WILTON HOUSE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
Company registration number 01997746 (England and Wales)
WILTON HOUSE LIMITED
COMPANY INFORMATION
Director
V S Ramoutar
Company number
01997746
Registered office
171 Adeyfield Road
Hemel Hempstead
Hertfordshire
United Kingdom
HP2 5JU
Auditor
Sears Morgan Accountancy Limited
Elm Park House
Elm Park Court
Pinner
Middlesex
HA5 3NN
Bankers
Lloyds TSB
198 - 200 The Marlowes
Hemel Hempstead
Hertfordshire
HP1 1BH
WILTON HOUSE LIMITED
CONTENTS
Page
Strategic report
1 - 3
Director's report
4 - 5
Independent auditor's report
6 - 10
Statement of income and retained earnings
11
Balance sheet
12
Statement of cash flows
13
Notes to the financial statements
14 - 29
WILTON HOUSE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -

The director presents the strategic report for the company's standalone financial statements for year ended 31 March 2023.

Review of the business

The company continued to undertake activities of residential and nursing care throughout the period under review. It also holds investment properties that it rented during the year and it also had an overseas trading subsidiary whose activities are that of a hotel and associated services.

 

The director was satisfied with the trading results for the year as the country, as a whole, continued to recover from the coronavirus pandemic. Although the company could operate without restrictions during this, and the prior, financial year it continues to experience the effects of the pandemic such as continued increased insurance premiums for the care home sector and staff recruitment challenges due to availability of workers and laws and regulations requiring all staff to be fully vaccinated against COVID-19. The director is satisfied that the company has adapted accordingly to these challenges and trading results reflect this.

 

The company's turnover increased in the year by £1,444,744 (21.69% increased, 2022 saw a 15.26% increase) and was reported at £8,106,723 (2022: £6,661,979) largely due to bed occupancy rates increasing together with the chargeable rate increase seen in the prior year, thus the company was able to counter act increases in operating costs. The benefit from various government coronavirus support grants received in the year reduced in the year, which is expected as the pandemic is deemed over, these were £36,564 (2022: £458,354) in total, The operating profit has increased by £77,947 to £1,949,578 (2022: £1,871,631).

 

The company is reporting a loss before tax of £8,487,460 (2022: £2,275,209). The discrepancy between the years is primarily due to fixed asset investment impairment provisions of £10,134,116 (2022: £3,697,000) relating to the company's oversea subsidiary company, being in the travel industry and £116,000 (2022: £nil) fair value gain on investment property revaluations. Without the impairment and revaluation provisions the company's net trading profit before tax was £1,530,656 (2022: £1,421,791) and more comparable.

 

The overall increase in administration expenditure of £962,975 (2022: £516,945) relates largely to increased supplies and provision costs by 24.19% (2022: 9.55%) and staffing costs which, including all associated staff costs, increased by 18% (2022: 8.5%) and this correlates with turnover increases, both costs being largely driven by turnover. The national living wage also increased in April 2022 by 6.21% (April 2021 2.13%) which also directly impacted the staff cost levels.

 

The company continued with its replacement repairs and renewals project replacing various items which are anticipated to be required to be replaced again in an average of 7.5 years. These costs have therefore been deferred and prepaid accordingly to reflect the period over which they are anticipated to wear and tear, repairs and renewals saw an increase of £67,858 (2022: £26,934) compared to the prior year.

 

The company did not receive any return on the fixed asset investment in the year, which as previously commented saw a significant impairment provision provided for in the year. The impairment provision is based on an agreed after date consideration value which was computed on an arms length basis. The value reduction and impairment provision thereon is significant due to extensive essential capital renovation work required to bring the hotel back up to a reputable state and, a hotel chain management early exit fee on the subsidiary changing the management earlier than the contract as the subsidiary's management felt the hotel was being poorly managed to the detriment of its shareholders.

The company has been unable to prepare consolidated financial statements due to constraints in obtaining required information from the overseas trading subsidiary and it's auditors. The company had initially been assured that this information would be provided but were subsequently advised that this information would not be provided due to the omission of a step in the registration of a share nominee agreement in Mauritius. Due to local laws a legal nominee agreement had been put in place whereby Mr Reekhaye, the controlling shareholder of company, was holding the shares in nominee to the favour of the company. The nominee agreement should have been registered with the Mauritius Prime Minister office in order to approve the effective ownership due to the company being a non-Mauritius registered entity this step was omitted by the overseas legal company that was used.

 

WILTON HOUSE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
Principal risks and uncertainties

Resident occupancy numbers have continued to recover and now be at pre-pandemic levels, however the company remains mindful of the risks an outbreak of any infection or virus could have on its business and continues to actively manage infection control procedures including continued staff training in this area. This, naturally, brings with it additional costs in relation to cleaning and staffing.

 

The fixed investment is assessed for annual impairment each year and the estimation method was historically based on the overseas trading subsidiary's audited financial statements for its 31 December year end nearest the company's financial yearend. In the year under review the impairment provision was based on an agreed after date sale transfer value.

 

The director continues to respond to recruitment challenges in the labour market which can impact business activity. The company remains exposed to policy changes both in terms of the care home industry and the labour market. The director is not aware of any other fundamental risks and uncertainties and there are systems in place to ensure the risks identified are mitigated against.

Development and performance

The director hopes to continue to maintain the trading trend in coming years by increasing resident numbers to near full occupancy and maintaining own employed staff levels to avoid the use of agency staff in order to sustain the business.

 

Due to the continued reporting and other issues that the company has faced in consolidating the results of the overseas trading subsidiary, and the omission of a legal step in the registering of a nominee agreement as noted above, the company made the decision to restructure it's overseas subsidiary shareholding. On 12 August 2024 the company signed a sale and purchase agreement, with a provision for an earlier effective date of 31 August 2023, to transfer the shares to a Mauritius company under the control of Mr Reekhaye, the ultimate beneficial owner of this company. The agreed consideration for this was a base consideration of £1.1m, payable in the form of the issuance of a loan note simultaneously on the date of the transfer of the shares, with a potential deferred consideration payable in the form of the issuance of further loan notes dependent on a third party valuation to be undertaken within 60 days of the issuing of the subsidiary's annual Audited Financial Statements as of and for the year ended 31 December 2022. The value of the deferred consideration is based on any uplift value between the base consideration, noted above, and the third party's valuation, should the valuation be lower then a downward reduction to the base consideration loan note will be applied. The base consideration was computed on an arms length market value which factored in extensive essential capital renovation works required and an early hotel management exit fee.

 

The audited accounts were only issued 22 July 2024 and as at the date of approval of this financial statements this valuation has not yet been fully undertaken.

Key performance indicators

The company's key performance indicators is turnover, which is driven by occupancy numbers, and operating profit which has been outlined above. For bank loan covenants in force at the reporting date, earnings before interest, tax, amortisation and after dividends paid is also a key performance indicator and the company's target for this is not less than £1,500,000. For the 2023 financial year end, excluding fair value and impairment provisions, this was £2,032,368 (2022: £1,947,113).

 

 

 

Other information and explanations

Financial instruments

Liquidity risk - The objective of the company in managing liquidity risk is to ensure that it can meet its financial obligations as and when they fall due. The company expects to meet its financial obligations through operating cash flows.

Customer (residents) credit exposure - The company can offer credit terms to its residents allowing payment of the debt after delivery of the services. The company is at risk to the extent that a resident may be unable to pay the debt on the specified due date. The risk is mitigated by strong credit control, client acceptance procedures and close management of on-going customer relationships.

 

WILTON HOUSE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -

On behalf of the board

V S Ramoutar
Director
13 August 2024
WILTON HOUSE LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 4 -

The director presents his annual report and financial statements for the year ended 31 March 2023.

 

Financial Risk Management polices and Future Developments have been set out in the Strategic Report.

Principal activities

The principal activity of the company continued to be that of provision of residential and nursing care.

 

The UK subsidiary was dormant throughout the year and the overseas subsidiary activities were the provision of hotel accommodation and restaurant services.

 

As the necessary information required has not been obtained from the oversea subsidiary and overseas auditor group consolidated financial statements have not been prepared. These financial statements therefore report on the standalone company results only.

Results and dividends

The results for the year are set out on page 11.

Ordinary dividends were paid amounting to £2,000. The director does not recommend payment of a final dividend.

Director

The director who held office during the year and up to the date of signature of the financial statements was as follows:

V S Ramoutar
Statement of director's responsibilities

The director is responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:

 

 

The director is 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. He is 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.

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.

WILTON HOUSE LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 5 -
On behalf of the board
V S Ramoutar
Director
13 August 2024
WILTON HOUSE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF WILTON HOUSE LIMITED
- 6 -

Adverse opinion on financial statements

We have audited the financial statements of Wilton House Limited (the 'company') for the year ended 31 March 2023 which comprise the statement of income and retained earnings, the balance sheet, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, because of the significance of the matter described in the Basis for Adverse Opinion paragraph, the financial statements:

WILTON HOUSE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF WILTON HOUSE LIMITED
- 7 -

Basis for adverse opinion

The company has not prepared consolidated group financial statements and has only prepared standalone financial statements reporting on the company's own results only.

 

The company should have prepared consolidated group financial statements incorporating the results of its subsidiary Vacances Plus Ltd (a company incorporated in Mauritius) into its financial statements. Consolidated group financial statements have not been prepared because the necessary information has not been provided to us to enable the group audited financial statements to be prepared, this includes but not limited to group consolidated audit questionnaires packs and financial data requests sent to the subsidiary auditor and request to access the subsidiary's auditors audit working papers.

 

The new subsidiary auditors in office, with effect for the subsidiary's year ended 31 December 2022, had initially indicated that they would provide us with the necessary information by signing the confirmation of group audit letter and instructions and marking that they 'will be able to comply with the instructions'.

 

However, we were subsequently advised that this information would not be provided due to the omission of a step in the registration of share nominee agreement in Mauritius. Due to local laws a legal nominee agreement had been put in place whereby Mr Reekhaye, the controlling shareholder of Wilton House Limited, was holding the shares in nominee to the favour of Wilton House Limited. The nominee agreement should have been registered with the Mauritius Prime Minister office in order to approve the effective ownership due to Wilton House Limited being an overseas entity, this step was omitted by the overseas legal company that was used.

 

In July 2023 we confirmed directly with the head of law director of the legal company used , a practicing barrister, that the Nominee Share Agreement has all its legal stand in Mauritius court of justice and that the agreement had been duly registered with the government therefore its legal form could not be disputed and that the nominee agreement between the individual and the company is perfectly valid. The independence, no influence or control to Vacances Plus Ltd was also confirmed. We did re-seek to confirm this in July 2024 but we did not receive a reply to our direct enquires in this regard.

 

Therefore legal ambiguity surrounding the subsidiary shares is present, however the director of the company believes the ownership of the shares remains with Wilton House Limited, due to the substance of the transaction, and that the company would have grounds to sue Mr Reekhaye should any ownership issues arise. The share allotments primarily arose on the capitalisation of an intercompany loan extended by Wilton House Limited to Vacances Plus Ltd.

 

Under FRS 102 Section 9 the company should have consolidated this subsidiary into group financial statements and reported on the group affairs as at 31 March 2023 and the group loss/profit for the yearend thereon ended. The company has therefore prepared individual standalone financial statements only and this subsidiary investment has therefore been accounted for on a cost basis with annual impairment review.

 

Had Vacances Plus Ltd been consolidated, the accompanying financial statements would have been materially affected as they would have reported on the consolidated results and not just the parents individual results. The effects on the financial statements of the failure to consolidate and prepare consolidated financial figures have not been determined.

 

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's 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 UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our adverse opinion.

WILTON HOUSE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF WILTON HOUSE LIMITED
- 8 -

Conclusions relating to going concern

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

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the 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 director 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 auditor's report thereon. The director is responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 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.

Opinions on other matters prescribed by the Companies Act 2006

Notwithstanding our adverse opinion on the financial statements, in our opinion, based on the work undertaken in the course of our audit:

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 director's 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:

 

We report to you the following matters in relation to which the the Companies Act 2006 requires us to report to you if, in our opinion:

As outlined in our Basis for Adverse Opinion we have not received all the information and explanations we required relevant to the oversea subsidiary to enable audited group financial statements to be prepared.

WILTON HOUSE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF WILTON HOUSE LIMITED
- 9 -
Responsibilities of director

As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

The extent to which the audit was considered capable of detecting irregularities, including fraud
Audit repsonse to risk indentified

In response to the risk of irregularities, including fraud, and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

 

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

WILTON HOUSE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF WILTON HOUSE LIMITED
- 10 -
N. Kerr FCCA
Elm Park House
Senior Statutory Auditor
Elm Park Court
For and on behalf of Sears Morgan Accountancy Limited
Pinner
Chartered Certified Accountants
Middlesex
Statutory Auditor
HA5 3NN
13 August 2024
WILTON HOUSE LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 MARCH 2023
- 11 -
2023
2022
£
£
Turnover
8,106,723
6,661,979
Administrative expenses
(6,249,532)
(5,286,557)
Other operating income
92,387
496,209
Operating profit
1,949,578
1,871,631
Interest receivable and similar income
23,671
22,509
Interest payable and similar expenses
(442,593)
(472,349)
Amounts written off investments
(10,018,116)
(3,697,000)
Loss before taxation
(8,487,460)
(2,275,209)
Tax on loss
71,679
(170,953)
Loss for the financial year
(8,415,781)
(2,446,162)
Retained earnings brought forward
14,667,311
17,115,473
Dividends
(2,000)
(2,000)
Retained earnings carried forward
6,249,530
14,667,311

The profit and loss account has been prepared on the basis that all operations are continuing operations.

WILTON HOUSE LIMITED
BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 12 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
12
8,029,578
8,023,157
Investment property
13
3,905,000
3,789,000
Investments
14
1,100,100
11,234,216
13,034,678
23,046,373
Current assets
Debtors falling due after more than one year
16
114,368
91,724
Debtors falling due within one year
16
1,626,703
1,031,405
Cash at bank and in hand
875,167
1,095,141
2,616,238
2,218,270
Creditors: amounts falling due within one year
17
(1,693,680)
(1,789,374)
Net current assets
922,558
428,896
Total assets less current liabilities
13,957,236
23,475,269
Creditors: amounts falling due after more than one year
18
(7,157,927)
(7,987,055)
Provisions for liabilities
Deferred tax liability
20
549,579
820,703
(549,579)
(820,703)
Net assets
6,249,730
14,667,511
Capital and reserves
Called up share capital
22
200
200
Non-distributable profits reserve
23
1,953,773
1,553,003
Distributable profit and (loss) reserves
4,295,757
13,114,308
Total equity
6,249,730
14,667,511

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.true

The financial statements were approved and signed by the director and authorised for issue on 13 August 2024
V S Ramoutar
Director
Company registration number 01997746 (England and Wales)
WILTON HOUSE LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
- 13 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
28
1,180,419
1,694,500
Interest paid
(442,593)
(472,349)
Income taxes refunded/(paid)
1
(324,424)
Net cash inflow from operating activities
737,827
897,727
Investing activities
Purchase of tangible fixed assets
(91,211)
(174,969)
Repayment of loans
58,829
67,491
Interest received
23,671
22,509
Net cash used in investing activities
(8,711)
(84,969)
Financing activities
Repayment of borrowings
(342,676)
(147,947)
Proceeds from new bank loans
-
0
4,294,074
Repayment of bank loans
(604,414)
(4,841,607)
Dividends paid
(2,000)
(2,000)
Net cash used in financing activities
(949,090)
(697,480)
Net (decrease)/increase in cash and cash equivalents
(219,974)
115,278
Cash and cash equivalents at beginning of year
1,095,141
979,863
Cash and cash equivalents at end of year
875,167
1,095,141
WILTON HOUSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 14 -
1
Accounting policies
Company information

Wilton House Limited is a private company limited by shares incorporated in England and Wales. The registered office is 171 Adeyfield Road, Hemel Hempstead, Hertfordshire, United Kingdom, HP2 5JU.

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.

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, [modified to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

The financial statements present information about the company as an individual entity and not about its group.

1.2
Going concern

Atruet the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover represents fees from the provision of nursing and care services which is exempt from VAT. Fees are generated monthly at the commencement of each month based on the period of occupancy of the resident and agreed contractual daily rate.

 

Revenue is recognised to the extent it is probable that the economic benefit will flow to the company and the revenue can be reliably measured as the fair value of the consideration received or receivable.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost net of depreciation and any impairment losses. No depreciation is provided on freehold land. Freehold buildings are not depreciated as in the opinion of the directors such depreciation is not material after consideration of their residual value.

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:

Land and buildings Freehold
Nil
Plant and machinery
15% Reducing balance
Fixtures, fittings & equipment
10% Reducing balance
Motor vehicles
25% Reducing balance

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 profit or loss.

1.5
Investment property

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

WILTON HOUSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 15 -

The fair value of investment property is determined by the director on an open market value. Other properties within the near location are taken into consideration reflecting recent sales, property value estimates and category of the property being valued. The director reviews the fair value at each reporting date. Where an investment property has been professionally valued by a RICS qualified surveyor the director will consider the valuation techniques used and if deemed appropriate adopt the recommended valuation for that property. Professional valuations are obtained on an ad hoc basis and based on a market rental yield basis.

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 profit or loss.

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.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.7
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible 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 profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

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 in profit or loss, 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.

WILTON HOUSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 16 -
1.9
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ 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 debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

WILTON HOUSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 17 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

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
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

WILTON HOUSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 18 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.12
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.

1.13
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.14
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.15
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

WILTON HOUSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 19 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the director is 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.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Investment property valuations

The investment properties are valued based on the directors opinion of the open market value as at the reporting date. This involves an estimation and subjective opinion based on general property prices in the area of the property and property indices. For the largest valued investment property a 2021 valuation report together with general market data for the area of the property, since the last formal valuation report, was used to assist in determining the value at the reporting date. Investment properties have been valued on an assessed open market value of £3,905,000 (2022: £3,789,000) as at the reporting date of 31 March 2023.

Subsidiary investment value

The carrying value of subsidiary investment carries an estimation risk as they are unlisted investments and therefore no readily available traded value. The directors have to assess whether there is any considered impairment of the investments and this is a subjective view based on past trading results, anticipated future trading results and the marketable value of assets held by the subsidiaries. Subsidiary investments are held at cost and reviewed annually for impairment. The UK subsidiary is dormant and therefore its assessment value is based on the net asset value of the company. For the trading overseas subsidiary, historically, a valuation method has been adopted based on the net asset value of the subsidiary based on its annual 31 December audited financial statements. For the year end 31 March 2023 the impairment provision was based on an agreed after date share sales transfer value which had adopted the same net asset value method but then also factored in extensive capital renovation works required of £8.5m (including loss of revenue) to bring the hotel back up to a reputable standard and £1.8m early hotel management exit fee payable due to changing hotel management early.

 

The total carrying cost value of subsidiary investments at the reporting date is £1,100,100 (2022: £11,756,000) and this is after annual impairment provision of £10,134,116 (2022 £3,697,000). The annual impairment provision solely relates to the overseas subsidiary.

3
Turnover and other revenue

An analysis of the company's turnover which is generated wholly within the United Kingdom is as follows:

2023
2022
£
£
Turnover analysed by class of business
Residential and nursing care
8,106,723
6,661,979
WILTON HOUSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
3
Turnover and other revenue
(Continued)
- 20 -
2023
2022
£
£
Other revenue
Interest income
23,671
22,509
Grants received
36,564
458,354
Rent receivable net of expenses
65,103
37,855
Sundry income
2,000
-
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
(36,564)
(458,354)
Fees payable to the company's auditor for the audit of the company's financial statements
23,924
19,650
Depreciation of owned tangible fixed assets
81,695
82,280
Loss on disposal of tangible fixed assets
3,095
-
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Nursing and Administration
189
155

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
4,166,856
3,518,770
Pension costs
62,923
60,363
4,229,779
3,579,133
6
Director's remuneration
2023
2022
£
£
Remuneration for qualifying services
10,604
10,108
Company pension contributions to defined contribution schemes
138
116
10,742
10,224
WILTON HOUSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
6
Director's remuneration
(Continued)
- 21 -

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2022 - 1).

7
Interest receivable and similar income
2023
2022
£
£
Interest income
Other interest income
23,671
22,509
8
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
354,520
377,198
Other interest on financial liabilities
88,073
90,353
442,593
467,551
Other finance costs:
Other interest
-
0
4,798
442,593
472,349
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
199,445
177,947
Adjustments in respect of prior periods
-
0
(57,595)
Total current tax
199,445
120,352
Deferred tax
Origination and reversal of timing differences
(300,124)
55,899
Changes in tax status
29,000
(5,298)
Total deferred tax
(271,124)
50,601
Total tax (credit)/charge
(71,679)
170,953
WILTON HOUSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
9
Taxation
(Continued)
- 22 -

The actual (credit)/charge for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Loss before taxation
(8,487,460)
(2,275,209)
Expected tax credit based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
(1,612,617)
(432,290)
Tax effect of expenses that are not deductible in determining taxable profit
(2,105)
17,746
Adjustments in respect of prior years
-
0
(57,595)
Other non-reversing timing differences
(57,595)
(57,595)
Accelerated capital allowances
(31,680)
(52,345)
Fair value accounting adjustments
1,903,442
702,431
Deferred tax increase / (decrease)
(271,124)
50,601
Taxation (credit)/charge for the year
(71,679)
170,953
10
Amounts written on and off investments
2023
2022
£
£
Changes in the fair value of investment properties
116,000
-
Impairment of fixed asset investments
(10,134,116)
(3,697,000)
(10,018,116)
(3,697,000)
11
Dividends
2023
2022
£
£
Interim paid
2,000
2,000
WILTON HOUSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 23 -
12
Tangible fixed assets
Land and buildings Freehold
Plant and machinery
Fixtures, fittings & equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 April 2022
7,537,729
729,287
666,999
27,544
8,961,559
Additions
-
0
64,711
26,500
-
0
91,211
Disposals
-
0
(6,976)
-
0
-
0
(6,976)
At 31 March 2023
7,537,729
787,022
693,499
27,544
9,045,794
Depreciation and impairment
At 1 April 2022
-
0
366,131
565,384
6,887
938,402
Depreciation charged in the year
-
0
63,723
12,807
5,165
81,695
Eliminated in respect of disposals
-
0
(3,881)
-
0
-
0
(3,881)
At 31 March 2023
-
0
425,973
578,191
12,052
1,016,216
Carrying amount
At 31 March 2023
7,537,729
361,049
115,308
15,492
8,029,578
At 31 March 2022
7,537,729
363,156
101,615
20,657
8,023,157

Freehold land and buildings with a carrying historic cost value of £7,537,729 (2022 - £7,537,729) are subject to first mortgages and a registered debenture that forms security for bank borrowings of the company.

13
Investment property
2023
£
Fair value
At 1 April 2022
3,789,000
Net gains or losses through fair value adjustments
116,000
At 31 March 2023
3,905,000

The investment properties were revalued by the director at 31 March 2023 on an open market value basis

 

On a historical cost basis these would have been included at an original cost of £1,951,227 (2022: £1,951,227) and aggregate depreciation of £nil (2022: £nil).

 

Investment properties with a carrying value of £2,180,000 are subject to a first mortgage and forms security for bank borrowings. The property was last formally valued on 18 November 2021 by Knight Frank LLP, a RICS registered surveyor and commercial property consultancy firm who determined the market value of this property to be £2,150,000, as at that date, based on the aggregate market rent and capitalisation rate methodology.

WILTON HOUSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 24 -
14
Fixed asset investments
2023
2022
Notes
£
£
Investments in subsidiaries
15
1,100,100
11,234,216
Movements in fixed asset investments
Shares in subsidiaries
£
Cost or valuation
At 1 April 2022 & 31 March 2023
16,439,432
Impairment
At 1 April 2022
5,205,216
Impairment losses
10,134,116
At 31 March 2023
15,339,332
Carrying amount
At 31 March 2023
1,100,100
At 31 March 2022
11,234,216
15
Subsidiaries

These financial statements are separate company financial statements for Wilton House Limited.

 

Group audited consolidated financial statements have not been prepared as the necessary information to compile these has not been received from the overseas entity and overseas auditor.

Details of the company's subsidiaries at 31 March 2023 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Huskard Nursing Home Limited
United Kingdom
Dormant
Ordinary
100.00
Vacances Plus Ltd
Mauritius
Hotel and associated activities
Ordinary
97.27
The aggregate capital and reserves and the result for the year of the subsidiaries noted above was as follows:
Name of undertaking
Capital and Reserves
Profit/(Loss)
£
£
Huskard Nursing Home Limited
100
-
0
Vacances Plus Ltd
12,483,496
71,254
WILTON HOUSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
15
Subsidiaries
(Continued)
- 25 -

The investments in subsidiaries are all stated at cost less annual impairment review provisions.

 

The Vacances Plus Ltd subsidiary investment is held via a nominee agreement with N A Reekhaye, the ultimate controlling party of the company, and to which has been duly registered with the Registrar General Department Mauritius as a legally binding document and available for the public to request a copy. The company is the beneficial owner of the shares and has sole entitlement to all voting rights, dividends interest and other benefits which accrue on the shares.

16
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
1,374,749
904,909
Amounts owed by group undertakings
-
0
58,829
Other debtors
181,550
4,000
Prepayments and accrued income
70,404
63,667
1,626,703
1,031,405
2023
2022
Amounts falling due after more than one year:
£
£
Prepayments and accrued income
114,368
91,724
Total debtors
1,741,071
1,123,129
17
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans
19
615,000
632,295
Other borrowings
19
267,389
368,056
Trade creditors
139,166
114,505
Amounts owed to undertakings in which the company has a participating interest
100
100
Corporation tax
214,350
14,904
Other taxation and social security
113,158
93,594
Other creditors
38,390
187,450
Accruals and deferred income
306,127
378,470
1,693,680
1,789,374
WILTON HOUSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 26 -
18
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
19
6,935,383
7,522,502
Other borrowings
19
222,544
464,553
7,157,927
7,987,055
Amounts included above which fall due after five years are as follows:
Payable by instalments
4,523,438
4,757,334
19
Loans and overdrafts
2023
2022
£
£
Bank loans
7,550,383
8,154,797
Other loans
489,933
832,609
8,040,316
8,987,406
Payable within one year
882,389
1,000,351
Payable after one year
7,157,927
7,987,055

Bank borrowings are secured by first legal mortgages over those company's freehold properties and investment properties they relate to and a debenture over the company's assets. Interest on bank borrowings with maturity dates between 4 and 11.5 years are being charged interest at variable rates between 3.8% and 6.1% per annum.

Other loans are repayable by instalments, unsecured and have a maturity date of between 1 to 3 years from drawdown. Fixed interest is being charged between 10.5% and 20.9% per annum.

20
Deferred taxation

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
549,579
535,933
Investment property
-
284,770
549,579
820,703
WILTON HOUSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
20
Deferred taxation
(Continued)
- 27 -
2023
Movements in the year:
£
Liability at 1 April 2022
820,703
Credit to profit or loss
(271,124)
Liability at 31 March 2023
549,579

The majority of the deferred tax liability set out above is not expected to reverse until the company sells its land and buildings, as it relates to accelerated capital allowances on building fixtures that are not depreciated.

21
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
62,923
60,363

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund. Contributions totalling £24,533 (2022: £20,472) were payable to the scheme at the year end and are included within other creditors.

22
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
200
200
200
200
23
Non-distributable profits reserve
2023
2022
£
£
At the beginning of the year
1,553,003
1,547,705
Non distributable profits in the year
400,770
5,298
At the end of the year
1,953,773
1,553,003

The non-distributable profits reserve represents the cumulative fair value adjustment to investment properties after consideration of any indexation allowance adjustments and net of deferred tax thereon.

WILTON HOUSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 28 -
24
Events after the reporting date

On 12 August 2024 the company signed a sale and purchase agreement, with a provision for an earlier effective date of 31 August 2023, to transfer its share holding in the overseas subsidiary undertaking, Vacances Plus Limited, to a Mauritius company under the control of Mr Reekhaye who is also the ultimate beneficial owner of the company. The agreed consideration for this was a base consideration of £1.1m, payable in the form of the issuance of a loan note simultaneously on the date of the transfer of the shares, with a potential deferred consideration payable in the form of the issuance of further loan notes dependent on a third party valuation to be undertaken within 60 days of the issuing of the subsidiary's annual Audited Financial Statements as of and for the year ended 31 December 2022. The value of the deferred consideration is based on any uplift value between the base consideration, noted above, and the third party's valuation, should the valuation be lower then a downward reduction to the base consideration loan note will be applied. The base consideration was computed on an arms length market value which factored in extensive essential capital renovation works required and an early hotel management exit fee.

 

The subsidiary's annual Audited Financial Statements as of and for the year ended 31 December 2022 were only issued 22 July 2024 and therefore as at the date of approval of the company's Financial Statement the third party valuation had not been completed and, the filing of the company's Financial Statement could not be delayed any further.

25
Related party transactions
Remuneration of key management personnel

All directors and certain senior employees who have the authority and responsibility for planning, directing and controlling activities of the company are considered to be the key management personnel. Total remuneration in respect of these individuals in the year was:

2023
2022
£
£
Aggregate compensation
235,118
234,114
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Other information

During the year a net amount of £153,449 (2022: £116,251) was advanced to N A Reekhaye, the sole shareholder of the company. At the balance sheet date other creditors include £13,528 (2022: £166,977) owed to N A Reekhaye. There is no set repayment date.

 

During the year Vacances Plus Limited, a company incorporated in Mauritius in which the company holds a 97% investment, made loan repayments totalling £82,500 (2022: £90,000) in cash repayments. Interest totalling £23,671 (2022: £22,509) was charged and paid in the year and a write off provision of £nil (2022: £3,697,000) made against a previous years loan amortised interest. At the balance sheet date Vacances Plus Limited owed the company £nil (2022: £58,829), which was all repayable within one year.

 

26
Ultimate controlling party

The ultimate controlling party is N A Reekhaye by virtue of his ownership of 100% of the issued ordinary share capital in the company.

WILTON HOUSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 29 -
27
Analysis of changes in net debt
1 April 2022
Cash flows
31 March 2023
£
£
£
Cash at bank and in hand
1,095,141
(219,974)
875,167
Borrowings excluding overdrafts
(8,987,406)
947,090
(8,040,316)
(7,892,265)
727,116
(7,165,149)
Cash generated from operations
2023
2022
£
£
Loss for the year after tax
(8,415,781)
(2,446,163)
Adjustments for:
Taxation (credited)/charged
(71,679)
170,953
Finance costs
442,593
472,349
Investment income
(23,671)
(22,509)
Loss on disposal of tangible fixed assets
3,095
-
Fair value gain on investment properties
(116,000)
-
0
Depreciation and impairment of tangible fixed assets
81,695
82,280
Other gains and losses
10,134,116
3,697,000
Movements in working capital:
Increase in debtors
(676,771)
(247,028)
Decrease in creditors
(177,178)
(12,383)
Cash generated from operations
1,180,419
1,694,500
2023-03-312022-04-01falseCCH SoftwareCCH Accounts Production 2023.300V S Ramoutarfalse019977462022-04-012023-03-3101997746bus:Director12022-04-012023-03-3101997746bus:RegisteredOffice2022-04-012023-03-3101997746bus:Agent12022-04-012023-03-31019977462023-03-31019977462021-04-012022-03-3101997746core:RetainedEarningsAccumulatedLosses2022-03-3101997746core:RetainedEarningsAccumulatedLosses2021-03-3101997746core:RetainedEarningsAccumulatedLosses2023-03-3101997746core:RetainedEarningsAccumulatedLosses2022-03-3101997746core:ShareCapital2023-03-3101997746core:ShareCapital2022-03-3101997746core:InvestmentPropertiesRevaluationReserve2023-03-3101997746core:InvestmentPropertiesRevaluationReserve2022-03-3101997746core:FurtherSpecificReserve1ComponentTotalEquity2023-03-3101997746core:FurtherSpecificReserve1ComponentTotalEquity2022-03-31019977462022-03-3101997746core:RetainedEarningsAccumulatedLosses2021-04-012022-03-3101997746core:LandBuildingscore:OwnedOrFreeholdAssets2023-03-3101997746core:PlantMachinery2023-03-3101997746core:FurnitureFittings2023-03-3101997746core:MotorVehicles2023-03-3101997746core:LandBuildingscore:OwnedOrFreeholdAssets2022-03-3101997746core:PlantMachinery2022-03-3101997746core:FurnitureFittings2022-03-3101997746core:MotorVehicles2022-03-3101997746core:Non-currentFinancialInstrumentscore:AfterOneYear2023-03-3101997746core:Non-currentFinancialInstrumentscore:AfterOneYear2022-03-3101997746core:CurrentFinancialInstruments2023-03-3101997746core:CurrentFinancialInstruments2022-03-3101997746core:CurrentFinancialInstrumentscore:WithinOneYear2023-03-3101997746core:CurrentFinancialInstrumentscore:WithinOneYear2022-03-3101997746core:Non-currentFinancialInstruments2023-03-3101997746core:Non-currentFinancialInstruments2022-03-310199774612022-04-012023-03-310199774612021-04-012022-03-310199774622022-04-012023-03-310199774622021-04-012022-03-31019977462022-03-31019977462021-03-3101997746core:LandBuildingscore:OwnedOrFreeholdAssets2022-04-012023-03-3101997746core:PlantMachinery2022-04-012023-03-3101997746core:FurnitureFittings2022-04-012023-03-3101997746core:MotorVehicles2022-04-012023-03-3101997746core:UKTax2022-04-012023-03-3101997746core:UKTax2021-04-012022-03-310199774632022-04-012023-03-310199774632021-04-012022-03-3101997746core:LandBuildingscore:OwnedOrFreeholdAssets2022-03-3101997746core:PlantMachinery2022-03-3101997746core:FurnitureFittings2022-03-3101997746core:MotorVehicles2022-03-3101997746core:Subsidiary12022-04-012023-03-3101997746core:Subsidiary22022-04-012023-03-3101997746core:Subsidiary112022-04-012023-03-3101997746core:Subsidiary212022-04-012023-03-3101997746core:Subsidiary12023-03-3101997746core:Subsidiary22023-03-3101997746bus:PrivateLimitedCompanyLtd2022-04-012023-03-3101997746bus:FRS1022022-04-012023-03-3101997746bus:Audited2022-04-012023-03-3101997746bus:FullAccounts2022-04-012023-03-31xbrli:purexbrli:sharesiso4217:GBP