Company registration number 08272676 (England and Wales)
CUA HOTEL LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
CUA HOTEL LIMITED
COMPANY INFORMATION
Directors
Mr J M Osborne
Mr H B Hart
Mr M Ratazzi
Mr S Lim
Company number
08272676
Registered office
73 Cornhill
London
EC3V 3QQ
Auditor
Gerald Edelman LLP
73 Cornhill
London
EC3V 3QQ
CUA HOTEL LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditor's report
5 - 7
Profit and loss account
8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 21
CUA HOTEL LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 1 -

The Directors present the strategic report for the year ending 30 September 2023.

Review of the business

The principal revenue of the company during the year ended 30 September 2023 continued to be that of the operation of University Arms Hotel.

The company’s turnover increased from £12.5 million in the year ended 30 September 2022 to £14.5 million for the year under review. The operating profit increased to £2.86 million from £2.13 million and the profit before tax increased to £2.73 million from £2.13 million largely as a result of the ongoing recovery from the disruption of the Covid pandemic. The Hotel has implemented various management initiatives, restructured F&B operations, repositioned University Arms as a hub of cultural events and on the back of increased interest in Cambridge, pushed the markets that have greater revenue growth opportunity – US Leisure, Chinese group, leisure and educational tourism and both domestic and International Group and MICE [Meetings, Incentives, Conference and Exhibitions] business.

The company’s total assets increased from £5.52 million to £7.55 million. Net assets increased from £0.12 million to £2.85 million.

The directors consider the result for the period satisfactory given the economic environment.

Principal risks and uncertainties

The financial risks and associated risk management objectives and procedures

The financial risk management within the company is governed by policies set by the board of directors and senior management. These policies cover interest rate risk and other areas, such as cash management.

Credit risk

The company has minimal exposure to credit risk. All cash is deposited with its UK banks. The principal amount disclosed within debtors are amounts due from UK-based customers.

Foreign exchange risk

The company is not exposed to foreign exchange risk as all of its income is derived from activities undertaken in the UK and all of its trade and other suppliers invoice in sterling.

The risks set out above are not exhaustive and additional risks and uncertainties may arise or become material in the future. The board of directors monitors risks and uncertainties faced by the group on a continual basis.

Employment risk

The recruitment of skilled labour has remained the greatest challenge. The labour markets are beginning to show improvements, employment costs however remain high. This impacts the ability to hire staff at the hotel. We are hopeful this will balance in the medium term.

Key performance indicators

The company sees the average room rate, occupancy levels and food and beverage gross profit margins as their key performance indicators (KPIs). These KPIs allow the group to monitor the performance of its financial model as well as its wider responsibilities to its stakeholders.

CUA HOTEL LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 2 -

Future developments

The Board recently appointed Andrew Crookston as General Manager and he has undertaken a full review of the business and operations with a view to implementing an ambitious business plan to close the gap between where trading was anticipated to be in 2024 prior to the onset of the COVID pandemic and the performance in 2023. In the recent months, the Hotel has strengthened its place as the number one Rate and RevPAR performer in the market and is now outgrowing its competitors in occupancy and the Board remains confident in his turnaround plan.

On behalf of the board

.............................................
Mr H B Hart
Director
Date: .............................................
CUA HOTEL LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 3 -

The directors present their annual report and financial statements for the year ended 30 September 2023.

Directors

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

Mr J M Osborne
Mr H B Hart
Mr M Ratazzi
Mr S Lim
Results and dividends

The results for the year are set out on page 8.

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

Auditor

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

Statement of directors' responsibilities

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 company and of the profit or loss of the company 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 company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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 company’s auditor 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 company’s auditor is aware of that information.

CUA HOTEL LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 4 -
Going concern

Having reviewed the company's financial forecasts and expected future cash flows, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus, the going concern basis has been adopted in preparing the financial statements for the year ended 30 September 2023. This assumes that continued financial support will be provided to the entity by its parent undertaking and ultimate beneficial owners for at least 12 months from the date of approval of these financial statements.

On behalf of the board
Mr H B Hart
Director
12 March 2024
CUA HOTEL LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CUA HOTEL LIMITED
- 5 -
Opinion

We have audited the financial statements of CUA Hotel Limited (the 'company') for the year ended 30 September 2023 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the 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 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 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:

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

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report 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 company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor'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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

 

Our audit procedures were primarily directed towards testing the accounting systems in operation which we have based our assessment of the financial statements for the year ended 30 September 2023.

 

We planned our audit so that we have a reasonable expectation of detecting material misstatements in the financial statements resulting from irregularities, fraud or non-compliance with law or regulations.

Extent to which the audit was considered capable of detecting irregularities, including fraud

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

CUA HOTEL LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CUA HOTEL LIMITED
- 7 -
Audit response to risks identified
Fraud due to management override

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

Irregularities and non-compliance with laws and regulations

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

The test nature and other inherent limitations of an audit, together with the inherent limitations of any accounting and internal control system, mean that there is an unavoidable risk that even some material misstatements in respect of irregularities may remain undiscovered even though the audit is properly planned and performed in accordance with ISAs (UK). Furthermore, the more removed that laws and regulations are from financial transactions, the less likely that we would become aware of non-compliance.

 

Our examination should therefore not be relied upon to disclose all such material misstatements or frauds, errors or instances of non-compliance that might exist. The responsibility for safeguarding the assets of the company and for the prevention and detection of fraud, error and non-compliance with law or regulations rests with the directors.

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.

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.

Stephen Coleman ACA
Senior Statutory Auditor
For and on behalf of Gerald Edelman LLP
12 March 2024
Chartered Accountants
Statutory Auditor
73 Cornhill
London
EC3V 3QQ
CUA HOTEL LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
14,453,466
12,468,646
Cost of sales
(2,135,583)
(1,746,148)
Gross profit
12,317,883
10,722,498
Administrative expenses
(9,454,712)
(8,605,318)
Other operating income
-
0
14,714
Operating profit
2,863,171
2,131,894
Interest payable and similar expenses
6
(134,613)
-
0
Profit before taxation
2,728,558
2,131,894
Tax on profit
7
-
0
(86,910)
Profit for the financial year
2,728,558
2,044,984

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

CUA HOTEL LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 9 -
2023
2022
£
£
Profit for the year
2,728,558
2,044,984
Other comprehensive income
-
-
Total comprehensive income for the year
2,728,558
2,044,984
CUA HOTEL LIMITED
BALANCE SHEET
AS AT 30 SEPTEMBER 2023
30 September 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
8
59
87,791
Current assets
Stocks
10
35,753
42,719
Debtors
9
6,614,475
4,192,291
Cash at bank and in hand
903,210
1,202,088
7,553,438
5,437,098
Creditors: amounts falling due within one year
11
(4,706,610)
(5,406,560)
Net current assets
2,846,828
30,538
Net assets
2,846,887
118,329
Capital and reserves
Called up share capital
15
100
100
Profit and loss reserves
2,846,787
118,229
Total equity
2,846,887
118,329

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

The financial statements were approved by the board of directors and authorised for issue on 12 March 2024 and are signed on its behalf by:
Mr H B Hart
Director
Company registration number 08272676 (England and Wales)
CUA HOTEL LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 11 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 October 2021
100
(1,926,755)
(1,926,655)
Year ended 30 September 2022:
Profit and total comprehensive income
-
2,044,984
2,044,984
Balance at 30 September 2022
100
118,229
118,329
Year ended 30 September 2023:
Profit and total comprehensive income
-
2,728,558
2,728,558
Balance at 30 September 2023
100
2,846,787
2,846,887
CUA HOTEL LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 12 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
19
953,449
699,910
Interest paid
(134,613)
-
0
Income taxes paid
(86,910)
-
0
Net cash inflow from operating activities
731,926
699,910
Net increase in cash and cash equivalents
731,926
699,910
Cash and cash equivalents at beginning of year
(997,912)
(1,697,822)
Cash and cash equivalents at end of year
(265,986)
(997,912)
Relating to:
Cash at bank and in hand
903,210
1,202,088
Bank overdrafts included in creditors payable within one year
(1,169,196)
(2,200,000)
CUA HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 13 -
1
Accounting policies
Company information

CUA Hotel Limited is a private company limited by shares incorporated in England and Wales. The registered office is 73 Cornhill, London, EC3V 3QQ.

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. The principal accounting policies adopted are set out below.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus, the going concern basis has been adopted in preparing the financial statements for the year ended 30 September 2023. This assumes that continued financial support will be provided to the entity by its parent undertaking and ultimate beneficial owners for at least 12 months from the date of approval of these financial statements.

1.3
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.

Revenue from the sale of food and drink is recognised at the fair value of the consideration received or receivable for these goods, and is recognised once the goods have been provided to the buyer. The amount of revenue is shown net of VAT.

Revenue from room sales and other guest services is recognised when rooms are occupied and as services are provided.

1.4
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:

Fixtures and fittings
20% 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 credited or charged to profit or loss.

1.5
Impairment of fixed assets

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

CUA HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 14 -

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.

1.6
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.

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.

1.7
Cash and cash equivalents

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

1.8
Financial instruments

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

 

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

 

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

Basic financial assets

Basic financial assets, which include 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.

CUA HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 15 -
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 company 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 company 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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
Equity instruments

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

1.10
Taxation

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

CUA HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
1
Accounting policies
(Continued)
- 16 -
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 company’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 when the company has 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.

1.11
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.

1.12
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.

2
Judgements and key sources of estimation uncertainty

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

 

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

CUA HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 17 -
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Sales
14,453,466
12,468,646
2023
2022
£
£
Turnover analysed by geographical market
UK
14,453,466
12,468,646
2023
2022
£
£
Other revenue
Grants received
-
14,714
4
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
20,000
20,000
5
Employees

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

2023
2022
Number
Number
Staff
172
173

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
3,795,234
3,507,054
Social security costs
309,997
266,901
Pension costs
55,110
50,900
4,160,341
3,824,855
CUA HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 18 -
6
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
134,613
-
7
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
-
0
86,910

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
2,728,558
2,131,894
Expected tax charge based on the standard rate of corporation tax in the UK of 22.00% (2022: 19.00%)
600,283
405,060
Tax effect of expenses that are not deductible in determining taxable profit
130,441
95,172
Tax effect of utilisation of tax losses not previously recognised
-
0
(400,640)
Group relief
(740,493)
(17,081)
Permanent capital allowances in excess of depreciation
9,769
4,399
Taxation charge for the year
-
86,910
8
Tangible fixed assets
Fixtures and fittings
£
Cost
At 1 October 2022 and 30 September 2023
519,846
Depreciation and impairment
At 1 October 2022
432,055
Depreciation charged in the year
87,732
At 30 September 2023
519,787
Carrying amount
At 30 September 2023
59
At 30 September 2022
87,791
CUA HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 19 -
9
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
484,106
331,846
Amounts owed by group undertakings
5,773,271
3,391,546
Prepayments and accrued income
357,098
468,899
6,614,475
4,192,291
10
Stocks
2023
2022
£
£
Food and liquor
35,753
42,719
11
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans and overdrafts
12
1,169,196
2,200,000
Trade creditors
471,904
615,166
Amounts owed to group undertakings
18,000
18,000
Corporation tax
-
0
86,910
Other taxation and social security
223,786
185,596
Deferred income
13
517,467
519,299
Other creditors
182,125
192,449
Accruals and deferred income
2,124,132
1,589,140
4,706,610
5,406,560

The bank overdraft facility is subject to annual interest at 2.95% over the base rate and is repayable earlier of (i) the date falling 36 months after the activation date 04 January 2021 and (ii) the date on which the overdraft is cancelled by bank, at which point it shall be immediately due for repayment in full. Bank has the right at any time to review the overdraft facility.

12
Loans and overdrafts
2023
2022
£
£
Bank overdrafts
1,169,196
2,200,000
Payable within one year
1,169,196
2,200,000
CUA HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 20 -
13
Deferred income
2023
2022
£
£
Other deferred income
517,467
519,299
14
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
55,110
50,900

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

15
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
16
Financial commitments, guarantees and contingent liabilities

The bank debt within CUA Holdco Limited, a parent entity, is secured by a fixed and floating charge on the assets of the company.

 

17
Related party transactions

The company has taken advantage of the exemptions under FRS 102 not to disclose related party transactions entered into between two or more members of a group, provided that any subsidiary which is party to the transactions is wholly-owned by such a member.

18
Ultimate controlling party

The parent company of CUA Hotel Limited is CUA Holdco Ltd and its registered office is First Names House, Victoria Road, Douglas, Isle of Man, IM2 4DF.

CUA HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2023
- 21 -
19
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
2,728,558
2,044,984
Adjustments for:
Taxation charged
-
0
86,910
Finance costs
134,613
-
0
Depreciation and impairment of tangible fixed assets
87,732
103,969
Movements in working capital:
Decrease in stocks
6,966
17,223
Increase in debtors
(2,422,184)
(2,611,541)
Increase in creditors
419,596
1,025,236
(Decrease)/increase in deferred income
(1,832)
33,129
Cash generated from operations
953,449
699,910
20
Analysis of changes in net debt
1 October 2022
Cash flows
30 September 2023
£
£
£
Cash at bank and in hand
1,202,088
(298,878)
903,210
Bank overdrafts
(2,200,000)
1,030,804
(1,169,196)
(997,912)
731,926
(265,986)
2023-09-302022-10-01falseCCH SoftwareCCH Accounts Production 2023.300No description of principal activityMr J M OsborneMr H B HartMr M RatazziMr S Limfalse082726762022-10-012023-09-3008272676bus:Director12022-10-012023-09-3008272676bus:Director22022-10-012023-09-3008272676bus:Director32022-10-012023-09-3008272676bus:Director42022-10-012023-09-3008272676bus:RegisteredOffice2022-10-012023-09-30082726762023-09-30082726762021-10-012022-09-3008272676core:RetainedEarningsAccumulatedLosses2021-10-012022-09-3008272676core:RetainedEarningsAccumulatedLosses2022-10-012023-09-30082726762022-09-3008272676core:FurnitureFittings2023-09-3008272676core:FurnitureFittings2022-09-3008272676core:CurrentFinancialInstrumentscore:WithinOneYear2023-09-3008272676core:CurrentFinancialInstrumentscore:WithinOneYear2022-09-3008272676core:CurrentFinancialInstruments2023-09-3008272676core:CurrentFinancialInstruments2022-09-3008272676core:ShareCapital2023-09-3008272676core:ShareCapital2022-09-3008272676core:RetainedEarningsAccumulatedLosses2023-09-3008272676core:RetainedEarningsAccumulatedLosses2022-09-3008272676core:ShareCapital2021-09-3008272676core:RetainedEarningsAccumulatedLosses2021-09-30082726762022-09-30082726762021-09-3008272676core:WithinOneYear2023-09-3008272676core:WithinOneYear2022-09-3008272676core:FurnitureFittings2022-10-012023-09-3008272676core:UKTax2022-10-012023-09-3008272676core:UKTax2021-10-012022-09-3008272676core:FurnitureFittings2022-09-3008272676bus:PrivateLimitedCompanyLtd2022-10-012023-09-3008272676bus:FRS1022022-10-012023-09-3008272676bus:Audited2022-10-012023-09-3008272676bus:FullAccounts2022-10-012023-09-30xbrli:purexbrli:sharesiso4217:GBP