Company Registration No. 09635340 (England and Wales)
UBH MANCHESTER LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
29 MARCH 2023
6 Queen Street
Leeds
West Yorkshire
LS1 2TW
UBH MANCHESTER LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 7
Profit and loss account
8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 21
UBH MANCHESTER LIMITED
COMPANY INFORMATION
Directors
Mr J S H Houlston
Mr M A Joyce
Company number
09635340
Registered office
Hotel Indigo Manchester
Victoria Station
6 Todd Street
Manchester
M3 1WU
Auditor
TC Group
6 Queen Street
Leeds
West Yorkshire
LS1 2TW
UBH MANCHESTER 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 year ending 29th March 2023 saw the company, along with the Unique Boutique Hotels group as a whole, 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, our group's 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
Unit
2023
2022
Turnover
£000's
6,058
3,895
RevPAR
£000's
89
57
EBITDAR
£000's
1,486
819
Principal risks and uncertainties
The Company’s activities may be impacted by a number of factors.
The principal risk to the company remains the wider UK market and global uncertainty.
Other risks include increases in key operating costs such as wages and direct food costs. Being able to recruit and retain quality employees remains a risk, however we have done much to mitigate this and are a leading employer in the area and the sector.
The Company uses bank and other borrowings to finance its activities and so is exposed to the risk of rising interest rates. The directors keep the funding position under continual review and seek to secure fixed rates on borrowings wherever possible. The Company's principal borrowings are secured on fixed rates.
Mr J S H Houlston
Director
6 September 2024
UBH MANCHESTER 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 continued to be that of a hotel operator.
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 final 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 M A Joyce
Auditor
In accordance with the company's articles, a resolution proposing that TC Group be reappointed as auditor of the company will be put at a General Meeting.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.
On behalf of the board
Mr J S H Houlston
Director
6 September 2024
UBH MANCHESTER 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 company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
UBH MANCHESTER LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF UBH MANCHESTER LIMITED
- 4 -
Opinion
We have audited the financial statements of UBH Manchester Limited (the 'company') for the year ended 29 March 2023 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity 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:
give a true and fair view of the state of the company's affairs as at 29 March 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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 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.
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.
UBH MANCHESTER LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF UBH MANCHESTER LIMITED
- 5 -
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the 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:
adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.
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 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.
UBH MANCHESTER LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF UBH MANCHESTER LIMITED
- 6 -
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:
We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussion with the director and other management (as required by auditing standards), and discussed with the director and other management the policies and procedures regarding compliance with laws and regulations;
We considered the legal and regulatory frameworks directly applicable to the financial statements reporting framework (FRS 102 and the Companies Act 2006), relevant tax compliance regulations in the UK, food and hygiene regulations, health and safety regulations and employment law;
We considered the nature of the industry, the control environment and business performance, including key drivers for management's remuneration;
We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit;
We considered the procedures and controls that the company has established to address risks identified, or that otherwise prevent, deter and detect fraud; and how senior management monitors those programmes.
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.
UBH MANCHESTER LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF UBH MANCHESTER LIMITED
- 7 -
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
UBH MANCHESTER LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 29 MARCH 2023
- 8 -
2023
2022
Notes
£
£
Turnover
2
6,058,038
3,894,611
Cost of sales
(1,237,678)
(809,613)
Gross profit
4,820,360
3,084,998
Administrative expenses
(4,987,728)
(4,115,226)
Other operating income
46,250
56,424
Operating loss
3
(121,118)
(973,804)
Interest payable and similar expenses
5
(732,219)
(727,936)
Loss before taxation
(853,337)
(1,701,740)
Tax on loss
6
1,522,772
Profit/(loss) for the financial year
669,435
(1,701,740)
The profit and loss account has been prepared on the basis that all operations are continuing operations.
UBH MANCHESTER LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 29 MARCH 2023
- 9 -
2023
2022
£
£
Profit/(loss) for the year
669,435
(1,701,740)
Other comprehensive income
-
-
Total comprehensive income for the year
669,435
(1,701,740)
UBH MANCHESTER LIMITED
BALANCE SHEET
AS AT 29 MARCH 2023
29 March 2023
- 10 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
7
14,412,543
14,890,507
Current assets
Stocks
8
23,195
13,068
Debtors
9
751,122
1,211,765
Cash at bank and in hand
326,228
267,280
1,100,545
1,492,113
Creditors: amounts falling due within one year
10
(12,385,757)
(12,338,896)
Net current liabilities
(11,285,212)
(10,846,783)
Total assets less current liabilities
3,127,331
4,043,724
Creditors: amounts falling due after more than one year
11
(900,069)
(963,125)
Provisions for liabilities
Deferred tax liability
13
153,547
1,676,319
(153,547)
(1,676,319)
Net assets
2,073,715
1,404,280
Capital and reserves
Called up share capital
16
2
2
Revaluation reserve
7,131,075
7,131,075
Profit and loss reserves
(5,057,362)
(5,726,797)
Total equity
2,073,715
1,404,280
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:
Mr J S H Houlston
Director
Company Registration No. 09635340
UBH MANCHESTER LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 29 MARCH 2023
- 11 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 31 March 2021
2
7,131,075
(4,025,057)
3,106,020
Year ended 30 March 2022:
Loss and total comprehensive income for the year
-
-
(1,701,740)
(1,701,740)
Balance at 30 March 2022
2
7,131,075
(5,726,797)
1,404,280
Year ended 29 March 2023:
Profit and total comprehensive income for the year
-
-
669,435
669,435
Balance at 29 March 2023
2
7,131,075
(5,057,362)
2,073,715
UBH MANCHESTER LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 MARCH 2023
- 12 -
1
Accounting policies
Company information
UBH Manchester Limited is a private company limited by shares incorporated in England and Wales. The registered office is Hotel Indigo Manchester, Victoria Station, 6 Todd Street, Manchester, M3 1WU.
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, modified to include investment properties at fair value. The principal accounting policies adopted are set out below.
This 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:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of Unique Boutique Hotels Limited. These consolidated financial statements are available from its registered office at Ground Floor, 6 Queen Street, Leeds, West Yorkshire, United Kingdom, LS1 2TW.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company 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.
1.3
Turnover
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
UBH MANCHESTER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 MARCH 2023
1
Accounting policies
(Continued)
- 13 -
1.4
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.
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
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.
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.
1.6
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.7
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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.
UBH MANCHESTER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 MARCH 2023
1
Accounting policies
(Continued)
- 14 -
Basic financial liabilities
Basic financial liabilities, including creditors and bank loans, 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.
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 company’s contractual obligations expire or are discharged or cancelled.
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the 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 company’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 when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
UBH MANCHESTER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 MARCH 2023
1
Accounting policies
(Continued)
- 15 -
1.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.11
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
1.12
Government grants
Government grants 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
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Accommodation
3,132,056
2,570,361
Food and beverages
2,603,437
793,984
Events
92,713
86,854
Leisure
84,240
388,075
Other
145,592
55,337
6,058,038
3,894,611
2023
2022
£
£
Other significant revenue
Grants received
-
10,174
All turnover arose within the United Kingdom.
UBH MANCHESTER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 MARCH 2023
- 16 -
3
Operating loss
2023
2022
Operating loss for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
13,000
Depreciation of owned tangible fixed assets
477,964
544,399
4
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Directors
2
2
Hotel operations
79
68
Total
81
70
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
1,401,634
1,014,500
Social security costs
107,226
77,508
Pension costs
20,359
9,271
1,529,219
1,101,279
5
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
UBH MANCHESTER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 MARCH 2023
- 17 -
6
Taxation
2023
2022
£
£
Deferred tax
Origination and reversal of timing differences
(1,522,772)
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
(853,337)
(1,701,740)
Expected tax credit based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
(162,134)
(323,331)
Tax effect of expenses that are not deductible in determining taxable profit
2,039
Adjustments in respect of prior years
(1,331,137)
323,331
Permanent capital allowances in excess of depreciation
14,452
Change in rate of deferred tax
(45,992)
Taxation credit for the year
(1,522,772)
-
7
Tangible fixed assets
Leasehold land and buildings
Fixtures and fittings
Total
£
£
£
Cost
At 31 March 2022 and 29 March 2023
12,685,306
4,086,721
16,772,027
Depreciation and impairment
At 31 March 2022
304,556
1,576,964
1,881,520
Depreciation charged in the year
101,500
376,464
477,964
At 29 March 2023
406,056
1,953,428
2,359,484
Carrying amount
At 29 March 2023
12,279,250
2,133,293
14,412,543
At 30 March 2022
12,380,750
2,509,757
14,890,507
UBH MANCHESTER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 MARCH 2023
7
Tangible fixed assets
(Continued)
- 18 -
The interest in the long leasehold was revalued to fair value at 31 March 2019. The directors consider the valuation of the long leasehold interest has not changed significantly during the years to 30th March 2022 and 30th March 2023.
8
Stocks
2023
2022
£
£
Finished goods and goods for resale
23,195
13,068
9
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
232,799
287,756
Other debtors
464,421
577,506
Prepayments and accrued income
53,902
346,503
751,122
1,211,765
10
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans
12
60,000
60,000
Other borrowings
12
8,724,000
8,724,000
Trade creditors
1,532,045
1,853,293
Taxation and social security
115,160
38,799
Deferred income
14
69,724
28,066
Other creditors
298,650
155,163
Accruals and deferred income
1,586,178
1,479,575
12,385,757
12,338,896
There is a fixed and floating charge over the long leasehold property at Todd Street, Manchester, M3 1WU.
UBH MANCHESTER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 MARCH 2023
- 19 -
11
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loans and overdrafts
12
155,833
215,833
Other creditors
744,236
747,292
900,069
963,125
Amounts included above which fall due after five years are as follows:
Payable other than by instalments
516,042
562,292
12
Loans and overdrafts
2023
2022
£
£
Bank loans
215,833
275,833
Other loans
8,724,000
8,724,000
8,939,833
8,999,833
Payable within one year
8,784,000
8,784,000
Payable after one year
155,833
215,833
13
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
324,159
272,249
Tax losses
(1,953,356)
(378,674)
Property revaluations
1,782,744
1,782,744
153,547
1,676,319
UBH MANCHESTER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 MARCH 2023
13
Deferred taxation
(Continued)
- 20 -
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.
14
Deferred income
2023
2022
£
£
Other deferred income
69,724
28,066
15
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
20,359
9,271
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
16
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A Share of 10p each
11
11
1
1
Ordinary B Share of 10p each
9
9
1
1
20
20
2
2
UBH MANCHESTER LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 MARCH 2023
- 21 -
17
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2023
2022
£
£
Within one year
1,270,492
1,250,000
Between two and five years
5,081,967
5,000,000
In over five years
147,377,049
148,750,000
Total commitments
153,729,508
155,000,000
18
Related party transactions
The Company has taken the exemption set out in FRS 102 from disclosing transactions with wholly owned group members.
Transactions with directors
Included within other creditors are the following amounts owed to directors:
19
Ultimate controlling party
The company's immediate parent is Unique Boutique Hotels Ltd, incorporated in England and Wales. The address of its registered office is Ground Floor, 6 Queen Street, Leeds. LS1 2TW.
The company's ultimate controlling party is James Houlston.
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