Company Registration No. 09633534 (England and Wales)
UNIQUE BOUTIQUE HOTELS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 MARCH 2023
UNIQUE BOUTIQUE HOTELS LIMITED
COMPANY INFORMATION
Directors
Mr J S H Houlston
Mr C L Eddlestone
Company number
09633534
Registered office
Ground Floor
6 Queen Street
Leeds
West Yorkshire
United Kingdom
LS1 2TW
Auditor
TC Group
6 Queen Street
Leeds
West Yorkshire
LS1 2TW
UNIQUE BOUTIQUE HOTELS LIMITED
CONTENTS
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 7
Profit and loss account
8
Group balance sheet
9 - 10
Company balance sheet
11 - 12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Notes to the financial statements
16 - 31
UNIQUE BOUTIQUE HOTELS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 29 MARCH 2023
- 1 -

The directors present the strategic report for the year ended 29 March 2023.

Fair review of the business

The principal activity of the group during the period continued to be the management and operation of a hotel.

 

Unique Boutique Hotels is the group company which owns a significant shareholding (55%) in the company UBH Manchester Limited, which has the principal activity of a hotel operator.

The year ending 29th March 2023 saw the group and its companies emerge from the COVID pandemic and trade robustly against poor economic conditions within the hotel and leisure sector resulting from the UK political instability and the war in Ukraine. The year saw significant operating cost inflation, and the hotel focussed on driving greater efficiencies through the implementation and installation of new operating systems. Whilst our competition struggled to get customers through the door, Unique Boutique Hotels' focus on only acquiring and developing in the best locations creating the best possible product for the market paid off, with the hotel achieving an average occupancy of 78.8% (2022 - 53.1%) over the year.

Key performance indicators
The following key performance indicators have been utilised to analyse the performance of the trading entity:
Unit
2023
2022
Turnover
£000's
6,058
3,895
RevPAR
£000's
89
57
EBITDAR
£000's
1,486
819

On behalf of the board

Mr J S H Houlston
Director
6 September 2024
UNIQUE BOUTIQUE HOTELS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 29 MARCH 2023
- 2 -

The directors present their annual report and financial statements for the year ended 29 March 2023.

Principal activities

The principal activity of the company and group continued to be that of project management.

Results and dividends

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

Ordinary dividends were paid amounting to £50,000. 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:

Mr J S H Houlston
Mr C L Eddlestone
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
Mr J S H Houlston
Director
6 September 2024
UNIQUE BOUTIQUE HOTELS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 29 MARCH 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 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.

UNIQUE BOUTIQUE HOTELS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF UNIQUE BOUTIQUE HOTELS LIMITED
- 4 -
Opinion

We have audited the financial statements of Unique Boutique Hotels Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 29 March 2023 which comprise the group profit and loss account, 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.

UNIQUE BOUTIQUE HOTELS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF UNIQUE BOUTIQUE HOTELS LIMITED
- 5 -

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

In our opinion, based on the work undertaken in the course of our audit:

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the 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.

UNIQUE BOUTIQUE HOTELS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF UNIQUE BOUTIQUE HOTELS LIMITED
- 6 -
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.

Extent to which the audit was capable of detecting irregularities, including fraud

The objectives of our audit, in respect of fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management.

 

Our approach was as follows:

 

UNIQUE BOUTIQUE HOTELS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF UNIQUE BOUTIQUE HOTELS LIMITED
- 7 -

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from material fraud or error.

 

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. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect all non-compliance with laws and regulations.

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.

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.

Mark Hunter FCA (Senior Statutory Auditor)
For and on behalf of TC Group
6 September 2024
Statutory Auditor
6 Queen Street
Leeds
West Yorkshire
LS1 2TW
UNIQUE BOUTIQUE HOTELS LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 29 MARCH 2023
- 8 -
2023
2022
Notes
£
£
Turnover
3
6,301,489
4,116,726
Cost of sales
(1,281,091)
(830,413)
Gross profit
5,020,398
3,286,313
Administrative expenses
(5,096,528)
(4,438,749)
Other operating income
46,250
56,424
Operating loss
4
(29,880)
(1,096,012)
Interest receivable and similar income
8
-
0
1,229
Interest payable and similar expenses
9
(734,542)
(728,936)
Loss before taxation
(764,422)
(1,823,719)
Tax on loss
10
1,522,772
-
0
Profit/(loss) for the financial year
25
758,350
(1,823,719)
Profit/(loss) for the financial year is attributable to:
- Owners of the parent company
457,104
(1,057,936)
- Non-controlling interests
301,246
(765,783)
758,350
(1,823,719)
UNIQUE BOUTIQUE HOTELS LIMITED
GROUP BALANCE SHEET
AS AT 29 MARCH 2023
29 March 2023
- 9 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
12
14,450,629
14,890,593
Current assets
Stocks
15
23,195
13,068
Debtors
16
927,316
1,352,393
Cash at bank and in hand
366,622
327,936
1,317,133
1,693,397
Creditors: amounts falling due within one year
17
(12,508,420)
(12,479,042)
Net current liabilities
(11,191,287)
(10,785,645)
Total assets less current liabilities
3,259,342
4,104,948
Creditors: amounts falling due after more than one year
18
(931,941)
(963,125)
Provisions for liabilities
Deferred tax liability
21
153,547
1,676,319
(153,547)
(1,676,319)
Net assets
2,173,854
1,465,504
Capital and reserves
Called up share capital
24
101
101
Revaluation reserve
25
7,131,075
7,131,075
Profit and loss reserves
25
(5,890,494)
(6,297,598)
Equity attributable to owners of the parent company
1,240,682
833,578
Non-controlling interests
933,172
631,926
2,173,854
1,465,504
UNIQUE BOUTIQUE HOTELS LIMITED
GROUP BALANCE SHEET (CONTINUED)
AS AT 29 MARCH 2023
29 March 2023
- 10 -
The financial statements were approved by the board of directors and authorised for issue on 6 September 2024 and are signed on its behalf by:
06 September 2024
Mr J S H Houlston
Director
UNIQUE BOUTIQUE HOTELS LIMITED
COMPANY BALANCE SHEET
AS AT 29 MARCH 2023
29 March 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
12
38,086
86
Investments
13
1
1
38,087
87
Current assets
Debtors
16
176,194
140,628
Cash at bank and in hand
40,394
60,656
216,588
201,284
Creditors: amounts falling due within one year
17
(122,663)
(140,146)
Net current assets
93,925
61,138
Total assets less current liabilities
132,012
61,225
Creditors: amounts falling due after more than one year
18
(31,872)
-
Net assets
100,140
61,225
Capital and reserves
Called up share capital
24
100
100
Profit and loss reserves
25
100,040
61,125
Total equity
100,140
61,225

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 £88,915 (2022 - £121,979 loss).

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

UNIQUE BOUTIQUE HOTELS LIMITED
COMPANY BALANCE SHEET (CONTINUED)
AS AT 29 MARCH 2023
29 March 2023
- 12 -
The financial statements were approved by the board of directors and authorised for issue on 6 September 2024 and are signed on its behalf by:
06 September 2024
Mr J S H Houlston
Director
Company Registration No. 09633534
UNIQUE BOUTIQUE HOTELS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 29 MARCH 2023
- 13 -
Share capital
Revaluation reserve
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
£
Balance at 31 March 2021
101
7,131,075
(5,239,662)
1,891,514
1,397,709
3,289,223
Year ended 30 March 2022:
Loss and total comprehensive income for the year
-
-
(1,057,936)
(1,057,936)
(765,783)
(1,823,719)
Balance at 30 March 2022
101
7,131,075
(6,297,598)
833,578
631,926
1,465,504
Year ended 29 March 2023:
Profit and total comprehensive income for the year
-
-
457,104
457,104
301,246
758,350
Dividends
11
-
-
(50,000)
(50,000)
-
(50,000)
Balance at 29 March 2023
101
7,131,075
(5,890,494)
1,240,682
933,172
2,173,854
UNIQUE BOUTIQUE HOTELS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 29 MARCH 2023
- 14 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 31 March 2021
100
183,104
183,204
Year ended 30 March 2022:
Loss and total comprehensive income for the year
-
(121,979)
(121,979)
Balance at 30 March 2022
100
61,125
61,225
Year ended 29 March 2023:
Profit and total comprehensive income for the year
-
88,915
88,915
Dividends
11
-
(50,000)
(50,000)
Balance at 29 March 2023
100
100,040
100,140
UNIQUE BOUTIQUE HOTELS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 29 MARCH 2023
- 15 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
29
897,669
666,585
Interest paid
(734,542)
(728,936)
Net cash inflow/(outflow) from operating activities
163,127
(62,351)
Investing activities
Purchase of tangible fixed assets
(50,415)
(129)
Interest received
-
0
1,229
Net cash (used in)/generated from investing activities
(50,415)
1,100
Financing activities
Repayment of bank loans
(60,000)
(24,167)
Payment of finance leases obligations
35,974
-
Dividends paid to equity shareholders
(50,000)
-
Net cash used in financing activities
(74,026)
(24,167)
Net increase/(decrease) in cash and cash equivalents
38,686
(85,418)
Cash and cash equivalents at beginning of year
327,936
413,354
Cash and cash equivalents at end of year
366,622
327,936
UNIQUE BOUTIQUE HOTELS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 MARCH 2023
- 16 -
1
Accounting policies
Company information

Unique Boutique Hotels Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Ground Floor, 6 Queen Street, Leeds, West Yorkshire, United Kingdom, LS1 2TW.

 

The group consists of Unique Boutique Hotels Limited and all of its subsidiaries.

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 £1.

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:

 

UNIQUE BOUTIQUE HOTELS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 MARCH 2023
1
Accounting policies
(Continued)
- 17 -
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, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. 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. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Unique Boutique Hotels Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 29 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.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.5
Turnover

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. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

1.6
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.

UNIQUE BOUTIQUE HOTELS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 MARCH 2023
1
Accounting policies
(Continued)
- 18 -

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
over 125 years
Fixtures and fittings
15% reducing balance
Computers
3 years straight line
Motor vehicles
25% Reducing Balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

1.7
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

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.

1.8
Impairment of fixed assets

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

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

UNIQUE BOUTIQUE HOTELS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 MARCH 2023
1
Accounting policies
(Continued)
- 19 -

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.9
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.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.10
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.

1.11
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. 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 group after deducting all of its liabilities.

UNIQUE BOUTIQUE HOTELS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 MARCH 2023
1
Accounting policies
(Continued)
- 20 -
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.

1.12
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.

1.13
Taxation

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

Current tax

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

Deferred tax

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

 

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

1.14
Retirement benefits

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

UNIQUE BOUTIQUE HOTELS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 MARCH 2023
1
Accounting policies
(Continued)
- 21 -
1.15
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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.

1.16
Government grants

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

 

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

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.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Sales of services
6,301,489
4,116,726
UNIQUE BOUTIQUE HOTELS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 MARCH 2023
3
Turnover and other revenue
(Continued)
- 22 -
2023
2022
£
£
Other significant revenue
Interest income
-
1,229
Grants received
-
10,174

All turnover arose within the United Kingdom.

4
Operating loss
2023
2022
£
£
Operating loss for the year is stated after charging:
Depreciation of owned tangible fixed assets
490,379
544,443
Operating lease charges
1,137,564
1,255,789
5
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
-
-
Audit of the financial statements of the company's subsidiaries
13,000
-
6
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
Directors
2
2
2
2
Hotel operations
79
68
-
-
Total
81
70
2
2
UNIQUE BOUTIQUE HOTELS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 MARCH 2023
6
Employees
(Continued)
- 23 -

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
1,479,384
1,131,167
77,750
116,667
Social security costs
117,397
92,388
10,171
14,880
Pension costs
20,359
9,271
-
0
-
0
1,617,140
1,232,826
87,921
131,547
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
77,750
116,667
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Other interest income
-
1,229
9
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
732,219
727,936
Other finance costs:
Interest on finance leases and hire purchase contracts
923
-
Other interest
1,400
1,000
Total finance costs
734,542
728,936
UNIQUE BOUTIQUE HOTELS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 MARCH 2023
- 24 -
10
Taxation
2023
2022
£
£
Deferred tax
Origination and reversal of timing differences
(1,522,772)
-
0

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

2023
2022
£
£
Loss before taxation
(764,422)
(1,823,719)
Expected tax credit based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
(145,240)
(346,507)
Tax effect of expenses that are not deductible in determining taxable profit
2,039
-
0
Adjustments in respect of prior years
(1,348,031)
346,507
Permanent capital allowances in excess of depreciation
14,452
-
0
Change in rate in deferred tax
(45,992)
-
0
Taxation credit
(1,522,772)
-
11
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Interim paid
50,000
-
UNIQUE BOUTIQUE HOTELS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 MARCH 2023
- 25 -
12
Tangible fixed assets
Group
Leasehold land and buildings
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 31 March 2022
12,685,306
4,086,721
663
-
0
16,772,690
Additions
-
0
-
0
1,017
49,398
50,415
At 29 March 2023
12,685,306
4,086,721
1,680
49,398
16,823,105
Depreciation and impairment
At 31 March 2022
304,556
1,576,964
577
-
0
1,882,097
Depreciation charged in the year
101,500
376,464
64
12,351
490,379
At 29 March 2023
406,056
1,953,428
641
12,351
2,372,476
Carrying amount
At 29 March 2023
12,279,250
2,133,293
1,039
37,047
14,450,629
At 30 March 2022
12,380,750
2,509,757
86
-
0
14,890,593
Company
Computers
Motor vehicles
Total
£
£
£
Cost
At 31 March 2022
663
-
0
663
Additions
1,017
49,398
50,415
At 29 March 2023
1,680
49,398
51,078
Depreciation and impairment
At 31 March 2022
577
-
0
577
Depreciation charged in the year
64
12,351
12,415
At 29 March 2023
641
12,351
12,992
Carrying amount
At 29 March 2023
1,039
37,047
38,086
At 30 March 2022
86
-
0
86
UNIQUE BOUTIQUE HOTELS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 MARCH 2023
- 26 -
13
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
1
1
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 31 March 2022 and 29 March 2023
1
Carrying amount
At 29 March 2023
1
At 30 March 2022
1
14
Subsidiaries

Details of the company's subsidiaries at 29 March 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
UBH Manchester Limited
Hotel Indigo Manchester Victoria Station, 6 Todd Street, Manchester, England, M3 1WU
Ordinary
55.00
15
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods and goods for resale
23,195
13,068
-
0
-
0
UNIQUE BOUTIQUE HOTELS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 MARCH 2023
- 27 -
16
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
402,493
382,350
169,694
94,594
Other debtors
470,921
623,540
6,500
46,034
Prepayments and accrued income
53,902
346,503
-
0
-
0
927,316
1,352,393
176,194
140,628
17
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
19
60,000
60,000
-
0
-
0
Obligations under finance leases
20
4,102
-
0
4,102
-
0
Other borrowings
19
8,724,000
8,724,000
-
0
-
0
Trade creditors
1,549,032
1,857,634
16,987
4,341
Other taxation and social security
125,187
52,004
10,027
13,205
Deferred income
22
69,724
28,066
-
0
-
0
Other creditors
309,997
155,163
11,347
-
0
Accruals and deferred income
1,666,378
1,602,175
80,200
122,600
12,508,420
12,479,042
122,663
140,146
18
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
19
155,833
215,833
-
0
-
0
Obligations under finance leases
20
31,872
-
0
31,872
-
0
Other creditors
744,236
747,292
-
0
-
0
931,941
963,125
31,872
-
Amounts included above which fall due after five years are as follows:
Payable other than by instalments
516,042
562,292
-
-
UNIQUE BOUTIQUE HOTELS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 MARCH 2023
- 28 -
19
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
215,833
275,833
-
0
-
0
Other loans
8,724,000
8,724,000
-
0
-
0
8,939,833
8,999,833
-
-
Payable within one year
8,784,000
8,784,000
-
0
-
0
Payable after one year
155,833
215,833
-
0
-
0
20
Finance lease obligations
Group
Company
2023
2022
2023
2022
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
4,102
-
0
4,102
-
0
In two to five years
31,872
-
0
31,872
-
0
35,974
-
35,974
-
21
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
324,159
272,249
Tax losses
(1,953,356)
(378,674)
Revaluations
1,782,744
1,782,744
153,547
1,676,319
The company has no deferred tax assets or liabilities.
UNIQUE BOUTIQUE HOTELS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 MARCH 2023
21
Deferred taxation
(Continued)
- 29 -
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 31 March 2022
1,676,319
-
Credit to profit or loss
(1,522,772)
-
Liability at 29 March 2023
153,547
-

The deferred tax liability set out above relates to accelerated capital allowances and is expected to reverse over the useful economic lives of the associated tangible fixed assets.

22
Deferred income
Group
Company
2023
2022
2023
2022
£
£
£
£
Other deferred income
69,724
28,066
-
-
23
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
20,359
9,271

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.

24
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Shares of 10p each
1,000
1,000
100
100
UNIQUE BOUTIQUE HOTELS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 MARCH 2023
- 30 -
25
Reserves

Share capital

 

Share capital represents the nominal value of shares in issue.

 

Profit and loss account

 

The profit and loss account represents accumulated comprehensive income for the period and prior periods,

after deduction of dividends paid. This reserve is distributable.

 

Non-controlling interests

 

Non-controlling interests represents accumulated comprehensive income for the year end and prior periods,

after deduction of dividends, attributable to minority shareholders of group undertakings.

26
Related party transactions

Transactions with directors

 

Included within other creditors are the following amounts owed to directors:

 

27
Directors' transactions

Dividends totalling £50,000 (2022 - £0) were paid in the year in respect of shares held by the company's directors.

28
Controlling party

The controlling party is Mr J S H Houlston by virtue of his majority shareholding.

UNIQUE BOUTIQUE HOTELS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 MARCH 2023
- 31 -
29
Cash generated from group operations
2023
2022
£
£
Profit/(loss) for the year after tax
758,350
(1,823,719)
Adjustments for:
Taxation credited
(1,522,772)
-
0
Finance costs
734,542
728,936
Investment income
-
0
(1,229)
Depreciation and impairment of tangible fixed assets
490,379
544,443
Movements in working capital:
(Increase)/decrease in stocks
(10,127)
1,637
Decrease/(increase) in debtors
425,077
(335,151)
(Decrease)/increase in creditors
(19,438)
1,566,039
Increase/(decrease) in deferred income
41,658
(14,371)
Cash generated from operations
897,669
666,585
30
Analysis of changes in net debt - group
31 March 2022
Cash flows
29 March 2023
£
£
£
Cash at bank and in hand
327,936
38,686
366,622
Borrowings excluding overdrafts
(8,999,833)
60,000
(8,939,833)
Obligations under finance leases
-
(35,974)
(35,974)
(8,671,897)
62,712
(8,609,185)
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