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Thurlestone Estates Limited

Annual Report and Consolidated Financial Statements
Year Ended 31 October 2023

Registration number: 00271793

 

Thurlestone Estates Limited

Contents

Company Information

1

Strategic Report

2

Directors' Report

3 to 4

Statement of Directors' Responsibilities

5

Independent Auditor's Report

6 to 9

Consolidated Profit and Loss Account

10

Consolidated Statement of Comprehensive Income

11

Consolidated Balance Sheet

12

Balance Sheet

13

Consolidated Statement of Changes in Equity

14

Statement of Changes in Equity

15

Consolidated Statement of Cash Flows

16

Notes to the Financial Statements

17 to 36

 

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

Thurlestone Hotel
Thurlestone
Kingsbridge
Devon
TQ7 3NN

Auditors

PKF Francis Clark
Statutory Auditor
Melville Building East
Unit 18, 23 Royal William Yard
Plymouth
Devon
PL1 3GW

 

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 Board on 21 June 2024 and signed on its behalf by:

.........................................
C D Thomas
Director

   
     
 

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:

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

Dividends

The directors recommend a final dividend payment of £183,733 be made in respect of the financial year ended 31 October 2023. This dividend has not been recognised as a liability in the financial statements.

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 Board on 21 June 2024 and signed on its behalf by:

.........................................
C D Thomas
Director

   
     
 

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.

......................................
Duncan Leslie (Senior Statutory Auditor)
PKF Francis Clark, Statutory Auditor

Melville Building East
Unit 18, 23 Royal William Yard
Plymouth
Devon
PL1 3GW

22 July 2024

 

Thurlestone Estates Limited

Consolidated Profit and Loss Account

Year Ended 31 October 2023

Note

2023
 £

2022
 £

Turnover

3

8,664,307

9,459,314

Cost of sales

 

(4,709,104)

(4,981,204)

Gross profit

 

3,955,203

4,478,110

Administrative expenses

 

(3,364,916)

(3,083,148)

Other operating income

4

10,000

26,000

Operating profit

5

600,287

1,420,962

Impairment recognised on revaluation of assets

 

(28,240)

-

Other interest receivable and similar income

9

-

73

Interest payable and similar charges

10

(358,661)

(159,675)

Profit before tax

 

213,386

1,261,360

Taxation

11

(62,016)

(258,738)

Profit for the financial year

 

151,370

1,002,622

Profit/(loss) attributable to:

 

Owners of the company

 

151,370

1,002,622

 

Thurlestone Estates Limited

Consolidated Statement of Comprehensive Income

Year Ended 31 October 2023

Note

2023
£

2022
£

Profit for the year

 

151,370

1,002,622

Deferred tax movement on revalued fixed assets

 

(1,112,674)

-

Surplus on revaluation of freehold property

 

6,540,936

-

 

5,428,262

-

Total comprehensive income for the year

 

5,579,632

1,002,622

Total comprehensive income attributable to:

 

Owners of the company

 

5,579,632

1,002,622

 

Thurlestone Estates Limited

Consolidated Balance Sheet

31 October 2023

Note

2023
£

2022
£

Fixed assets

 

Intangible assets

12

217,543

290,057

Tangible assets

13

26,916,918

19,377,000

 

27,134,461

19,667,057

Current assets

 

Stocks

15

167,936

163,545

Debtors

16

244,716

1,107,427

Cash at bank and in hand

 

72,644

476,437

 

485,296

1,747,409

Creditors: Amounts falling due within one year

17

(2,658,585)

(2,413,273)

Net current liabilities

 

(2,173,289)

(665,864)

Total assets less current liabilities

 

24,961,172

19,001,193

Creditors: Amounts falling due after more than one year

17

(3,750,928)

(4,361,538)

Provisions for liabilities

21

(2,284,998)

(1,110,308)

Net assets

 

18,925,246

13,529,347

Capital and reserves

 

Called up share capital

23

10,499

10,499

Share premium reserve

24,750

24,750

Capital redemption reserve

10,751

10,751

Revaluation reserve

6,218,761

818,739

Profit and loss account

12,660,485

12,664,608

Equity attributable to owners of the company

 

18,925,246

13,529,347

Total equity

 

18,925,246

13,529,347

Approved and authorised by the Board on 21 June 2024 and signed on its behalf by:
 

.........................................
M D C Grose
Director

Company Registration Number: 00271793

 

Thurlestone Estates Limited

Balance Sheet

31 October 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

13

20,738,018

13,333,719

Investments

14

1,812,290

1,812,290

 

22,550,308

15,146,009

Current assets

 

Stocks

15

115,978

112,132

Debtors

16

188,796

1,089,939

Cash at bank and in hand

 

62,939

139,599

 

367,713

1,341,670

Creditors: Amounts falling due within one year

17

(2,525,423)

(1,789,247)

Net current liabilities

 

(2,157,710)

(447,577)

Total assets less current liabilities

 

20,392,598

14,698,432

Creditors: Amounts falling due after more than one year

17

(2,238,262)

(2,701,364)

Provisions for liabilities

21

(1,837,703)

(705,081)

Net assets

 

16,316,633

11,291,987

Capital and reserves

 

Called up share capital

10,499

10,499

Share premium reserve

24,750

24,750

Capital redemption reserve

10,751

10,751

Revaluation reserve

5,542,272

314,454

Profit and loss account

10,728,361

10,931,533

Total equity

 

16,316,633

11,291,987

The company made a loss after tax for the financial year of £19,438 (2022 - profit of £719,340).

Approved and authorised by the Board on 21 June 2024 and signed on its behalf by:
 

.........................................
M D C Grose
Director

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

10,499

24,750

10,751

818,739

12,664,608

13,529,347

Profit for the year

-

-

-

-

151,370

151,370

Other comprehensive income

-

-

-

5,428,262

-

5,428,262

Total comprehensive income

-

-

-

5,428,262

151,370

5,579,632

Dividends

-

-

-

-

(183,733)

(183,733)

Transfers

-

-

-

(28,240)

28,240

-

At 31 October 2023

10,499

24,750

10,751

6,218,761

12,660,485

18,925,246

Share capital
£

Share premium
£

Capital redemption reserve
£

Revaluation reserve
£

Profit and loss account
£

Total
£

At 1 November 2021

10,499

24,750

10,751

818,739

11,845,719

12,710,458

Profit for the year

-

-

-

-

1,002,622

1,002,622

Total comprehensive income

-

-

-

-

1,002,622

1,002,622

Dividends

-

-

-

-

(183,733)

(183,733)

At 31 October 2022

10,499

24,750

10,751

818,739

12,664,608

13,529,347

 

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

10,499

24,750

10,751

314,454

10,931,533

11,291,987

Loss for the year

-

-

-

-

(19,438)

(19,438)

Other comprehensive income

-

-

-

5,227,818

-

5,227,818

Total comprehensive income

-

-

-

5,227,818

(19,438)

5,208,380

Dividends

-

-

-

-

(183,734)

(183,734)

At 31 October 2023

10,499

24,750

10,751

5,542,272

10,728,361

16,316,633

Share capital
£

Share premium
£

Capital redemption reserve
£

Revaluation reserve
£

Profit and loss account
£

Total
£

At 1 November 2021

10,499

24,750

10,751

314,454

10,395,926

10,756,380

Profit for the year

-

-

-

-

719,340

719,340

Total comprehensive income

-

-

-

-

719,340

719,340

Dividends

-

-

-

-

(183,733)

(183,733)

At 31 October 2022

10,499

24,750

10,751

314,454

10,931,533

11,291,987

 

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

 

151,370

1,002,622

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

5

627,127

564,393

Impairment recognised on revaluation of assets

 

28,240

-

Loss on disposal of tangible assets

8,147

9,452

Finance income

9

-

(73)

Finance costs

10

358,661

159,675

Income tax expense

11

62,016

258,738

 

1,235,561

1,994,807

Working capital adjustments

 

Increase in stocks

15

(4,391)

(1,012)

Decrease/(increase) in trade debtors

16

862,711

(712,434)

(Decrease)/increase in trade creditors

17

(219,567)

104,272

Cash generated from operations

 

1,874,314

1,385,633

Income taxes paid

11

(139,252)

(231,087)

Net cash flow from operating activities

 

1,735,062

1,154,546

Cash flows from investing activities

 

Interest received

-

73

Acquisitions of tangible assets

(1,483,377)

(2,144,841)

Proceeds from sale of tangible assets

 

8,332

-

Net cash flows from investing activities

 

(1,475,045)

(2,144,768)

Cash flows from financing activities

 

Interest paid

10

(351,850)

(155,810)

Repayment of bank borrowing

 

(625,832)

(665,560)

Payments to finance lease creditors

 

(34,784)

(28,794)

Dividends paid

(183,733)

(183,733)

Net cash flows from financing activities

 

(1,196,199)

(1,033,897)

Net decrease in cash and cash equivalents

 

(936,182)

(2,024,119)

Cash and cash equivalents at 1 November

 

476,437

2,500,556

Cash and cash equivalents at 31 October

(459,745)

476,437

 

Thurlestone Estates Limited

Notes to the Financial Statements

Year Ended 31 October 2023

1

General information

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

The address of its registered office is:
Thurlestone Hotel
Thurlestone
Kingsbridge
Devon
TQ7 3NN

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

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

Statement of compliance

These financial statements 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:

Depreciation - The directors consider that no depreciation should be provided on freehold properties. This is on the basis that any possible depreciation charge would be expected to be immaterial as the hotel's residual value is considered to be materially equivalent to its carrying value. Further details are provided in the depreciation policy below.

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
The company holds the following financial instruments:
• 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
The company has chosen to apply the recognition and measurement principles in FRS102.

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.

3

Turnover

The analysis of the group's Turnover for the year from continuing operations is as follows:

2023
£

2022
£

Revenues from hotel operations

8,664,307

9,459,314

4

Other operating income

The analysis of the group's other operating income for the year is as follows:

2023
£

2022
£

Government grants

-

16,000

Sub lease rental income

10,000

10,000

10,000

26,000

 

Thurlestone Estates Limited

Notes to the Financial Statements

Year Ended 31 October 2023

5

Operating profit

Arrived at after charging/(crediting)

2023
£

2022
£

Depreciation expense

554,612

491,878

Amortisation expense

72,515

72,515

Loss on disposal of property, plant and equipment

8,147

9,452

Operating lease costs

-

7,297

6

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2023
£

2022
£

Wages and salaries

3,371,186

3,548,164

Social security costs

250,610

292,429

Pension costs, defined contribution scheme

174,042

162,937

3,795,838

4,003,530

The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:

2023
 No.

2022
 No.

Management staff

12

13

Other staff

117

135

129

148

7

Directors' remuneration

The directors' remuneration for the year was as follows:

2023
£

2022
£

Remuneration

375,483

383,128

Contributions paid to money purchase schemes

88,870

84,210

464,353

467,338

During the year the number of directors who were receiving benefits and share incentives was as follows:

2023
No.

2022
No.

Accruing benefits under money purchase pension scheme

3

3

 

Thurlestone Estates Limited

Notes to the Financial Statements

Year Ended 31 October 2023

In respect of the highest paid director:

2023
£

2022
£

Remuneration

108,801

122,142

Company contributions to money purchase pension schemes

40,149

40,000

8

Auditor's remuneration

2023
£

2022
£

Audit of these financial statements

12,750

12,000


 

9

Other interest receivable and similar income

2023
£

2022
£

Other finance income

-

73

10

Interest payable and similar expenses

2023
£

2022
£

Interest on bank overdrafts and borrowings

351,850

155,810

Interest on obligations under finance leases and hire purchase contracts

6,811

3,865

358,661

159,675

 

Thurlestone Estates Limited

Notes to the Financial Statements

Year Ended 31 October 2023

11

Taxation

Tax charged/(credited) in the profit and loss account

2023
 £

2022
 £

Current taxation

UK corporation tax

-

139,252

Deferred taxation

Arising from origination and reversal of timing differences

62,016

119,486

Tax expense in the income statement

62,016

258,738

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 22.52% (2022 - 19%).

The differences are reconciled below:

2023
£

2022
£

Profit before tax

213,386

1,261,360

Corporation tax at standard rate

48,055

239,658

Effect of expense not deductible in determining taxable profit (tax loss)

24,604

19,989

UK deferred tax expense relating to changes in tax rates or laws

4,324

28,677

Decrease from effect of tax incentives

(14,967)

(29,586)

Total tax charge

62,016

258,738

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

1,160,954

Revaluation gains on property, plant and equipment

1,134,911

Tax losses available

(10,022)

Other timing differences

(845)

2,284,998

2022

Liability
£

Difference between accumulated depreciation and capital allowances

1,088,568

Revaluation gains on property, plant and equipment

22,236

Other timing differences

(496)

1,110,308

Company

Deferred tax assets and liabilities

2023

Liability
£

Difference between accumulated depreciation and capital allowances

792,805

Revaluation gains on property, plant and equipment

1,055,273

Tax losses available

(10,022)

Other timing differences

(353)

1,837,703

2022

Liability
£

Difference between accumulated depreciation and capital allowances

705,323

Other timing differences

(242)

705,081

 

Thurlestone Estates Limited

Notes to the Financial Statements

Year Ended 31 October 2023

12

Intangible assets

Group

Goodwill
 £

Cost or valuation

At 1 November 2022

1,450,290

At 31 October 2023

1,450,290

Amortisation

At 1 November 2022

1,160,232

Amortisation charge

72,515

At 31 October 2023

1,232,747

Carrying amount

At 31 October 2023

217,543

At 31 October 2022

290,057

13

Tangible assets

Group

Land and buildings
£

Fixtures and fittings
 £

Motor vehicles
 £

Plant and machinery
 £

Total
£

Cost or valuation

At 1 November 2022

14,656,061

6,441,325

110,565

3,393,626

24,601,577

Revaluations

6,512,696

-

-

-

6,512,696

Additions

890,824

436,364

-

271,126

1,598,314

Disposals

-

(10,688)

-

(22,068)

(32,756)

At 31 October 2023

22,059,581

6,867,001

110,565

3,642,684

32,679,831

Depreciation

At 1 November 2022

-

3,598,038

53,324

1,573,216

5,224,578

Charge for the year

-

327,505

19,080

208,027

554,612

Eliminated on disposal

-

(5,591)

-

(10,686)

(16,277)

At 31 October 2023

-

3,919,952

72,404

1,770,557

5,762,913

Carrying amount

At 31 October 2023

22,059,581

2,947,049

38,161

1,872,127

26,916,918

At 31 October 2022

14,656,061

2,843,287

57,241

1,820,411

19,377,000

 

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 21 September 2022 by an independent valuer. The name and qualification of the independent valuer is Savills (UK) Limited, a RICS Registered Valuer.

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 £14,507,510 (2022 - £14,185,221).

The fair value of the group's freehold land & building, Thurlestone Court, was valued on 15 April 2024 by an independent valuer. The name and qualification of the independent valuer is Savills (UK) Limited, a RICS Registered Valuer.

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 £1,474,279 (2022 - £1,474,279).

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

Land and buildings with a carrying amount of £18,072,210 (2022 - £10,668,937) has been pledged as security for the group's bank loans and overdraft facilities.

 

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

10,197,986

4,838,140

106,120

1,979,762

17,122,008

Revaluations

6,283,091

-

-

-

6,283,091

Additions

890,824

387,589

-

243,041

1,521,454

Disposals

-

(5,171)

-

(18,467)

(23,638)

At 31 October 2023

17,371,901

5,220,558

106,120

2,204,336

24,902,915

Depreciation

At 1 November 2022

-

2,846,196

48,879

893,214

3,788,289

Charge for the year

-

237,823

19,080

131,998

388,901

Eliminated on disposal

-

(3,597)

-

(8,696)

(12,293)

At 31 October 2023

-

3,080,422

67,959

1,016,516

4,164,897

Carrying amount

At 31 October 2023

17,371,901

2,140,136

38,161

1,187,820

20,738,018

At 31 October 2022

10,197,986

1,991,944

57,241

1,086,548

13,333,719

Revaluation

The fair value of the company's freehold land & buildings, except Thurlestone Court, was revalued on 21 September 2022 by an independent valuer. The name and qualification of the independent valuer is Savills (UK) Limited, a RICS Registered Valuer.

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 £8,575,156 (2022 - £8,252,867).
 

The fair value of the company's freehold land & building, Thurlestone Court, was revalued on 15 April 2024 by an independent valuer. The name and qualification of the independent valuer is Savills (UK) Limited, a RICS Registered Valuer.

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 £1,474,279 (2022 - £1,474,279).
 

 

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

Land and buildings with a carrying amount of £15,894,440 (2022 - £9,414,037) has been pledged as security for the company's bank loan and overdraft facility.

14

Investments

Company

2023
£

2022
£

Investments in subsidiaries

1,812,290

1,812,290

Subsidiaries

£

Cost or valuation

At 1 November 2022

1,812,290

At 31 October 2023

1,812,290

Provision

At 1 November 2022

-

At 31 October 2023

-

Carrying amount

At 31 October 2023

1,812,290

At 31 October 2022

1,812,290

 

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

Tracertec Limited

Thurlestone Hotel, Thurlestone, Kingsbridge TQ7 3NN

England and Wales

Ordinary

100%

100%

The principal activity of Tracertec Limited is hotel management.

15

Stocks

 

Group

Company

2023
£

2022
£

2023
£

2022
£

Raw materials

59,368

52,266

29,880

33,453

Goods for resale

108,568

111,279

86,098

78,679

167,936

163,545

115,978

112,132

16

Debtors

   

Group

Company

Note

2023
£

2022
£

2023
£

2022
£

Trade debtors

 

45,790

39,600

30,311

19,390

Amounts owed by group undertakings

26

-

-

-

30,031

Prepayments

 

198,926

1,067,827

158,485

1,040,518

 

244,716

1,107,427

188,796

1,089,939

 

Thurlestone Estates Limited

Notes to the Financial Statements

Year Ended 31 October 2023

17

Creditors

   

Group

Company

Note

2023
 £

2022
 £

2023
 £

2022
 £

Due within one year

 

Loans and borrowings

18

1,244,432

659,058

1,077,219

513,835

Trade creditors

 

311,165

621,624

246,801

543,861

Amounts due to group undertakings

26

-

-

377,591

-

Social security and other taxes

 

511,169

412,497

382,462

268,943

Outstanding defined contribution pension costs

 

4,718

3,980

2,823

1,940

Other creditors

 

72,209

30,881

72,209

5,617

Accrued expenses

 

152,099

187,305

105,024

143,632

Corporation tax

 

-

139,252

-

56,638

Payments on account

 

362,793

358,676

261,294

254,781

 

2,658,585

2,413,273

2,525,423

1,789,247

Due after one year

 

Loans and borrowings

18

3,750,928

4,361,538

2,238,262

2,701,364

18

Loans and borrowings

 

Group

Company

2023
£

2022
£

2023
£

2022
£

Non-current loans and borrowings

Bank borrowings

3,646,905

4,298,241

2,134,239

2,641,024

Hire purchase contracts

104,023

63,297

104,023

60,340

3,750,928

4,361,538

2,238,262

2,701,364

 

Group

Company

2023
£

2022
£

2023
£

2022
£

Current loans and borrowings

Bank borrowings

672,274

646,770

519,964

505,491

Bank overdrafts

532,389

-

520,443

-

Hire purchase contracts

39,769

12,288

36,812

8,344

1,244,432

659,058

1,077,219

513,835

 

Thurlestone Estates Limited

Notes to the Financial Statements

Year Ended 31 October 2023

Group

Bank borrowings

Bank borrowings are denominated in pounds sterling, £, with a nominal interest rates of base rate plus 1.8 - 2.56%, and the final instalment is due on 11 October 2035. The carrying amount at year end is £4,319,179 (2022 - £4,945,011).

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

1,412,279

1,909,690

Company

Bank borrowings

Bank borrowings are denominated in pounds sterling, £, with a nominal interest rates of base rate plus 1.8 - 2.0%, and the final instalment is due on 19 November 2030. The carrying amount at year end is £2,654,203 (2022 - £3,146,515).

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

638,883

927,447

-

-

 

Thurlestone Estates Limited

Notes to the Financial Statements

Year Ended 31 October 2023

19

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)

20

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

39,769

12,288

Later than one year and not later than five years

104,023

63,298

143,792

75,586

Operating leases

The total of future minimum lease payments is as follows:

2023
£

2022
£

Not later than one year

12,523

12,523

Later than one year and not later than five years

35,325

47,485

Later than five years

1,575

3,675

49,423

63,683

The amount of non-cancellable operating lease payments recognised as an expense during the year was £12,523 (2022 - £7,297).

 

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

36,812

8,344

Later than one year and not later than five years

104,023

60,341

140,835

68,685

21

Deferred tax and other provisions

Group

Deferred tax
£

At 1 November 2022

1,110,308

Increase (decrease) in existing provisions

1,174,690

At 31 October 2023

2,284,998

Company

Deferred tax
£

At 1 November 2022

705,081

Increase (decrease) in existing provisions

1,132,622

At 31 October 2023

1,837,703

22

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 £174,042 (2022 - £162,937).

Contributions totalling £4,717 (2022 - £3,980) were payable to the scheme at the end of the year and are included in creditors.

 

Thurlestone Estates Limited

Notes to the Financial Statements

Year Ended 31 October 2023

23

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary shares of £1 each

10,499

10,499

10,499

10,499

         

24

Dividends

Final dividends paid

   

2023
£

 

2022
£

Final dividend in respect of prior year of £17.50 per each ordinary share

 

183,733

 

183,733

         

The directors are recommending a final dividend of £17.50 (2022 - £17.50) per share totalling £183,733 (2022 - £183,733). This dividend has not been accrued in the balance sheet.

25

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).

26

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

Dividends of £35,455 (2022 - £34,580) were paid to spouses and children of the directors. Further dividends of £39,375 (2022 - £39,375) were paid to trusts in which the directors or the directors' children are beneficiaries.
 

27

Control

The ultimate controlling party is the directors who own 62% of the called up share capital.