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Registered number: 13057898









DOMINUS DIXON HOTEL LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

 
DOMINUS DIXON HOTEL LIMITED
 
 
COMPANY INFORMATION


Directors
A J Mangrola 
L A Saywack 




Company secretary
Speafi Secretarial Limited



Registered number
13057898



Registered office
1 London Street

Reading

RG1 4PN




Independent auditors
Nyman Libson Paul LLP
Chartered Accountants & Statutory Auditors

124 Finchley Road

London

NW3 5JS




Solicitors
Field Seymour Parkes LLP
1 London Street

Reading

RG1 4PN





 
DOMINUS DIXON HOTEL LIMITED
 

CONTENTS



Page
Strategic Report
 
1 - 2
Directors' Report
 
3 - 4
Independent Auditors' Report
 
5 - 7
Statement of Income and Retained Earnings
 
8
Statement of Financial Position
 
9
Notes to the Financial Statements
 
10 - 19


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

Introduction
 
The principal activity of the company during the period was the operation of a luxury hotel.

Business review
 
The hotel operated as an upper scaled luxury hotel located in Central London.
The results for the year show a gross profit of £11,368,533 (2022: £8,800,667).
The company made an operating profit for the year of £2,541,182 (2022: £302,572 loss).
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 period 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, availability of credit and currency fluctuations.
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 the hotels activity.
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 group negligence and non compliance with government regulations are risks to the company. The group 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. We have robust internal IT controls and partner with independent security experts to help maintain our IT systems and manage our cyber security risk.

Page 1

 
DOMINUS DIXON HOTEL LIMITED
 

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

Financial key performance indicators
 
The company have deployed relevant KPIs to evaluate the success of our organisation 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.



A J Mangrola
Director

Page 2

 
DOMINUS DIXON 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 profit for the year, after taxation, amounted to £2,541,182 (2022 - loss £302,572).

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

Directors

The directors who served during the year were:

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.

Engagement with employees

During the year the policy of providing employees with information about the company has been continued through the notice board at the head office and regular internal communications.

Page 3

 
DOMINUS DIXON 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.
 





A J Mangrola
Director

Page 4

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

Opinion


We have audited the financial statements of Dominus Dixon 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 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 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.


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


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


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 DIXON HOTEL LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DOMINUS DIXON 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:
 


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.


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 7

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

2023
2022
Note
£
£

  

Turnover
 4 
15,144,680
11,859,957

Cost of sales
  
(3,776,147)
(3,059,290)

Gross profit
  
11,368,533
8,800,667

Distribution costs
  
(1,292,253)
(990,786)

Administrative expenses
  
(7,618,431)
(8,201,786)

Other operating income
 5 
83,333
89,333

Operating profit/(loss)
  
2,541,182
(302,572)

Profit/(loss) after tax
  
2,541,182
(302,572)

  

  

Retained earnings at the beginning of the year
  
(3,111,225)
(2,808,653)

Profit/(loss) for the year
  
2,541,182
(302,572)

Retained earnings at the end of the year
  
(570,043)
(3,111,225)
There were no recognised gains and losses for 2023 or 2022 other than those included in the statement of income and retained earnings.

The notes on pages 10 to 19 form part of these financial statements.

Page 8

 
DOMINUS DIXON HOTEL LIMITED
REGISTERED NUMBER: 13057898

STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

  

Current assets
  

Stocks
 9 
27,094
19,830

Debtors: amounts falling due within one year
 10 
7,407,919
7,143,962

Cash at bank and in hand
 11 
354,466
791,607

  
7,789,479
7,955,399

Creditors: amounts falling due within one year
 12 
(6,359,518)
(8,983,287)

Net current assets/(liabilities)
  
 
 
1,429,961
 
 
(1,027,888)

Total assets less current liabilities
  
1,429,961
(1,027,888)

Creditors: amounts falling due after more than one year
 13 
(2,000,002)
(2,083,335)

  

Net liabilities
  
(570,041)
(3,111,223)


Capital and reserves
  

Called up share capital 
 14 
2
2

Profit and loss account
 15 
(570,043)
(3,111,225)

  
(570,041)
(3,111,223)


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




A J Mangrola
Director

The notes on pages 10 to 19 form part of these financial statements.

Page 9

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

1.


General information

Dominus Dixon Hotel Limited is a private company limited by shares and incorporated in England. The address of its principal place of business is 209-211 Tooley Street, London, SE1 2JY.

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

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
- the requirements of Section 7 Statement of Cash Flows;
- the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
- the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
- the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
- the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of Dominus Dixon Holdco Limited as at 31 December 2023 and these financial statements may be obtained from https://beta.companieshouse .gov.uk/.

 
2.3

Going concern

The company shows net liabilities at the reporting date of £570,041. The company has received formal confirmation from its parent, Dominus Dixon Holdco Limited, that the company will receive the financial support it requires to enable it to meet its liabilities as they fall due.
After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore adopts the going concern basis in preparing its financial statements, but with the proviso that some uncertainty exists.
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.

Page 10

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

2.Accounting policies (continued)

 
2.4

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.

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 room is occupied.
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.

Page 11

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

2.Accounting policies (continued)

 
2.5

Operating leases: the company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.6

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of Income and Retained Earnings in the same period as the related expenditure.

During the prior year the company received employee based government grants and benefited from the business rates holiday applicable to hospitality businesses.

 
2.7

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.

 
2.8

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.
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.

 
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.

Page 12

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

2.Accounting policies (continued)

 
2.11

Creditors

Short-term creditors are measured at the transaction price.

 
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.

The company has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

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 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.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The
Page 13

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

2.Accounting policies (continued)


2.12
Financial instruments (continued)

impairment reversal is recognised in the profit or loss.

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.

Other financial instruments

Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.

Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.

The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to or from related parties.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are
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DOMINUS DIXON HOTEL LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.Accounting policies (continued)


2.12
Financial instruments (continued)

settled, or when the company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company's contractual obligations expire or are discharged or cancelled.


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 leases entered into by the company either as a lessor or a lessee are operating or finance leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis.


4.


Turnover

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


2023
2022
£
£

Accommodation
12,739,381
9,844,668

Food and beverage
1,278,469
1,044,119

Events
279,050
241,495

Sundry income
847,780
729,675

15,144,680
11,859,957


All turnover arose within the United Kingdom.

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

5.


Other operating income

2023
2022
£
£

Key money funding
83,333
83,333

Government grants receivable
-
6,000

83,333
89,333



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
13,000


7.


Employees

Staff costs were as follows:


2023
2022
£
£

Wages and salaries
2,392,672
1,774,274

Social security costs
227,793
166,326

Cost of defined contribution scheme
38,664
26,729

2,659,129
1,967,329


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


        2023
        2022
            No.
            No.







Management and operations
89
67

Key management compensation
The company has no employees other than the directors, who did not receive any remuneration (2022 - £NIL).

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

8.


Taxation



Factors affecting tax charge for the year

The tax assessed for the year is lower than (2022 - higher than) the standard rate of corporation tax in the UK of19% (2022 -19%). The differences are explained below:

2023
2022
£
£


Profit/(loss) on ordinary activities before tax
2,541,182
(302,572)


Profit/(loss) on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2022 - 19%)
482,825
(57,489)

Effects of:


Utilisation of tax losses
(482,825)
57,984

Changes in provisions leading to a decrease in the tax charge
-
(495)

Total tax charge for the year
-
-


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


9.


Stocks

2023
2022
£
£

finished goods and goods for resale
27,094
19,830


The difference between purchase price or production cost of stocks and their replacement cost is not material.


10.


Debtors

2023
2022
£
£


Trade debtors
590,797
270,628

Other debtors
5,511,094
5,520,789

Prepayments
1,306,028
1,352,545

7,407,919
7,143,962


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

11.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
354,466
791,607

354,466
791,607



12.


Creditors: Amounts falling due within one year

2023
2022
£
£

Trade creditors
518,963
367,136

Amounts owed to group undertakings
329,726
3,186,257

Other taxation and social security
436,709
182,509

Other creditors
8,781
6,753

Accruals and deferred income
5,065,339
5,240,632

6,359,518
8,983,287



13.


Creditors: Amounts falling due after more than one year

2023
2022
£
£

Deferred income
2,000,002
2,083,335



14.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



2 (2022 - 2) ordinary shares of £1.00 each
2
2



15.


Reserves

Profit and loss account

The profit and loss account represents cumulative profits or losses, net of dividends paid, and any other adjustments.

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

16.


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 company to the fund and amounted to £38,664 (2022: £26,729).  Contributions totalling £8,781 (2022: £6,753) were payable to the fund at the reporting date and are included in creditors due within one year.


17.


Commitments under operating leases

At 31 December 2023 the company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2023
2022
£
£


Not later than 1 year
4,696,800
4,696,800

Later than 1 year and not later than 5 years
18,787,200
18,787,200

Later than 5 years
198,439,800
203,136,600

221,923,800
226,620,600


18.


Related party transactions

The company has taken advantage of the exemption in FRS 102 from the requirement to disclose transactions with its parent company on the grounds that the company is a wholly owned subsidiary.
During the year the company incurred administration expenses of £279,659 (2022: £896,052) from companies under common control.  There were no amounts due to these companies at the balance sheet date.


19.


Controlling party

Dominus Dixon Hotel Limited is a wholly owned subsidiary of Dominus Dixon Holdco Limited, a company incorporated in England. The registered office address is 1 London Street, Reading, RG1 4QW.  The ultimate parent company is Dominus Dixon Holdings Limited, a company registered in Jersey.

 
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