Company registration number 06803406 (England and Wales)
FOCUS HOTELS LEASING LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
FOCUS HOTELS LEASING LIMITED
COMPANY INFORMATION
- 1 -
Directors
Mr P Cashman
Mr A Edwards
Company number
06803406
Registered office
5th Floor
Watson House
54-60 Baker Street
London
United Kingdom
W1U 7BU
Auditor
King & King
Chartered Accountants & Statutory Auditors
5th Floor
Watson House
54-60 Baker Street
London
W1U 7BU
FOCUS HOTELS LEASING LIMITED
CONTENTS
Page
Directors' report
2
Directors' responsibilities statement
3
Statement of financial position
4
Notes to the financial statements
5 - 10
FOCUS HOTELS LEASING LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
The directors present their annual report and audited financial statements for the year ended 31 December 2023.
Principal activities
The principal activity of the company during the period was that of a holding company and to provide hotel management services.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
Mr P Cashman
Mr A Edwards
Auditor
The auditor, King & King, Chartered Accountants is deemed to be reappointed under section 487(2) of the Companies Act 2006.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
Small companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.
On behalf of the board
Mr A Edwards
Director
3 May 2024
FOCUS HOTELS LEASING LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the 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 and then apply them consistently;
make judgements 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 enable them to ensure that the financial statements comply with the Companies Act 2006. They 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.
FOCUS HOTELS LEASING LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 4 -
31 December 2023
29 December 2022
Notes
£
£
£
£
Fixed assets
Tangible assets
5
749
1,804
Investments
6
4
4
753
1,808
Current assets
Debtors
7
37,572
Creditors: amounts falling due within one year
8
(823,308)
(727,309)
Net current liabilities
(823,308)
(689,737)
Net liabilities
(822,555)
(687,929)
Capital and reserves
Called up share capital
1
1
Profit and loss reserves
(822,556)
(687,930)
Total equity
(822,555)
(687,929)
The directors of the company have elected not to include a copy of the income statement within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 3 May 2024 and are signed on its behalf by:
Mr A Edwards
Director
Company registration number 06803406 (England and Wales)
FOCUS HOTELS LEASING LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
1
Accounting policies
Company information
Focus Hotels Leasing Limited is a private company limited by shares incorporated in England and Wales. The registered office is 5th Floor, Watson House, 54-60 Baker Street, London, United Kingdom, W1U 7BU.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.
Focus Hotels Leasing Limited is a wholly owned subsidiary of Focus Hotels Management Limited and the results of Focus Hotels Leasing Limited are included in the consolidated financial statements of Focus Hotels Management Limited which are available from Companies House.
The Company changed its accounting reference period to end on 31 December in 2023. However, the annual accounts up to 31 December 2022 were prepared as of the Thursday closest to 31 December each year. Consequently, the comparative period for the year ended 31 December 2023 has been reported as at 29 December 2022.
1.2
Going concern
These financial statements are prepared on the going concern basis. The directors have a reasonable expectation that the company will continue in operational existence for the foreseeable future.
The directors have prepared cash flow forecasts covering a period of at least 12 months from the date of approval of these financial statements. In preparing these forecasts the directors have applied prudent estimates taking into account overall outlook of the hospitality sector.
The directors with reference to the forecasts and current trading levels of subsidiary companies believe it is appropriate to adopt the going concern accounting policy in preparing the financial statements. In making their assessment the directors have considered a period of at least 12 months from the date of approval of these financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Turnover comprises accountancy and marketing recharges to the subsidiary companies recognised on accrual basis over the period of time. The whole of the turnover is attributable to the principal activity of the company. All turnover arose within the United Kingdom.
FOCUS HOTELS LEASING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 6 -
1.4
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Software
Intangible assets are amortised on a straight line basis over 5 years.
1.5
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Fixtures and fittings
Tangible assets are depreciation on a straight line basis over 4 years
Computer equipment
Tangible assets are depreciated on a straight line basis over 4 years.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to the statement of comprehensive income.
1.6
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in the statement of comprehensive income.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.7
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in the statement of comprehensive income unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
FOCUS HOTELS LEASING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 7 -
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately the statement of comprehensive income, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.8
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9
Financial instruments
The Company does not trade in financial instruments and all such instruments arise directly from operations.
Trade and other debtors, which do not contain in substance a financing transaction, are initially recognised at transaction value. Thereafter trade and other debtors are reviewed for impairment where there is objective evidence based on observable data that the balance may be impaired. The Company does not hold collateral against its trade and other receivables so its exposure to credit risk is the net balance of trade and other debtors after allowance for impairment.
The group's cash holdings comprise on demand balances. All cash is held with banks with strong external credit ratings.
Trade and other creditors and accruals are initially recognised at transaction value as none represent a financing transaction. They are only derecognised when they are extinguished.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
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 the Statement of comprehensive income 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.
FOCUS HOTELS LEASING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
11
7
4
Intangible fixed assets
Other
£
Cost
At 30 December 2022 and 31 December 2023
79,170
Amortisation and impairment
At 30 December 2022 and 31 December 2023
79,170
Carrying amount
At 31 December 2023
At 29 December 2022
FOCUS HOTELS LEASING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
5
Tangible fixed assets
Fixtures and fittings
Computer equipment
Total
£
£
£
Cost
At 30 December 2022 and 31 December 2023
420
4,802
5,222
Depreciation and impairment
At 30 December 2022
210
3,208
3,418
Depreciation charged in the year
105
950
1,055
At 31 December 2023
315
4,158
4,473
Carrying amount
At 31 December 2023
105
644
749
At 29 December 2022
210
1,594
1,804
6
Fixed asset investments
2023
2022
£
£
Shares in group undertakings and participating interests
4
4
7
Debtors
2023
2022
Amounts falling due within one year:
£
£
Other debtors
37,572
8
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
65,205
98,402
Amounts owed to group undertakings
731,354
562,964
Taxation and social security
2,450
26,840
Other creditors
24,299
39,103
823,308
727,309
Amounts owed to group undertakings are unsecured, interest free, have no fixed date of repayment and are repayable on demand.
FOCUS HOTELS LEASING LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
9
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Milankumar Patel
Statutory Auditor:
King & King
Date of audit report:
3 May 2024
10
Related party transactions
The company is a wholly owned subsidiary of Focus Hotels Management Ltd. Accordingly, the company has taken advantage of the exemption in FRS 102 section 33.1A from disclosing transactions with wholly owned members of the Focus Hotels Management Ltd group.
11
Parent company
The ultimate parent company is Focus Hotels Management Ltd, a company incorporated in England and Wales. The head of the largest group for which consolidated accounts are prepared. Copies of these consolidated accounts are publicly available at Companies House, Crown Way, Cardiff, CF14 3UZ.
In the opinion of the directors there is no ultimate controlling party.
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