Caseware UK (AP4) 2023.0.135 2023.0.135 2024-01-312024-01-31truetruetruetruetrue2023-01-17false113truefalsefalse 14597288 2023-01-16 14597288 2023-01-17 2024-01-31 14597288 2022-02-01 2023-01-16 14597288 2024-01-31 14597288 1 2023-01-17 2024-01-31 14597288 5 2023-01-17 2024-01-31 14597288 6 2023-01-17 2024-01-31 14597288 d:CompanySecretary1 2023-01-17 2024-01-31 14597288 d:Director1 2023-01-17 2024-01-31 14597288 d:Director1 2024-01-31 14597288 d:Director2 2023-01-17 2024-01-31 14597288 d:Director2 2024-01-31 14597288 d:Director3 2023-01-17 2024-01-31 14597288 d:Director3 2024-01-31 14597288 d:Director4 2023-01-17 2024-01-31 14597288 d:Director4 2024-01-31 14597288 d:RegisteredOffice 2023-01-17 2024-01-31 14597288 e:Buildings e:LongLeaseholdAssets 2023-01-17 2024-01-31 14597288 e:Buildings e:LongLeaseholdAssets 2024-01-31 14597288 e:PlantMachinery 2023-01-17 2024-01-31 14597288 e:PlantMachinery 2024-01-31 14597288 e:PlantMachinery e:OwnedOrFreeholdAssets 2023-01-17 2024-01-31 14597288 e:OwnedOrFreeholdAssets 2023-01-17 2024-01-31 14597288 e:CurrentFinancialInstruments 2024-01-31 14597288 e:CurrentFinancialInstruments e:WithinOneYear 2024-01-31 14597288 e:UKTax 2023-01-17 2024-01-31 14597288 e:ShareCapital 2023-01-17 2024-01-31 14597288 e:ShareCapital 2024-01-31 14597288 e:RevaluationReserve 2023-01-17 2024-01-31 14597288 e:RevaluationReserve 2024-01-31 14597288 e:RevaluationReserve 1 2023-01-17 2024-01-31 14597288 e:RevaluationReserve 6 2023-01-17 2024-01-31 14597288 e:RetainedEarningsAccumulatedLosses 2023-01-17 2024-01-31 14597288 e:RetainedEarningsAccumulatedLosses 2024-01-31 14597288 e:RetainedEarningsAccumulatedLosses 1 2023-01-17 2024-01-31 14597288 e:OtherDeferredTax 2024-01-31 14597288 d:OrdinaryShareClass1 2023-01-17 2024-01-31 14597288 d:OrdinaryShareClass1 2024-01-31 14597288 d:FRS102 2023-01-17 2024-01-31 14597288 d:Audited 2023-01-17 2024-01-31 14597288 d:FullAccounts 2023-01-17 2024-01-31 14597288 d:PrivateLimitedCompanyLtd 2023-01-17 2024-01-31 14597288 e:WithinOneYear 2024-01-31 14597288 e:BetweenOneFiveYears 2024-01-31 14597288 e:MoreThanFiveYears 2024-01-31 14597288 5 2023-01-17 2024-01-31 14597288 f:PoundSterling 2023-01-17 2024-01-31 xbrli:shares iso4217:GBP xbrli:pure

Registered number: 14597288










COVENT GARDEN HOTEL (LEASEHOLD) LTD










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE PERIOD ENDED 31 JANUARY 2024

 
COVENT GARDEN HOTEL (LEASEHOLD) LTD
 
 
COMPANY INFORMATION


Directors
J  K Kemp (appointed 17 January 2023)
T Kemp (appointed 17 January 2023)
C C Ring (appointed 12 January 2024)
M T Soden (appointed 12 January 2024)




Company secretary
M T Soden



Registered number
14597288



Registered office
18 Thurloe Place

London

United Kingdom

SW7 2SP




Independent auditors
MHA
Statutory Auditor

6th Floor

2 London Wall Place

London

EC2Y 5AU





 
COVENT GARDEN HOTEL (LEASEHOLD) LTD
 

CONTENTS



Page
Strategic report
1 - 3
Directors' report
4 - 5
Independent auditors' report
6 - 9
Statement of comprehensive income
10
Balance sheet
11
Statement of changes in equity
12
Notes to the financial statements
13 - 25


 
COVENT GARDEN HOTEL (LEASEHOLD) LTD
 
 
STRATEGIC REPORT
FOR THE PERIOD ENDED 31 JANUARY 2024

Introduction
 
The directors have pleasure in presenting their report and the financial statements of the Company for it's first financial statements for the period 17 January 2023 to 31 January 2024.

Business review
 
The company was assigned the long term leasehold interest in the Covent Garden Hotel during the period from Firmdale Property Investments Limited, a fellow group company.
The hotel continues to be managed by Firmdale Hotels PLC, a fellow group company.

Principal risks and uncertainties
 
The principal financial risks faced by the company, and the company's objectives and policies in relation to those risks, are as follows:
Cash flow risk
The finance department closely manages the company's cash flow. Detailed cash flow forecasts are regularly prepared with the objective of alerting the directors to potential future risks. It is the company’s policy to ensure that forecast funding requirements can be met with available commited facilities.
Interest rate risk
The company’s interest rate policy has the twin objectives of minimising net interest expense whilst providing protection from material adverse movements in interest rates. The company had no debt at any time during the period and therefore has no exposure to interest rate risk.
Currency risk
The company faces minimal currency risk as it operates wholly in the UK.

Financial key performance indicators
 
The company's hotel is managed by Firmdale Hotels Plc and recorded revenues of £13.4m during the financial period.
The accommodation operated at an average occupancy of 78.0%, an average room rate of £615 and revenue per available room (RevPAR) of £615 - all of which are increases on the previous reporting period when comparing to the trading operations prior to the assignment of the leases. 

Page 1

 
COVENT GARDEN HOTEL (LEASEHOLD) LTD
 

STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 JANUARY 2024

Directors' statement of compliance with duty to promote the success of the Company
 
The directors consider the successful running of the company in terms of achieving its long-term growth strategy which centres around building a sustainable, profitable business which has brand reputation at its heart. The success of the Group centres around positive and effective dealings with all the stakeholders of the group and the directors were mindful of the long-term consequences of key commercial decisions made during the year, and determined that these were in the interests of the company's employees, suppliers, customers and other stakeholders, as they were all aligned to the group’s growth strategy.
The company's and group’s success depends on the company maintaining a reputation for high standards of business conduct with customers and other stakeholders, whether in relation to specific community issues or with regards to environmental issues such as minimising the production of waste.
The principal decisions made by the directors, confirm that throughout the year they have acted in the way that they consider, in good faith, to be most likely to promote the success of the company for the benefit of its members as a whole.

Going concern

The directors view the cashflows and liabilities of Firmdale Holdings Ltd and its subsidiaries (“the Group”) as a whole in making assessments of the group’s ability to meet its liabilities as they fall due. Therefore, as part of their assessment of going concern, the directors of the company have considered the funding and liquidity position of the Group to determine the appropriateness of preparing the financial statements on a going concern basis. 
Following the elimination of all material Covid related travel restrictions in mid 2021, international and domestic demand for both accommodation and food & beverage including events recovered very quickly. By March 2022 both Revenues and Earnings started to exceed those achieved in pre-Covid financial year 2020, and continuing growth led to record profitability for the Group in the financial year to January 2023. The financial year to January 2024 delivered further growth in profitability, and the current financial year is expected to do likewise. Excellent room rate growth, whilst maintaining substantial occupancies, has helped offset the effects of high cost base inflation. 
Rising interest rates have not had a significant impact on the Group given that in excess of 90% of group debt is either fixed or has the benefit of an interest rate cap.
Despite generating a profit before tax of £161,390 in the period, the company has net current liabilities of £38,800 thousand at 31 January 2024. However, this is largely driven by an intercompany balance owed of £42,887 thousand. This balance won't be recalled to the detriment of other creditors and generally the hotel is trading well. The directors are satisfied this company remains a going concern. 
In light of the cash reserves, positive trading projections, supportive banks and well progressed plans for the loan refinancing in November, the Board has a high degree of confidence that the company will be able to meet its liabilities as they fall due and meet its covenant obligations for a period of at least twelve months. The Directors have therefore concluded that the company can continue to adopt the going concern basis in preparing the annual report and accounts. The Board will continue to monitor developments closely and adjust their forecasting assumptions as required. 
Page 2

 
COVENT GARDEN HOTEL (LEASEHOLD) LTD
 

STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 JANUARY 2024


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



T Kemp
Director

Date: 25 July 2024

Page 3

 
COVENT GARDEN HOTEL (LEASEHOLD) LTD
 
 
 
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 JANUARY 2024

The directors present their report and the financial statements for the period ended 31 January 2024.

The Company was incorporated on 17 January 2023 and is presenting it's first financial statements for the period 17 January 2023 to 31 January 2024. The company commenced trading from 28 February 2023.

Directors' responsibilities statement

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;

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.

Principal activity

The principal activity of the company is that of a luxury hotel property operator.

Results and dividends

The profit for the period, after taxation, amounted to £160,718.

During the year, the directors did not propose any dividend.

Directors

The directors who served during the period were:

J  K Kemp (appointed 17 January 2023)
T Kemp (appointed 17 January 2023)
C C Ring (appointed 12 January 2024)
M T Soden (appointed 12 January 2024)

Page 4

 
COVENT GARDEN HOTEL (LEASEHOLD) LTD
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 JANUARY 2024

Qualifying third party indemnity provisions

Third party qualifying directors' and officers' insurance has been maintained throughout the financial year and to the date of this report which extends to all subsidiaries within the wider group under Firmdale Holdings Limited. 

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.

Auditors

The auditorsMHAwill 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.
 



T Kemp
Director

Date: 25 July 2024

Page 5

 
COVENT GARDEN HOTEL (LEASEHOLD) LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF COVENT GARDEN HOTEL (LEASEHOLD) LTD
 

Opinion


We have audited the financial statements of Covent Garden Hotel (Leasehold) Ltd (the 'Company') for the period ended 31 January 2024, which comprise the Statement of comprehensive income, the Balance sheet, 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 January 2024 and of its profit for the period 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.


Page 6

 
COVENT GARDEN HOTEL (LEASEHOLD) LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF COVENT GARDEN HOTEL (LEASEHOLD) LTD (CONTINUED)


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.


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 Directors' Report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
the Directors' Report has 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.
 





 regime anddasds
 
 

 
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 7

 
COVENT GARDEN HOTEL (LEASEHOLD) LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF COVENT GARDEN HOTEL (LEASEHOLD) LTD (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:
enquiry of management, those charged with governance and Company legal advisors around actual and potential litigation and claims;
 
performing audit work over the risk and management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias;
 
reviewing minutes of meetings of those charged with governance; and
 
reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
 
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.


Page 8

 
COVENT GARDEN HOTEL (LEASEHOLD) LTD
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF COVENT GARDEN HOTEL (LEASEHOLD) LTD (CONTINUED)


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.





Rajeev Shaunak BSc FCA (Senior Statutory Auditor)
  
for and on behalf of
MHA
 
Statutory Auditor
  
London, United Kingdom

 
Date: 
31 July 2024
MHA is the trading name of MacIntyre Hudson LLP, a limited liability partnership in England and Wales (Registered number OC312313)
Page 9

 
COVENT GARDEN HOTEL (LEASEHOLD) LTD
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 JANUARY 2024

For the period 17 January 2023 to
31 January
2024
Note
£

  

Turnover
 4 
13,451,831

Cost of sales
  
(7,818,206)

Gross profit
  
5,633,625

Administrative expenses
  
(5,472,235)

Operating profit
 5 
161,390

Tax on profit
 8 
(672)

Profit for the financial period
  
160,718

  

Unrealised surplus on revaluation of leasehold property
  
9,361,058

Deferred tax charge on revalued leasehold property
  
(2,037,500)

Other comprehensive income for the period
  
7,323,558

Total comprehensive income for the period
  
7,484,276

There were no recognised gains and losses for 2024 other than those included in the statement of comprehensive income.

The notes on pages 13 to 25 form part of these financial statements.

Page 10

 
COVENT GARDEN HOTEL (LEASEHOLD) LTD
REGISTERED NUMBER: 14597288

BALANCE SHEET
AS AT 31 JANUARY 2024

2024
Note
£

Fixed assets
  

Tangible assets
 9 
48,321,874

Current assets
  

Stocks
 10 
64,308

Debtors: amounts falling due within one year
 11 
2,961,455

Cash at bank and in hand
 12 
1,318,475

  
4,344,238

Creditors: amounts falling due within one year
 13 
(43,144,236)

Net current liabilities
  
 
 
(38,799,998)

Provisions for liabilities
  

Deferred tax
 14 
(2,037,500)

  
 
 
(2,037,500)

Net assets
  
7,484,376


Capital and reserves
  

Called up share capital 
 15 
100

Revaluation reserve
 16 
7,323,558

Profit and loss account
 16 
160,718

  
7,484,376


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



T Kemp
Director

Date: 25 July 2024

The notes on pages 13 to 25 form part of these financial statements.

Page 11

 
COVENT GARDEN HOTEL (LEASEHOLD) LTD
 

STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 JANUARY 2024


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

£
£
£
£


Comprehensive income for the period

Profit for the period
-
-
160,718
160,718

Surplus on revaluation of leasehold property
-
9,361,058
-
9,361,058

Deferred tax charge on revaluation of leasehold property
-
(2,037,500)
-
(2,037,500)
Total comprehensive income for the period
-
7,323,558
160,718
7,484,276

Shares issued during the period
100
-
-
100


At 31 January 2024
100
7,323,558
160,718
7,484,376

The notes on pages 13 to 25 form part of these financial statements.

Page 12

 
COVENT GARDEN HOTEL (LEASEHOLD) LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 JANUARY 2024

1.


General information

Covent Garden Hotel (Leasehold) Ltd is a private company, limited by shares, incorporated and registered in England and Wales under the Companies Act 2006. The company's registered office is 18 Thurloe Place, London, SW7 2SP. The company's principal place of business is 10 Monmouth Street, London, WC2H 9HB.
The Company was incorporated on 17 January 2023 and is presenting it's first financial statements for the period 17 January 2023 to 31 January 2024. The company commenced trading from 28 February 2023.
The company's functional and presentational currency is pound sterling (GBP), rounded to the nearest £1.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies 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 Firmdale Holdings Limited as at 31 January 2024 and these financial statements may be obtained from the Registrar of Companies.

Page 13

 
COVENT GARDEN HOTEL (LEASEHOLD) LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 JANUARY 2024

2.Accounting policies (continued)

  
2.3

Going concern

The directors view the cashflows and liabilities of Firmdale Holdings Ltd and its subsidiaries (“the Group”) as a whole in making assessments of the group’s ability to meet its liabilities as they fall due. Therefore, as part of their assessment of going concern, the directors of the company have considered the funding and liquidity position of the Group to determine the appropriateness of preparing the financial statements on a going concern basis. 
Following the elimination of all material Covid related travel restrictions in mid 2021, international and domestic demand for both accommodation and food & beverage including events recovered very quickly. By March 2022 both Revenues and Earnings started to exceed those achieved in pre-Covid financial year 2020, and continuing growth led to record profitability for the Group in the financial year to January 2023. The financial year to January 2024 delivered further growth in profitability, and the current financial year is expected to do likewise. Excellent room rate growth, whilst maintaining substantial occupancies, has helped offset the effects of high cost base inflation. 
Rising interest rates have not had a significant impact on the Group given that in excess of 90% of group debt is either fixed or has the benefit of an interest rate cap.
Despite generating a profit before tax of £161,390 in the period, the company has net current liabilities of £38,800 thousand at 31 January 2024. However, this is largely driven by an intercompany balance owed of £42,887 thousand. This balance won't be recalled to the detriment of other creditors and generally the hotel is trading well. The directors are satisfied this company remains a going concern. 
In light of the cash reserves, positive trading projections, supportive banks and well progressed plans for the loan refinancing in November, the Board has a high degree of confidence that the company will be able to meet its liabilities as they fall due and meet its covenant obligations for a period of at least twelve months. The Directors have therefore concluded that the company can continue to adopt the going concern basis in preparing the annual report and accounts. The Board will continue to monitor developments closely and adjust their forecasting assumptions as required. 

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue 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 revenue is recognised:

Rendering of services

Revenue 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 revenue 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.

Page 14

 
COVENT GARDEN HOTEL (LEASEHOLD) LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 JANUARY 2024

2.Accounting policies (continued)

 
2.5

Operating leases: the Company as lessee

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

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.6

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 Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.

 
2.7

Current and deferred taxation

The tax expense for the period 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 balance sheet 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 balance sheet 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 balance sheet date.

 
2.8

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.

Page 15

 
COVENT GARDEN HOTEL (LEASEHOLD) LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 JANUARY 2024

2.Accounting policies (continued)


2.8
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Long-term leasehold property
-
Over the lease term
Plant and machinery
-
15% 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 profit or loss.

 
2.9

Revaluation of tangible fixed assets

Individual freehold and leasehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the balance sheet date.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.

Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.

 
2.10

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 first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet 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.

 
2.11

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.

Page 16

 
COVENT GARDEN HOTEL (LEASEHOLD) LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 JANUARY 2024

2.Accounting policies (continued)

 
2.12

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.

 
2.13

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.

 
2.14

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.15

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 Balance sheet 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.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly
Page 17

 
COVENT GARDEN HOTEL (LEASEHOLD) LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 JANUARY 2024

2.Accounting policies (continued)


2.15
Financial instruments (continued)

traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

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.

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
Page 18

 
COVENT GARDEN HOTEL (LEASEHOLD) LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 JANUARY 2024

2.Accounting policies (continued)


2.15
Financial instruments (continued)

discharged or cancelled.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The following judgements (including the key areas of estimation uncertainty) have had the most significant effect on amounts recognised in the financial statements:
Revaluation of leasehold property:
Long term leasehold property is held at fair value based on detailed valuation reports completed by independent valuation specialists. These valuers hold recognised and relevant professional qualifications. The valuations are based on discounted cash flow models which include judgements surrounding future performance and market factors.


4.


Turnover

All turnover arose within the United Kingdom.


5.


Operating profit

The operating profit is stated after charging:

For the period 17 January 2023 to
31 January
2024
£

Depreciation
2,139,183

Other operating lease rentals (intercompany)
1,782,726

Page 19

 
COVENT GARDEN HOTEL (LEASEHOLD) LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 JANUARY 2024

6.


Auditors' remuneration

For the period 17 January 2023 to
31 January
2024
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
14,500
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.


7.


Employees

Staff costs were as follows:


For the period 17 January 2023 to
31 January
2024
£

Wages and salaries
3,526,394

Social security costs
306,984

Cost of defined contribution scheme
62,447

3,895,825


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


For the period 17 January 2023 to
      31 January
        2024
            No.






Hotel staff
111



Directors
2

113

Page 20

 
COVENT GARDEN HOTEL (LEASEHOLD) LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 JANUARY 2024

8.


Taxation


For the period 17 January 2023 to
31 January
2024
£

Corporation tax


Current tax on profits for the year
672

Total current tax
672


Tax on profit
672

Factors affecting tax charge for the period

The tax assessed for the period is lower than the standard rate of corporation tax in the UK of 23.83%. The differences are explained below:

For the period 17 January 2023 to
31 January
2024
£


Profit on ordinary activities before tax
161,390


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.83%
38,459

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
509,767

Capital allowances for period in excess of depreciation
(73,039)

Group relief
(474,448)

Marginal relief
(67)

Total tax charge for the period
672

Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 21

 
COVENT GARDEN HOTEL (LEASEHOLD) LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 JANUARY 2024

9.


Tangible fixed assets





Long-term leasehold property
Plant and machinery
Total

£
£
£



Cost or valuation


Additions
34,350,000
6,749,999
41,099,999


Revaluations
8,150,000
-
8,150,000



At 31 January 2024

42,500,000
6,749,999
49,249,999



Depreciation


Charge for the period on owned assets
1,211,058
928,125
2,139,183


On revalued assets
(1,211,058)
-
(1,211,058)



At 31 January 2024

-
928,125
928,125



Net book value



At 31 January 2024
42,500,000
5,821,874
48,321,874

On 28 February 2023, a fellow group company, Firmdale Property Investments Limited, assigned to this company its leasehold interest in the Covent Garden Hotel for £34.35m. 
The valuation at the reporting date is based on a detailed valuation report completed by Cushman & Wakefield, Chartered Surveyors, an independent valuer with a recognised and relevant professional qualification and with recent experience in the location and category of the property being valued. The value is reflective of the leasehold interest only at the reporting date.

Page 22

 
COVENT GARDEN HOTEL (LEASEHOLD) LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 JANUARY 2024

10.


Stocks

2024
£

Food and beverage
64,308



11.


Debtors

2024
£


Trade debtors
14,635

Amounts owed by group undertakings
2,803,130

Other debtors
143,690

2,961,455


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


12.


Cash and cash equivalents

2024
£

Cash at bank and in hand
1,318,475



13.


Creditors: Amounts falling due within one year

2024
£

Amounts owed to group undertakings
42,887,517

Corporation tax
672

Other taxation and social security
97,432

Other creditors
139,470

Accruals and deferred income
19,145

43,144,236


Page 23

 
COVENT GARDEN HOTEL (LEASEHOLD) LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 JANUARY 2024

14.


Deferred taxation



2024


£






Charged to other comprehensive income
(2,037,500)



At end of year
(2,037,500)

The deferred taxation balance is made up as follows:

2024
£


Revaluation gains in relation to long term leasehold property
(2,037,500)

(2,037,500)


15.


Share capital

2024
£
Allotted, called up and fully paid


100 Ordinary share shares of £1.00 each
100


During the period, 100 ordinary shares of £1 each were issued, allotted and paid at nominal value for cash consideration. The shares have attached to them full voting, dividend and capital distribution (including on winding up) rights; they do not cover any rights of redemption.


16.


Reserves

Revaluation reserve

This reserve records the amount above the historic cost of tangible fixed assets. The amount of depreciation provided on book value which represents a surplus on valuation is transferred as a reserves movement to the profit and loss account

Profit and loss account

Profit and loss account represents cumulative profits or losses, net of dividends paid and other adjustments.

Page 24

 
COVENT GARDEN HOTEL (LEASEHOLD) LTD
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 JANUARY 2024

17.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company in an independently administered fund. The pension cost charge for the period represents contributions payable by the Company to the fund and amounted to £62,447. Contributions totalling £Nil were payable to the fund at the balance sheet date included in creditors.


18.


Commitments under operating leases

At 31 January 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2024
£


Not later than 1 year
1,692,796

Later than 1 year and not later than 5 years
6,771,186

Later than 5 years
33,714,863

42,178,845


19.


Related party transactions

The company has taken advantage of the exemption available under paragraph 33.1A of the Financial Reporting Standard 102 not to disclose transactions with other wholly owned members of the group.
During the year the Company made purchases to the value of £30,000 from Pusey Farm Ltd. At the reporting date £Nil was owed to Pusey Farm Ltd. A member of key management personnel of Pusey Farm Ltd is a shareholder of the ultimate parent of Covent Garden Hotel (Leasehold) Ltd. 


20.


Controlling party

The immediate parent undertaking is Covent Garden Hotel (Freehold) Ltd, a company registered in England and Wales.
The company is included within the consolidation of the Firmdale Holdings Limited group and this is the parent of the smallest and largest group which draws up consolidated financial statements. Firmdale Holdings Limited registered office address is 18 Thurloe Place, London, SW7 2SP. The consolidated accounts of this group are publicly available from the Registrar of Companies.
In the opinion of the directors, the Trustees of Kemp Family Foundation are the ultimate controlling party of the Group and therefore of this entity. 

 
Page 25