Caseware UK (AP4) 2023.0.135 2023.0.135 2023-12-312023-12-312023-01-01falseNo description of principal activity9470truefalse 10589940 2023-01-01 2023-12-31 10589940 2022-01-01 2022-12-31 10589940 2023-12-31 10589940 2022-12-31 10589940 2022-01-01 10589940 5 2023-01-01 2023-12-31 10589940 5 2022-01-01 2022-12-31 10589940 d:CompanySecretary1 2023-01-01 2023-12-31 10589940 d:Director1 2023-01-01 2023-12-31 10589940 d:Director2 2023-01-01 2023-12-31 10589940 d:Director3 2023-01-01 2023-12-31 10589940 d:Director4 2023-01-01 2023-12-31 10589940 d:RegisteredOffice 2023-01-01 2023-12-31 10589940 e:Buildings 2023-01-01 2023-12-31 10589940 e:Buildings 2023-12-31 10589940 e:Buildings 2022-12-31 10589940 e:Buildings e:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 10589940 e:FurnitureFittings 2023-01-01 2023-12-31 10589940 e:FurnitureFittings 2023-12-31 10589940 e:FurnitureFittings 2022-12-31 10589940 e:FurnitureFittings e:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 10589940 e:OwnedOrFreeholdAssets 2023-01-01 2023-12-31 10589940 e:CurrentFinancialInstruments 2023-12-31 10589940 e:CurrentFinancialInstruments 2022-12-31 10589940 e:Non-currentFinancialInstruments 2023-12-31 10589940 e:Non-currentFinancialInstruments 2022-12-31 10589940 e:CurrentFinancialInstruments e:WithinOneYear 2023-12-31 10589940 e:CurrentFinancialInstruments e:WithinOneYear 2022-12-31 10589940 e:Non-currentFinancialInstruments e:AfterOneYear 2023-12-31 10589940 e:Non-currentFinancialInstruments e:AfterOneYear 2022-12-31 10589940 e:ReportableOperatingSegment1 2023-01-01 2023-12-31 10589940 e:ReportableOperatingSegment1 2022-01-01 2022-12-31 10589940 e:ReportableOperatingSegment2 2023-01-01 2023-12-31 10589940 e:ReportableOperatingSegment2 2022-01-01 2022-12-31 10589940 e:ShareCapital 2023-12-31 10589940 e:ShareCapital 2022-12-31 10589940 e:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 10589940 e:RetainedEarningsAccumulatedLosses 2023-12-31 10589940 e:RetainedEarningsAccumulatedLosses 2022-01-01 2022-12-31 10589940 e:RetainedEarningsAccumulatedLosses 2022-12-31 10589940 e:RetainedEarningsAccumulatedLosses 2022-01-01 10589940 e:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2023-12-31 10589940 e:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2022-12-31 10589940 e:FinancialLiabilitiesFairValueThroughProfitOrLoss e:ListedExchangeTraded 2023-12-31 10589940 e:FinancialLiabilitiesFairValueThroughProfitOrLoss e:ListedExchangeTraded 2022-12-31 10589940 d:OrdinaryShareClass1 2023-01-01 2023-12-31 10589940 d:OrdinaryShareClass1 2023-12-31 10589940 d:OrdinaryShareClass1 2022-12-31 10589940 d:FRS102 2023-01-01 2023-12-31 10589940 d:Audited 2023-01-01 2023-12-31 10589940 d:FullAccounts 2023-01-01 2023-12-31 10589940 d:PrivateLimitedCompanyLtd 2023-01-01 2023-12-31 10589940 f:PoundSterling 2023-01-01 2023-12-31 iso4217:GBP xbrli:shares xbrli:pure

Registered number: 10589940









DOMINUS BATH HOTEL LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
DOMINUS BATH HOTEL LIMITED
 
 
COMPANY INFORMATION


Directors
P S Ahluwalia 
S S Ahluwalia 
A J Mangrola 
L A Saywack 




Company secretary
Speafi Secretarial Limited



Registered number
10589940



Registered office
1 London Street
Reading

Berkshire

RG1 4QW




Independent auditors
Nyman Libson Paul LLP
Chartered Accountants & Statutory Auditors

124 Finchley Road

London

NW3 5JS





 
DOMINUS BATH HOTEL LIMITED
 

CONTENTS



Page
Strategic report
 
1 - 2
Directors' report
 
3 - 4
Independent auditors' report
 
5 - 9
Statement of income and retained earnings
 
10
Statement of financial position
 
11
Statement of cash flows
 
12
Analysis of net debt
 
13
Notes to the financial statements
 
14 - 24


 
DOMINUS BATH HOTEL LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

Introduction
 
The principal activity of the company during the year was the operation of a midscale hotel.

Business review
 
The hotel is located in Bath and opened in 2022, this is the first full year of trade since opening.
The results for the first full year of trade show a gross profit of £5,189,584 (2022: £3,593,042).
The company made an operating profit for the year of £1,223,614 (2022: £347,608).
The overriding aim of the company is to further strengthen its financial position, produce the reserves needed to continue to reward its employees and shareholders, provide funds for future capital investment and provide support to the local community.
Operationally the company is focused on customer and guest satisfaction and has attracted a talented and passionate team of people who we consider to be some of the best professionals in the sector. The aim of the company is to meet those needs, develop customer loyalty and to continue to grow the business sustainably and responsibly.
Throughout the year the health and safety of our teams and guests has been integral to company's decision making.

Principal risks and uncertainties
 
The key business risks and uncertainties affecting the company are considered to relate to the fact that the company operates within a highly competitive market place, in an industry that is influenced by political and economic conditions such as recession, inflation, unemployment rates, national minimum wage levels and the availability of credit.
The low growth in the UK economy and rising costs due to inflation and supply chain pressures are risks that have continued since the last quarter of 2022. In particular, fuel costs and labour shortages are affecting UK hospitality's business and leisure travel with a knock on effect on hotel demand.  The company continues to work with its employees, customers and suppliers to deliver first class services during this time. 
In addition, inadequate contingency planning or recovery capability in relation to a major incident or crisis may prevent operational continuity and consequently impact the reputation of the company.
During the year, management have continued to monitor and improve processes, policies and systems to be competitive in the market.
Health and safety, death or serious injury as a result of company negligence and non compliance with government regulations are risks to the company. The company addresses this by undergoing annual independent health and safety audits on site. 
Cyber and data security are risks as they could reduce the effectiveness of our systems or result in a loss of data which could in turn lead to substantial reputational damage and a loss of income for the business and its customers. The company has robust internal IT controls and partner with independent security experts to help maintain IT systems and manage cyber security risk

Page 1

 
DOMINUS BATH HOTEL LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Financial key performance indicators
 
We have deployed relevant KPIs to evaluate the success of our company and the business activities engaged in.
Management monitors the performance of the company by reviewing KPIs on a regular basis.
Key indicators identified are summarised below:-
Rooms (i.e. Rooms Sold, Occupancy %, ADR, REVPAR)
Food and Beverage (i.e. Covers, Price/Volume Variance)
Profits (GOP / EBITDA)


This report was approved by the board on 16 September 2024 and signed on its behalf.



S S Ahluwalia
Director

Page 2

 
DOMINUS BATH HOTEL LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their report and the financial statements for the year ended 31 December 2023.

Directors' responsibilities statement

The directors are responsible for preparing the strategic report, the directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the company's financial statements and then apply them consistently;

make judgments 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They 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.

Results and dividends

The loss for the year, after taxation, amounted to £615,820 (2022 - loss £557,200).

No dividends were paid during the year nor the prior year.

Directors

The directors who served during the year were:

P S Ahluwalia 
S S Ahluwalia 
A J Mangrola 
L A Saywack 

Future developments

The directors are confident that the business will continue to grow organically with an emphasis on adding value to guest experiences and the current portfolio of services provided by the hotel.

Page 3

 
DOMINUS BATH HOTEL LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023

Disclosure of information to auditors

Each of the persons who are directors at the time when this directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the company's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the company since the year end.

Auditors

The auditorsNyman Libson Paul LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 16 September 2024 and signed on its behalf.
 





S S Ahluwalia
Director

Page 4

 
DOMINUS BATH HOTEL LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DOMINUS BATH HOTEL LIMITED
 

Opinion


We have audited the financial statements of Dominus Bath Hotel 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 the related notes, including a summary of significant accounting policiesThe 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 loss 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.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' 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 United Kingdom, including the Financial Reporting Council'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.


Page 5

 
DOMINUS BATH HOTEL LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DOMINUS BATH HOTEL LIMITED (CONTINUED)


Other information


The directors are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our auditors' report thereon. 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.
In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.


Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the 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 directors' 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 set out on page 3, 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.
Page 6

 
DOMINUS BATH HOTEL LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DOMINUS BATH HOTEL LIMITED (CONTINUED)


Auditors' 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 auditors' 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:

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non- compliance with laws and regulations, we considered the following:
 
the nature of the industry and specific sector, the control environment and business performance;
 
results of our enquiries of management about their own identification and assessment of the risks of irregularities;
 
matters identified from the review of company documentation in respect of their policies and procedures relating to:

identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;
detecting and responding to the risks of fraud and whether they have knowledge of any actual suspected or alleged fraud;
internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; and 
matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

We also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included UK legislation and regulations in relation to the operation and governance of the company and direct and indirect tax legislation.

In addition, we considered other laws and regulations that could have an effect on the company and result in the imposition of financial or other penalties and litigation. Auditing standards limit the required audit procedures to identify non-compliance with these laws and regulations to enquiry of the directors and other management and inspection of regulatory and legal correspondence, if any. These limited procedures did not identify actual or suspected non-compliance.

All matters in relation to non-compliance with laws and regulations and potential fraud risks were communicated to all members of the engagement team and we remained alert to any indications of non-compliance throughout the audit.

As a result of performing the above, we identified the susceptibility of assets to misappropriation as a potential risk of fraud.

 
Page 7

 
DOMINUS BATH HOTEL LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DOMINUS BATH HOTEL LIMITED (CONTINUED)


Our procedures to respond to risks identified included the following:

reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

enquiries with management concerning actual and potential litigation and claims; 

assessing the appropriateness and where appropriate with third parties concerning actual and potential litigation and claims;
 
physical inspection of assets;

performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

examining minutes of meetings of those charged with governance and correspondence with HMRC and other third parties; and

in addressing the risk of fraud through management override of controls, reviewing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.
 
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors' report.


Page 8

 
DOMINUS BATH HOTEL LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DOMINUS BATH HOTEL LIMITED (CONTINUED)


Use of our report
 

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our 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 auditors' 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.





Richard Paul (senior statutory auditor)
  
for and on behalf of
Nyman Libson Paul LLP
 
Chartered Accountants
Statutory Auditors
  
124 Finchley Road
London
NW3 5JS

18 September 2024
Page 9

 
DOMINUS BATH HOTEL LIMITED
 
 
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
£
£

  

Turnover
 4 
7,612,494
5,551,601

Cost of sales
  
(2,422,910)
(1,958,559)

Gross profit
  
5,189,584
3,593,042

Distribution costs
  
(786,874)
(558,567)

Administrative expenses
  
(3,191,499)
(2,698,236)

Other operating income
 5 
12,403
11,369

Operating profit
  
1,223,614
347,608

Interest payable and similar expenses
 8 
(1,839,434)
(904,808)

Loss before tax
  
(615,820)
(557,200)

Loss after tax
  
(615,820)
(557,200)

  

  

Retained earnings at the beginning of the year
  
(636,488)
(79,288)

Loss for the year
  
(615,820)
(557,200)

Retained earnings at the end of the year
  
(1,252,308)
(636,488)

There were no recognised gains and losses for 2023 or 2022 other than those included in the statement of income and retained earnings.

Page 10

 
DOMINUS BATH HOTEL LIMITED
REGISTERED NUMBER: 10589940

STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Tangible assets
 10 
33,958,443
34,933,238

Current assets
  

Stocks
 11 
10,502
12,688

Debtors: amounts falling due within one year
 12 
206,220
189,016

Cash at bank and in hand
 13 
784,040
1,021,506

  
1,000,762
1,223,210

Creditors: amounts falling due within one year
 14 
(14,634,416)
(10,531,435)

Net current liabilities
  
 
 
(13,633,654)
 
 
(9,308,225)

Total assets less current liabilities
  
20,324,789
25,625,013

Creditors: amounts falling due after more than one year
 15 
(21,577,096)
(26,261,500)

  

Net liabilities
  
(1,252,307)
(636,487)


Capital and reserves
  

Called up share capital 
 17 
1
1

Profit and loss account
 18 
(1,252,308)
(636,488)

  
(1,252,307)
(636,487)


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 16 September 2024.




S S Ahluwalia
Director

The notes on pages 14 to 24 form part of these financial statements.

Page 11

 
DOMINUS BATH HOTEL LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
2022
£
£

Cash flows from operating activities

Loss for the financial year
(615,820)
(557,200)

Adjustments for:

Depreciation of tangible assets
974,795
889,110

Interest paid
1,839,434
904,808

Decrease/(increase) in stocks
2,186
(12,688)

(Increase)/decrease in debtors
(17,204)
337,944

(Decrease)/increase in creditors
(659,423)
482,918

Net cash generated from operating activities

1,523,968
2,044,892


Cash flows from investing activities

Purchase of tangible fixed assets
-
(2,813,760)

Sale of tangible fixed assets
-
3,648

Net cash from investing activities

-
(2,810,112)

Cash flows from financing activities

New secured loans
-
5,286,954

Repayment of loans
(4,500,000)
-

New loans from group companies
4,578,000
-

Loans from group companies repaid
-
(3,200,000)

Interest paid
(1,839,434)
(904,808)

Net cash used in financing activities
(1,761,434)
1,182,146

Net (decrease)/increase in cash and cash equivalents
(237,466)
416,926

Cash and cash equivalents at beginning of year
1,021,506
604,580

Cash and cash equivalents at the end of year
784,040
1,021,506


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
784,040
1,021,506

784,040
1,021,506


The notes on pages 14 to 24 form part of these financial statements.

Page 12

 
DOMINUS BATH HOTEL LIMITED
 

ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2023




At 1 January 2023
Cash flows
At 31 December 2023
£

£

£

Cash at bank and in hand

1,021,506

(237,466)

784,040

Debt due after 1 year

(26,000,000)

4,672,000

(21,328,000)

Debt due within 1 year

(8,647,229)

(4,750,000)

(13,397,229)


(33,625,723)
(315,466)
(33,941,189)

The notes on pages 14 to 24 form part of these financial statements.

Page 13

 
DOMINUS BATH HOTEL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


General information

Dominus Bath Hotel Limited is a private company limited by shares and incorporated in England & Wales. The address of its principal place of business is Avon Street, Bath, BA1 1UP.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the company's accounting policies (see note 3).

The company's functional and presentational currency is GBP, rounded to the nearest £1.

The following principal accounting policies have been applied:

 
2.2

Going concern

The company shows net current liabilities at the balance sheet date of £13,633,654. The company has received formal confirmation from its parent, Dominus Bath Holdings Limited, that the company will receive the financial support it requires to enable it to meet its liabilities as they fall due.
Existing funding facilities, forecasts and projections indicate that the group has adequate resources to continue with some level of activity from minimal to full levels, therefore the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements.
In making their assessment of going concern, the directors have considered information for a period of at least twelve months from the date the financial statements were authorised for issue.

 
2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the company has transferred the significant risks and rewards of ownership to the buyer;
the company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Page 14

 
DOMINUS BATH HOTEL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.3
Revenue (continued)

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

Revenue within the company comprises the following:
Income from rooms
Revenue consists of charges made for occupancy of hotel rooms and is recognised when rooms are occupied and services have been rendered. Any room income received relating to a future period is deferred to the period in which the service is used.
Income from bars and restaurants
Revenue comprises sales of food and drink, including mini bar facilities at the hotel and is recognised as income at the point of sale.
Income from hires
Revenues from hiring of meeting rooms, conference facilities and provision of catering services for events are recognised at the point of event date.

 
2.4

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.5

Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset have been capitalised.
Capitalisation of borrowing costs ceases when substantially all of the activities necessary to prepare the asset for its intended use or sale are complete.

Page 15

 
DOMINUS BATH HOTEL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.6

Pensions

Defined contribution pension plan

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the statement of financial position. The assets of the plan are held separately from the company in independently administered funds.

 
2.7

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

The company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.

Depreciation is provided on the following basis:

Freehold property
-
50 years straight line
Fixtures and fittings
-
5 to 10 years straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.8

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.9

Debtors

Short term debtors are measured at transaction price, less any impairment.

Page 16

 
DOMINUS BATH HOTEL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)

 
2.10

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.

 
2.11

Creditors

Short term creditors are measured at the transaction price. Other financial liabilities, including loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.12

Financial instruments

The company has elected to apply the provisions of Section 11 “Basic Financial Instruments” 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.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Financial liabilities

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

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

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

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Page 17

 
DOMINUS BATH HOTEL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgments, estimates and assumptions that affect the amounts reported for assets and liabilities as at the reporting date and the amount reported for revenue and expenditure during the year. However, the nature of estimations means that actual outcomes could differ from those estimates.

In preparing these financial statements, the directors have had to make the following judgments:
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 and where it is a component of a larger cash-generating unit, the viability and expected future performance of that unit.

Other key sources of estimation uncertainty:
Tangible fixed assets (see note 10)
Tangible fixed assets, other than investments properties, are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on the number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.



4.


Turnover

An analysis of turnover by class of business is as follows:


2023
2022
£
£

Accommodation
7,403,094
5,404,492

Food and beverage
209,400
147,109

7,612,494
5,551,601


All turnover arose within the United Kingdom.


5.


Other operating income

2023
2022
£
£

Key funding amortization
12,403
11,369

12,403
11,369


Page 18

 
DOMINUS BATH HOTEL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

6.


Auditors' remuneration

During the year, the company obtained the following services from the company's auditors:


2023
2022
£
£

Fees payable to the company's auditors for the audit of the company's financial statements
15,000
13,500


7.


Employees

Staff costs were as follows:


2023
2022
£
£

Wages and salaries
1,595,083
1,268,283

Social security costs
119,897
85,605

Cost of defined contribution scheme
21,881
15,840

1,736,861
1,369,728


The average monthly number of employees, including the directors, during the year was as follows:


        2023
        2022
            No.
            No.







Directors
4
4



Management and operations
90
66

94
70

Key management compensation
Key management comprises the directors and members of senior management. There was no compensation paid or payable to key management for employee services during the year nor prior year.


8.


Interest payable and similar expenses

2023
2022
£
£


Bank interest payable
1,839,434
904,808

1,839,434
904,808

Page 19

 
DOMINUS BATH HOTEL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

9.


Taxation



Factors affecting tax charge for the year

The tax assessed for the year is higher than (2022 - higher than) the standard rate of corporation tax in the UK of 23.5% (2022 -19%). The differences are explained below:

2023
2022
£
£


Loss on ordinary activities before tax
(615,820)
(557,200)


Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 23.5% (2022 - 19%)
(144,718)
(105,868)

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
-
40

Capital allowances for year in excess of depreciation
(96,055)
(235,156)

Changes in provisions leading to an increase (decrease) in the tax charge
(52)
2,019

Unrelieved tax losses carried forward
240,825
388,939

Other tax charge (relief) on exceptional items
-
(49,974)

Total tax charge for the year
-
-


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 20

 
DOMINUS BATH HOTEL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

10.


Tangible fixed assets





Freehold property
Fixtures and fittings
Total

£
£
£



Cost


At 1 January 2023
32,719,946
3,102,402
35,822,348



At 31 December 2023

32,719,946
3,102,402
35,822,348



Depreciation


At 1 January 2023
590,072
299,038
889,110


Charge for the year on owned assets
646,608
328,187
974,795



At 31 December 2023

1,236,680
627,225
1,863,905



Net book value



At 31 December 2023
31,483,266
2,475,177
33,958,443



At 31 December 2022
32,129,874
2,803,364
34,933,238


11.


Stocks

2023
2022
£
£

Finished goods and goods for resale
10,502
12,688

10,502
12,688


The difference between purchase price or production cost of stocks and their replacement cost is not material.  There were no impairment losses recognised in profit and loss during the year nor prior year.

Page 21

 
DOMINUS BATH HOTEL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

12.


Debtors

2023
2022
£
£


Trade debtors
79,713
43,279

Amounts owed by group undertakings
1
1

Other debtors
33,450
18,020

Prepayments
93,056
127,716

206,220
189,016



13.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
784,040
1,021,506

784,040
1,021,506



14.


Creditors: Amounts falling due within one year

2023
2022
£
£

Trade creditors
283,255
529,644

Amounts owed to group undertakings
13,397,229
8,647,229

Other taxation and social security
256,936
253,648

Other creditors
91,616
491,999

Accruals and deferred income
605,380
608,915

14,634,416
10,531,435


Page 22

 
DOMINUS BATH HOTEL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

15.


Creditors: Amounts falling due after more than one year

2023
2022
£
£

Bank loans
21,328,000
26,000,000

Deferred income
249,096
261,500

21,577,096
26,261,500


Bank loans of £21,328,000 (2022: £26,000,000) are interest bearing at the lenders daily compounded reference rate +2.10% (2022: Bank of England Base Rate +2.5%) per annum.  In the prior period, interest on the loans were capitalised on each repayment date and added to the principal amount of the loan while the asset was under construction.  From completion of the asset, all interest is charged to profit or loss.
The bank loan is secured by a fixed and floating charge over the assets of the company.


16.


Financial instruments

2023
2022
£
£

Financial assets


Financial assets that are debt instruments measured at amortised cost
897,204
1,082,806


Financial liabilities


Financial liabilities measured at amortised cost
(35,100,100)
(35,668,872)


Financial assets measured at amortised cost comprise trade debtors, other debtors and amounts owed by group undertakings.


Financial liabilities measured at amortised cost comprise trade creditors, other creditors and amounts owed to group undertakings.


17.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



1 (2022 - 1) Ordinary share of £1.00
1
1


Page 23

 
DOMINUS BATH HOTEL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

18.


Reserves

Profit and loss account

The profit and loss account includes retained earnings that are realised gains and fully distributable.


19.


Pension commitments

The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company  in an independently administered fund. The pension cost charge represents contributions payable by the group to the fund and amounted to £21,881 (2022: £15,840). Contributions totalling £10,408 (2022: £10,628) were payable to the fund at the reporting date and are included in creditors.


20.


Related party transactions

Dominus Bath Hotel Limited is a wholly owned subsidiary of Dominus Bath Holdings Limited, a company incorporated in Jersey. The registered office address is 28 Esplanade, St Helier, Jersey, JE2 3QA.
The company has taken advantage of the exemption in FRS 102 from the requirement to disclose transactions with group companies.

 
Page 24