Company Registration No. 03898114 (England and Wales)
Wickman Hotels Limited
Annual report and financial statements
for the year ended 31 December 2023
Wickman Hotels Limited
Company information
Directors
Kevin Wickman
Mary Wickman
Edward Wickman
(Appointed 28 February 2023)
Secretary
Kevin Wickman
Company number
03898114
Registered office
71 Queen Victoria Street
London
EC4V 4BE
Independent auditor
Saffery LLP
Torridon House
Beechwood Park
Inverness
IV2 3BW
Business address
Cuillin Hills Hotel
Portree
Isle of Skye
IV51 9QU
Wickman Hotels Limited
Contents
Page
Strategic report
1
Directors' report
2
Directors' responsibilities statement
3
Independent auditor's report
4 - 6
Statement of income and retained earnings
7
Statement of financial position
8
Statement of cash flows
9
Notes to the financial statements
10 - 21
Wickman Hotels Limited
Strategic report
For the year ended 31 December 2023
1
The directors present the strategic report for the year ended 31 December 2023.
Review of the business
The Cuillin Hills Hotel continued to uphold its reputation as one of Scotland's most stunning hotels.
The company’s revenue has increased by 8% compared to last year, resulting in total revenue for the year of £4,622,832 compared to £4,274,729. The company reported a gross profit of £2,772,698 compared to £2,575,517 in the prior year. The company reported a decrease in profit before tax, from £1,340,213 last year to £1,167,346 in the current year.
Principal risks and uncertainties
The main risk to the company is how market conditions impact on the hotel and restaurant industry and the likelihood of difficult economic conditions continuing into the coming years. However the directors continue to minimise this risk by maintaining and marketing the company's reputation for quality.
Development and performance
Continuing to provide customers with a quality service in the hotel, bar and restaurant it operates is the most important aspect of the company's objectives. The quality of service provided to guests is monitored constantly and there is an ongoing staff training programme designed to ensure that standards are maintained and improved wherever possible.
The company has an ongoing marketing programme to ensure that occupation levels and revenues are maximised throughout the year.
Kevin Wickman
Director
17 September 2024
Wickman Hotels Limited
Directors' report
For the year ended 31 December 2023
2
The directors present their annual report and financial statements for the year ended 31 December 2023.
Principal activities
The principal activity of the company continued to be that of operating a hotel.
Results and dividends
The results for the year are set out on page 7.
Ordinary dividends were paid amounting to £60,000. 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:
Kevin Wickman
Mary Wickman
Edward Wickman
(Appointed 28 February 2023)
Auditor
The auditor, Saffery LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the 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.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Kevin Wickman
Director
17 September 2024
Wickman Hotels Limited
Directors' responsibilities statement
For the year ended 31 December 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.
Wickman Hotels Limited
Independent auditor's report
To the members of Wickman Hotels Limited
4
Opinion
We have audited the financial statements of Wickman Hotels Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of income and retained earnings, the statement of financial position, the 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 Financial Reporting Standard 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 31 December 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.
Wickman Hotels Limited
Independent auditor's report (continued)
To the members of Wickman Hotels 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 or the directors' report.
We have nothing to report in respect of the following matters in relation to which 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 specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud are detailed below.
Identifying and assessing risks related to irregularities:
We assessed the susceptibility of the company’s financial statements to material misstatement and how fraud might occur, including through discussions with the directors, discussions within our audit team planning meeting, updating our record of internal controls and ensuring these controls operated as intended. We evaluated possible incentives and opportunities for fraudulent manipulation of the financial statements. We identified laws and regulations that are of significance in the context of the company by discussions with directors and by updating our understanding of the sector in which the company operates.
Laws and regulations of direct significance in the context of the company include The Companies Act 2006 and UK Tax legislation.
Wickman Hotels Limited
Independent auditor's report (continued)
To the members of Wickman Hotels Limited
6
Audit response to risks identified
We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the company's records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the company's policies and procedures for compliance with laws and regulations with members of management responsible for compliance.
During the planning meeting with the audit team, the engagement partner drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to a possible indication of management bias. At the completion stage of the audit, the engagement partner’s review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.
There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
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.
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.
Eunice McAdam (Senior Statutory Auditor)
For and on behalf of Saffery LLP
17 September 2024
Statutory Auditors
Torridon House
Beechwood Park
Inverness
IV2 3BW
Wickman Hotels Limited
Statement of income and retained earnings
For the year ended 31 December 2023
7
2023
2022
Notes
£
£
Turnover
3
4,622,832
4,274,729
Cost of sales
(1,850,134)
(1,699,212)
Gross profit
2,772,698
2,575,517
Administrative expenses
(1,622,078)
(1,231,010)
Other operating income
4,136
4,866
Operating profit
4
1,154,756
1,349,373
Interest receivable and similar income
7
13,796
Interest payable and similar expenses
8
(1,206)
(9,160)
Profit before taxation
1,167,346
1,340,213
Tax on profit
9
(316,269)
(378,826)
Profit for the financial year
851,077
961,387
Retained earnings brought forward
4,353,686
3,392,299
Dividends
10
(60,000)
Retained earnings carried forward
5,144,763
4,353,686
The income statement has been prepared on the basis that all operations are continuing operations.
Wickman Hotels Limited
Statement of financial position
As at 31 December 2023
8
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
11
5,435,915
4,892,942
Current assets
Stocks
13
39,131
43,938
Debtors
12
605,888
942,182
Cash at bank and in hand
567,637
484,088
1,212,656
1,470,208
Creditors: amounts falling due within one year
14
(1,354,241)
(1,841,506)
Net current liabilities
(141,585)
(371,298)
Total assets less current liabilities
5,294,330
4,521,644
Creditors: amounts falling due after more than one year
15
(19,922)
(23,438)
Provisions for liabilities
Deferred tax liability
16
129,525
144,400
(129,525)
(144,400)
Net assets
5,144,883
4,353,806
Capital and reserves
Called up share capital
18
120
120
Profit and loss reserves
5,144,763
4,353,686
Total equity
5,144,883
4,353,806
The financial statements were approved by the board of directors and authorised for issue on 17 September 2024 and are signed on its behalf by:
Kevin Wickman
Director
Company Registration No. 03898114
Wickman Hotels Limited
Statement of cash flows
For the year ended 31 December 2023
9
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
22
787,948
1,019,847
Interest paid
(1,206)
(9,160)
Income taxes paid
(319,436)
(296,357)
Net cash inflow from operating activities
467,306
714,330
Investing activities
Purchase of tangible fixed assets
(711,654)
(373,017)
Proceeds from disposal of tangible fixed assets
(5,747)
Interest received
13,796
Net cash used in investing activities
(703,605)
(373,017)
Financing activities
(Repayment)/advances of loans
379,848
(537,308)
Dividends paid
(60,000)
Net cash generated from/(used in) financing activities
319,848
(537,308)
Net increase/(decrease) in cash and cash equivalents
83,549
(195,995)
Cash and cash equivalents at beginning of year
484,088
680,083
Cash and cash equivalents at end of year
567,637
484,088
Wickman Hotels Limited
Statement of cash flows (continued)
For the year ended 31 December 2023
10
1
Critical accounting 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.
There are no critical accounting judgements or key sources of estimation uncertainty.
2
Accounting policies
Company information
Wickman Hotels Limited is a private company limited by shares incorporated in England and Wales. The registered office is 71 Queen Victoria Street, London, EC4V 4BE.
2.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
2.2
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.
2.3
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.
2.4
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:
Land and buildings freehold
0% - 2% per annum straight line basis
Plant and machinery
15% per annum reducing balance basis
Fixtures, fittings & equipment
15% per annum reducing balance basis
Computer equipment
25% straight line basis
Wickman Hotels Limited
Notes to the financial statements
For the year ended 31 December 2023
2
Accounting policies (continued)
11
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.
2.5
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.
2.6
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to sell, which is equivalent to net realisable value.
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.
2.7
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
2.8
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 statement of financial position 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, 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.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Wickman Hotels Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
2
Accounting policies (continued)
12
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
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.
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.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Wickman Hotels Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
2
Accounting policies (continued)
13
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
2.9
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 income statement 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. Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income. 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.
2.10
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.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
2.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
2.12
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.
Wickman Hotels Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
2
Accounting policies (continued)
14
2.13
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.
3
Turnover and other revenue
An analysis of the company's turnover is as follows:
2023
2022
£
£
Turnover analysed by class of business
Hotel and restaurant sales
4,622,832
4,274,729
2023
2022
£
£
Other revenue
Interest income
13,796
-
Grants received
4,136
4,866
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
(4,136)
(4,866)
Fees payable to the company's auditor for the audit of the company's financial statements
19,835
18,450
Depreciation of owned tangible fixed assets
168,681
144,636
Loss on disposal of tangible fixed assets
5,747
-
Operating lease charges
21,588
9,857
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
53
53
Wickman Hotels Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
5
Employees (continued)
15
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
1,286,551
1,213,248
Social security costs
126,835
96,898
Pension costs
19,297
18,877
1,432,683
1,329,023
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
79,640
25,140
7
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
13,796
2023
2022
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
13,796
8
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Other interest on financial liabilities
9,160
Other finance costs:
Other interest
1,206
1,206
9,160
Wickman Hotels Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
16
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
331,593
266,638
Adjustments in respect of prior periods
(449)
8,205
Total current tax
331,144
274,843
Deferred tax
Origination and reversal of timing differences
(14,875)
103,983
Total tax charge
316,269
378,826
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
£
£
Profit before taxation
1,167,346
1,340,213
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
274,560
254,640
Tax effect of expenses that are not deductible in determining taxable profit
10,789
712
Adjustments in respect of prior years
(443)
8,205
Deferred tax adjustments in respect of prior years
96,287
Fixed asset differences
32,243
17,135
Changes in tax rates
(880)
1,847
Taxation charge for the year
316,269
378,826
10
Dividends
2023
2022
£
£
Final paid
60,000
Wickman Hotels Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
17
11
Tangible fixed assets
Land and buildings freehold
Plant and machinery
Fixtures, fittings & equipment
Computer equipment
Total
£
£
£
£
£
Cost
At 1 January 2023
5,209,363
11,565
431,670
5,824
5,658,422
Additions
655,697
2,603
54,190
4,911
717,401
Disposals
(4,445)
(7,717)
(12,162)
At 31 December 2023
5,865,060
9,723
478,143
10,735
6,363,661
Depreciation and impairment
At 1 January 2023
585,208
6,938
170,953
2,381
765,480
Depreciation charged in the year
117,676
1,085
47,236
2,684
168,681
Eliminated in respect of disposals
(2,673)
(3,742)
(6,415)
At 31 December 2023
702,884
5,350
214,447
5,065
927,746
Carrying amount
At 31 December 2023
5,162,176
4,373
263,696
5,670
5,435,915
At 31 December 2022
4,624,155
4,627
260,717
3,443
4,892,942
12
Debtors
2023
2022
Amounts falling due within one year:
£
£
Other debtors
558,744
938,592
Prepayments and accrued income
47,144
3,590
605,888
942,182
13
Stocks
2023
2022
£
£
Consumables and goods for resale
39,131
43,938
Wickman Hotels Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
18
14
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Payments received on account
181,184
235,888
Trade creditors
127,569
89,419
Corporation tax
331,593
319,885
Other taxation and social security
156,518
167,899
Government grants
19
3,516
4,136
Other creditors
443,294
982,048
Accruals and deferred income
110,567
42,231
1,354,241
1,841,506
15
Creditors: amounts falling due after more than one year
2023
2022
£
£
Government grants
19
19,922
23,438
16
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
129,525
144,400
2023
Movements in the year:
£
Liability at 1 January 2023
144,400
Credit to profit or loss
(14,875)
Liability at 31 December 2023
129,525
Wickman Hotels Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
19
17
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
19,297
18,877
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.
18
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
ordinary shares of £1 each
88
100
88
100
ordinary B shares of £1 each
10
10
10
10
ordinary C shares of £1 each
10
10
10
10
ordinary D shares of £1 each
12
-
12
-
120
120
120
120
All ordinary, B, C and D shares carry one vote. Each share has equal rights to dividends and ranks equally for any distribution made on a winding up. The shares are not redeemable.
During the year, 12 of the Ordinary shares of £1 each were converted into 12 Ordinary D shares of £1 each.
19
Government grants
2023
2022
£
£
Deferred government grants
23,438
27,574
23,438
27,574
Deferred income is included in the financial statements as follows:
2023
2022
£
£
Current liabilities
3,516
4,136
Non-current liabilities
19,922
23,438
23,438
27,574
Wickman Hotels Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
20
20
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
21,342
7,942
Between two and five years
50,298
4,184
71,640
12,126
21
Related party transactions
The following amounts were outstanding at the reporting end date:
2023
2022
Amounts due to related parties
£
£
Amounts due to Directors
438,271
936,031
The following amounts were outstanding at the reporting end date:
2023
2022
Amounts due from related parties
£
£
Amounts owed from Directors
420,208
800,056
Other information
At the year end a balance of £438,271 (2022: £936,031) was due by the company to the directors and this is included in other creditors.
A balance of £420,208 (2022: £800,056) was due by one of the directors. The loan is interest free and repayable on demand. The loan is included in other debtors.
Wickman Hotels Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
21
22
Cash generated from operations
2023
2022
£
£
Profit for the year after tax
851,077
961,387
Adjustments for:
Taxation charged
316,269
378,826
Finance costs
1,206
9,160
Investment income
(13,796)
Loss on disposal of tangible fixed assets
5,747
-
Depreciation and impairment of tangible fixed assets
168,681
144,636
Pension scheme non-cash movement
670
922
Movements in working capital:
Decrease/(increase) in stocks
4,807
(17,296)
(Increase) in debtors
(43,554)
(53,113)
(Decrease) in creditors
(499,023)
(399,809)
(Decrease) in deferred government grants
(4,136)
(4,866)
Cash generated from operations
787,948
1,019,847
23
Analysis of changes in net funds
1 January 2023
Cash flows
31 December 2023
£
£
£
Cash at bank and in hand
484,088
83,549
567,637
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