STEPHENSON HOTEL ENTERPRISE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2022
Stephenson Hotel Enterprise Limited ('the company') is a private company limited by shares, incorporated and domiciled in the United Kingdom and registered in England and Wales. The address of the registered office is Boiler Shop, 20 South Street, Newcastle upon Tyne, NE1 3PE.
The company is an intermediate holding company and has not traded during the current or preceding financial year.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies.
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Financial Reporting Standard 102 - reduced disclosure exemptions
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The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d).
This information is included in the consolidated financial statements of Clouston Group Limited as at 31 December 2022 and these financial statements may be obtained from Companies house.
Whilst the company does not trade and has no liabilities outside the group of which it is part, the company is subject to a contingent liability as guarantor in respect of term loan facilities held by its wholly owned subsidiary, Stephenson Hotel Limited, which are repayable on demand pending renegotiation of their terms.
As at the balance sheet date, borrowings by Stephenson Hotel Limited under the facility amounted to £38.7m (2021: £38.04m) including accrued but unpaid finance costs. As at the date of approval of these financial statements, Stephenson Hotel Limited is not in compliance with all requirements of the facility, rendering the loan facilities repayable on demand.
On this basis the directors consider it appropriate to prepare these financial statements on a going concern basis, however, the directors acknowledge that should the lender withdraw its support or suitable terms in respect of the funding facilities not be agreed with Stephenson Hotel Limited that ownership of the company would be transferred or dissolved and therefore a materiality uncertainty exists.
Investments in subsidiaries are measured at cost less accumulated impairment.
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