Company Registration No. 03511991 (England and Wales)
RESPITE MANAGEMENT LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
RESPITE MANAGEMENT LIMITED
COMPANY INFORMATION
Directors
Lik Hwa Loh
Lik Peng Loh
Lik Eng Loh
Pek Har Loh
Hung Soo Loh
Secretary
Lik Hwa Loh
Company number
03511991
Registered office
Town Hall Hotel & Apartments
8 Patriot Square
London
E2 9NF
United Kingdom
Auditor
HW Fisher LLP
Acre House
11-15 William Road
London
NW1 3ER
United Kingdom
RESPITE MANAGEMENT LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 30
RESPITE MANAGEMENT LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 1 -

The directors present the strategic report for the year ended 31 March 2023.

Fair review of the business

The group’s principal activities are that of owning and operating fully serviced apartments and hotels in both the business and leisure accommodation markets. Its two principal sites are Town Hall Hotel and 196 Bishopsgate, both in Central London. The Group operates restaurant and bar facilities via its wholly owned subsidiary Old Town Hall Restaurants Limited and Restaurant Da Terra Limited. On 23 December 2022, the trade and assets of the operations of 196 Bishopsgate hotel were transferred to a related company.

Having only reopened in the middle of August 2020, the luxury leisure market was almost the sole market for London hotels for the year, with a small amount of corporate travel. The international travel, group and events business was non-existent, and all major events had been cancelled. It was not until March 2021 that some improvement was seen in the market, and this was tentative at best. Going into 2022, things started to improve and saw a return to profitability and higher occupancy (albeit not as high as pre-Covid levels) with the year recouping some ground that was lost during the pandemic.

The group made an operating profit for the year of £359,364 (2022: operating loss of £281,070). Included within operating profit is net credit of £nil (2022: £192,225) which arose as a result of reconciling the balance sheet in preparing the financial statements, where there were a number of unknown reconciling items which have been written off to the profit and loss account.

The group’s principal sources of finance are loans from the group’s bankers and strong support from the group’s immediate parent company and fellow subsidiary and from the shareholders and directors.

 

Business Environment

Whilst the world begins to recover from the pandemic, three other significant events occurred – the war in Ukraine, the impact of Brexit and the world-wide inflationary pressure resulting in the downturn of many economies.

 

The impact of the war in Ukraine is currently not thought to have an immediate effect on the hotel, although the Directors continue to monitor and assess the situation and the wider impact on inflation and the company’s costs. With Brexit being the major issue, causing a reduction in the availability of EU workers and the events in Ukraine having a negative effect on hospitality in general, the trading environment is uncertain. However, the falling value of the sterling has made the UK more competitive for overseas visitors and travel restrictions have encouraged domestic tourism.

 

Set against this, low UK unemployment rates and above-inflation increases in the minimum wage have all contributed to increased costs associated with acquiring, training and retaining staff. In addition, utility bills continue to increase at above the rate of inflation. A lack of optimism on the macroeconomic front will continue to affect revenues and profitability through to 2023.

Principal risks and uncertainties

Liquidity Risk

The group is exposed to liquidity risk to fund its ongoing operations. This is managed by undertaking detailed cash flow forecasting to monitor the group and company’s working capital requirements to ensure that sufficient cash resources are available to meet the group and company’s obligations as they fall due.

 

RESPITE MANAGEMENT LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 2 -
Development and performance

Financial Risk

The group is subject to financial risks through changes in interest rates. The groups borrowings bear interest at a floating rate and therefore expose the group to interest rate fluctuations. These borrowings are with one major lender and are secured over assets of the company. The directors have considered the potential impact of future rate rises and are confident that these do not present a significant threat to the ability of the group to carry on as a going concern.

On 22 August 2022, the bank loan was refinanced with the existing lender. Facilities were agreed of £5,900,000 and £4,000,000, relating to a term loan and capex facility respectively. The maturity date is 3 years from the drawdown date of the loan. The facilities offered are a loan facility and a capital expenditure loan with interest on the respective portions being 1.95% + SONIA and 2.05% + SONIA. The group has not drawdown any amounts on the capex facility. On 23 December 2022, the term loan was repaid following the group restructure.

In respect of amounts due to and from related parties, the directors have received assurance that such amounts will not be recalled until the group is in the financial position to do so.

High levels of inflation are pushing up wholesale prices and labour shortages are driving up wages. These factors are posing a potential threat to the profitability of the group. It is the directors view that potential gains in average room rates and selling prices will counteract the potentially increased cost base to maintain profitability.

Key performance indicators

The group’s key performance indicators are average room rates, occupancy rates, gross profit, gross profit margin and operating profit before exceptional items. The directors monitor the group’s KPIs on a regular basis in order to assess the group’s ongoing financial performance. The performance of the group in the current and prior year can be summarised as follows:

 

                    2023            2022

Gross profit                £4,462,161        £2,666,464

 

Gross profit margin                47.7%            50.8%

 

Operating profit on total operations     £359,364          £93,517

 

EBITDA                    £835,672         £495,526

On behalf of the board

Lik Peng Loh
Director
27 August 2024
RESPITE MANAGEMENT LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2023
- 3 -

The directors present their annual report and financial statements for the year ended 31 March 2023.

Principal activities

The principal activity of the company and group continued to be that of owning and operating fully serviced apartments and hotels in business and leisure accommodation markets.

Results and dividends

The results for the year are set out on page 8.

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

Directors

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

Lik Hwa Loh
Lik Peng Loh
Lik Eng Loh
Pek Har Loh
Hung Soo Loh
Auditor

The auditor, HW Fisher LLP, 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 auditor of the company 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 auditor of the company is aware of that information.

On behalf of the board
Lik Peng Loh
Director
27 August 2024
RESPITE MANAGEMENT LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2023
- 4 -

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 group and company, and of the profit or loss of the group 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 group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

RESPITE MANAGEMENT LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF RESPITE MANAGEMENT LIMITED
- 5 -
Opinion

We have audited the financial statements of Respite Management Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2023 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group 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 FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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 opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' 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 group's and parent 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 directors 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 directors are 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

Except for the possible effects of the matter described in the basis for qualified opinion section of our report, in our opinion, based on the work undertaken in the course of our audit:

RESPITE MANAGEMENT LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF RESPITE MANAGEMENT LIMITED
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the directors' report.

 

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are 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 directors determine 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 directors are responsible for assessing the parent 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 directors either intend to liquidate the company or to cease operations, or have 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.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

RESPITE MANAGEMENT LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF RESPITE MANAGEMENT LIMITED
- 7 -

As part of our planning process:

 

The key procedures we undertook to detect irregularities including fraud during the course of the audit included:Ÿ

 

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have properly planned and performed our audit in accordance with auditing standards. The primary responsibility for the prevention and detection of irregularities and fraud rests with the director.

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.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

Gilles Siow (Senior Statutory Auditor)
For and on behalf of HW Fisher LLP
Chartered Accountants
Statutory Auditor
Acre House
11-15 William Road
London
NW1 3ER
United Kingdom
27 August 2024
RESPITE MANAGEMENT LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2023
- 8 -
Continuing
Discontinued
31 March
Continuing
Discontinued
31 March
operations
operations
2023
operations
operations
2022
Notes
£
£
£
£
£
£
Turnover
3
7,524,359
1,822,576
9,346,935
3,305,039
1,946,872
5,251,911
Cost of sales
(4,664,426)
(220,348)
(4,884,774)
(2,348,627)
(262,228)
(2,610,855)
Gross profit
2,859,933
1,602,228
4,462,161
956,412
1,684,644
2,641,056
Administrative expenses
(3,479,580)
(623,771)
(4,103,351)
(1,733,571)
(1,260,752)
(2,994,323)
Other operating income
554
-
554
170,004
-
170,004
Operating profit/(loss)
5
(619,093)
978,457
359,364
(607,155)
423,892
(183,263)
Interest receivable and similar income
6,722
-
6,722
269
-
269
Interest payable and similar expenses
8
(163,058)
-
(163,058)
(98,076)
-
(98,076)
Profit/(loss) before taxation
(775,429)
978,457
203,028
(704,962)
423,892
(281,070)
Tax on profit/(loss)
9
-
-
-
-
-
-
Profit/(loss) for the financial year
(775,429)
978,457
203,028
(704,962)
423,892
(281,070)
Profit/(loss) for the financial year is attributable to:
- Owners of the parent company
207,605
(273,687)
- Non-controlling interests
(4,577)
(7,383)
203,028
(281,070)
RESPITE MANAGEMENT LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2023
- 9 -
2023
2022
£
£
Profit/(loss) for the year
203,028
(281,070)
Other comprehensive income
-
-
Total comprehensive income for the year
203,028
(281,070)
Total comprehensive income for the year is attributable to:
- Owners of the parent company
207,605
(273,687)
- Non-controlling interests
(4,577)
(7,383)
203,028
(281,070)
RESPITE MANAGEMENT LIMITED
GROUP BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
13
839,557
1,184,295
Current assets
Stocks
16
72,581
90,130
Debtors
17
3,128,857
6,312,473
Cash at bank and in hand
292,144
640,706
3,493,582
7,043,309
Creditors: amounts falling due within one year
18
(11,449,304)
(10,373,188)
Net current liabilities
(7,955,722)
(3,329,879)
Total assets less current liabilities
(7,116,165)
(2,145,584)
Creditors: amounts falling due after more than one year
19
(35,247)
(5,208,856)
Net liabilities
(7,151,412)
(7,354,440)
Capital and reserves
Called up share capital
22
1
1
Profit and loss reserves
(7,093,125)
(7,300,730)
Equity attributable to owners of the parent company
(7,093,124)
(7,300,729)
Non-controlling interests
(58,288)
(53,711)
(7,151,412)
(7,354,440)
The financial statements were approved by the board of directors and authorised for issue on 27 August 2024 and are signed on its behalf by:
27 August 2024
Lik Peng Loh
Director
RESPITE MANAGEMENT LIMITED
COMPANY BALANCE SHEET
AS AT 31 MARCH 2023
31 March 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
13
658,566
1,090,314
Investments
14
5,000
5,000
663,566
1,095,314
Current assets
Debtors
17
3,108,548
6,290,969
Cash at bank and in hand
207,140
517,236
3,315,688
6,808,205
Creditors: amounts falling due within one year
18
(10,960,184)
(9,919,516)
Net current liabilities
(7,644,496)
(3,111,311)
Total assets less current liabilities
(6,980,930)
(2,015,997)
Creditors: amounts falling due after more than one year
19
-
(5,151,930)
Net liabilities
(6,980,930)
(7,167,927)
Capital and reserves
Called up share capital
22
1
1
Profit and loss reserves
(6,980,931)
(7,167,928)
Total equity
(6,980,930)
(7,167,927)

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £186,997 (2022 - £227,432 loss).

The financial statements were approved by the board of directors and authorised for issue on 27 August 2024 and are signed on its behalf by:
27 August 2024
Lik Peng Loh
Director
Company Registration No. 03511991
RESPITE MANAGEMENT LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 12 -
Share capital
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
£
£
£
£
£
Balance at 1 April 2021
1
(7,027,043)
(7,027,042)
-
(7,027,042)
Year ended 31 March 2022:
Loss and total comprehensive income for the year
-
(273,687)
(273,687)
(7,383)
(281,070)
Acquisition of subsidiary
-
-
-
(46,328)
(46,328)
Balance at 31 March 2022
1
(7,300,730)
(7,300,729)
(53,711)
(7,354,440)
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
207,605
207,605
(4,577)
203,028
Balance at 31 March 2023
1
(7,093,125)
(7,093,124)
(58,288)
(7,151,412)
RESPITE MANAGEMENT LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2023
- 13 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 April 2021
1
(6,940,496)
(6,940,495)
Year ended 31 March 2022:
Loss and total comprehensive income for the year
-
(227,432)
(227,432)
Balance at 31 March 2022
1
(7,167,928)
(7,167,927)
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
186,997
186,997
Balance at 31 March 2023
1
(6,980,931)
(6,980,930)
RESPITE MANAGEMENT LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2023
- 14 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
5,125,143
898,493
Interest paid
(163,058)
(98,076)
Net cash inflow from operating activities
4,962,085
800,417
Investing activities
Purchase of business
-
4,134
Purchase of tangible fixed assets
(815,706)
(167,567)
Proceeds on disposal of tangible fixed assets
684,136
-
Receipts arising from loans made
(19,100)
-
Interest received
6,722
269
Net cash used in investing activities
(143,948)
(163,164)
Financing activities
Repayment of borrowings
-
(192,802)
Repayment of bank loans
(5,166,699)
-
Net cash used in financing activities
(5,166,699)
(192,802)
Net (decrease)/increase in cash and cash equivalents
(348,562)
444,451
Cash and cash equivalents at beginning of year
640,706
196,255
Cash and cash equivalents at end of year
292,144
640,706
RESPITE MANAGEMENT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
- 15 -
1
Accounting policies
Company information

Respite Management Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is .

 

The group consists of Respite Management Limited and its subsidiaries, Old Town Hall Restaurants Limited and Restaurant Da Terra Limited.

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. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets and liabilities acquired is recognised as goodwill. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Respite Management Limited together with its subsidiaries, Old Town Hall Restaurants Limited and Restaurant Da Terra Limitred.

 

All financial statements are made up to 31 March 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

RESPITE MANAGEMENT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 16 -
1.4
Going concern

The directors have considered the going concern status of the entity. The hotel is recovering from the Covid-19 pandemic with the restrictions ending during the period. The hotel had suffered with long periods of closure in previous periods a result of the various lockdown measures in the UK. The hotel is fully operational, but the capacity at which the hotel was able to operate was affected by staffing issues which were widespread across the hospitality industry, imposing caps on occupancy rates. The hotel has been able to remove these caps post year end and in recent months has seen high occupancy levels and a return to profitability. On 23 December 2022, the company transferred the trade and assets of one of the hotels where the entity operates to a related company, 196 Serviced Residences Limited. This hotel has historically been profit making therefore future profits for Respite Management Limited are less certain.

 

The group had net liabilities of £7,151,412 (2022: £7,354,440) and net current liabilities of £7,955,722 (2022: £3,329,879) as at 31 March 2023 and also owe amounts of £3,237,881 (2022: £3,237,881) to a related party which are repayable on demand. The related party itself is in a net current liability and net liability position and therefore it cannot be relied upon that this debt will not be recalled, however, a group entity has amounts receivable from the same related entity and it has been confirmed these payables could be assigned as far as they are able against this balance.

 

The group has the financial backing of one of its directors (Lik Peng Loh) who is providing support for a period of at least 12 months after the approval of these financial statements so the company and the group can meet their expenses and liabilities as they fall due. The group has also received confirmation from KMC Holdings Pte Limited and Sonrac Developments Pty Limited (see note 25) which are owed money from the group that they will not seek repayment and that they will provide financial support for a period of at least 13 months from the date of approval of these financial statements.

 

Having been satisfied that such support is available, the directors have a reasonable expectation that the company and the group have adequate resources available to continue in operation for the foreseeable future and there are no material uncertainties regarding going concern. Thus, the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.5
Turnover

Turnover is derived from hotel and restaurant operations, and arose wholly in the United Kingdom. Turnover is recognised when services have been rendered. The turnover is derived primarily from the rental of rooms and food and beverage sales. Turnover is all rendering of goods and services.

 

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes.

1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.7
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

RESPITE MANAGEMENT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 17 -

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:

Leasehold land and buildings
4% straight line
Leasehold improvements
Over the life of the lease
Plant and equipment
25% straight line
Fixtures and fittings
10% - 25% straight line
Computers
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 recognised in the profit and loss account.

1.8
Fixed asset investments

Interests in subsidiaries 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 group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.9
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

1.10
Stocks

Stocks are stated at the lower of cost and estimated selling price. The cost of stock includes the purchase of food and beverages.

1.11
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks.

1.12
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

RESPITE MANAGEMENT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 18 -
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 group 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 group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and related parties, 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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.13
Equity instruments

Equity instruments issued by the group 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 group.

1.14
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.

RESPITE MANAGEMENT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 19 -
1.15
Retirement benefits

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

1.16
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 leased asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.17
Government grants

The group received government grants in the year, making use of the schemes the UK government brought into place for business during the Covid-19 pandemic.

 

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

 

Government grants, which include amounts received from local authority grants, are recognised at the fair value of the grant received or receivable when there is a reasonable assurance that the grant conditions will be met and the grants will be received. The income is recognised in other income in the period in which the grant becomes receivable.

 

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.

1.18
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.

RESPITE MANAGEMENT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 20 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Reconciliation differences

In the comparative period, during the preparation of the financial statements and reconciling the balance sheet, management identified various differences that could not be reconciled. The differences identified were written off to the profit and loss account in the year. Where the nature of the transactions could not be determined, the income or expense was recognised as an exceptional item within administrative expenses in the profit and loss account. The total of such transactions was a net debit of £nil (2022: £192,225) for the group. See note 4 for further details.

Key sources of estimation uncertainty
Recoverability of amounts owed by group undertakings

Amounts owed from the group are assessed for the recoverability of the balance. The directors consider the amounts owed by group undertakings at the year end of £1,953,504 (2022: £5,379,914) to be recoverable due to the market value of the properties held within these group undertakings and therefore have not made any provision against these balances.

 

There are further amounts owed from group undertakings of £684,265. The directors consider these amounts owed by group undertakings to be recoverable on the future trading potential of this entity.

 

The directors considered amounts due from Respite Management Limited's subsidiary undertaking, Old Town Hall Restaurants Limited, to not be recoverable and these have been provided for in these accounts. The bad debt provision against the amounts due from the company's subsidiary is £3,001,613 (2022: £3,001,613). Further amounts have been provided for against amounts due from Respite Management Limited's subsidiary undertaking, Restaurant Da Terra Limited of £180,192 (2022: £180,192).

3
Turnover and other revenue

The whole of the turnover is attributable to income from the provision of furnished apartments for short term rental and from the supply of food and beverages at restaurants.

 

All turnover arose within the United Kingdom.

2023
2022
£
£
Turnover analysed by class of business
Rooms revenue
7,123,700
4,206,487
Food and drink revenue
2,205,763
1,004,857
Other revenue
17,472
40,567
9,346,935
5,251,911
RESPITE MANAGEMENT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
3
Turnover and other revenue
(Continued)
- 21 -
2023
2022
£
£
Other significant revenue
Interest income
6,722
269
Grants received
-
132,149
4
Exceptional item
2023
2022
£
£
Expenditure
Exceptional item - reconciliation differences
-
(192,225)
-
(192,225)

During the year ended 31 March 2023 there was a net credit to the statement of comprehensive income of £nil (2022: £192,225). As a result of the struggles of Covid-19, during the financial year there was a high degree of staff turnover within the business including within the finance department. When reconciling the balance sheet in preparing the financial statements for the year ended 31 March 2022, there were a number of unknown reconciling items which have been written off to the profit and loss account as an exceptional item within administrative expenses as management were unable to determine where they should be allocated to.

5
Operating profit/(loss)
2023
2022
£
£
Operating profit/(loss) for the year is stated after charging/(crediting):
Government grants
-
(132,149)
Depreciation of owned tangible fixed assets
476,308
402,009
Amortisation of intangible assets
-
6,014
Impairment of intangible assets
-
0
234,550
Operating lease charges
562,500
450,000
6
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
118,393
120,000
For other services
All other non-audit services
-
5,543
RESPITE MANAGEMENT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 22 -
7
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Management and admin
35
13
13
9
Operational staff
85
78
52
47
Total
120
91
65
56

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
3,412,094
2,213,273
2,200,236
1,432,799
Social security costs
285,104
152,080
176,163
96,751
Pension costs
53,356
67,340
37,397
48,130
3,750,554
2,432,693
2,413,796
1,577,680
8
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
160,927
98,076
Interest due on overdue taxation
2,131
-
Total finance costs
163,058
98,076
RESPITE MANAGEMENT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 23 -
9
Taxation

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

2023
2022
£
£
Profit/(loss) before taxation
203,028
(281,070)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
38,575
(53,403)
Tax effect of expenses that are not deductible in determining taxable profit
2,685
4,190
Permanent capital allowances in excess of depreciation
8,957
11,260
Depreciation on assets not qualifying for tax allowances
1,524
268
Other permanent differences
(6,366)
18,983
Deferred tax adjustments in respect of prior years
-
0
12,775
Deferred tax not recognised
(30,064)
217,395
Remeasurement of deferred tax for changes in tax rates
(22,526)
(112,075)
Deferred tax not recognised
7,215
(106,407)
Other
-
7,014
Taxation charge
-
-

As at 31 March 2023 the group has trade losses carried forward of £3,098,709 (2022: £3,462,806). The group has not recognised a deferred tax asset on these losses as a result of the uncertainties around future trading profits for the group.

10
Discontinued operations

On 23 December 2022, the company transferred the trade and assets of one of the hotels where the entity operates to a related company, 196 Serviced Residences Limited.

11
Impairments

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

2023
2022
Notes
£
£
In respect of:
Goodwill
12
-
234,550
Recognised in:
Administrative expenses
-
234,550

The impairment losses in respect of financial assets are recognised in administrative expenses in the profit and loss account.

RESPITE MANAGEMENT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 24 -
12
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 April 2022 and 31 March 2023
240,564
Amortisation and impairment
At 1 April 2022 and 31 March 2023
240,564
Carrying amount
At 31 March 2023
-
0
At 31 March 2022
-
0
The company had no intangible fixed assets at 31 March 2023 or 31 March 2022.

More information on impairment movements in the year is given in note 11.

13
Tangible fixed assets
Group
Leasehold land and buildings
Leasehold improvements
Plant and equipment
Fixtures and fittings
Computers
Total
£
£
£
£
£
£
Cost
At 1 April 2022
5,700,000
117,641
1,043,112
6,984,861
34,638
13,880,252
Additions
-
0
-
0
206,451
608,726
529
815,706
Disposals
(5,700,000)
-
0
(147,145)
(1,317,525)
-
0
(7,164,670)
Transfers
-
0
(1,123)
1,123
-
0
-
0
-
0
At 31 March 2023
-
0
116,518
1,103,541
6,276,062
35,167
7,531,288
Depreciation and impairment
At 1 April 2022
5,137,498
49,348
856,644
6,620,227
32,240
12,695,957
Depreciation charged in the year
161,886
12,690
142,740
157,787
1,205
476,308
Eliminated in respect of disposals
(5,299,384)
-
0
(136,973)
(1,044,177)
-
0
(6,480,534)
At 31 March 2023
-
0
62,038
862,411
5,733,837
33,445
6,691,731
Carrying amount
At 31 March 2023
-
0
54,480
241,130
542,225
1,722
839,557
At 31 March 2022
562,502
68,293
186,468
364,634
2,398
1,184,295
RESPITE MANAGEMENT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
13
Tangible fixed assets
(Continued)
- 25 -
Company
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Total
£
£
£
£
Cost
At 1 April 2022
5,700,000
738,820
6,977,966
13,416,786
Additions
-
0
86,982
591,318
678,300
Disposals
(5,700,000)
(147,145)
(1,317,525)
(7,164,670)
At 31 March 2023
-
0
678,657
6,251,759
6,930,416
Depreciation and impairment
At 1 April 2022
5,137,498
569,532
6,619,442
12,326,472
Depreciation charged in the year
161,886
110,251
153,775
425,912
Eliminated in respect of disposals
(5,299,384)
(136,973)
(1,044,177)
(6,480,534)
At 31 March 2023
-
0
542,810
5,729,040
6,271,850
Carrying amount
At 31 March 2023
-
0
135,847
522,719
658,566
At 31 March 2022
562,502
169,288
358,524
1,090,314
14
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
5,000
5,000
Movements in fixed asset investments
Company
Shares in group undertakings
£
Cost
At 1 April 2022 and 31 March 2023
5,000
Carrying amount
At 31 March 2023
5,000
At 31 March 2022
5,000
15
Subsidiaries

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

RESPITE MANAGEMENT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
15
Subsidiaries
(Continued)
- 26 -
Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Indirect
Old Town Hall Restaurants Limited
Town Hall Hotel & Apartments, 8 Patriot Square, London, United Kingdom, E2 9NF
Licensed restaurants
Ordinary
100.00
-
Restaurant Da Terra Limited
Town Hall Hotel & Apartments, 8 Patriot Square, London, United Kingdom, E2 9NF
Licensed restaurants
Ordinary
-
80.00
16
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Food and beverages
72,581
90,130
-
0
-
0
17
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
144,487
335,681
134,444
335,681
Amounts owed by group undertakings
2,649,025
5,428,193
2,674,145
5,426,193
Other debtors
56,030
66,086
39,069
46,921
Prepayments and accrued income
261,315
482,513
260,890
482,174
3,110,857
6,312,473
3,108,548
6,290,969
Amounts falling due after more than one year:
Other debtors
18,000
-
0
-
0
-
0
Total debtors
3,128,857
6,312,473
3,108,548
6,290,969
RESPITE MANAGEMENT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 27 -
18
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
20
6,910
-
0
-
0
-
0
Trade creditors
949,580
1,379,121
805,799
1,279,815
Amounts owed to group undertakings
1,820,452
-
0
1,821,958
-
0
Other taxation and social security
742,954
923,087
588,108
684,485
Other creditors
7,143,486
7,183,716
7,123,976
7,131,434
Accruals and deferred income
785,922
887,264
620,343
823,782
11,449,304
10,373,188
10,960,184
9,919,516
19
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
20
35,247
5,208,856
-
0
5,151,930
20
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
42,157
5,208,856
-
0
5,151,930
Payable within one year
6,910
-
0
-
0
-
0
Payable after one year
35,247
5,208,856
-
0
5,151,930

As at 31 March 2023, the group has borrowings of £42,157 relating to a Bounce Back loan. The loan bears interest of 2.5%, and is repayable in 2030.

 

The group repaid one of their loans during the period following refinancing in the parent company. The bank loan bore interest at 2.34%.

 

The security over the bank loans and overdraft refinanced in the parent company comprises the following:

 

First legal charge over 192-200 Bishopsgate, London, EC2 and Bethnal Green Old Town Hall, Patriot Square, London E2.

 

First legal charge over the lease extended by Mastelle Limited to Respite Management for 25 years.

 

Debenture incorporating a first fixed and floating charge on all assets, both present and future, of Respite Management Limited.

 

There are personal guarantees from three directors of the company jointly and severally.

RESPITE MANAGEMENT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 28 -
21
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
53,356
67,340

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

22
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1
1
1
1
23
S479A parent company guarantee

For the financial year ended 31 March 2023, the company's subsidiaries, Old Town Hall Restaurants Limited and Restaurant Da Terra Limited were entitled to exemption from audit under section 479A of the Companies Act 2006.

 

The net outstanding liabilities which the company has guaranteed pursuant to s479A and s479C of the Companies Act 2006 amounted to £3,197,793 and £500,252. These liabilities are already incorporated in the consolidated financial statements.

24
Operating lease commitments
Lessee

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
900,000
470,741
900,000
470,741
Between two and five years
3,600,000
192,329
3,600,000
192,329
In over five years
17,755,890
-
17,755,890
-
22,255,890
663,070
22,255,890
663,070
RESPITE MANAGEMENT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
24
Operating lease commitments
(Continued)
- 29 -
Lessor

At the reporting end date the group had contracted with tenants for the following minimum lease payments:

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
72,000
150,000
72,000
150,000
Between two and five years
198,000
75,000
198,000
75,000
270,000
225,000
270,000
225,000
25
Related party transactions

At the balance sheet date, the group owed £1,824,528 (2022: was owed £3,075,941) to its parent undertakings Mastelle Limited, a company incorporated in the British Virgin Islands and was owed £1,953,504 (2022: £2,350,215) by Mastelle (Zinc House) Limited, a fellow group undertaking incorporated in Jersey.

 

At the balance sheet date, £689,250 (2022: £nil) was owed by 196 Serviced Residences Limited, a company incorporated in England & Wales, under common control by the directors of the group.

 

At the balance sheet date, £3,099,827 (2022: £3,099,827) was due to KMC Holdings Pte Limited, a company incorporated in Singapore, under common control by the directors of the group.

 

At the balance sheet date £nil (2022: £9,716) was due from Mayrange Limited, a company incorporated in the Republic of Ireland, with a common director to Respite Management Limited.

 

At the balance sheet date the group owed £138,054 (2022: £138,054) to Sonrac Developments Pty Ltd, a company incorporated in Australia and a wholly owned subsidiary of Mastelle Limited, the immediate parent company of Respite Management Limited.

 

As at 31 March 2023, the group owed £3,866,671 (2022: £3,866,671) to two of the directors of the company included within other creditors. Further amounts of £19,100 (2022: £nil) were owed by one of the directors to the company.

 

Three directors of the group have provided personal guarantees over the overdraft and loan facilities which amount to £nil (2022: £5,151,930) at the year-end.

26
Controlling party

During the year, the company’s immediate parent company was Mastelle Limited, a company incorporated in the British Virgin Islands with registered office at Palm Grove House, P.O. Box 438, Road Town, Tortola. On 23 December 2022, as part of a group reorganisation, the company’s immediate parent company became Mastelle (Zinc House) Limited, a company incorporated in Jersey with registered office at 13 Castle Street, St. Helier, JE2 3BT.

 

The company’s ultimate parent company is Bronze Ribbon Limited, a company incorporated in the British Virgin Islands with registered office at Portcullis Chambers, 4th Floor, Ellen Skelton Building, 3076 Sir Francis Drake Highway, Road Town, Totola.

 

The group is controlled by Hung Soo Loh and Pek Har Loh who both act as directors of the company.

RESPITE MANAGEMENT LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 30 -
27
Cash generated from group operations
2023
2022
£
£
Profit/(loss) for the year after tax
203,028
(281,070)
Adjustments for:
Finance costs
163,058
98,076
Investment income
(6,722)
(269)
Amortisation and impairment of intangible assets
-
240,564
Depreciation and impairment of tangible fixed assets
476,308
402,009
Decrease in provisions
-
(284,080)
Movements in working capital:
Decrease/(increase) in stocks
17,549
(4,558)
Decrease/(increase) in debtors
3,202,716
(886,368)
Increase in creditors
1,069,206
1,614,189
Cash generated from operations
5,125,143
898,493
28
Analysis of changes in net funds/(debt) - group
1 April 2022
Cash flows
31 March 2023
£
£
£
Cash at bank and in hand
640,706
(348,562)
292,144
Borrowings excluding overdrafts
(5,208,856)
5,166,699
(42,157)
(4,568,150)
4,818,137
249,987
2023-03-312022-04-01falseCCH SoftwareCCH Accounts Production 2024.200Lik Peng LohLik Eng LohPek Har LohHung Soo LohHung Soo LohLik Hwa 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