996,988 7,442,496

Cost of sales 1,575,129 1,393,409
GROSS PROFIT 6,421,859 6,049,087

Administrative expenses 4,887,679 4,476,374
1,534,180 1,572,713

Other operating income 4 120,200 101,353
OPERATING PROFIT 6 1,654,380 1,674,066


Interest payable and similar expenses 7 210,420 105,098
PROFIT BEFORE TAXATION 1,443,960 1,568,968

Tax on profit 8 287,071 271,414
PROFIT FOR THE FINANCIAL YEAR 1,156,889 1,297,554
Profit attributable to:
Owners of the parent 1,156,889 1,297,554

FLAT ROCK HOLDINGS LIMITED (REGISTERED NUMBER: 12495150)

CONSOLIDATED OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2023

30.6.23 30.6.22
Notes £    £   

PROFIT FOR THE YEAR 1,156,889 1,297,554


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

1,156,889

1,297,554

Total comprehensive income attributable to:
Owners of the parent 1,156,889 1,297,554

FLAT ROCK HOLDINGS LIMITED (REGISTERED NUMBER: 12495150)

CONSOLIDATED BALANCE SHEET
30 JUNE 2023

30.6.23 30.6.22
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 11 10,000 25,000
Tangible assets 12 8,991,380 8,158,258
Investments 13 - -
9,001,380 8,183,258

CURRENT ASSETS
Stocks 14 115,237 50,269
Debtors 15 3,347,782 2,127,507
Cash at bank and in hand (44,865 ) 243,533
3,418,154 2,421,309
CREDITORS
Amounts falling due within one year 17 3,196,822 2,764,332
NET CURRENT ASSETS/(LIABILITIES) 221,332 (343,023 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

9,222,712

7,840,235

CREDITORS
Amounts falling due after more than one
year

18

(3,453,954

)

(3,178,994

)

PROVISIONS FOR LIABILITIES 21 (342,362 ) (338,822 )

ACCRUALS AND DEFERRED INCOME 22 (18,200 ) (21,112 )
NET ASSETS 5,408,196 4,301,307

CAPITAL AND RESERVES
Called up share capital 23 102 102
Retained earnings 24 5,408,094 4,301,205
SHAREHOLDERS' FUNDS 5,408,196 4,301,307

The financial statements were approved by the Board of Directors and authorised for issue on 23 January 2024 and were signed on its behalf by:





L W Jones - Director


FLAT ROCK HOLDINGS LIMITED (REGISTERED NUMBER: 12495150)

COMPANY BALANCE SHEET
30 JUNE 2023

30.6.23 30.6.22
Notes £    £   
CURRENT ASSETS
Debtors 15 102 102
Investments 16 202 202
304 304
CREDITORS
Amounts falling due within one year 17 202 202
NET CURRENT ASSETS 102 102
TOTAL ASSETS LESS CURRENT
LIABILITIES

102

102

CAPITAL AND RESERVES
Called up share capital 23 102 102
SHAREHOLDERS' FUNDS 102 102

Company's profit for the financial year 50,000 250,000

The 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 23 January 2024 and were signed on its behalf by:





L W Jones - Director


FLAT ROCK HOLDINGS LIMITED (REGISTERED NUMBER: 12495150)

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 July 2021 102 3,253,651 3,253,753

Changes in equity
Dividends - (250,000 ) (250,000 )
Total comprehensive income - 1,297,554 1,297,554
Balance at 30 June 2022 102 4,301,205 4,301,307

Changes in equity
Dividends - (50,000 ) (50,000 )
Total comprehensive income - 1,156,889 1,156,889
Balance at 30 June 2023 102 5,408,094 5,408,196

FLAT ROCK HOLDINGS LIMITED (REGISTERED NUMBER: 12495150)

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 July 2021 102 - 102

Changes in equity
Dividends - (250,000 ) (250,000 )
Total comprehensive income - 250,000 250,000
Balance at 30 June 2022 102 - 102

Changes in equity
Dividends - (50,000 ) (50,000 )
Total comprehensive income - 50,000 50,000
Balance at 30 June 2023 102 - 102

FLAT ROCK HOLDINGS LIMITED (REGISTERED NUMBER: 12495150)

CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 30 JUNE 2023

30.6.23 30.6.22
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 867,906 1,177,338
Interest paid (210,420 ) (102,782 )
Interest element of hire purchase or finance
lease rental payments paid

-

(2,316

)
Tax paid (181,131 ) (80,000 )
Net cash from operating activities 476,355 992,240

Cash flows from investing activities
Purchase of tangible fixed assets (1,134,569 ) (2,538,334 )
Sale of tangible fixed assets - 51,900
Net cash from investing activities (1,134,569 ) (2,486,434 )

Cash flows from financing activities
New loans in year 650,000 1,800,000
Loan repayments in year (369,063 ) (511,451 )
Capital repayments in year - (14,564 )
Amount introduced by directors 270,000 250,000
Amount withdrawn by directors (194,470 ) (193,230 )
Equity dividends paid (50,000 ) (250,000 )
Net cash from financing activities 306,467 1,080,755

Decrease in cash and cash equivalents (351,747 ) (413,439 )
Cash and cash equivalents at beginning of
year

2

243,533

656,972

Cash and cash equivalents at end of year 2 (108,214 ) 243,533

FLAT ROCK HOLDINGS LIMITED (REGISTERED NUMBER: 12495150)

NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 30 JUNE 2023


1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS
30.6.23 30.6.22
£    £   
Profit before taxation 1,443,960 1,568,968
Depreciation charges 316,447 295,836
Loss/(profit) on disposal of fixed assets 2,630 (28,293 )
Government grants (2,912 ) (3,426 )
Finance costs 210,420 105,098
1,970,545 1,938,183
(Increase)/decrease in stocks (64,968 ) 7,620
Increase in trade and other debtors (1,220,275 ) (1,038,228 )
Increase in trade and other creditors 182,604 269,763
Cash generated from operations 867,906 1,177,338

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 30 June 2023
30.6.23 1.7.22
£    £   
Cash and cash equivalents (44,865 ) 243,533
Bank overdrafts (63,349 ) -
(108,214 ) 243,533
Year ended 30 June 2022
30.6.22 1.7.21
£    £   
Cash and cash equivalents 243,533 656,972


FLAT ROCK HOLDINGS LIMITED (REGISTERED NUMBER: 12495150)

NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 30 JUNE 2023


3. ANALYSIS OF CHANGES IN NET DEBT

At 1.7.22 Cash flow At 30.6.23
£    £    £   
Net cash
Cash at bank and in hand 243,533 (288,398 ) (44,865 )
Bank overdrafts - (63,349 ) (63,349 )
243,533 (351,747 ) (108,214 )
Debt
Debts falling due within 1 year (361,368 ) (5,976 ) (367,344 )
Debts falling due after 1 year (3,178,994 ) (274,960 ) (3,453,954 )
(3,540,362 ) (280,936 ) (3,821,298 )
Total (3,296,829 ) (632,683 ) (3,929,512 )

FLAT ROCK HOLDINGS LIMITED (REGISTERED NUMBER: 12495150)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023


1. STATUTORY INFORMATION

Flat Rock Holdings Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Basis of consolidation
The group consolidated financial statements include the financial statements of the company and all of its subsidiary undertakings made up to 30 June 2023.

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

Where a subsidiary has different accounting policies to the group, adjustments are made to those subsidiary financial statements to apply the group's accounting policies when preparing the consolidated financial statements.

Any subsidiary undertaking or associates sold or acquired during the year are included up to, or from, the dates of change of control or change of significant influence respectively.

All intra-group transactions, balances, income and expenses are eliminated on consolidation. Adjustments are made to eliminate the profit or loss arising on transactions with associates to the extent of the group's interest in the entity.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Goodwill
Goodwill, being the amount paid in connection with the acquisition of a business in 2014, is being amortised evenly over its estimated useful life of ten years.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Freehold property - not provided
Plant and machinery - 20% on reducing balance and 15% on reducing balance
Fixtures and fittings - 20% on reducing balance and 15% on reducing balance
Motor vehicles - 25% on cost

FLAT ROCK HOLDINGS LIMITED (REGISTERED NUMBER: 12495150)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2023


2. ACCOUNTING POLICIES - continued

Government grants
Government grants received on capital expenditure are initially recognised within deferred income on the Balance Sheet and are subsequently recognised in the profit or loss on a systematic basis over the useful life of the related capital expenditure.

Grants for revenue expenditure are presented as part of the profit or loss in the periods in which the expenditure is recognised.

Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Costs are based on the method most appropriate to the type of item but usually on a First In First Out basis (FIFO).

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.

FLAT ROCK HOLDINGS LIMITED (REGISTERED NUMBER: 12495150)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2023


3. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the group.

An analysis of turnover by class of business is given below:

30.6.23 30.6.22
£    £   
Accommodation 2,751,626 2,974,855
Food and beverage 4,534,557 4,255,380
Other sales 710,805 212,261
7,996,988 7,442,496

4. OTHER OPERATING INCOME
30.6.23 30.6.22
£    £   
Rents received 64,468 14,920
Sundry receipts 52,820 67,602
Government grants 2,912 18,831
120,200 101,353

Government grants, as included in the above note, include capital expenditure grant release in relation to a project developing the bar and restaurant area in 2014 while the balance consisted of the final amounts of COVID assistance to assist with working capital through the pandemic difficulties.

5. EMPLOYEES AND DIRECTORS
30.6.23 30.6.22
£    £   
Wages and salaries 2,649,357 2,300,184
Social security costs 193,857 158,956
Other pension costs 56,209 40,426
2,899,423 2,499,566

The average number of employees during the year was as follows:
30.6.23 30.6.22

Accounts and administration 6 6
Management 7 7
Hotel staff 154 162
167 175

The average number of employees by undertakings that were proportionately consolidated during the year was 167 (2022 - 175 ) .

FLAT ROCK HOLDINGS LIMITED (REGISTERED NUMBER: 12495150)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2023


5. EMPLOYEES AND DIRECTORS - continued

30.6.23 30.6.22
£    £   
Directors' remuneration 38,750 30,000
Directors' pension contributions to money purchase schemes 665 3,603

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 2 2

6. OPERATING PROFIT

The operating profit is stated after charging/(crediting):

30.6.23 30.6.22
£    £   
Hire of plant and machinery 41,383 48,730
Depreciation - owned assets 301,447 280,836
Loss/(profit) on disposal of fixed assets 2,630 (28,293 )
Goodwill amortisation 15,000 15,000
Auditors' remuneration 10,700 10,000

7. INTEREST PAYABLE AND SIMILAR EXPENSES
30.6.23 30.6.22
£    £   
Bank loan interest 203,381 102,782
Other interest charged 7,039 -
Hire purchase - 2,316
210,420 105,098

8. TAXATION

Analysis of the tax charge
The tax charge on the profit for the year was as follows:
30.6.23 30.6.22
£    £   
Current tax:
UK corporation tax 283,531 203,766

Deferred tax 3,540 67,648
Tax on profit 287,071 271,414

FLAT ROCK HOLDINGS LIMITED (REGISTERED NUMBER: 12495150)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2023


8. TAXATION - continued

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

30.6.23 30.6.22
£    £   
Profit before tax 1,443,960 1,568,968
Profit multiplied by the standard rate of corporation tax in the UK of 25 %
(2022 - 19 %)

360,990

298,104

Effects of:
Income not taxable for tax purposes 659 (5,376 )
Capital allowances in excess of depreciation (14,539 ) (88,962 )
Accelerated capital allowances at 25% (2022 25%) 3,540 1,491
Accelerated capital allowances at 19% (2022 19%) - 66,157
Change in tax rates (63,579 ) -
Total tax charge 287,071 271,414

9. INDIVIDUAL INCOME STATEMENT

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.


10. DIVIDENDS
30.6.23 30.6.22
£    £   
Ordinary A share of £1
Interim 25,000 125,000
Ordinary B share of £1
Interim 25,000 125,000
50,000 250,000

FLAT ROCK HOLDINGS LIMITED (REGISTERED NUMBER: 12495150)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2023


11. INTANGIBLE FIXED ASSETS

Group
Goodwill
£   
COST
At 1 July 2022
and 30 June 2023 150,001
AMORTISATION
At 1 July 2022 125,001
Amortisation for year 15,000
At 30 June 2023 140,001
NET BOOK VALUE
At 30 June 2023 10,000
At 30 June 2022 25,000

12. TANGIBLE FIXED ASSETS

Group
Fixtures
Freehold Plant and and Motor
property machinery fittings vehicles Totals
£    £    £    £    £   
COST
At 1 July 2022 6,529,780 1,136,800 2,005,323 4,000 9,675,903
Additions 901,557 89,770 135,717 7,525 1,134,569
At 30 June 2023 7,431,337 1,226,570 2,141,040 11,525 10,810,472
DEPRECIATION
At 1 July 2022 - 568,391 945,254 4,000 1,517,645
Charge for year - 98,956 200,610 1,881 301,447
At 30 June 2023 - 667,347 1,145,864 5,881 1,819,092
NET BOOK VALUE
At 30 June 2023 7,431,337 559,223 995,176 5,644 8,991,380
At 30 June 2022 6,529,780 568,409 1,060,069 - 8,158,258

FLAT ROCK HOLDINGS LIMITED (REGISTERED NUMBER: 12495150)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2023


13. FIXED ASSET INVESTMENTS

The group or the company's investments at the Balance Sheet date in the share capital of companies include the following:

Subsidiaries

Jonsel Management Black Limited
Registered office: The Gwbert Hotel, Gwbert On Sea, Cardigan SA43 1PP
Nature of business: Hotel and restaurant
%
Class of shares: holding
Ordinary 100.00
30.6.23 30.6.22
£    £   
Aggregate capital and reserves 4,676,078 3,658,017
Profit for the year 1,067,903 1,254,264

Jonsel Management Black Limited has claimed exemption from audit of its accounts for the year ended 30 June 2023 under section 479a of the Companies Act 2006.

Jonsel Management Fishguard Ltd
Registered office: The Gwbert Hotel, Gwbert On Sea, Cardigan SA43 1PP
Nature of business: dormant-dissolved 30/5/2023
%
Class of shares: holding
Ordinary 100.00
30.6.23 30.6.22
£    £   
Aggregate capital and reserves - 100

Jonsel (Aberaeron) Ltd
Registered office: The Gwbert Hotel, Gwbert On Sea, Cardigan SA43 1PP
Nature of business: Hotel and restaurant
%
Class of shares: holding
Ordinary 100.00
30.6.23 30.6.22
£    £   
Aggregate capital and reserves 132,218 43,232
Profit for the year 132,611 109,289

Jonsel (Aberaeron) Limited has claimed exemption from audit of its accounts for the period ended 30 June 2023 under section 479a of the Companies Act 2006.

FLAT ROCK HOLDINGS LIMITED (REGISTERED NUMBER: 12495150)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2023


13. FIXED ASSET INVESTMENTS - continued

Jonsel Construction Ltd
Registered office: The Gwbert Hotel, Gwbert On Sea, Cardigan SA43 1PP
Nature of business: dormant
%
Class of shares: holding
Ordinary 100.00
30.6.23
£   
Aggregate capital and reserves 100


14. STOCKS

Group
30.6.23 30.6.22
£    £   
Stocks - 1
Raw materials 107,906 39,869
Finished goods 7,331 10,399
115,237 50,269

15. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
30.6.23 30.6.22 30.6.23 30.6.22
£    £    £    £   
Trade debtors 47,570 16,865 - -
Other debtors 223,637 20,472 - -
Amount owed by related parties 3,071,502 2,077,985 - -
Called up share capital not paid 102 102 102 102
Prepayments 4,971 12,083 - -
3,347,782 2,127,507 102 102

16. CURRENT ASSET INVESTMENTS

Company
30.6.23 30.6.22
£    £   
Shares in group undertakings 202 202

FLAT ROCK HOLDINGS LIMITED (REGISTERED NUMBER: 12495150)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2023


17. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
30.6.23 30.6.22 30.6.23 30.6.22
£    £    £    £   
Bank loans and overdrafts (see note 19) 430,693 361,368 - -
Trade creditors 368,524 378,814 - -
Tax 411,817 309,417 - -
Social security and other taxes 45,861 50,588 - -
VAT 379,801 249,886 - -
Other creditors 1,223,886 1,075,137 202 202
Amount owed to related parties 163,244 208,717 - -
Directors' current accounts 82,468 7,219 - -
Accrued expenses 90,528 123,186 - -
3,196,822 2,764,332 202 202

18. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR

Group
30.6.23 30.6.22
£    £   
Bank loans (see note 19) 3,453,954 3,178,994

19. LOANS

An analysis of the maturity of loans is given below:

Group
30.6.23 30.6.22
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts 63,349 -
Bank loans 367,344 361,368
430,693 361,368
Amounts falling due between one and two years:
Bank loans - 1-2 years 367,344 361,368
Amounts falling due between two and five years:
Bank loans - 2-5 years 820,282 936,604
Amounts falling due in more than five years:
Repayable by instalments
Bank loans more 5 yr by instal 2,266,328 1,881,022

FLAT ROCK HOLDINGS LIMITED (REGISTERED NUMBER: 12495150)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2023


19. LOANS - continued

The Group have a pound sterling CBILS loan advanced by HSBC Bank PLC outstanding. This loan will be fully repaid in May 2026 and the interest rate is currently charged at 8.99%.The remaining balance as at the Balance Sheet date was £453,250.

There are also four mortgages outstanding as at 30 June 2023 advanced by HSBC Bank PLC, with current interest rates of between 7.2% and 7.6% charged. These mortgage balances are as follows (in pound sterling), together with date of full repayment:

- £1,672,920 fully repaid by October 2037
- £1,060,551 fully repaid by October 2029
- £340,632 fully repaid by October 2032
- £293,945 fully repaid by December 2032

20. SECURED DEBTS

The following secured debts are included within creditors:

Group
30.6.23 30.6.22
£    £   
Bank overdraft 63,349 -
Bank loans 3,821,298 3,540,362
3,884,647 3,540,362

HSBC Bank PLC hold a charge over the property known as The Cliff Hotel dated 1 November 2019 together with a fixed and floating charge over the company's assets dated 23 October 2019.

HSBC Bank PLC hold a fixed and floating charge over the assets of the company dated 19 October 2021 and also hold a fixed charge over The Harbourmaster Hotel, Aberaeron dated 1 November 2021.

21. PROVISIONS FOR LIABILITIES

Group
30.6.23 30.6.22
£    £   
Deferred tax 342,362 338,822

Group
Deferred
tax
£   
Balance at 1 July 2022 338,822
Provided during year 3,540
Balance at 30 June 2023 342,362

FLAT ROCK HOLDINGS LIMITED (REGISTERED NUMBER: 12495150)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2023


22. ACCRUALS AND DEFERRED INCOME

Group
30.6.23 30.6.22
£    £   
Deferred government grants 18,200 21,112

23. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 30.6.23 30.6.22
value: £    £   
100 Ordinary £1 100 100
1 Ordinary A £1 1 1
1 Ordinary B £1 1 1
102 102

There are 3 classes of ordinary shares. There are no restrictions on the distribution of dividends and the repayment of capital.

24. RESERVES

Group
Retained
earnings
£   

At 1 July 2022 4,301,205
Profit for the year 1,156,889
Dividends (50,000 )
At 30 June 2023 5,408,094


25. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to directors subsisted during the years ended 30 June 2023 and 30 June 2022:

30.6.23 30.6.22
£    £   
L W Jones and Mrs L Jones
Balance outstanding at start of year - -
Amounts advanced 50,000 250,000
Amounts repaid (50,000 ) (250,000 )
Amounts written off - -
Amounts waived - -
Balance outstanding at end of year - -

No amounts were written off in the period relating to Directors' loan balances and no interest was charged for any outstanding balances.

FLAT ROCK HOLDINGS LIMITED (REGISTERED NUMBER: 12495150)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 JUNE 2023


26. RELATED PARTY DISCLOSURES

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.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

Entities with control, joint control or significant influence over the entity
30.6.23 30.6.22
£    £   
Sales 36,998 33,045
Purchases 58,072 130,938
Amount due from related party 3,070,829 2,357,279
Amount due to related party 163,243 1,088,011

Jonsel Ltd, The Anchor Hotel (Gwbert) Ltd and Jonsel Management Ltd are all related party entities due to their common control.

During the year, a total of key management personnel compensation of £ 94,240 (2022 - £ 71,000 ) was paid.

27. ULTIMATE CONTROLLING PARTY

The ultimate controlling party is L W Jones.