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St Moritz Developments Limited

Annual Report and Financial Statements
Year Ended 31 March 2023

Registration number: 04162215

 

St Moritz Developments Limited

Contents

Balance Sheet

1

Notes to the Financial Statements

2 to 9

 

St Moritz Developments Limited

Balance Sheet

31 March 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

5

3,064,543

3,038,675

Current assets

 

Stocks

6

101,037

65,367

Debtors

7

558,292

1,301,272

Cash at bank and in hand

 

26,570

-

 

685,899

1,366,639

Creditors: Amounts falling due within one year

8

(2,681,476)

(3,417,895)

Net current liabilities

 

(1,995,577)

(2,051,256)

Total assets less current liabilities

 

1,068,966

987,419

Provisions for liabilities

(177,475)

(175,541)

Net assets

 

891,491

811,878

Capital and reserves

 

Called up share capital

10

100

100

Revaluation reserve

569,489

569,489

Profit and loss account

321,902

242,289

Shareholders' funds

 

891,491

811,878

Approved and authorised by the Board on 12 March 2024 and signed on its behalf by:
 

.........................................
H Ridgway
Director

Company Registration Number: 04162215

 

St Moritz Developments Limited

Notes to the Financial Statements

Year Ended 31 March 2023

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Trebetherick
Near Wadebridge
Cornwall
PL27 6SD

These financial statements were authorised for issue by the Board on 12 March 2024.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of Section 1A of FRS102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in pounds sterling which is the functional currency of the company.

Monetary amounts in these financial statements are rounded to the nearest pound.

Basis of preparation

These financial statements have been prepared using the historical cost convention.

As disclosed in the fixed asset note the company has taken advantage of the exemption conferred under FRS102 to recognise a previous valuation pre transition as deemed cost on its freehold property.

 

St Moritz Developments Limited

Notes to the Financial Statements

Year Ended 31 March 2023

Going concern

At the balance sheet date the company had net current liabilities of £1,995,577 (2022 - £2,051,256).

In preparing and approving these financial statements the directors have given due consideration to going concern risks. Whilst recognising that there can be no certainty, the directors are satisfied that the going concern basis of preparation remains appropriate. In reaching this conclusion the directors, having made all necessary enquiries, have considered the following matters:

i) The company continues to have support from its fellow subsidiary St Moritz Hotel and Garden Villas Limited. At the balance sheet date the amount due to St Moritz Hotel and Garden Villas was £2,142,741 (2022 - £2,384,668).

ii) Detailed projections have been prepared by the wider-group, including the company, which demonstrate the ability of the group to continue to manage its cash flows and meets its obligations as and when they fall due.

iii) The company has sought and obtained support from the bank to finance the winter trading period, which is in line with projections.

After due consideration of these factors the directors are satisfied that the company will be able to continue as a going concern for the foreseeable future - being a period no less than 12 months from the date of approval of these financial statements.

Revenue recognition

Turnover in the year relates to income from furniture pack sales. This is recognised when it is invoiced.

Other operating income represents rental income chargeable for the use of the asset of the company, being the hotel complex and associated plant.

 

St Moritz Developments Limited

Notes to the Financial Statements

Year Ended 31 March 2023

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.

The current corporation 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 company operates and generates taxable income.

Deferred tax is recognised on all timing differences at the balance sheet date unless indicated below. Timing differences are differences between taxable profits and the results as stated in the profit and loss account and other comprehensive income. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

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

Freehold land and buildings

Not depreciated

Plant and machinery

10% reducing balance

Stocks

Work in progress, which represents apartments for sale, is stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

At each reporting date work in progress is assessed for impairment. If work in progress is 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.

 

St Moritz Developments Limited

Notes to the Financial Statements

Year Ended 31 March 2023

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.

Financial instruments

Classification
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

All financial instruments are classified as basic.

 Recognition and measurement
Financial instruments are recognised in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments. Where the arrangement constitutes a financing transaction the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Basic financial liabilities, including trade and other payables and loans from fellow group companies are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments. Where the item constitutes a financing transaction the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.


 

3

Critical judgement and estimation uncertainty

In applying the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

St Moritz Developments Limited

Notes to the Financial Statements

Year Ended 31 March 2023

4

Staff numbers

The average number of persons employed by the company (including directors) during the year, was 2 (2022 - 2).

5

Tangible assets

Land and buildings
£

Plant and machinery
 £

Total
£

Cost or valuation

At 1 April 2022

2,899,634

964,917

3,864,551

Additions

34,622

12,473

47,095

Disposals

-

(1,600)

(1,600)

At 31 March 2023

2,934,256

975,790

3,910,046

Depreciation

At 1 April 2022

61,776

764,100

825,876

Charge for the year

-

20,920

20,920

Eliminated on disposal

-

(1,293)

(1,293)

At 31 March 2023

61,776

783,727

845,503

Carrying amount

At 31 March 2023

2,872,480

192,063

3,064,543

At 31 March 2022

2,837,858

200,817

3,038,675

Included within the net book value of land and buildings above is £2,872,480 (2022 - £2,837,858) in respect of freehold land and buildings.

The assets of the company are pledged as security in respect of certain loan balances due to the company bankers.

 

St Moritz Developments Limited

Notes to the Financial Statements

Year Ended 31 March 2023

Revaluation

The fair value of the company's freehold land and buildings was revalued on 16 September 2011 by an independent valuer. The independent valuer, being Savills Commercial, undertook this valuation on the basis of open market value.

Had this class of asset been measured on a historical cost basis, their carrying amount would have been £2,302,991 (2022 - £2,268,369).

The company has applied the transitional arrangements of Section 35 of FRS102 and used a previous valuation as the deemed cost for its freehold property.

6

Stocks

2023
£

2022
£

Work in progress

101,037

65,367

7

Debtors

2023
£

2022
£

Trade debtors

-

225,000

Other debtors

558,292

1,076,272

558,292

1,301,272

8

Creditors

Creditors: amounts falling due within one year

Note

2023
 £

2022
 £

Due within one year

 

Loans and borrowings

9

-

20,443

Trade creditors

 

39,709

53,889

Amounts due to group undertakings

 

2,142,741

2,384,668

Corporation tax

119,727

214,410

Other creditors

11

-

308,188

Accrued expenses

 

379,299

436,297

 

2,681,476

3,417,895

 

St Moritz Developments Limited

Notes to the Financial Statements

Year Ended 31 March 2023

9

Loans and borrowings

2023
£

2022
£

Current loans and borrowings

Bank overdrafts

-

20,443

The amounts shown as bank borrowings are secured in favour of Lloyds Bank PLC.

This security comprises:

- A first legal charge from St Moritz Developments Limited over the freehold land and buildings of the company.
- An unlimited debenture from St Moritz Developments Limited.
- An omnibus guarantee and set off agreement among the bank, St Moritz Developments Limited and St Moritz Hotel and Garden Villas Limited together with such other security that the bank may from time to time hold in respect of the debts and liabilities of any guarantor of the bank.

 

St Moritz Developments Limited

Notes to the Financial Statements

Year Ended 31 March 2023

10

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary shares of £1 each

100

100

100

100

         

11

Related party transactions

The Directors
During the year the Directors have had loans outstanding from the company. The loans are interest free, unsecured and repayable on demand.

Repayments of £nil (2022 - £500,000) have been made on the Directors' loan balances in the year. Drawdowns of £nil (2022 - £875,148) have also been made.

Amounts due to directors of £149,909 were transferred from director loan accounts with the connected company St Moritz Hotel & Garden Villas Limited.

At the balance sheet date the net amount due from Directors to the company was £417,051 (2022 - £566,960).

12

Parent and ultimate parent undertaking

The company's immediate parent is St Moritz (Holdings) Limited, incorporated in England and Wales.

The registered office for St Moritz (Holdings) Limited is Lowin House, Tregolls Road, Truro, TR1 2NA.

 The most senior parent entity producing publicly available financial statements is St Moritz (Holdings) Limited. These financial statements are available upon request from Companies House, Crown Way, Cardiff, CF14 3UZ.

13

Audit report

The Independent Auditors' Report was unqualified. The name of the Senior Statutory Auditor who signed the audit report was Thomas Roach BSc FCA, who signed for and on behalf of PKF Francis Clark on 13 March 2024.