Company registration number 06803496 (England and Wales)
FOCUS HOTELS MANAGEMENT (HATFIELD) LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
FOCUS HOTELS MANAGEMENT (HATFIELD) LIMITED
COMPANY INFORMATION
- 1 -
Directors
Mr P Cashman
Mr A Edwards
Company number
06803496
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 MANAGEMENT (HATFIELD) LIMITED
CONTENTS
Page
Directors' report
2
Directors' responsibilities statement
3
Statement of financial position
4
Notes to the financial statements
5 - 10
FOCUS HOTELS MANAGEMENT (HATFIELD) 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 continued to be that of hoteliers.

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 MANAGEMENT (HATFIELD) 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:

 

 

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 MANAGEMENT (HATFIELD) LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 4 -
31 December 2023
29 December 2022
Notes
£
£
£
£
Current assets
Stocks
18,882
20,608
Debtors
4
178,899
467,376
Cash at bank and in hand
123,572
172,859
321,353
660,843
Creditors: amounts falling due within one year
5
(342,242)
(681,732)
Net current liabilities
(20,889)
(20,889)
Capital and reserves
Called up share capital
1
1
Profit and loss reserves
(20,890)
(20,890)
Total equity
(20,889)
(20,889)

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 06803496 (England and Wales)
FOCUS HOTELS MANAGEMENT (HATFIELD) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
1
Accounting policies
Company information

Focus Hotels Management (Hatfield) 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.

1.2
Turnover

Revenue 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.

Revenue is derived from hotel operations, including the rental of rooms and food and beverage sale. Revenue is recognised when rooms are occupied and food and beverage is sold.

1.3
Stocks

Stocks are valued at lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Costs includes all direct costs and an appropriate proportion of fixed and variable overheads.

Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.

1.4
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.

1.5
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 statement of financial position when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

FOCUS HOTELS MANAGEMENT (HATFIELD) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 6 -
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.

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.

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.

1.6
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.

1.7
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 income statement 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.

FOCUS HOTELS MANAGEMENT (HATFIELD) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 7 -
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 income statement, 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.

1.8
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.

1.9
Retirement benefits

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

1.10
Leases

The company is committed to paying rent to the landlord of the hotel each year in accordance with the formula set in the Management Arrangement dated 21 February 2021 which expires on 21 February 2041.

 

Future operating lease rental payments are determined by the level of profit generated by the hotel with no minimum guarantee.

1.11
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.

1.12

Accounting reference date

During the year, the Company changed its accounting reference period to end on 31 December. 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.

FOCUS HOTELS MANAGEMENT (HATFIELD) 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
20
34
4
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
9,412
206,864
Amounts owed by group undertakings
121,490
56,346
Other debtors
-
0
190,531
Prepayments and accrued income
47,997
13,635
178,899
467,376

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

5
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
168,527
58,636
Amounts owed to group undertakings
-
0
18,365
Taxation and social security
65,102
356,284
Other creditors
-
0
34,504
Accruals and deferred income
108,613
213,943
342,242
681,732

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

FOCUS HOTELS MANAGEMENT (HATFIELD) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
6
Other financial commitments

There is an intercompany guarantee in place in relation to the planned overdraft between Focus Hotels Management Ltd and Natwest bank.

 

The level of security is unlimited, but at the balance sheet date no amounts were due under the overdraft.

7
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
8
Financial commitments, guarantees and contingent liabilities

The company has provided guarantee for £4.6m on borrowings on behalf of Hatfield Hotels Limited, a related company.

9
Operating lease commitments
Lessee

At 31 December 2023 the Company had future minimum lease payments under non-cancellable operating lease as follows:

 

The Company entered into a 20 year hotel operating lease with connected company Hatfield Hotels Limited, as at the reporting date the remaining term of the lease is 17 years and 2 months, The future commitment of lease payable can not be reliably estimated over the period of the lease, because the lease payables are linked to the hotel performance and calculated as percentage of EBITDA as detailed in 1.10.

FOCUS HOTELS MANAGEMENT (HATFIELD) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
10
Related party transactions

The company is a wholly owned subsidiary of Focus Hotels Management Limited. 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 Limited group.

 

Rent of £1.037,867 (2022 - £464,527) was payable to a company related by virtue of common directors.

11
Parent company

The company's immediate parent company is Focus Hotels Leasing Limited, a company registered in England and Wales and the ultimate parent company is Focus Hotels Management Ltd, registered in England and Wales at the same registered office as the company and the head of the smallest and largest group for which consolidated accounts are prepared. Copies of these consolidated accounts are available from Companies House, Crown Way, Cardiff, CF14 3UZ.

 

In the opinion of the directors, there is no ultimate controlling party.

 

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