REGISTERED NUMBER: |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
HSF LONDON LIMITED |
REGISTERED NUMBER: |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
FOR |
HSF LONDON LIMITED |
HSF LONDON LIMITED (REGISTERED NUMBER: 11484891) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
Page |
Company Information | 1 |
Balance Sheet | 2 |
Notes to the Financial Statements | 3 |
HSF LONDON LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditor |
30 - 34 North Street |
Hailsham |
East Sussex |
BN27 1DW |
HSF LONDON LIMITED (REGISTERED NUMBER: 11484891) |
BALANCE SHEET |
31 DECEMBER 2023 |
2023 | 2022 |
Notes | £ | £ |
FIXED ASSETS |
Intangible assets | 4 |
Tangible assets | 5 |
CURRENT ASSETS |
Stocks |
Debtors | 6 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 7 | ( |
) | ( |
) |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
8 |
( |
) |
( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 9 |
Retained earnings | ( |
) | ( |
) |
SHAREHOLDERS' FUNDS |
In accordance with Section 444 of the Companies Act 2006, the Statement of Comprehensive Income has not been delivered. |
The financial statements were approved by the Board of Directors and authorised for issue on |
HSF LONDON LIMITED (REGISTERED NUMBER: 11484891) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
1. | STATUTORY INFORMATION |
HSF London Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Turnover |
Turnover comprises room sales, restaurant sales and bar sales excluding discounts, value added tax and other sales taxes. Turnover is recognised as follows: |
Room sales | - Daily based on first evening of stay |
Restaurant sales | - Daily at the close of business |
Bar sales | - Daily at the close of business |
Consideration received is recognised as turnover to the extent that the company has performed its contractual obligations in respect of that consideration. |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
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 provided at the following annual rates in order to write off each asset over its estimated useful life: |
Land | - Not depreciated |
Freehold property | - 39 years straight line |
Fixtures and fittings | - 7 years straight line |
Computer equipment | - 5 years straight line |
The construction of the hotel was completed during the period under review. Properties are carried at cost, which includes professional fees and other directly attributable costs that are necessary to bring the property to its operating condition, less any identified impairment loss. |
Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost or valuation of each asset to its estimated residual value on a straight line basis over its expected useful life. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
HSF LONDON LIMITED (REGISTERED NUMBER: 11484891) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Financial instruments |
The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties, and loans to related parties. |
Debt instruments that are payable or receivable within one year, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received; other debt instruments are initially measured at present value of the future payments and subsequently at amortised cost using the effective interest method. |
Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in profit or loss. |
Financial assets and liabilities are offset and the net amount reported in the balance sheet only when there is an 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. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
HSF LONDON LIMITED (REGISTERED NUMBER: 11484891) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
2. | ACCOUNTING POLICIES - continued |
Going concern |
The company generated a loss after tax for the year of £7,510,379 (2022: £4,079,603 loss after tax) but has net assets of £157,633,043 (2022: £45,143,422). Notwithstanding, the financial statements have been prepared on a going concern basis which the directors consider to be appropriate due to the reasons set out below: |
The company only commenced trading part way through the year, the directors have prepared forecasts for 2024 to reflect the trading nature of the hotel. |
The forecasts show budgeted turnover for 2024 of £30,078,098 and a budgeted EBIT of £6,796,235. The interest costs due to the parent company Hotel San Francisco CA are to be deducted from the budgeted EBIT. Furthermore, budgeted room occupancy rates for the year is 86.0% which is an increase from the occupancy rate seen in the current period since the hotel opened of 81.6%. |
The company has been financed by its parent company, Hotel San Francisco CA, to fund the construction work to bring the hotel in to use. |
In the year under review, a capitalisation issue of new shares was made to the existing owners of the company. As a result the loans from Hotel San Francisco CA were converted into share capital and future debt repayments and interest costs reduced. |
3. | EMPLOYEES AND DIRECTORS |
The average number of employees during the year was |
4. | INTANGIBLE FIXED ASSETS |
Other |
intangible |
assets |
£ |
COST |
Additions |
Reclassification/transfer |
At 31 December 2023 |
AMORTISATION |
Charge for year |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
HSF LONDON LIMITED (REGISTERED NUMBER: 11484891) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
5. | TANGIBLE FIXED ASSETS |
Fixtures |
Freehold | and | Computer |
property | fittings | equipment | Totals |
£ | £ | £ | £ |
COST |
At 1 January 2023 |
Additions |
Reclassification/transfer | ( |
) | ( |
) |
At 31 December 2023 |
DEPRECIATION |
Charge for year |
At 31 December 2023 |
NET BOOK VALUE |
At 31 December 2023 |
At 31 December 2022 |
6. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade debtors |
Other debtors |
7. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2023 | 2022 |
£ | £ |
Trade creditors |
Taxation and social security |
Other creditors |
8. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2023 | 2022 |
£ | £ |
Other Creditors | 512,391 | 1,701,772 |
Other Loans | 107,946,813 | 207,494,044 |
108,459,204 | 209,195,816 |
HSF LONDON LIMITED (REGISTERED NUMBER: 11484891) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
9. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
Ordinary | 1 | 178,000,001 | 58,000,001 |
10. | DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006 |
The Report of the Auditors was qualified on the following basis: |
Basis for qualified opinion |
During the audit, we identified that the company assumed 30% of the initial purchase price of the building ascertained to the land element. However, we were unable to obtain sufficient appropriate audit evidence to support this assumption. The client’s estimate was a prudent assumption, but without reliable evidence, we could not verify the reasonableness of the 30% allocation to land. |
We were unable to satisfy ourselves by alternative means concerning the allocation between land and buildings, which affects the current year depreciation charge. Consequently, we were unable to determine whether any adjustment to the carrying amount of the land and building or the associated depreciation expense was necessary. |
Additionally, due to the absence of a formal valuation, we could not obtain sufficient appropriate audit evidence regarding the total value of the land and building. As a result, we were unable to determine whether the net book value of the land and building is correctly stated in the accounts. This limitation affects our ability to conclude on the accuracy of the financial position as presented in the financial statements. |
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 qualified opinion. |
for and on behalf of |
HSF LONDON LIMITED (REGISTERED NUMBER: 11484891) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2023 |
11. | RELATED PARTY DISCLOSURES |
During the year under review £107,946,813 (2022: £207,494,044) was owed to its parent company Hotel San Francisco CA. Loan interest is charged at the quarterly SONIA rate plus 0.50%. Interest accrued during the year under review totalled £9,034,768 (2022: £3,487,489). |
Additionally, during the year under review £120,000,000 (2022: £nil) of amounts owed to Hotel San Francisco SA were capitalised and is now presented as part of share capital. The capitalisation took place on 3 October 2023. |
During the year under review sales totalling £194,970 (2022: £nil) were made to Reservation Shop SLU, a company under common control. At the balance sheet date £80,607 (2022: £nil) was owed by Reservation Shop SLU. |
During the year under review sales totalling £46,898 (2022: £nil) were made to Riusa II S.A, a company under common control. Additionally, purchases totalling £1,297,486 (2022: £341,652) were made during the year. At the balance sheet date £289,958 (2022: £62,219) was owed to Riusa II S.A. |
During the year under review purchases totalling £7,353 (2022: £nil) were made from Riu Hotels S.A, a company under common control. No balance was owed to or by Riu Hotels S.A at the current or comparative reporting date. |
12. | ULTIMATE CONTROLLING PARTY |
HSF London Limited is a wholly owned subsidiary of Hotel San Francisco SA, a company based in Spain. |
Consolidated accounts are prepared by Hotel San Francisco SA, a company incorporated under the laws of Spain with registered office at C/ Llaüt s/n, 07610, Palma de Mallorca, CIF A07034515, Balearic Islands, Spain. |