Company registration number 01805904 (England and Wales)
PHOENIX HOTELS LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
PAGES FOR FILING WITH REGISTRAR
PHOENIX HOTELS LIMITED
CONTENTS
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 9
PHOENIX HOTELS LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
35,601,010
35,682,273
Investments
5
-
-
Current assets
Debtors
6
244,947
262,936
Cash at bank and in hand
1,906,542
1,146,843
2,151,489
1,409,779
Creditors: amounts falling due within one year
7
(943,853)
(781,383)
Net current assets
1,207,636
628,396
Total assets less current liabilities
36,808,646
36,310,669
Creditors: amounts falling due after more than one year
8
(6,401,717)
(6,641,812)
Provisions for liabilities
9
(34,048)
(34,048)
Net assets
30,372,881
29,634,809
Capital and reserves
Called up share capital
10
600,000
600,000
Revaluation reserve
29,476,642
29,575,642
Profit and loss reserves
296,239
(540,833)
Total equity
30,372,881
29,634,809

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

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

The financial statements were approved by the board of directors and authorised for issue on 18 April 2024 and are signed on its behalf by:
B Bhundia
Director
Company Registration No. 01805904
PHOENIX HOTELS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 January 2022
600,000
29,675,642
(1,103,899)
29,171,743
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
463,066
463,066
Transfers
-
(100,000)
100,000
-
Balance at 31 December 2022
600,000
29,575,642
(540,833)
29,634,809
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
738,072
738,072
Transfers
-
(99,000)
99,000
-
Balance at 31 December 2023
600,000
29,476,642
296,239
30,372,881
PHOENIX HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
1
Accounting policies
Company information

Phoenix Hotels Limited is a private company limited by shares incorporated in England and Wales. The registered office is 21 Lombard Street, London, EC3V 9AH.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include certain financial instruments at fair value. The principal accounting policies adopted are set out below.

1.2
Going concern

In assessing the appropriateness of the going concern assumption, the Directors have prepared detailed cash flow forecasts for the Company extending 12 months from the date of approval of these financial statements. In any reasonable scenario, the Company has sufficient cash to meet its liabilities as they fall due. true

 

The Company also benefits from strong support from its lender, and has a loan facility in place until November 2027. The Company has been able to meet the covenants attached to this loan and are forecasted to continue doing so.

 

Based on the above the Directors believe it remains appropriate to prepare the financial statements on a going concern basis. The financial statements therefore do not include any adjustments that would be required if the Company were unable to continue as a going concern.

1.3
Turnover

Turnover represents the amounts (excluding value added tax) receivable in respect of the provision of hotel accommodation and services provided to customers of the hotel during the year, recognised upon full consumption of the service.

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:

Freehold land and buildings
150 years straight line
Freehold improvements
5% per annum straight line
Fixtures and fittings
15% per annum straight line
Computers
25% per annum straight line
Motor vehicles
25% per annum straight line

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

PHOENIX HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 4 -
1.5
Fixed asset investments

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.6
Impairment of fixed assets

At each reporting period end date, the company 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.

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.

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.

1.7
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.

1.8
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.

PHOENIX HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 5 -
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.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

1.9
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.

1.10
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.

PHOENIX HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 6 -
Deferred tax

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

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the 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.

1.11
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.

1.12
Retirement benefits

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

2
Judgements and key sources of estimation uncertainty

In the application of the company’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.

Impairment of tangible fixed assets

Determine whether there are indicators of impairment of the company's tangible assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset.

PHOENIX HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 7 -
Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Valuation of Investments

Investments in subsidiaries are initially measured at cost and subsequently at cost less impairment. In assessing whether an impairment should be recognised the directors consider the performance of the subsidiary as well as its expected future performance and its position at the reporting date.

3
Employees

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

2023
2022
Number
Number
Total
33
35
4
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 January 2023
36,194,994
2,122,846
38,317,840
Additions
9,300
105,624
114,924
At 31 December 2023
36,204,294
2,228,470
38,432,764
Depreciation and impairment
At 1 January 2023
781,807
1,853,760
2,635,567
Depreciation charged in the year
121,206
74,981
196,187
At 31 December 2023
903,013
1,928,741
2,831,754
Carrying amount
At 31 December 2023
35,301,281
299,729
35,601,010
At 31 December 2022
35,413,187
269,086
35,682,273

Upon adoption of FRS 102, the directors utlilised the exemption available to carry freehold land and building at deemed cost which was equal to the fair value of the property at that date. The value attributable to the building has subsequently been depreciated over it’s useful economic life. The value of land held in freehold land and buildings above is £27,817,870 (2022: £27,817,870). As at the year end, freehold land and buildings determined on the historical cost basis amounted to £5,591,011 (2022: £5,581,711).

 

The last full valuation was performed in July 2021 by Colliers International an external firm of chartered surveyors, who valued the property in accordance with the RICS Appraisal and Valuation Model. The basis of the valuation was at open market values with the property continuing as a hotel for the purposes of the trade of Phoenix Hotels Limited. The property was valued at £37.5m.

PHOENIX HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 8 -
5
Subsidiaries

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

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
East African Gas Company Limited ('EAGC')
Kenya
Ordinary shares
55.00

The company has a 55% shareholding in East African Gas Company Limited (‘EAGC’). In a previous year the directors fully impaired this investment on the basis that they considered its recoverable amount to be nil.

 

6
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
93,082
102,614
Amounts owed by group undertakings
137,676
133,851
Other debtors
14,189
26,471
244,947
262,936
7
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
242,766
231,171
Trade creditors
75,584
35,466
Corporation tax
246,855
153,929
Other taxation and social security
195,177
173,413
Other creditors
183,471
187,404
943,853
781,383
8
Creditors: amounts falling due after more than one year
2023
2022
£
£
Bank loans and overdrafts
6,401,717
6,641,812

In November 2022, the company refinanced its bank loans with a new 5 year term loan. At 31 December 2023 £6.6m (2022 £6.8m) of this loan remained payable. This bank loan is secured by a first and only legal charge on the company's freehold property and a debenture over the assets of the company.

PHOENIX HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 9 -
9
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
34,048
34,048
There were no deferred tax movements in the year.

The deferred tax liability set out above is expected to reverse within 12 months and relates to accelerated capital allowances that are expected to mature within the same period.

10
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
600,000
600,000
600,000
600,000
11
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

Senior Statutory Auditor:
Andrew Turner
Statutory Auditor:
Mercer & Hole LLP
Date of audit report:
18 April 2024
12
Related party transactions

At 31 December 2023 Rosemark Limited, a company with a mutual director, owed the company £3,918 (2022:£2,472). This amount is interest free and repayable on demand.

 

During the year the company incurred expenses of £3,826 (2022: £3,331) on behalf of its parent company. As at the year end £137,676 (2022: £133,851) was due to Phoenix Hotels Limited in relation to expenses incurred on behalf of its parent company.

13
Parent company

The ultimate parent company at the balance sheet date is Phoenix Hotel Services Limited.

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