Year Ended
Registration number:
Thurlestone Estates Limited
Contents
Company Information |
|
Strategic Report |
|
Directors' Report |
|
Statement of Directors' Responsibilities |
|
Independent Auditor's Report |
|
Consolidated Profit and Loss Account |
|
Consolidated Statement of Comprehensive Income |
|
Consolidated Balance Sheet |
|
Balance Sheet |
|
Consolidated Statement of Changes in Equity |
|
Statement of Changes in Equity |
|
Consolidated Statement of Cash Flows |
|
Notes to the Financial Statements |
Thurlestone Estates Limited
Company Information
Directors |
M D C Grose C M Clapp T A Hassell G R E Grose L C S Harrison S E M Grose D W P Grose V Hill C D Thomas |
Company secretary |
C D Thomas |
Registered office |
|
Auditors |
|
Thurlestone Estates Limited
Strategic Report
Year Ended 31 October 2023
The directors present their strategic report for the year ended 31 October 2023.
Principal activity
The principal activity of the company, and group, is hotel management.
Fair review of the business
Group turnover decreased £795k, due to a reduction in demand in the year. This followed a dynamic experienced by many other holiday destination hotels in the UK, where demand has fallen following the high demand seen in the previous year which occurred following the relaxation of Covid-19 restrictions. Lower occupancy rates at both Hotels and Apartments reflected the reduction in demand experienced in the financial year. Room rates at a relatively high level were still achieved reflecting the high standard of product being delivered. The gross margin has decreased by 1% which reflects the inflationary pressure on direct costs particularly on food items. Management believes the quality of service remains at a high level, and efficiency gains continue to be sought.
Net current liabilities increased by £1,507k due to a £404k reduction in cash balances and £812k of prepaid projects costs being transferred to fixed asset additions. Net assets remain strong increasing by of £5,396k on the prior year. This year the group has adopted a policy of revaluing its land and buildings which has contributed £5,400k to the increase in net assets.
The group's key financial and other performance indicators during the year were as follows:
Financial KPIs |
Unit |
2023 |
2022 |
Gross margin |
% |
46 |
47 |
Net margin |
% |
2 |
11 |
Combined room occupancy rate |
% |
52 |
65 |
Net assets |
£'000 |
18,925 |
13,529 |
Principal risks and uncertainties
The principal risk and uncertainty facing the group is the potential impact of downturns in the general economy. The group manages this risk by maintaining good communication and relationships with long standing guests and tight control of costs.
Approved by the
......................................... |
Thurlestone Estates Limited
Directors' Report
Year Ended 31 October 2023
The directors present their report and the for the year ended 31 October 2023.
Directors of the group
The directors who held office during the year were as follows:
Dividends
The directors recommend a final dividend payment of £
Financial risk management objectives and policies
The risks facing the company are set out below:
Price risk, credit risk, liquidity risk and cash flow risk
The directors consider that the hotel's activities do not expose the group to any undue financial risks. The only risk identified was in the area of liquidity and this risk is managed by careful budgeting and forecasting and maintenance of good relationships with the lending bank.
Going concern
The financial statements have been prepared on a going concern basis.
At the year end the group is in a net current liability position of £2,173k (2022 - £666k). The main factors for this increase are; £812k of prepaid projects costs being transferred to fixed asset additions; and increased use of the company’s overdraft facility to fund a significant ground floor refurbishment project at Thurlestone which has contributed to a year end overdraft balance of £532k (2022- £nil). Current liabilities also include payments on account arising from guest deposits amounting to £363k (2022- £359k), which are offset against future sales and represent a liability that is satisfied by the provision of future hotel stays rather than direct cash outflows.
The directors have reviewed the composition of current liabilities and their timings and have satisfied themselves that the group is able to generate sufficient cash to meet its debts as they fall due and hence are satisfied that the group is a going concern.
Thurlestone Estates Limited
Directors' Report
Year Ended 31 October 2023
Impact of energy price rises
The recent unprecedented spike in energy prices, particularly electricity has resulted in the company’s annual electricity prices rising by over 280%. This continues to be a significant overhead cost increase which the group has had to absorb and which contributed to the lower profits being reported this year. The company has benefited from the Government energy price discount scheme in the first 5 months of the financial year and also took steps to minimise the consumption of energy where possible without materially diluting the quality of its product offering to guests.
Disclosure of information to the auditor
Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.
Approved by the
......................................... |
Thurlestone Estates Limited
Statement of Directors' Responsibilities
The directors acknowledge their responsibilities 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 the company and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:
• |
select suitable accounting policies and apply them consistently; |
• |
make judgements and accounting estimates that are reasonable and prudent; |
• |
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and |
• |
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Thurlestone Estates Limited
Independent Auditor's Report to the Members of Thurlestone Estates Limited
Opinion
We have audited the financial statements of Thurlestone Estates Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 October 2023, which comprise the Consolidated Profit and Loss Account, Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
• | give a true and fair view of the state of the group's and the parent company's affairs as at 31 October 2023 and of the group's profit for the year then ended; |
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
• | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the director's 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 and parent company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.
Thurlestone Estates Limited
Independent Auditor's Report to the Members of Thurlestone Estates Limited
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
• |
the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
• |
the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements. |
Matters on which we are required to report by exception
In the light of our 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 and the Directors' Report.
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
• | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
• | the parent company financial statements are not in agreement with the accounting records and returns; or |
• | certain disclosures of directors' remuneration specified by law are not made; or |
• | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page 5, 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 group’s and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.
Thurlestone Estates Limited
Independent Auditor's Report to the Members of Thurlestone Estates Limited
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:
Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to acts by the company which were contrary to applicable laws and regulations, including fraud.
We considered those laws and regulations that have a direct impact on the preparation of the financial statements, including, but not limited to the reporting framework (FRS 102 and Companies Act 2006) and the relevant tax compliance regulations in the UK. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to fraudulent financial reporting.
Audit procedures performed by the engagement team include, but were not limited to, discussion and inquiries with management of compliance with laws and regulations and review of correspondence and contracts with third parties. We also addressed the risk of management override of internal controls, including testing of journals and evaluating whether there was evidence of bias by the Directors that represented a risk of material misstatement due to fraud.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements. This risk increases the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements as we are less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment, collusion, omission or misrepresentation.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
Thurlestone Estates Limited
Independent Auditor's Report to the Members of Thurlestone Estates Limited
Use of our report
This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in 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.
......................................
Melville Building East
Unit 18, 23 Royal William Yard
Devon
PL1 3GW
Thurlestone Estates Limited
Consolidated Profit and Loss Account
Year Ended 31 October 2023
Note |
2023 |
2022 |
|
Turnover |
|
|
|
Cost of sales |
( |
( |
|
Gross profit |
|
|
|
Administrative expenses |
( |
( |
|
Other operating income |
|
|
|
Operating profit |
|
|
|
Impairment recognised on revaluation of assets |
( |
- |
|
Other interest receivable and similar income |
- |
|
|
Interest payable and similar charges |
( |
( |
|
Profit before tax |
|
|
|
Taxation |
( |
( |
|
Profit for the financial year |
|
|
|
Profit/(loss) attributable to: |
|||
Owners of the company |
|
|
Thurlestone Estates Limited
Consolidated Statement of Comprehensive Income
Year Ended 31 October 2023
Note |
2023 |
2022 |
|
Profit for the year |
|
|
|
Deferred tax movement on revalued fixed assets |
( |
- |
|
Surplus on revaluation of freehold property |
|
- |
|
5,428,262 |
- |
||
Total comprehensive income for the year |
|
|
|
Total comprehensive income attributable to: |
|||
Owners of the company |
|
|
Thurlestone Estates Limited
Consolidated Balance Sheet
31 October 2023
Note |
2023 |
2022 |
|
Fixed assets |
|||
Intangible assets |
|
|
|
Tangible assets |
|
|
|
|
|
||
Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current liabilities |
( |
( |
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
|
|
|
Share premium reserve |
|
|
|
Capital redemption reserve |
|
|
|
Revaluation reserve |
|
|
|
Profit and loss account |
|
|
|
Equity attributable to owners of the company |
|
|
|
Total equity |
|
|
Approved and authorised by the
......................................... |
Company Registration Number: 00271793
Thurlestone Estates Limited
Balance Sheet
31 October 2023
Note |
2023 |
2022 |
|
Fixed assets |
|||
Tangible assets |
|
|
|
Investments |
|
|
|
|
|
||
Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current liabilities |
( |
( |
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
( |
( |
|
Provisions for liabilities |
( |
( |
|
Net assets |
|
|
|
Capital and reserves |
|||
Called up share capital |
|
|
|
Share premium reserve |
|
|
|
Capital redemption reserve |
|
|
|
Revaluation reserve |
|
|
|
Profit and loss account |
|
|
|
Total equity |
|
|
The company made a loss after tax for the financial year of £19,438 (2022 - profit of £719,340).
Approved and authorised by the
......................................... |
Company Registration Number: 00271793
Thurlestone Estates Limited
Consolidated Statement of Changes in Equity
Year Ended 31 October 2023
Share capital |
Share premium |
Capital redemption reserve |
Revaluation reserve |
Profit and loss account |
Total |
|
At 1 November 2022 |
|
|
|
|
|
|
Profit for the year |
- |
- |
- |
- |
|
|
Other comprehensive income |
- |
- |
- |
|
- |
|
Total comprehensive income |
- |
- |
- |
|
|
|
Dividends |
- |
- |
- |
- |
( |
( |
Transfers |
- |
- |
- |
(28,240) |
28,240 |
- |
At 31 October 2023 |
|
|
|
|
|
|
Share capital |
Share premium |
Capital redemption reserve |
Revaluation reserve |
Profit and loss account |
Total |
|
At 1 November 2021 |
|
|
|
|
|
|
Profit for the year |
- |
- |
- |
- |
|
|
Total comprehensive income |
- |
- |
- |
- |
|
|
Dividends |
- |
- |
- |
- |
( |
( |
At 31 October 2022 |
|
|
|
|
|
|
Thurlestone Estates Limited
Statement of Changes in Equity
Year Ended 31 October 2023
Share capital |
Share premium |
Capital redemption reserve |
Revaluation reserve |
Profit and loss account |
Total |
|
At 1 November 2022 |
|
|
|
|
|
|
Loss for the year |
- |
- |
- |
- |
( |
( |
Other comprehensive income |
- |
- |
- |
|
- |
|
Total comprehensive income |
- |
- |
- |
|
( |
|
Dividends |
- |
- |
- |
- |
( |
( |
At 31 October 2023 |
|
|
|
|
|
|
Share capital |
Share premium |
Capital redemption reserve |
Revaluation reserve |
Profit and loss account |
Total |
|
At 1 November 2021 |
|
|
|
|
|
|
Profit for the year |
- |
- |
- |
- |
|
|
Total comprehensive income |
- |
- |
- |
- |
|
|
Dividends |
- |
- |
- |
- |
( |
( |
At 31 October 2022 |
|
|
|
|
|
|
Thurlestone Estates Limited
Consolidated Statement of Cash Flows
Year Ended 31 October 2023
Note |
2023 |
2022 |
|
Cash flows from operating activities |
|||
Profit for the year |
|
|
|
Adjustments to cash flows from non-cash items |
|||
Depreciation and amortisation |
|
|
|
Impairment recognised on revaluation of assets |
28,240 |
- |
|
Loss on disposal of tangible assets |
|
|
|
Finance income |
- |
( |
|
Finance costs |
|
|
|
Income tax expense |
|
|
|
|
|
||
Working capital adjustments |
|||
Increase in stocks |
( |
( |
|
Decrease/(increase) in trade debtors |
|
( |
|
(Decrease)/increase in trade creditors |
( |
|
|
Cash generated from operations |
|
|
|
Income taxes paid |
( |
( |
|
Net cash flow from operating activities |
|
|
|
Cash flows from investing activities |
|||
Interest received |
- |
|
|
Acquisitions of tangible assets |
( |
( |
|
Proceeds from sale of tangible assets |
|
- |
|
Net cash flows from investing activities |
( |
( |
|
Cash flows from financing activities |
|||
Interest paid |
( |
( |
|
Repayment of bank borrowing |
( |
( |
|
Payments to finance lease creditors |
( |
( |
|
Dividends paid |
( |
( |
|
Net cash flows from financing activities |
( |
( |
|
Net decrease in cash and cash equivalents |
( |
( |
|
Cash and cash equivalents at 1 November |
|
|
|
Cash and cash equivalents at 31 October |
(459,745) |
476,437 |
Thurlestone Estates Limited
Notes to the Financial Statements
Year Ended 31 October 2023
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
Basis of consolidation
The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 October 2023.
As a consolidated profit and loss account is published, a separate profit and loss account for the parent company is omitted from the group financial statements by virtue of section 408 of the Companies Act 2006.
A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.
Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group.
Thurlestone Estates Limited
Notes to the Financial Statements
Year Ended 31 October 2023
Going concern
The financial statements have been prepared on a going concern basis.
At the year end the group is in a net current liability position of £2,173k (2022 - £666k). The main factors for this increase are; £812k of prepaid projects costs being transferred to fixed asset additions; and increased use of the company’s overdraft facility to fund a significant ground floor refurbishment project at Thurlestone which has contributed to a year end overdraft balance of £532k (2022- £nil). Current liabilities also include payments on account arising from guest deposits amounting to £363k (2022- £359k), which are offset against future sales and represent a liability that is satisfied by the provision of future hotel stays rather than direct cash outflows.
The directors have reviewed the composition of current liabilities and their timings and have satisfied themselves that the group is able to generate sufficient cash to meet its debts as they fall due and hence are satisfied that the group is a going concern.
Judgements and key sources of estimation uncertainty
In the application of the Group’s accounting policies, which are described in this note, management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historically known factors and experience and include the following: |
Revenue recognition
Turnover comprises the fair value of the consideration received or receivable for the sale of rooms, food, beverages and related goods or services. Turnover is shown net of value added tax, returns, rebates and discounts and after eliminating sales within the company. Revenue from the sale of rooms, food and beverages is recognised as the service is provided and entitlement to revenue is earned.
Tax
Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
Deferred tax is recognised on all timing differences at the balance sheet date unless indicated below. Timing differences are differences between taxable profits and the results as stated in the consolidated profit and loss account and other comprehensive income. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
Thurlestone Estates Limited
Notes to the Financial Statements
Year Ended 31 October 2023
Tangible assets
Freehold land and buildings are stated in the balance sheet at their revalued amounts. The revalued amounts equate to the fair value at the date of revaluation, less any subsequent accumulated impairment losses. Revaluations are carried out regularly so that the carrying amounts do not materially differ from using the fair value at the date of the balance sheet. Any revaluation increase or
decrease is credited to the Revaluation reserve.
Tangible assets, excluding freehold land and buildings, are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The cost of tangible assets, excluding freehold land and buildings, includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Plant and machinery |
10% reducing balance |
Fixtures and fittings |
10% reducing balance |
Motor vehicles |
25% straight line |
Freehold land and buildings |
Not depreciated |
The directors consider that no depreciation should be provided on freehold land and buildings. This is on the basis that any possible depreciation charge would be expected to be immaterial as the hotels' residual values are considered to be materially equivalent to their carrying value. The directors maintain the residual value of the hotels, as evidenced by stability in their star ratings, through heavy and continuous investment in repairs and maintenance.
Intangible assets
Positive goodwill is capitalised, classified as an asset on the Balance Sheet and amortised on a straight line basis over its expected useful economic life. It is reviewed for impairment at the end of the first full financial year following the acquisition and in other periods if events or changes in circumstances indicate that the carrying value may not be recoverable.
Amortisation
Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:
Asset class |
Amortisation method and rate |
Goodwill |
20 years straight line |
Goodwill is amortised over a period in excess of 10 years. This is justified by the directors on the basis that the goodwill represents the premium paid for a profitable hotel in a prime location that will be in existence for longer than 10 years.
Investments
Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment. Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss.
Thurlestone Estates Limited
Notes to the Financial Statements
Year Ended 31 October 2023
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Thurlestone Estates Limited
Notes to the Financial Statements
Year Ended 31 October 2023
Financial instruments
Classification
• Short term trade and other debtors and creditors;
• Bank loans; and
• Cash and bank balances.
All financial instruments are classified as basic.
Recognition and measurement
Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are cancelled.
Except for bank loans, such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.
Bank loans are initially measured at transaction price, including transaction costs, and are subsequently carried at amortised cost using the effective interest method.
Turnover |
The analysis of the group's Turnover for the year from continuing operations is as follows:
2023 |
2022 |
|
Revenues from hotel operations |
|
|
Other operating income |
The analysis of the group's other operating income for the year is as follows:
2023 |
2022 |
|
Government grants |
- |
|
Sub lease rental income |
|
|
|
|
Thurlestone Estates Limited
Notes to the Financial Statements
Year Ended 31 October 2023
Operating profit |
Arrived at after charging/(crediting)
2023 |
2022 |
|
Depreciation expense |
|
|
Amortisation expense |
|
|
Loss on disposal of property, plant and equipment |
|
|
Operating lease costs |
- |
7,297 |
Staff costs |
The aggregate payroll costs (including directors' remuneration) were as follows:
2023 |
2022 |
|
Wages and salaries |
|
|
Social security costs |
|
|
Pension costs, defined contribution scheme |
|
|
|
|
The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:
2023 |
2022 |
|
Management staff |
|
|
Other staff |
|
|
|
|
Directors' remuneration |
The directors' remuneration for the year was as follows:
2023 |
2022 |
|
Remuneration |
|
|
Contributions paid to money purchase schemes |
|
|
464,353 |
467,338 |
During the year the number of directors who were receiving benefits and share incentives was as follows:
2023 |
2022 |
|
Accruing benefits under money purchase pension scheme |
|
|
Thurlestone Estates Limited
Notes to the Financial Statements
Year Ended 31 October 2023
In respect of the highest paid director:
2023 |
2022 |
|
Remuneration |
|
|
Company contributions to money purchase pension schemes |
|
|
Auditor's remuneration |
2023 |
2022 |
|
Audit of these financial statements |
12,750 |
12,000 |
Other interest receivable and similar income |
2023 |
2022 |
|
Other finance income |
- |
|
Interest payable and similar expenses |
2023 |
2022 |
|
Interest on bank overdrafts and borrowings |
|
|
Interest on obligations under finance leases and hire purchase contracts |
|
|
|
|
Thurlestone Estates Limited
Notes to the Financial Statements
Year Ended 31 October 2023
Taxation |
Tax charged/(credited) in the profit and loss account
2023 |
2022 |
|
Current taxation |
||
UK corporation tax |
- |
|
Deferred taxation |
||
Arising from origination and reversal of timing differences |
|
|
Tax expense in the income statement |
|
|
The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2022 - higher than the standard rate of corporation tax in the UK) of
The differences are reconciled below:
2023 |
2022 |
|
Profit before tax |
|
|
Corporation tax at standard rate |
|
|
Effect of expense not deductible in determining taxable profit (tax loss) |
|
|
UK deferred tax expense relating to changes in tax rates or laws |
|
|
Decrease from effect of tax incentives |
( |
( |
Total tax charge |
|
|
On 1 April 2023 there was an increase in the main rate of corporation tax to 25%, with the rate prior to that date being 19%. Consequently there has been an increase in the applicable tax rate to 22.52% (2022 - 19%), being the average rate for the year.
Thurlestone Estates Limited
Notes to the Financial Statements
Year Ended 31 October 2023
Deferred tax
Group
Deferred tax assets and liabilities
2023 |
Liability |
Difference between accumulated depreciation and capital allowances |
|
Revaluation gains on property, plant and equipment |
|
Tax losses available |
( |
Other timing differences |
( |
|
2022 |
Liability |
Difference between accumulated depreciation and capital allowances |
|
Revaluation gains on property, plant and equipment |
|
Other timing differences |
( |
|
Company
Deferred tax assets and liabilities
2023 |
Liability |
Difference between accumulated depreciation and capital allowances |
|
Revaluation gains on property, plant and equipment |
|
Tax losses available |
( |
Other timing differences |
( |
|
2022 |
Liability |
Difference between accumulated depreciation and capital allowances |
|
Other timing differences |
( |
|
Thurlestone Estates Limited
Notes to the Financial Statements
Year Ended 31 October 2023
Intangible assets |
Group
Goodwill |
|
Cost or valuation |
|
At 1 November 2022 |
|
At 31 October 2023 |
|
Amortisation |
|
At 1 November 2022 |
|
Amortisation charge |
|
At 31 October 2023 |
|
Carrying amount |
|
At 31 October 2023 |
|
At 31 October 2022 |
|
Tangible assets |
Group
Land and buildings |
Fixtures and fittings |
Motor vehicles |
Plant and machinery |
Total |
|
Cost or valuation |
|||||
At 1 November 2022 |
|
|
|
|
|
Revaluations |
|
- |
- |
- |
|
Additions |
|
|
- |
|
|
Disposals |
- |
( |
- |
( |
( |
At 31 October 2023 |
|
|
|
|
|
Depreciation |
|||||
At 1 November 2022 |
- |
|
|
|
|
Charge for the year |
- |
|
|
|
|
Eliminated on disposal |
- |
( |
- |
( |
( |
At 31 October 2023 |
- |
|
|
|
|
Carrying amount |
|||||
At 31 October 2023 |
|
|
|
|
|
At 31 October 2022 |
|
|
|
|
|
Thurlestone Estates Limited
Notes to the Financial Statements
Year Ended 31 October 2023
Revaluation
The fair value of the group's freehold land & buildings, except Thurlestone Court, was valued on
Had this class of asset continued to be measured on a deemed cost basis, following the transition to FRS102, the carrying amount would have been £
The fair value of the group's freehold land & building, Thurlestone Court, was valued on
Had this class of asset continued to be measured on a deemed cost basis, following the transition to FRS102, the carrying amount would have been £
Assets held under finance leases and hire purchase contracts
The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:
2023 |
2022 |
|
Plant and machinery |
244,935 |
76,029 |
Motor vehicles |
38,161 |
57,241 |
283,096 |
133,270 |
Restriction on title and pledged as security
Thurlestone Estates Limited
Notes to the Financial Statements
Year Ended 31 October 2023
Company
Land and buildings |
Fixtures and fittings |
Motor vehicles |
Plant and machinery |
Total |
|
Cost or valuation |
|||||
At 1 November 2022 |
|
|
|
|
|
Revaluations |
|
- |
- |
- |
|
Additions |
|
|
- |
|
|
Disposals |
- |
( |
- |
( |
( |
At 31 October 2023 |
|
|
|
|
|
Depreciation |
|||||
At 1 November 2022 |
- |
|
|
|
|
Charge for the year |
- |
|
|
|
|
Eliminated on disposal |
- |
( |
- |
( |
( |
At 31 October 2023 |
- |
|
|
|
|
Carrying amount |
|||||
At 31 October 2023 |
|
|
|
|
|
At 31 October 2022 |
|
|
|
|
|
Revaluation
The fair value of the company's freehold land & buildings, except Thurlestone Court, was revalued on
Had this class of asset continued to be measured on a deemed cost basis, following the transition to FRS102, the carrying amount would have been £
The fair value of the company's freehold land & building, Thurlestone Court, was revalued on
Had this class of asset continued to be measured on a deemed cost basis, following the transition to FRS102, the carrying amount would have been £
Thurlestone Estates Limited
Notes to the Financial Statements
Year Ended 31 October 2023
Assets held under finance leases and hire purchase contracts
The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:
2023 |
2022 |
|
Plant and machinery |
231,354 |
60,939 |
Motor vehicles |
38,161 |
57,241 |
269,515 |
118,180 |
Restriction on title and pledged as security
Investments |
Company
2023 |
2022 |
|
Investments in subsidiaries |
|
|
Subsidiaries |
£ |
Cost or valuation |
|
At 1 November 2022 |
|
At 31 October 2023 |
|
Provision |
|
At 1 November 2022 |
- |
At 31 October 2023 |
- |
Carrying amount |
|
At 31 October 2023 |
|
At 31 October 2022 |
|
Thurlestone Estates Limited
Notes to the Financial Statements
Year Ended 31 October 2023
Details of undertakings
Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
|
2023 |
2022 |
|||
Subsidiary undertakings |
||||
|
Thurlestone Hotel, Thurlestone, Kingsbridge TQ7 3NN England and Wales |
|
|
|
The principal activity of Tracertec Limited is |
|
Stocks |
Group |
Company |
|||
2023 |
2022 |
2023 |
2022 |
|
Raw materials |
|
|
|
|
Goods for resale |
|
|
|
|
|
|
|
|
Debtors |
Group |
Company |
||||
Note |
2023 |
2022 |
2023 |
2022 |
|
Trade debtors |
|
|
|
|
|
Amounts owed by group undertakings |
- |
- |
- |
|
|
Prepayments |
|
|
|
|
|
|
|
|
|
Thurlestone Estates Limited
Notes to the Financial Statements
Year Ended 31 October 2023
Creditors |
Group |
Company |
||||
Note |
2023 |
2022 |
2023 |
2022 |
|
Due within one year |
|||||
Loans and borrowings |
|
|
|
|
|
Trade creditors |
|
|
|
|
|
Amounts due to group undertakings |
- |
- |
|
- |
|
Social security and other taxes |
|
|
|
|
|
Outstanding defined contribution pension costs |
|
|
|
|
|
Other creditors |
|
|
|
|
|
Accrued expenses |
|
|
|
|
|
Corporation tax |
- |
139,252 |
- |
56,638 |
|
Payments on account |
|
|
|
|
|
|
|
|
|
||
Due after one year |
|||||
Loans and borrowings |
|
|
|
|
Loans and borrowings |
Group |
Company |
|||
2023 |
2022 |
2023 |
2022 |
|
Non-current loans and borrowings |
||||
Bank borrowings |
|
|
|
|
Hire purchase contracts |
|
|
|
|
|
|
|
|
Group |
Company |
|||
2023 |
2022 |
2023 |
2022 |
|
Current loans and borrowings |
||||
Bank borrowings |
|
|
|
|
Bank overdrafts |
|
- |
|
- |
Hire purchase contracts |
|
|
|
|
|
|
|
|
Thurlestone Estates Limited
Notes to the Financial Statements
Year Ended 31 October 2023
Group
Bank borrowings
Bank borrowings are secured by a First Legal Charge over the Thurlestone Hotel, a First Legal Charge over the Cellar House Apartments and Trenowyth House, Fixed and Floating Charges over all assets of Tracertec Limited both present and future. |
Other borrowings
The hire purchase liabilities of £143,792 (2022 - £75,586) are secured against the assets to which they relate.
Included in the loans and borrowings are the following amounts due after more than five years:
2023 |
2022 |
|
After more than five years by instalments |
|
|
Company
Bank borrowings
Bank borrowings are secured by a First Legal Charge over the Thurlestone Hotel. |
Other borrowings
The hire purchase liabilities of £140,835 (2022 - £68,685) are secured against the assets to which they relate.
Included in the loans and borrowings are the following amounts due after more than five years:
2023 |
2022 |
|
After more than five years by instalments |
|
|
- |
- |
Thurlestone Estates Limited
Notes to the Financial Statements
Year Ended 31 October 2023
Analysis of changes in net debt |
Group
At 1 |
Other |
At 31 |
||
November |
non cash |
October |
||
2022 |
Cash flow |
changes |
2023 |
|
£ |
£ |
£ |
£ |
|
Cash at bank and on hand |
476,437 |
(403,793) |
- |
72,644 |
Bank overdrafts |
- |
(532,389) |
- |
(532,389) |
Cash and cash equivalents |
476,437 |
(936,182) |
- |
(459,745) |
Finance leases |
(75,585) |
12,288 |
(99,252) |
(162,549) |
Bank loans |
(4,945,011) |
625,832 |
- |
(4,319,179) |
Net debt |
(4,544,159) |
(298,062) |
(99,252) |
(4,941,473) |
Obligations under leases and hire purchase contracts |
Group
Finance leases
The total of future minimum lease payments is as follows:
2023 |
2022 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
|
|
Operating leases
The total of future minimum lease payments is as follows:
2023 |
2022 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
Later than five years |
|
|
|
|
The amount of non-cancellable operating lease payments recognised as an expense during the year was £
Thurlestone Estates Limited
Notes to the Financial Statements
Year Ended 31 October 2023
Company
Finance leases
The total of future minimum lease payments is as follows:
2023 |
2022 |
|
Not later than one year |
|
|
Later than one year and not later than five years |
|
|
|
|
Deferred tax and other provisions |
Group
Deferred tax |
|
At 1 November 2022 |
|
Increase (decrease) in existing provisions |
|
At 31 October 2023 |
|
|
Company
Deferred tax |
|
At 1 November 2022 |
|
Increase (decrease) in existing provisions |
|
At 31 October 2023 |
|
|
Pension and other schemes |
Defined contribution pension scheme
The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £
Contributions totalling £
Thurlestone Estates Limited
Notes to the Financial Statements
Year Ended 31 October 2023
Share capital |
Allotted, called up and fully paid shares
2023 |
2022 |
|||
No. |
£ |
No. |
£ |
|
|
|
10,499 |
|
10,499 |
Dividends |
Final dividends paid
2023 |
2022 |
|||
Final dividend in respect of prior year of £ |
|
|
||
The directors are recommending a final dividend of £
Contingent liabilities |
Company
The company has a letter of set off against the bank facilities of Tracertec Limited, its subsidiary company. The maximum full potential liability at year end is £1,664,976 (2022 - £1,801,453).
Related party transactions |
Group and company
The company has taken advantage of exemptions in FRS 102 "Related Party Disclosures" from disclosing transactions with other wholly owned members of the Thurlestone Estates Limited group.
Key management personnel
The directors do not consider any employees other than statutory directors, whose remuneration is disclosed in note 7, to be key management personnel within the definition contained in FRS 102.
Dividends paid to directors
2023 |
2022 |
|||
The Directors |
||||
Ordinary share dividends |
74,708 |
74,708 |
||
Thurlestone Estates Limited
Notes to the Financial Statements
Year Ended 31 October 2023
Summary of transactions with other related parties
Control |
The ultimate controlling party is