Z Hotels Holdco Limited
Financial Statements
For Filing with Registrar
For the year ended 31 March 2023
Company Registration No. 10056436 (England and Wales)
Z Hotels Holdco Limited
Company Information
Directors
B King
R Meehan
M Gudka
(Appointed 19 July 2022)
P Leighton
(Appointed 24 November 2022)
Company number
10056436
Registered office
53-59 Chandos Place
45 Monmouth Street
London
United Kingdom
WC2N 4HS
Auditor
Moore Kingston Smith LLP
6th Floor
9 Appold Street
London
EC2A 2AP
Z Hotels Holdco Limited
Contents
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 6
Z Hotels Holdco Limited
Balance Sheet
As at 31 March 2023
Page 1
2023
2022
Notes
£
£
£
£
Current assets
Debtors
3
43,526,803
46,194,859
Cash at bank and in hand
1,425
208
43,528,228
46,195,067
Creditors: amounts falling due within one year
4
(45,041,453)
(46,925,968)
Net current liabilities
(1,513,225)
(730,901)
Capital and reserves
Called up share capital
5
240
240
Capital redemption reserve
124,988
124,988
Profit and loss reserves
(1,638,453)
(856,129)
Total equity
(1,513,225)
(730,901)
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 16 April 2024 and are signed on its behalf by:
R Meehan
Director
Company Registration No. 10056436
Z Hotels Holdco Limited
Statement of Changes in Equity
For the year ended 31 March 2023
Page 2
Share capital
Capital redemption reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 April 2021
240
124,988
(237,481)
(112,253)
Year ended 31 March 2022:
Loss and total comprehensive income for the year
-
-
(618,648)
(618,648)
Balance at 31 March 2022
240
124,988
(856,129)
(730,901)
Year ended 31 March 2023:
Loss and total comprehensive income for the year
-
-
(782,324)
(782,324)
Balance at 31 March 2023
240
124,988
(1,638,453)
(1,513,225)
Z Hotels Holdco Limited
Notes to the Financial Statements
For the year ended 31 March 2023
Page 3
1
Accounting policies
Company information
Z Hotels Holdco Limited is a private company limited by shares incorporated in England and Wales. The registered office is 53-59 Chandos Place, 45 Monmouth Street, London, United Kingdom, WC2N 4HS.
1.1
Accounting convention
These financial statements have been prepared in accordance with Section 1A of FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.
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
The Company made a loss for the year of £782,324 (2022: £618,648) and had net liabilities at the reporting date of £1,513,225 (2022: £730,901). The Group to which the Company belongs has shown continued strong recovery in the financial year to 31 March 2023, with very high levels of occupancy, which has restored the Group’s operating capacity.
The Company has a loan totalling £4m which is due for repayment in March 2025. The creditor has provided a waiver letter for the facility which states that there is no intention of this loan being called for repayment within a period of at least 12 months from the date of approval of these financial statements.
The Company is reliant on the ongoing support of the parent company and wider group. The directors of the parent company have confirmed that sufficient support will be available to enable the Company to continue to trade and meet its liabilities as they fall due for a period of at least twelve months from the date of approval of the financial statements. They have also confirmed that amounts owed to the parent and fellow group companies will not be called for repayment until such time as the company is able to pay these amounts without compromising its ability to continue to trade and meet its liabilities as they fall due.
The Directors of the ultimate parent company have assessed the Group's financial position, budgets and cash flow forecasts for the period ended May 2025, including stress testing these budgets and forecasts. Based on this assessment, the directors have a reasonable expectation that the Company has sufficient available resources to continue to trade and meet its liabilities as they fall due for at least 12 months from the date of approval of these financial statements for the year ended 31 March 2023 and have therefore prepared the financial statements on the going concern basis.
1.3
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.
1.4
Financial instruments
The company only has basic financial instruments measured at amortised cost, with no financial instruments classified as other or basic financial instruments at fair value.
Z Hotels Holdco Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2023
1
Accounting policies
(Continued)
Page 4
1.5
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.
1.6
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 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.
1.7
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
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
Z Hotels Holdco Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2023
Page 5
3
Debtors
2023
2022
Amounts falling due within one year:
£
£
Amounts owed by group undertakings
37,467,689
45,152,950
Other debtors
6,059,114
588,220
Prepayments and accrued income
453,689
43,526,803
46,194,859
An impairment loss of £Nil (2022: £Nil) has been recognised against debtors during the year.
4
Creditors: amounts falling due within one year
2023
2022
£
£
Amounts owed to group undertakings
34,656,487
30,863,301
Corporation tax
21,923
21,923
Other creditors
10,359,543
16,038,824
Accruals and deferred income
3,500
1,920
45,041,453
46,925,968
Included within Other creditors due within one year is a loan of £4,000,000 due to a connected company and repayable on demand. The balance is unsecured and interest is charged at 9%.
5
Called up share capital
2023
2022
£
£
Ordinary share capital
Issued and fully paid
216 Ordinary shares of £1 each
216
216
24 A Ordinary shares of £1 each
24
24
240
240
The Ordinary shares of £1 each and A Ordinary shares of £1 each rank pari passu in all respects, except for dividends and voting rights.
6
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Z Hotels Holdco Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2023
6
Audit report information
(Continued)
Page 6
Senior Statutory Auditor:
Matthew Meadows
Statutory Auditor:
Moore Kingston Smith LLP
7
Related party transactions
The company has taken advantage of the exemption in FRS 102 (section 33) "Related Party Disclosure" in respect of the disclosures of transactions and balances with other wholly owned group undertakings as consolidated financial statements including the company are prepared.
No key management received remuneration from the company during the year or the prior year.
Included within creditors are loans amounting to £2,976,936 (2022: £2,643,187) due to directors and £3,019,648 (2022: £2,763,403) due to former directors. Included within debtors are loans amounting to £5,485,441, including accrued interest, due from former directors. During the year interest payable was charged amounting to £34,076 (2022: £206,214) on the loans. The balances are unsecured.
Including within debtors is an amount of £370,210 (2022: £404,586) due from companies under common control. Including within creditors is an amount of £362,109 (2022: £4,069,939) due to companies under common control.
8
Parent company
The immediate parent company is Z Hotels NH Limited. The ultimate controlling party is Z Hotels Group Limited.
The smallest and largest group of undertakings for which group accounts have been drawn up is headed by Z Hotels Group Limited. Copies of the group financial statements can be obtained from Companies House.