Company registration number 02513040 (England and Wales)
DEGIORGIO HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023
DEGIORGIO HOLDINGS LIMITED
COMPANY INFORMATION
Directors
Mrs Carole Degiorgio
Mr Fortunato Degiorgio
Mr Stephen Degiorgio
Miss Suzanne Degiorgio
Secretary
Mrs Carole Degiorgio
Company number
02513040
Registered office
King Charles Hotel
Brompton Road
Gillingham
Kent
ME7 5QT
Auditor
Nash Harvey Group LLP
The Granary
Hermitage Court
Hermitage Lane
Maidstone
Kent
ME16 9NT
DEGIORGIO HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 8
Profit and loss account
9
Group statement of comprehensive income
10
Group balance sheet
11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Company statement of cash flows
16
Notes to the financial statements
17 - 32
DEGIORGIO HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 1 -

The directors present the strategic report for the year ended 28 February 2023.

Fair review of the business

 

During the year the group has continued to operate as per the prior financial year. There have been no major changes to the group structure and it continues to run two hotels, The King Charles Hotel and The Inn on the Lake. The group's key financial indicators during the year were as follows:

 

 

2023 2022 % Variance

 

Turnover £4,276,886 £3,282,748 30.3%

 

Profit before tax £1,012,022 £986,098 2.6%

 

Shareholders Funds £22,666,989 £21,937,585 3.3%

 

 

Turnover has increased in the year by 30.3%. This is as expected as all restrictions that had previously been in place due to Coronavirus (COVID-19) had been lifted by the end of the previous financial year and the group saw income levels returning to those pre pandemic. Profit before tax has increased by 2.6%. Gross profit margins and fixed costs remain consistent, which is at a level consistent with pre pandemic. Shareholders funds have increased by 3.3%, an increase on prior year and as expected.

The group has continued to utilise various advertising streams to promote both the hotels and the facilities available such as weddings, conferences and venue hire. They have also continued to invest in improvements to the hotels to attract new and retain current customers. The group holds substantial reserves therefore there are no concerns over the ability of the group to meet its liabilities as and when they fall due.

Future Developments

There are no planned changes to the structure of the group, and any major planned development work that was previously postponed has now recommenced.

Income levels in prior years were significantly affected from the restrictions in both leisure and business travel, events and use of conference facilities due to COVID-19. Restrictions were lifted by the end of the prior year and have returned to levels seen pre pandemic. As a result of the returned stability to the industry, the company has commenced with investment to maintain and improve standards at the hotel. During the pandemic only essential expenditure took place. They have future plans year on year to continually invest in maintaining and improving the standards of the hotels this maintaining income levels.

Work at the King Charles Hotel, which is being supported by the group, to develop the site of the former nightclub, which was due to complete in early 2021, was postponed in the prior year. Plans are still being finalised for the site as initial planning to develop the area into residential accommodation was refused. The plans have subsequently been revised to use the area for a conference and events centre. As the site was formally a nightclub with various rooms for hire, it is expected that planning will be granted. Funds invested in the project to date for clearing and planning have been made from cash reserves held by the group. The group has no reliance on external funding for this, therefore no external deadlines to finalise plans for this site.

All future developments are concentrated around monitoring, assessing, and acting to the current changing environment to position the group to ensure its future success.

 

 

 

DEGIORGIO HOLDINGS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 2 -
Principal risks and uncertainties

 

There are no future concerns or risks facing the group. Overall, it has been another successful year for the group. Both hotels have a fairly consistent customer base and stream of new visitors year on year before COVID-19 and have seen income returning to pre pandemic levels now that all restrictions are lifted. The group holds sufficient reserves to minimise any potential risks or uncertainties arising at this current time and see no impact upon going concern.

On behalf of the board

Mr Stephen Degiorgio
Director
29 February 2024
DEGIORGIO HOLDINGS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 3 -

The directors present their annual report and financial statements for the year ended 28 February 2023.

Principal activities

The principal activity of the group continued to be that of hoteliers.

Results and dividends

The results for the year are set out on page 9.

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

Directors

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

Mrs Carole Degiorgio
Mr Fortunato Degiorgio
Mr Stephen Degiorgio
Miss Suzanne Degiorgio
Auditor

The auditor, Nash Harvey Group LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

Medium-sized companies exemption

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

On behalf of the board
Mr Stephen Degiorgio
Director
29 February 2024
DEGIORGIO HOLDINGS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 4 -

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

DEGIORGIO HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DEGIORGIO HOLDINGS LIMITED
- 5 -
Opinion

We have audited the financial statements of Degiorgio Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 28 February 2023 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company’s ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

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

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

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

We 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.

 

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

 

 

 

 

 

DEGIORGIO HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DEGIORGIO HOLDINGS LIMITED
- 7 -

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

 

 

 

 

To address the risk of fraud through management bias and override of controls, we:

 

 

 

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

 

 

 

 

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

 

 

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

DEGIORGIO HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DEGIORGIO HOLDINGS LIMITED
- 8 -

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.

David Smith Bsc FCA (Senior Statutory Auditor)
For and on behalf of Nash Harvey Group LLP
29 February 2024
Chartered Accountants
Statutory Auditor
The Granary
Hermitage Court
Hermitage Lane
Maidstone
Kent
ME16 9NT
DEGIORGIO HOLDINGS LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 9 -
2023
2022
Notes
£
£
Turnover
3
4,276,886
3,282,748
Cost of sales
(901,966)
(317,698)
Gross profit
3,374,920
2,965,050
Administrative expenses
(2,529,212)
(2,362,345)
Other operating income
106,322
370,284
Operating profit
4
952,030
972,989
Interest receivable and similar income
8
59,992
13,110
Profit before taxation
1,012,022
986,099
Tax on profit
9
(282,618)
(180,434)
Profit for the financial year
729,404
805,665
Profit for the financial year is all attributable to the owners of the parent company.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

DEGIORGIO HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 10 -
2023
2022
£
£
Profit for the year
729,404
805,665
Other comprehensive income
-
-
Total comprehensive income for the year
729,404
805,665
Total comprehensive income for the year is all attributable to the owners of the parent company.
DEGIORGIO HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
28 FEBRUARY 2023
28 February 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
10
11,285,956
10,326,864
Current assets
Stocks
13
37,400
1,436,204
Debtors
14
6,069,678
5,030,160
Cash at bank and in hand
7,248,900
6,705,143
13,355,978
13,171,507
Creditors: amounts falling due within one year
15
(1,927,367)
(1,499,801)
Net current assets
11,428,611
11,671,706
Total assets less current liabilities
22,714,567
21,998,570
Provisions for liabilities
Deferred tax liability
16
47,578
60,985
(47,578)
(60,985)
Net assets
22,666,989
21,937,585
Capital and reserves
Called up share capital
18
10,000
10,000
Revaluation reserve
3,022,732
3,022,732
Profit and loss reserves
19,634,257
18,904,853
Total equity
22,666,989
21,937,585

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

The financial statements were approved by the board of directors and authorised for issue on 29 February 2024 and are signed on its behalf by:
29 February 2024
Mr Stephen Degiorgio
Director
Company registration number 02513040 (England and Wales)
DEGIORGIO HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 28 FEBRUARY 2023
28 February 2023
- 12 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
10
5,721,904
5,721,904
Investments
11
2,000
2,000
5,723,904
5,723,904
Current assets
Debtors
14
14,681,767
14,673,192
Cash at bank and in hand
7,153,895
6,635,143
21,835,662
21,308,335
Creditors: amounts falling due within one year
15
(17,706,580)
(17,187,967)
Net current assets
4,129,082
4,120,368
Total assets less current liabilities
9,852,986
9,844,272
Provisions for liabilities
Deferred tax liability
16
2,850
2,850
(2,850)
(2,850)
Net assets
9,850,136
9,841,422
Capital and reserves
Called up share capital
18
10,000
10,000
Profit and loss reserves
9,840,136
9,831,422
Total equity
9,850,136
9,841,422

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £8,715 (2022 - £31,785 profit).

The financial statements were approved by the board of directors and authorised for issue on 29 February 2024 and are signed on its behalf by:
29 February 2024
Mr Stephen Degiorgio
Director
Company registration number 02513040 (England and Wales)
DEGIORGIO HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 13 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 March 2021
10,000
3,022,732
18,099,188
21,131,920
Year ended 28 February 2022:
Profit and total comprehensive income
-
-
805,665
805,665
Balance at 28 February 2022
10,000
3,022,732
18,904,853
21,937,585
Year ended 28 February 2023:
Profit and total comprehensive income
-
-
729,404
729,404
Balance at 28 February 2023
10,000
3,022,732
19,634,257
22,666,989
DEGIORGIO HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 14 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 March 2021
10,000
9,799,637
9,809,637
Year ended 28 February 2022:
Profit and total comprehensive income for the year
-
31,785
31,785
Balance at 28 February 2022
10,000
9,831,422
9,841,422
Year ended 28 February 2023:
Profit and total comprehensive income
-
8,714
8,714
Balance at 28 February 2023
10,000
9,840,136
9,850,136
DEGIORGIO HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 15 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
21
1,785,960
1,285,094
Income taxes paid
(197,458)
(36,806)
Net cash inflow from operating activities
1,588,502
1,248,288
Investing activities
Purchase of tangible fixed assets
(29,929)
(73,381)
Proceeds from disposal of tangible fixed assets
(1,075,112)
-
Proceeds from disposal of investment property
-
1,390,973
Repayment of loans
304
(2,450,485)
Interest received
59,992
13,110
Net cash used in investing activities
(1,044,745)
(1,119,783)
Net increase in cash and cash equivalents
543,757
128,505
Cash and cash equivalents at beginning of year
6,705,143
6,576,638
Cash and cash equivalents at end of year
7,248,900
6,705,143
DEGIORGIO HOLDINGS LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 16 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
22
465,912
1,174,907
Income taxes paid
(7,456)
-
0
Net cash inflow from operating activities
458,456
1,174,907
Investing activities
Proceeds from disposal of investment property
-
0
1,390,973
Repayment of loans
304
(2,450,485)
Interest received
59,992
13,110
Net cash generated from/(used in) investing activities
60,296
(1,046,402)
Net increase in cash and cash equivalents
518,752
128,505
Cash and cash equivalents at beginning of year
6,635,143
6,506,638
Cash and cash equivalents at end of year
7,153,895
6,635,143
DEGIORGIO HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 17 -
1
Accounting policies
Company information

Degiorgio Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales, Company registration number 02513040. The registered office is King Charles Hotel, Brompton Road, Gillingham, Kent, ME7 5QT.

 

The group consists of Degiorgio Holdings Limited and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

1.2
Business combinations

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

 

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

1.3
Basis of consolidation

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

 

All financial statements are made up to 28 February 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

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

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

DEGIORGIO HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 18 -
1.5
Turnover

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

 

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

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

1.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Land and buildings Leasehold
No depreciation deemed necessary
Leasehold improvements
10% Straight Line
Plant and machinery
5% Straight Line
Fixtures, fittings & equipment
10% - 25% Straight Line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

Depreciation is charged on furniture, soft furnishings and small equipment at a rate of 10% straight line with and anticipated useful life of 10 years.

 

Depreciations is charged on computer and office equipment at a rate of 25% straight line with an anticipated useful life of 4 years.

 

Depreciation is charged on major capital items classed as plant and equipment at a rate of 5% straight line with an anticipated useful life of 20 years.

1.7
Fixed asset investments

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

 

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

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

DEGIORGIO HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 19 -

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

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

 

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

 

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

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

1.8
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

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

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

DEGIORGIO HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 20 -
1.9
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

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

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

1.10
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.11
Financial instruments

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

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

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

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Other financial assets

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

DEGIORGIO HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 21 -
Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

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

 

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

DEGIORGIO HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 22 -
Derecognition of financial liabilities

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

1.12
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.13
Derivatives

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

 

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.

1.14
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.15
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

DEGIORGIO HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
1
Accounting policies
(Continued)
- 23 -
1.16
Retirement benefits

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

1.17
Leases

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.18
Government grants

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

 

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

1.19
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

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

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Impairment Review

Determine whether there are indicators of impairment of the company's tangible assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future performance of the asset. Where indicators exist impairment reviews are carried out on the company's tangible assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future performance.

DEGIORGIO HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 24 -
Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Tangible Fixed Assets (see note 10)

Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as age and future economic benefits are taken into account.

Valuation of Property (See note 10)

Leasehold property comprises of the King Charles Hotel and Inn on the Lake which are stated at fair value. The directors have assessed this and based on reference the current market data, location or condition of the properties consider them stated at fair value. However, the rise in interest rates and inflation has caused significant disruption and uncertainty in the UK property market which has inevitably increased the degree of judgement involved in the property valuation at the balance sheet date.

3
Turnover and other revenue

An analysis of the group's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Hotel Income
4,276,886
3,282,748
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
4,276,886
3,282,748
2023
2022
£
£
Other revenue
Interest income
59,992
13,110
Grants received
12,000
265,855
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange (gains)/losses
-
38,139
Government grants
(12,000)
(265,855)
Depreciation of owned tangible fixed assets
145,949
144,963
(Profit)/loss on disposal of tangible fixed assets
-
148
DEGIORGIO HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 25 -
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
8,000
8,000
6
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Directors
4
4
4
4
Hotel employees
90
74
90
74
Total
94
78
94
78

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
1,003,580
1,127,166
1,003,580
1,127,166
Social security costs
110,126
77,077
110,126
77,077
Pension costs
13,031
10,908
13,031
10,908
1,126,737
1,215,151
1,126,737
1,215,151
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
283,869
180,786
Remuneration disclosed above includes the following amounts paid to the highest paid director:
2023
2022
£
£
Remuneration for qualifying services
145,735
95,000
DEGIORGIO HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 26 -
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
38,885
658
Other interest income
21,107
12,452
Total income
59,992
13,110
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
38,885
658
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
296,025
197,456
Deferred tax
Origination and reversal of timing differences
(13,407)
(17,022)
Total tax charge
282,618
180,434

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

2023
2022
£
£
Profit before taxation
1,012,022
986,099
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
192,284
187,359
Tax effect of expenses that are not deductible in determining taxable profit
107,192
27,571
Other permanent differences
(3,451)
(17,474)
Deferred tax
(13,407)
(17,022)
Taxation charge
282,618
180,434
DEGIORGIO HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 27 -
10
Tangible fixed assets
Group
Land and buildings Leasehold
Leasehold improvements
Plant and machinery
Fixtures, fittings & equipment
Total
£
£
£
£
£
Cost or valuation
At 1 March 2022
9,971,904
24,341
27,044
1,463,902
11,487,191
Additions
-
0
18,525
-
0
11,404
29,929
Transfers
-
0
1,075,112
-
0
-
0
1,075,112
At 28 February 2023
9,971,904
1,117,978
27,044
1,475,306
12,592,232
Depreciation and impairment
At 1 March 2022
-
0
2,434
27,044
1,130,849
1,160,327
Depreciation charged in the year
-
0
2,897
-
0
143,052
145,949
At 28 February 2023
-
0
5,331
27,044
1,273,901
1,306,276
Carrying amount
At 28 February 2023
9,971,904
1,112,647
-
0
201,405
11,285,956
At 28 February 2022
9,971,904
21,907
-
0
333,053
10,326,864
Company
Land and buildings Leasehold
Fixtures, fittings & equipment
Total
£
£
£
Cost or valuation
At 1 March 2022 and 28 February 2023
5,721,904
41,570
5,763,474
Depreciation and impairment
At 1 March 2022 and 28 February 2023
-
0
41,570
41,570
Carrying amount
At 28 February 2023
5,721,904
-
0
5,721,904
At 28 February 2022
5,721,904
-
0
5,721,904

The historical cost of leasehold property includes the King Charles Hotel site at £1,227,268 (2022: £1,227,268), and the accumulated depreciation based on the historical cost would be £nil (2022: £nil). The property has been revalued previously and in the opinion of the directors this continues to represent a fair value of the property at the year end in the current market.

 

 

DEGIORGIO HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
10
Tangible fixed assets
(Continued)
- 28 -
2023
2022
£
£
Group
Cost
1,227,268
1,227,268
11
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
12
-
0
-
0
2,000
2,000
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 March 2022 and 28 February 2023
2,000
Carrying amount
At 28 February 2023
2,000
At 28 February 2022
2,000
12
Subsidiaries

Details of the company's subsidiaries at 28 February 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Inn on the Lake Limited
King Charles Hotel, Brompton Road, Gillingham, Kent ME7 5QT
Ordinary Shares
100.00
KC Hotel Limited
King Charles Hotel, Brompton Road, Gillingham, Kent ME7 5QT
Ordinary Shares
100.00
13
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Work in progress
-
1,406,504
-
-
Finished goods and goods for resale
37,400
29,700
-
0
-
0
37,400
1,436,204
-
-
DEGIORGIO HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 29 -
14
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
12,849
28,924
-
0
-
0
Corporation tax recoverable
825,845
451,381
825,845
451,381
Amounts owed by group undertakings
-
-
8,667,457
9,690,178
Other debtors
3,548,774
3,695,048
3,531,774
3,695,048
Prepayments and accrued income
25,519
59,501
-
0
41,279
4,412,987
4,234,854
13,025,076
13,877,886
Amounts falling due after more than one year:
Other debtors
1,656,691
795,306
1,656,691
795,306
Total debtors
6,069,678
5,030,160
14,681,767
14,673,192
15
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
£
£
£
£
Trade creditors
67,411
86,550
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
16,413,783
16,080,735
Corporation tax payable
1,121,868
648,837
827,889
458,837
Other taxation and social security
576,061
213,347
369,523
143,712
Other creditors
95,385
504,683
95,385
504,683
Accruals and deferred income
66,642
46,384
-
0
-
0
1,927,367
1,499,801
17,706,580
17,187,967
16
Deferred taxation

Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2023
2022
Group
£
£
ACAs
44,728
58,135
Investment property
2,850
2,850
47,578
60,985
DEGIORGIO HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
16
Deferred taxation
(Continued)
- 30 -
Liabilities
Liabilities
2023
2022
Company
£
£
Investment property
2,850
2,850
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 March 2022
60,985
2,850
Credit to profit or loss
(13,407)
-
Liability at 28 February 2023
47,578
2,850

The net reversal of group deferred tax liabilities expected in 2024 is £35,204. This is expected to arise as depreciation is anticipated to be higher than the available capital allowances. However, it should be noted that further reversals (or further increases in deferred tax balances) may arise. As the future deferred tax balances, if any, will be dependent on future changes in fair values of assets and liabilities, it is not possible to estimate any further future reversals.

 

17
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit and loss in respect of defined contribution schemes
13,031
10,908

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

18
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
10,000
10,000
10,000
10,000
19
Financial commitments, guarantees and contingent liabilities

The company has given a composite cross guarantee to National Westminster Bank Plc in respect of liabilities undertaken by its subsidiary undertakings. This cross guarantee includes a mortgage debenture incorporating a fixed and floating charge over all of the Company's assets and a legal mortgage over the Company's Long Leasehold property.

 

DEGIORGIO HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 31 -
20
Related party transactions
Remuneration of key management personnel

The remuneration of key management personnel is as follows.

2023
2022
£
£
Aggregate compensation
283,869
180,786
Transactions with related parties

Included within other long term debtors are related party loans totalling £1,656,691 (2022: £795,306) to Mr J Degiorgio and Miss L Degiorgio, son and daughter of the director Mr Stephen Degiorgio, and Mr J Degiorgio, son of the director Ms Susanne Degiorgio. Interest amounting to 2% on outstanding balances has been provided for at the year end. These loans are all unsecured and repayable on demand.

 

Included within other debtors due within one year are amounts payable to FCSS LLP totalling £1,081,593 (2022: £1,124,418), an LLP under common control. Amounts were loaned for the purchase of properties. Loans are unsecured and repayable on demand.

 

Included within other debtors due within one year are amounts owed to the company by the directors totaling £2,450,181 (2022: £2,450,485).

 

21
Cash generated from group operations
2023
2022
£
£
Profit for the year after tax
729,404
805,665
Adjustments for:
Taxation charged
282,618
180,434
Investment income
(59,992)
(13,110)
(Gain)/loss on disposal of tangible fixed assets
-
148
Depreciation and impairment of tangible fixed assets
145,949
144,963
Movements in working capital:
Decrease/(increase) in stocks
1,398,804
(62,858)
(Increase)/decrease in debtors
(665,358)
56,714
(Decrease)/increase in creditors
(45,465)
173,138
Cash generated from operations
1,785,960
1,285,094
DEGIORGIO HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 28 FEBRUARY 2023
- 32 -
22
Cash generated from operations - company
2023
2022
£
£
Profit for the year after tax
8,714
31,785
Adjustments for:
Taxation charged
2,044
7,456
Investment income
(59,992)
(13,110)
Movements in working capital:
Decrease in debtors
365,585
603,742
Increase in creditors
149,561
545,034
Cash generated from operations
465,912
1,174,907
23
Analysis of changes in net funds - group
1 March 2022
Cash flows
28 February 2023
£
£
£
Cash at bank and in hand
6,705,143
543,757
7,248,900
24
Analysis of changes in net funds - company
1 March 2022
Cash flows
28 February 2023
£
£
£
Cash at bank and in hand
6,635,143
518,752
7,153,895
2023-02-282022-03-01falseCCH SoftwareCCH Accounts Production 2023.300Mr Fortunato DegiorgioMr Stephen DegiorgioMiss Suzanne DegiorgioMrs S DegiorgioMrs Carole Degiorgiofalse02513040bus:Consolidated2022-03-012023-02-28025130402022-03-012023-02-2802513040bus:CompanySecretaryDirector12022-03-012023-02-2802513040bus:Director12022-03-012023-02-2802513040bus:Director22022-03-012023-02-2802513040bus:Director32022-03-012023-02-2802513040bus:CompanySecretary12022-03-012023-02-2802513040bus:Director42022-03-012023-02-2802513040bus:RegisteredOffice2022-03-012023-02-28025130402023-02-2802513040bus:Consolidated2021-03-012022-02-28025130402021-03-012022-02-2802513040bus:Consolidated2023-02-2802513040bus:Consolidated2022-02-28025130402022-02-2802513040core:LandBuildingscore:LeasedAssetsHeldAsLesseebus:Consolidated2023-02-2802513040core:LeaseholdImprovementsbus:Consolidated2023-02-2802513040core:PlantMachinerybus:Consolidated2023-02-2802513040core:FurnitureFittingsbus:Consolidated2023-02-2802513040core:LandBuildingscore:LeasedAssetsHeldAsLesseebus:Consolidated2022-02-2802513040core:LeaseholdImprovementsbus:Consolidated2022-02-2802513040core:PlantMachinerybus:Consolidated2022-02-2802513040core:FurnitureFittingsbus:Consolidated2022-02-2802513040core:LandBuildingscore:LeasedAssetsHeldAsLessee2023-02-2802513040core:FurnitureFittings2023-02-2802513040core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-02-2802513040core:FurnitureFittings2022-02-2802513040core:ShareCapitalbus:Consolidated2023-02-2802513040core:ShareCapitalbus:Consolidated2022-02-2802513040core:RevaluationReservebus:Consolidated2023-02-2802513040core:RevaluationReservebus:Consolidated2022-02-2802513040core:ShareCapital2023-02-2802513040core:ShareCapital2022-02-2802513040core:RetainedEarningsAccumulatedLosses2023-02-2802513040core:ShareCapitalbus:Consolidated2021-02-2802513040core:SharePremiumbus:Consolidated2021-02-2802513040core:RetainedEarningsAccumulatedLossesbus:Consolidated2021-02-2802513040core:RetainedEarningsAccumulatedLossesbus:Consolidated2022-02-2802513040core:RetainedEarningsAccumulatedLossesbus:Consolidated2023-02-2802513040core:ShareCapital2021-02-2802513040core:RetainedEarningsAccumulatedLosses2021-02-2802513040core:RetainedEarningsAccumulatedLosses2022-02-2802513040bus:Consolidated2021-02-28025130402021-02-2802513040core:LandBuildingscore:LongLeaseholdAssets2022-03-012023-02-2802513040core:LeaseholdImprovements2022-03-012023-02-2802513040core:PlantMachinery2022-03-012023-02-2802513040core:FurnitureFittings2022-03-012023-02-2802513040core:UKTaxbus:Consolidated2022-03-012023-02-2802513040core:UKTaxbus:Consolidated2021-03-012022-02-2802513040bus:Consolidated12022-03-012023-02-2802513040bus:Consolidated12021-03-012022-02-2802513040bus:Consolidated22022-03-012023-02-2802513040bus:Consolidated22021-03-012022-02-2802513040core:LandBuildingscore:LeasedAssetsHeldAsLesseebus:Consolidated2022-02-2802513040core:LeaseholdImprovementsbus:Consolidated2022-02-2802513040core:PlantMachinerybus:Consolidated2022-02-2802513040core:FurnitureFittingsbus:Consolidated2022-02-2802513040bus:Consolidated2022-02-2802513040core:LandBuildingscore:LeasedAssetsHeldAsLessee2022-02-2802513040core:FurnitureFittings2022-02-28025130402022-02-2802513040core:LandBuildingscore:LeasedAssetsHeldAsLesseebus:Consolidated2022-03-012023-02-2802513040core:LeaseholdImprovementsbus:Consolidated2022-03-012023-02-2802513040core:PlantMachinerybus:Consolidated2022-03-012023-02-2802513040core:FurnitureFittingsbus:Consolidated2022-03-012023-02-2802513040core:CurrentFinancialInstruments2023-02-2802513040core:CurrentFinancialInstruments2022-02-2802513040core:Non-currentFinancialInstrumentsbus:Consolidated2023-02-2802513040core:Non-currentFinancialInstrumentsbus:Consolidated2022-02-2802513040core:Non-currentFinancialInstruments2023-02-2802513040core:Non-currentFinancialInstruments2022-02-2802513040core:CurrentFinancialInstrumentsbus:Consolidated2023-02-2802513040core:CurrentFinancialInstrumentsbus:Consolidated2022-02-2802513040core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2023-02-2802513040core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2022-02-2802513040core:CurrentFinancialInstrumentscore:WithinOneYear2023-02-2802513040core:CurrentFinancialInstrumentscore:WithinOneYear2022-02-2802513040bus:PrivateLimitedCompanyLtd2022-03-012023-02-2802513040bus:FRS1022022-03-012023-02-2802513040bus:Audited2022-03-012023-02-2802513040bus:ConsolidatedGroupCompanyAccounts2022-03-012023-02-2802513040bus:FullAccounts2022-03-012023-02-28xbrli:purexbrli:sharesiso4217:GBP