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Shrubbery Hotel (2013) Limited

Annual Report and Financial Statements
Year Ended 31 December 2023

Registration number: 08542832

 

Shrubbery Hotel (2013) Limited

Contents

Balance Sheet

1

Statement of Changes in Equity

2

Notes to the Financial Statements

3 to 11

 

Shrubbery Hotel (2013) Limited

Balance Sheet

31 December 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

6

1,614,660

1,591,937

Other financial assets

7

15,121

-

 

1,629,781

1,591,937

Current assets

 

Stocks

8

8,067

8,067

Debtors

9

73,113

53,080

Cash at bank and in hand

 

108,044

91,025

 

189,224

152,172

Creditors: Amounts falling due within one year

10

(766,095)

(365,569)

Net current liabilities

 

(576,871)

(213,397)

Total assets less current liabilities

 

1,052,910

1,378,540

Creditors: Amounts falling due after more than one year

10

-

(531,258)

Provisions for liabilities

12

(143,500)

(136,000)

Net assets

 

909,410

711,282

Capital and reserves

 

Called up share capital

1

1

Revaluation reserve

509,239

509,239

Profit and loss account

400,170

202,042

Total equity

 

909,410

711,282

These financial statements have been prepared and delivered in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006 and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 22 July 2024 and signed on its behalf by:
 

.........................................
K R Newton
Director

Company Registration Number: 08542832

 

Shrubbery Hotel (2013) Limited

Statement of Changes in Equity

Year Ended 31 December 2023

Share capital
£

Revaluation reserve
£

Profit and loss account
£

Total
£

At 1 January 2023

1

509,239

202,042

711,282

Profit for the year

-

-

240,728

240,728

Dividends

-

-

(42,600)

(42,600)

At 31 December 2023

1

509,239

400,170

909,410

Share capital
£

Revaluation reserve
£

Profit and loss account
£

Total
£

At 1 January 2022

1

509,239

70,867

580,107

Profit for the year

-

-

131,175

131,175

Total comprehensive income

-

-

131,175

131,175

At 31 December 2022

1

509,239

202,042

711,282

 

Shrubbery Hotel (2013) Limited

Notes to the Financial Statements

Year Ended 31 December 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:
Ground Floor
Blackbrook Gate 1
Blackbrook Business Park
Taunton
Somerset
TA1 2PX

The principal place of business is:
Station Road
Ilminster
Somerset
TA19 9AR

These financial statements were authorised for issue by the Board on 22 July 2024.

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 have been prepared in accordance with Financial Reporting Standard 102 - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', including Section 1A, and the Companies Act 2006. There are no material departures from FRS 102.

Basis of preparation

These financial statements have been prepared using the historical cost convention. Freehold property was revalued on transition to FRS 102. The revalued amount was then taken as deemed cost. This treatment results in a revaluation reserve included within equity in the balance sheet. Movement in deferred tax in respect of the revaluation is charged or credited against the revaluation reserve each year via other comprehensive income.

Going concern

Notwithstanding the net current liabilities of £576,871 (2022 - £213,397), the directors are satisfied, having made all necessary enquiries, that the going concern basis of preparation remains appropriate. In particular the directors have considered:

The ongoing availability of overdraft facilities (with no fixed expiry date) of £145,000.

The company is refinancing its bank term loan of £497,058 (included within net current liabilities) and the directors anticipate the continuing support of the company's bankers.

The director is satisfied that for the foreseeable future, being a period of no less than 12 months from the date of approval of these financial statements, the company will continue to trade and meet its liabilities as they fall due.

 

Shrubbery Hotel (2013) Limited

Notes to the Financial Statements

Year Ended 31 December 2023

Key accounting judgements and sources of estimation uncertainty

In the application of the company's accounting policies 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 assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

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

The director considers the going concern status of the company to be a key judgement, as discussed above.

In addition, another key judgement that has a significant effect on the financial statements is in respect of depreciation of freehold properties. The director considers that no depreciation should be provided on freehold properties. This treatment as regards the company's freehold property is a departure from the requirements of the Companies Act concerning the depreciation of fixed assets. This policy is adopted on the basis that any depreciation charge would be immaterial as the residual value of the hotel is maintained through heavy continuous improvement in repairs and maintenance. The carrying amount is £1,575,000 (2022 - £1,575,000).

Revenue recognition

Turnover comprises the fair value of the consideration receivable for the sale of goods and provision of services in the ordinary course of the company's activities. Turnover is shown net of value added tax, returns, rebates and discounts. Revenue from the sale of rooms, food and beverages is recognised as the service is provided. Income received in advance is deferred until the relevant service is provided.

Tax

Tax is recognised in profit or loss, except when a change is attributable to an item of income or expense recognised as other comprehensive income and then it is also recognised directly in other comprehensive income.

The current corporation 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 taxable 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 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.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Intangible assets

Intangible assets are stated in the balance sheet at cost, less subsequent accumulated amortisation and subsequent accumulated impairment loss.

 

Shrubbery Hotel (2013) Limited

Notes to the Financial Statements

Year Ended 31 December 2023

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

Computer software

20% straight line

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets 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, freehold properties and assets under construction, over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Furniture, fittings and equipment

15% straight line

Investments

Investments in assets 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. Investments in assets which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Stocks

Stocks are stated at the lower of cost and net realisable value, being estimated selling price less cost to sell, after due regard for obsolete and slow moving items.

Leases

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

Defined contribution pension obligation

The company operates a defined contribution pension plan for eligible employees. Contributions are charged to the profit and loss account in accordance with the rules of the scheme.

 

Shrubbery Hotel (2013) Limited

Notes to the Financial Statements

Year Ended 31 December 2023

Financial instruments

Classification
The company holds the following financial instruments:

• Short term trade, intercompany and other debtors and creditors;
• Other borrowing;
• 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 FRS 102.

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 and other borrowings, 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 and other borrowings are initially measured at transaction price, including transaction costs, and are subsequently carried at amortised cost using the effective interest method.


 

3

Staff numbers

The average number of persons employed by the company during the year was 35 (2022 - 31).

4

Exceptional items

2023
£

2022
£

Intercompany debt waiver (reversal of provision)

(59,100)

56,869

 

Shrubbery Hotel (2013) Limited

Notes to the Financial Statements

Year Ended 31 December 2023


 

5

Intangible assets

Goodwill
 £

Computer software
 £

Total
£

Cost or valuation

At 1 January 2023

3

17,135

17,138

At 31 December 2023

3

17,135

17,138

Amortisation

At 1 January 2023

3

17,135

17,138

At 31 December 2023

3

17,135

17,138

Carrying amount

At 31 December 2023

-

-

-

6

Tangible assets

Land and buildings
£

Furniture, fittings and equipment
 £

Total
£

Cost or valuation

At 1 January 2023

1,575,000

197,146

1,772,146

Additions

-

32,063

32,063

At 31 December 2023

1,575,000

229,209

1,804,209

Depreciation

At 1 January 2023

-

180,209

180,209

Charge for the year

-

9,340

9,340

At 31 December 2023

-

189,549

189,549

Carrying amount

At 31 December 2023

1,575,000

39,660

1,614,660

At 31 December 2022

1,575,000

16,937

1,591,937

 

Shrubbery Hotel (2013) Limited

Notes to the Financial Statements

Year Ended 31 December 2023

7

Other financial assets (current and non-current)

Financial assets at cost less impairment
£

Total
£

Non-current financial assets

Cost or valuation

Additions

15,121

15,121

At 31 December 2023

15,121

15,121

Carrying amount

At 31 December 2023

15,121

15,121

8

Stocks

2023
£

2022
£

Consumables

8,067

8,067

9

Debtors

2023
 £

2022
 £

Trade debtors

20,395

15,876

Amounts due from group undertakings

1

23,591

Other debtors

43,944

400

Prepayments and accrued income

8,773

13,213

73,113

53,080

 

Shrubbery Hotel (2013) Limited

Notes to the Financial Statements

Year Ended 31 December 2023

10

Creditors

Note

2023
£

2022
£

Due within one year

 

Loans and borrowings

11

535,306

86,116

Trade creditors

 

27,849

32,311

Amounts due to group undertakings

 

110,983

157,854

Taxation and social security

 

46,881

47,300

Other creditors

 

1,116

1,220

Accruals and deferred income

 

43,960

40,768

 

766,095

365,569

Note

2023
£

2022
£

Due after one year

 

Loans and borrowings

11

-

531,258

11

Loans and borrowings

2023
£

2022
£

Due within one year

Bank borrowings

497,058

34,379

Bank overdrafts

5,244

6,733

Other borrowings

33,004

45,004

535,306

86,116

2023
£

2022
£

Due after one year

Bank borrowings

-

498,254

Other borrowings

-

33,004

-

531,258

Bank borrowings with a carrying value of £497,058 (2022 - £532,633) are secured by way of a debenture over the assets of the company, a legal charge over the freehold property belonging to the company and a personal guarantee of £200,000 given by a director.

 

Shrubbery Hotel (2013) Limited

Notes to the Financial Statements

Year Ended 31 December 2023

12

Deferred tax provision

Deferred tax
£

At 1 January 2023

136,000

Increase in existing provisions

7,500

At 31 December 2023

143,500

13

Obligations under leases

Operating leases

The total of future minimum lease payments is as follows:

2023
£

2022
£

Not later than one year

10,107

2,187

Later than one year and not later than five years

16,266

7,653

26,373

9,840

The amount of non-cancellable operating lease payments recognised as an expense during the year was £6,147 (2022 - £2,187).

14

Share capital

Allotted and called up share capital

 

2023

2022

 

No.

£

No.

£

Ordinary shares of £1 each

1

1

1

1

         

Unpaid share capital

 

2023

2022

 

No.

£

No.

£

Ordinary shares of £1 each

1

1

1

1

         
 

Shrubbery Hotel (2013) Limited

Notes to the Financial Statements

Year Ended 31 December 2023

15

Dividends

Interim dividends paid

   

2023
£

 

2022
£

Interim dividend of £42,600 (2022 - £Nil) per each Ordinary shares

 

42,600

 

-

         

16

Related party transactions

Transactions with directors

2023

At 1 January 2023
£

Advances to director
£

Repayments by director
£

At 31 December 2023
£

K R Newton

Loan account repayable on demand and interest at HMRC rate

-

42,882

-

42,882

         
       

 

There were no transactions with directors in the prior year.

Summary of transactions with other related parties

During the prior year, a close relative of a director made a loan to the company, interest free and repayable on demand. During the year £13,000 (2022 - £nil) was repaid on the loan account. At the balance sheet date, the related party owed the company £1,062 (2022 - £11,938) to the company.
 

17

Relationship between entity and parents

The parent of the smallest group in which these financial statements are consolidated is SBAW Group Limited, a company incorporated in England & Wales.

The registered office address of SBAW Group Limited is:
Ground Floor, Blackbrook Gate 1, Blackbrook Business Park, Taunton, Somerset, TA1 2PX

18

Audit report

The Independent Auditors' Report was unqualified. The name of the Senior Statutory Auditor who signed the audit report was Robert Whitehead FCCA, who signed for and on behalf of PKF Francis Clark on 24 July 2024.