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Registered number: 01740869
















THE PARKWAY HOTEL AND SPA LIMITED




ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023


































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THE PARKWAY HOTEL AND SPA LIMITED

 
COMPANY INFORMATION


DIRECTORS
I D Solkin 
L L De Savary 




COMPANY SECRETARY
J Keefe



REGISTERED NUMBER
01740869



REGISTERED OFFICE
c/o Bishop Fleming LLP
10 Temple Back

Bristol

BS1 6FL




INDEPENDENT AUDITORS
Bishop Fleming Bath Limited
Chartered Accountants & Statutory Auditors

10 Temple Back

Bristol

BS1 6FL




BANKERS
Coutts & Co
440 Strand

London

WC2R 0QS






THE PARKWAY HOTEL AND SPA LIMITED


CONTENTS



Page
Strategic Report
 
1
Directors' Report
 
2 - 3
Directors' Responsibilities Statement
 
4
Independent Auditors' Report
 
5 - 8
Statement of Comprehensive Income
 
9
Statement of Financial Position
 
10
Statement of Changes in Equity
 
11
Notes to the Financial Statements
 
12 - 24



THE PARKWAY HOTEL AND SPA LIMITED

 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

BUSINESS REVIEW
 
The principal activity of the company during the year was the operation of a hotel and conference centre with a leisure complex.
The directors are satisfied with the performance for the year under review. The board has invested and continues to invest in the fabric of the business and are comfortable that the investment is showing positive results and will continue to do so for the foreseeable future.

PRINCIPAL RISKS AND UNCERTAINTIES
 
The management of the business and the execution of the company's strategy are subject to a number of risks. 
The key business risks and uncertainties affecting the company are, in common with other hotels in the sector, the general economic activity and perceived health of the economy.
The company's operations also expose it to a number of financial risks including credit risk, liquidity risk and
price risk. The directors monitor and manage these risks as follows:
Liquidity risk
In respect of bank balances, the liquidity risk is managed by maintaining the continuity of funding and regular review of monthly management information, including management accounts and cash flow results and forecasts.
Credit risk
Credit risk is managed through policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits.
Price risk
The price risk is monitored through regular consideration of competitor pricing and occupancy.

FINANCIAL KEY PERFORMANCE INDICATORS
 
Given the straight forward nature of the business, the directors are of the opinion that analysis using KPIs is of limited value. However the directors consider occupancy rate, turnover and gross and operating profit when assessing the perfomance of the business.


This report was approved by the board and signed on its behalf.




I D Solkin
Director

Date: 24 June 2024

Page 1


THE PARKWAY HOTEL AND SPA LIMITED

 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their report and the financial statements for the year ended 31 December 2023.

PRINCIPAL ACTIVITY

The principal activity of the company during the year was the operation of a hotel and conference centre with a leisure complex.

RESULTS AND DIVIDENDS

The profit for the year, after taxation, amounted to £624,309 (2022: £694,806).

During the year no dividends were paid (2022: £Nil).

DIRECTORS

The directors who served during the year were:

I D Solkin 
L L De Savary 

GOING CONCERN

Having assessed the company's future funding requirements the directors are satisfied that the company is a going concern. As part of this assessment, the directors have obtained confirmations from its parent company that it will continue to support the business to ensure it can continue as a going concern.

The Company’s forecasts and projections, taking account of reasonably possible changes in trading performance, show that the Company is able to operate within the level of its current financing. The directors have, therefore, concluded that it is appropriate for the accounts to be prepared on a going concern basis. 

FUTURE DEVELOPMENTS

The board has invested and continues to invest in the fabric of the business and are comfortable that the investment will show positive results for the future.

MATTERS COVERED IN THE STRATEGIC REPORT

The Companies Act 2006 (Strategic Report and Directors' Report) Regulations 2013 requires a Strategic Report to be prepared. Where mandatory disclosures in the Directors' Report are considered by the directors to be of strategic importance, these are addressed in the Strategic Report.

DISCLOSURE OF INFORMATION TO AUDITORS

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the company's auditors are aware of that information.



POST BALANCE SHEET EVENTS

There have been no significant events affecting the company since the year end.

Page 2


THE PARKWAY HOTEL AND SPA LIMITED
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
AUDITORS

The auditorsBishop Fleming Bath Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 






I D Solkin
Director

Date: 24 June 2024

c/o Bishop Fleming LLP
10 Temple Back
Bristol
BS1 6FL

Page 3


THE PARKWAY HOTEL AND SPA LIMITED

 
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors are responsible for preparing the Strategic Report, the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.

 In preparing these financial statements, the directors are required to:

select suitable accounting policies for the company's financial statements and then apply them consistently;

make judgments 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;

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

Page 4


THE PARKWAY HOTEL AND SPA LIMITED

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE PARKWAY HOTEL AND SPA LIMITED
OPINION


We have audited the financial statements of The Parkway Hotel and Spa Limited (the 'company') for the year ended 31 December 2023, which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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 company's affairs as at 31 December 2023 and of its 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


CONCLUSIONS RELATING TO GOING CONCERN


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


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


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


OTHER INFORMATION


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


We have nothing to report in this regard.


Page 5


THE PARKWAY HOTEL AND SPA LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE PARKWAY HOTEL AND SPA LIMITED (CONTINUED)

OPINION ON OTHER MATTERS 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 the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the 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 the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors' Report.


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


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the 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 Directors' Responsibilities Statement set out on page 4, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.


Page 6


THE PARKWAY HOTEL AND SPA LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE PARKWAY HOTEL AND SPA LIMITED (CONTINUED)

AUDITORS' 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 Auditors' 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:
We have considered the nature of the industry and sector, control environment, and business performance.
We have considered the results of enquiries with management and the directors in relation to their own identification and assessment of the risks of irregularities within the entity; and
We have reviewed the documentation of key processes and controls and performed walkthroughs of
transactions to confirm that the systems are operating effectively, in line with documentation.
For any matters identified we have obtained and reviewed the Company’s documentation of their policies and procedures relating to:
°Identifying, evaluating and complying with laws and regulations, including Duty, and whether they were aware of any instances of non-compliance; 
°Detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; and
°The internal controls established to mitigate risks of fraud or non-compliance with laws and regulations.
We have considered the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and potential indicators of fraud.

As a result of these procedures, we have considered the opportunities and incentives that may exist within the organisation for fraud and identified the highest area of risk to be in relation to revenue recognition, with a particular risk in relation to year-end cut-off.

In common with all audits under ISAs (UK) we are also required to perform specific procedures to respond to the risk of management override.
We have also obtained an understanding of the legal and regulatory frameworks that the Company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act, FRS 102 and UK tax legislation.
In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the Company’s ability to operate or avoid a material penalty. These included health and safety regulations and employment law.
Our procedures to respond to risks identified included the following:
 
Reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;
Enquiring of management in relation to actual and potential claims or litigation;
Performing analytical procedures to identify unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
Performing detailed testing in relation to the recognition of revenue with a particular focus around the year-end cut off; and
 
Page 7


THE PARKWAY HOTEL AND SPA LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF THE PARKWAY HOTEL AND SPA LIMITED (CONTINUED)

In addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgments made in accounting estimates are indicative of potential bias; and evaluating the business rationale of significant transactions that are unusual or outside the normal course of business.
 
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
 
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 or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.

USE OF OUR REPORT
 

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our 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 Auditors' 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.






Richard Newton FCA (Senior Statutory Auditor)
for and on behalf of
Bishop Fleming Bath Limited
Chartered Accountants
Statutory Auditors
10 Temple Back
Bristol
BS1 6FL

19 July 2024
Page 8


THE PARKWAY HOTEL AND SPA LIMITED

 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
Note
£
£

  

Turnover
 4 
4,085,434
3,816,522

Cost of sales
  
(730,739)
(702,801)

Gross profit
  
3,354,695
3,113,721

Administrative expenses
  
(2,731,416)
(2,432,138)

Other operating income
 5 
-
16,000

Operating profit
 6 
623,279
697,583

Tax on profit
 9 
1,030
(2,777)

Profit for the financial year
  
624,309
694,806

Other comprehensive income for the year
  

Unrealised surplus on revaluation of tangible fixed assets
  
33,426
33,426

Total comprehensive income for the year
  
657,735
728,232

There were no recognised gains and losses for 2023 or 2022 other than those included in the statement of comprehensive income.

The notes on pages 12 to 24 form part of these financial statements.

Page 9


THE PARKWAY HOTEL AND SPA LIMITED
REGISTERED NUMBER:01740869

STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 10 
4,476,028
4,589,676

  
4,476,028
4,589,676

Current assets
  

Stocks
 12 
41,268
36,631

Debtors: amounts falling due within one year
 11 
3,671,059
3,051,470

Cash at bank and in hand
 13 
166,517
63,777

  
3,878,844
3,151,878

Creditors: amounts falling due within one year
 14 
(604,484)
(614,445)

Net current assets
  
 
 
3,274,360
 
 
2,537,433

Total assets less current liabilities
  
7,750,388
7,127,109

Provisions for liabilities
  

Deferred tax
 15 
(205,675)
(206,705)

  
 
 
(205,675)
 
 
(206,705)

Net assets
  
7,544,713
6,920,404


Capital and reserves
  

Called up share capital 
 16 
250,000
250,000

Revaluation reserve
 17 
1,025,965
1,059,391

Profit and loss account
 17 
6,268,748
5,611,013

  
7,544,713
6,920,404


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 





I D Solkin
Director

Date: 24 June 2024

The notes on pages 12 to 24 form part of these financial statements.

Page 10


THE PARKWAY HOTEL AND SPA LIMITED


STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Revaluation reserve
Profit and loss account
Total equity

£
£
£
£

At 1 January 2023
250,000
1,059,391
5,611,013
6,920,404


Total comprehensive income for the year

Profit for the year
-
-
624,309
624,309

Surplus on revaluation of leasehold property
-
-
33,426
33,426

Transfer to/from profit and loss account
-
(33,426)
-
(33,426)


At 31 December 2023
250,000
1,025,965
6,268,748
7,544,713


The notes on pages 12 to 24 form part of these financial statements.


STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2022


Called up share capital
Revaluation reserve
Profit and loss account
Total equity

£
£
£
£

At 1 January 2022
250,000
1,092,817
4,882,781
6,225,598


Total comprehensive income for the year

Profit for the year
-
-
694,806
694,806

Surplus on revaluation of leasehold property
-
-
33,426
33,426

Transfer to/from profit and loss account
-
(33,426)
-
(33,426)


At 31 December 2019
250,000
1,059,391
5,611,013
6,920,404


The notes on pages 12 to 24 form part of these financial statements.

Page 11


THE PARKWAY HOTEL AND SPA LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


GENERAL INFORMATION

The Parkway Hotel and Spa Limited is a limited liability company incorporated in England and Wales. The registered office is 10 Temple Back, Bristol, BS1 6FL.

2.ACCOUNTING POLICIES

 
2.1

BASIS OF PREPARATION OF FINANCIAL STATEMENTS

The financial statements have been prepared under the historical cost convention as modified by the revaluation of land and buildings and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).
The following principal accounting policies have been applied:

 
2.2

FINANCIAL REPORTING STANDARD 102 - REDUCED DISCLOSURE EXEMPTIONS

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Havana West Limited as at 31 December 2023 and these financial statements may be obtained from Companies House.

 
2.3

GOING CONCERN

Having assessed the company's future funding requirements the directors are satisfied that the company is a going concern. As part of this assessment, the directors have obtained confirmations from its parent company that it will continue to support the business to ensure it can continue as a going concern.
The Company’s forecasts and projections, taking account of reasonably possible changes in trading performance, show that the Company is able to operate within the level of its current financing. The directors have, therefore, concluded that it is appropriate for the accounts to be prepared on a going concern basis.

Page 12


THE PARKWAY HOTEL AND SPA LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.ACCOUNTING POLICIES (continued)

 
2.4

TURNOVER

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before turnover is recognised:

Sale of goods

Turnover from the sale of goods is recognised when all of the following conditions are satisfied:
the company has transferred the significant risks and rewards of ownership to the buyer;
the company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of turnover can be measured reliably;
it is probable that the company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Turnover from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of turnover can be measured reliably;
it is probable that the company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.


 
2.5

TANGIBLE FIXED ASSETS

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

The company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.

Page 13


THE PARKWAY HOTEL AND SPA LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.ACCOUNTING POLICIES (continued)


2.5
TANGIBLE FIXED ASSETS (CONTINUED)

Depreciation is provided on the following basis:

Long-term leasehold property
-
2%
Straight Line
Motor vehicles
-
20%
Straight Line
Fixtures and fittings
-
20%
Straight Line
Office equipment
-
20%
Straight Line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of Comprehensive Income.

 
2.6

REVALUATION OF TANGIBLE FIXED ASSETS

As permitted by the transitional provisions of FRS 102, the company has elected not to adopt a policy of revaluation of tangible fixed assets. The company will retain the book value of land and buildings, previously revalued at 1992 and will not update that valuation.

 
2.7

STOCKS

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis. 
At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.8

DEBTORS

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.9

CASH AND CASH EQUIVALENTS

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
Page 14


THE PARKWAY HOTEL AND SPA LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.ACCOUNTING POLICIES (continued)

  
2.10

FINANCIAL INSTRUMENTS

The company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's Statement of Financial Position when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Discounting is omitted where the effect of discounting is immaterial. The company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.
Impairment of financial assets
Financial assets are assessed for indicators of impairment at each reporting date. 
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
Financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the company after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.


 
Page 15


THE PARKWAY HOTEL AND SPA LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.ACCOUNTING POLICIES (continued)

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Derecognition of financial instruments
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the company will continue to recognise the value of the portion of the risks and rewards retained.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or cancelled.

 
2.11

CREDITORS

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.12

GOVERNMENT GRANTS

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of Comprehensive Income in the same period as the related expenditure.

 
2.13

OPERATING LEASES: LESSEE

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

 
2.14

PENSIONS

DEFINED CONTRIBUTION PENSION PLAN

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the company in independently administered funds.

Page 16


THE PARKWAY HOTEL AND SPA LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.ACCOUNTING POLICIES (continued)

 
2.15

CURRENT AND DEFERRED TAXATION

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.


3.



JUDGMENTS IN APPLYING ACCOUNTING POLICIES AND KEY SOURCES OF ESTIMATION UNCERTAINTY

Preparation of the financial statements requires management to make significant judgments and estimates. The items in the financial statements where these significant judgments and estimates have been made include:
Depreciation
Within each fixed asset class, management allocates an appropriate depreciation rate for each asset based on their assessment of the asaset useful economic life and expected residual value. These vary due to the differing nature of the assets.


4.


TURNOVER

The whole of the turnover is attributable to the principal activity of the company.

All turnover arose within the United Kingdom.


5.


OTHER OPERATING INCOME

2023
2022
£
£

Government grants receivable
-
16,000

-
16,000


Page 17


THE PARKWAY HOTEL AND SPA LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

6.


OPERATING PROFIT

The operating profit is stated after charging:

2023
2022
£
£

Depreciation of tangible fixed assets
112,787
119,346

Other operating lease rentals
60,000
60,000


7.


AUDITORS' REMUNERATION

During the year, the company obtained the following services from the company's auditors:


2023
2022
£
£

Fees payable to the company's auditors for the audit of the company's financial statements
7,000
5,500

The company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent company.


8.


EMPLOYEES

Staff costs were as follows:


2023
2022
£
£

Wages and salaries
1,523,583
1,391,632

Social security costs
99,486
90,782

Cost of defined contribution scheme
22,075
21,857

1,645,144
1,504,271


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Office and management staff
12
12



Hotel and housekeeping staff
93
88

105
100

Page 18


THE PARKWAY HOTEL AND SPA LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

9.


TAXATION


2023
2022
£
£



TOTAL CURRENT TAX
-
-

DEFERRED TAX


Origination and reversal of timing differences
(1,030)
2,777

TOTAL DEFERRED TAX
(1,030)
2,777


TAXATION ON (LOSS)/PROFIT ON ORDINARY ACTIVITIES
(1,030)
2,777

FACTORS AFFECTING TAX CHARGE FOR THE YEAR

The tax assessed for the year is lower than (2022: lower than) the standard rate of corporation tax in the UK of 23.52% (2022: 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
623,279
697,583


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.52% (2022: 19%)
146,599
132,541

EFFECTS OF:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
81
63

Capital allowances for year in excess of depreciation
20,686
16,517

Adjustments to deferred tax rates
(61)
665

Group relief
(168,335)
(147,009)

TOTAL TAX CHARGE FOR THE YEAR
(1,030)
2,777


FACTORS THAT MAY AFFECT FUTURE TAX CHARGES

There were no factors that may affect future tax charges.

Page 19


THE PARKWAY HOTEL AND SPA LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

10.


TANGIBLE FIXED ASSETS





Long-term leasehold property
Fixtures and fittings
Office equipment
Total

£
£
£
£



COST OR VALUATION


At 1 January 2023
5,383,477
2,306,354
10,614
7,700,445


Disposals
-
-
(876)
(876)


Transfers between classes
123,278
(123,278)
-
-



At 31 December 2023
5,506,755
2,183,076
9,738
7,699,569



DEPRECIATION


At 1 January 2023
941,948
2,159,068
9,753
3,110,769


Charge for the year on owned assets
107,669
5,118
-
112,787


Disposals
-
-
(15)
(15)


Transfers between classes
6,681
(6,681)
-
-



At 31 December 2023
1,056,298
2,157,505
9,738
3,223,541



NET BOOK VALUE



At 31 December 2023
4,450,457
25,571
-
4,476,028



At 31 December 2022
4,441,529
147,286
861
4,589,676

The leasehold property is secured against a bank loan held in Havana West Limited, the ultimate parent company.
Included in the historical cost below is £44,527 of interest that has been capitalised.
Cost or valuation at 31 December 2023 is as follows:

Long-term leasehold property
£


AT COST
1,298,421
AT VALUATION:

1992 valuation
4,208,334



5,506,755

Page 20


THE PARKWAY HOTEL AND SPA LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

           10.TANGIBLE FIXED ASSETS (CONTINUED)

If the land and buildings had not been included at valuation they would have been included under the historical cost convention as follows:

2023
2022
£
£



Cost
2,514,053
2,514,053

Accumulated depreciation
(502,810)
(452,529)

NET BOOK VALUE
2,011,243
2,061,524


11.


DEBTORS

2023
2022
£
£


Trade debtors
6,607
44,948

Amounts owed by group undertakings
3,624,110
2,942,243

Other debtors
2,250
21,507

Prepayments and accrued income
38,092
42,772

3,671,059
3,051,470


The amounts owed by group undertakings are unsecured, interest free and repayable on demand.


12.


STOCKS

2023
2022
£
£

Finished goods and goods for resale
41,268
36,631

41,268
36,631



13.


CASH AND CASH EQUIVALENTS

2023
2022
£
£

Cash at bank and in hand
166,517
63,777

166,517
63,777


Page 21


THE PARKWAY HOTEL AND SPA LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

14.


CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2023
2022
£
£

Trade creditors
111,619
134,096

Amounts owed to group undertakings
4,479
4,006

Other taxation and social security
174,476
181,148

Other creditors
65,628
56,936

Accruals and deferred income
248,282
238,259

604,484
614,445


The amounts owed to group undertakings are unsecured, interest free and repayable on demand.


15.


DEFERRED TAXATION




2023
2022


£

£






At beginning of year
(206,705)
(203,928)


Charged to the profit or loss
1,030
(2,777)



AT END OF YEAR
(205,675)
(206,705)

The provision for deferred taxation is made up as follows:

2023
2022
£
£


Fixed asset timing difference
(205,675)
(206,705)

(205,675)
(206,705)


16.


SHARE CAPITAL

2023
2022
£
£
ALLOTTED, CALLED UP AND FULLY PAID



250,000 (2022: 250,000) Ordinary shares of £1.00 each
250,000
250,000


Page 22


THE PARKWAY HOTEL AND SPA LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

17.


RESERVES

Revaluation reserve

The revaluation reserve includes the surplus above cost on the valuation of the land and buildings in 1992.

Profit and loss account

The profit and loss account includes all current and prior period retained profits and losses. All are considered distributable.


18.


CONTINGENT LIABILITIES

The Company has previously granted fixed and floating legal charges over all property or undertaking of the Company in the favour of the legal ultimate controlloing party. No balance was due at the period end.


19.


PENSION COMMITMENTS

The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £22,075 (2022: £21,857). At the year end £Nil (2022: £Nil) was owing to the scheme and is included within other creditors.


20.


COMMITMENTS UNDER OPERATING LEASES

At 31 December 2023 the company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than 1 year
60,000
60,000

Later than 1 year and not later than 5 years
240,000
240,000

Later than 5 years
4,905,000
5,017,500

5,205,000
5,317,500


21.


RELATED PARTY TRANSACTIONS

The Parkway Hotel and Spa Limited is a wholly owned subsidiary and a part of a group which prepares consolidated financial statements. As a result, it has taken advantage of the exemption under FRS 102 from disclosing intra-group transactions.

Included within debtors is an amount owed to the Company from Havana West Limited of £3,624,110 (2022: £2,492,243). This balance is unsecured, interest fee and repayable on demand.

Included within creditors is an amount owed from the Company to Havana West Limited of £1,810 (2022: £4,006). This balance is unsecured, interest free and repayable on demand.
Page 23


THE PARKWAY HOTEL AND SPA LIMITED

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

22.


ULTIMATE PARENT UNDERTAKING AND CONTROLLING PARTY

The ultimate parent company is Havana West Limited, a company incorporated in the United Kingdom.
The Company is a wholly owned subsidiary of Havana West Limited and the results of the Company are included in the consolidated financial statements of Havana West Limited as at 31 December 2023 which are available from Companies House.
The legal ultimate controlling party is L L de Savary by virtue of her majority legal shareholding in Havana West Limited.

 
Page 24