Company registration number SC199079 (Scotland)
EURO HOSTELS LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
EURO HOSTELS LIMITED
CONTENTS
Page
Statement of financial position
1 - 2
Statement of changes in equity
3
Notes to the financial statements
4 - 8
EURO HOSTELS LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
3
3,650,000
5,698,976
Current assets
Stocks
-
19,947
Debtors
4
35,309
94,547
Cash at bank and in hand
619,860
522,909
655,169
637,403
Creditors: amounts falling due within one year
5
(2,302,928)
(2,402,653)
Net current liabilities
(1,647,759)
(1,765,250)
Total assets less current liabilities
2,002,241
3,933,726
Creditors: amounts falling due after more than one year
6
(119,280)
(124,960)
Provisions for liabilities
(205,299)
Net assets
1,882,961
3,603,467
Capital and reserves
Called up share capital
10,396,420
10,396,420
Share premium account
81,237
81,237
Revaluation reserve
1,521,504
Capital redemption reserve
1,325,157
1,325,157
Profit and loss reserves
(9,919,853)
(9,720,851)
Total equity
1,882,961
3,603,467
The director of the company has elected not to include a copy of the income statement within the financial statements.true
For the financial year ended 31 December 2023 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The director acknowledges her responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The member has not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
EURO HOSTELS LIMITED
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT
31 DECEMBER 2023
31 December 2023
- 2 -
The financial statements were approved and signed by the director and authorised for issue on 19 August 2024
E T Salvesen
Director
Company Registration No. SC199079
EURO HOSTELS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
Share capital
Share premium account
Revaluation reserve
Capital redemption reserve
Profit and loss reserves
Total
£
£
£
£
£
£
Balance at 1 January 2022
10,396,420
81,237
1,556,086
1,325,157
(9,783,113)
3,575,787
Year ended 31 December 2022:
Profit and total comprehensive income for the year
-
-
-
-
27,680
27,680
Transfers
-
-
(34,582)
-
34,582
-
Balance at 31 December 2022
10,396,420
81,237
1,521,504
1,325,157
(9,720,851)
3,603,467
Year ended 31 December 2023:
Loss for the year
-
-
-
-
(233,584)
(233,584)
Other comprehensive income:
Revaluation of tangible fixed assets
-
-
(1,486,922)
-
-
(1,486,922)
Total comprehensive income for the year
-
-
(1,486,922)
-
(233,584)
(1,720,506)
Transfers
-
-
(34,582)
-
34,582
-
Balance at 31 December 2023
10,396,420
81,237
1,325,157
(9,919,853)
1,882,961
EURO HOSTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
1
Accounting policies
Company information
Euro Hostels Limited is a private company limited by shares incorporated in Scotland. The registered office is 5th Floor, Quartermile Two, 2 Lister Square, Edinburgh, Scotland, United Kingdom, EH3 9GL.
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, modified to include the revaluation of investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
The company ceased trading from 31 December 2023. The financial statements therefore have been prepared on a break up basis. No remeasurements have been required as a result of this basis.true
1.3
Turnover
Turnover represents amounts derived from hostel accommodation, including bar and other ancillary income. All turnover is stated net of Value Added Tax and is generated from within the United Kingdom.
Turnover is recognised on the date of occupancy.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost, 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:
Freehold land and buildings
2%, 10% and 25% straight line
Leasehold land and buildings
2% straight line
Fixtures and fittings
15%, 25% and 33% straight line
Computer equipment
33% straight line
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
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
1.6
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.
EURO HOSTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 5 -
1.7
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.
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. 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.
1.8
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.
1.9
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.
EURO HOSTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 6 -
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.
1.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.11
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.12
Government grants
Government grants received relating to costs incurred by the company are recognised in the income statement over the period necessary to match them with the costs that they are intended to compensate. Government grants are presented separately and disclosed in other income in the fund account.
Other income includes UK Government assistance provided through various grants received from the local authority.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Total
40
40
EURO HOSTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 7 -
3
Tangible fixed assets
Freehold land and buildings
Fixtures and fittings
Computer equipment
Total
£
£
£
£
Cost or valuation
At 1 January 2023
8,079,404
912,579
117,060
9,109,043
Disposals
(1,666,733)
(912,579)
(117,060)
(2,696,372)
Revaluation
(2,762,671)
(2,762,671)
At 31 December 2023
3,650,000
3,650,000
Depreciation and impairment
At 1 January 2023
2,420,621
875,882
113,564
3,410,067
Depreciation charged in the year
84,301
9,153
1,654
95,108
Eliminated in respect of disposals
(1,666,875)
(885,035)
(115,218)
(2,667,128)
Revaluation
(838,047)
(838,047)
At 31 December 2023
Carrying amount
At 31 December 2023
3,650,000
3,650,000
At 31 December 2022
5,658,783
36,697
3,496
5,698,976
Revaluation
The company's freehold property was listed for sale on the market at the year end. The estate agent CBRE Limited valued the property at £3,650,000.
Had this class of asset been measured at historical cost basis, the carrying amount would have been £4,054,533 (2022: £4,137,279)
4
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
2,964
3,094
Other debtors
38,345
Prepayments and accrued income
32,345
53,108
35,309
94,547
EURO HOSTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
5
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
35,575
86,003
Amounts owed to group undertakings
2,198,207
2,063,972
Taxation and social security
40,714
116,950
Other creditors
403
Accruals and deferred income
28,432
135,325
2,302,928
2,402,653
6
Creditors: amounts falling due after more than one year
2023
2022
£
£
Deferred income
119,280
124,960
7
Operating lease commitments
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2023
2022
£
£
41,624
8
Events after the reporting date
On 31 July 2024, the property was sold.
9
Related party transactions
The company undertook related party transactions with wholly owned members of ETS Capital Group Limited during the year. The company has taken the exemption from disclosure of these transactions available under paragraph 33.1A of FRS102.
10
Parent company
The company's immediate parent is Balapan (Properties) Limited, incorporated in Scotland.
The ultimate parent is ETS Capital Limited, incorporated in England and Wales.
The most senior parent entity producing publicly available financial statements is ETS Capital Limited. These financial statements are available upon request from Britannia House, Glenthorne Road, London, Greater London, W6 0LH.
The ultimate controlling party is E T Salvesen.