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Registration number: 01370970

The Woolacombe Bay Hotel Limited

Annual Report and Financial Statements

for the year ended 31 December 2023

image-name
 

The Woolacombe Bay Hotel Limited

Contents

Company Information

1

Strategic Report

2 to 3

Directors' Report

4 to 5

Independent Auditor's Report

6 to 9

Statement of Comprehensive Income

10

Balance Sheet

11

Notes to the Financial Statements

12 to 23

 

The Woolacombe Bay Hotel Limited

Company Information

Directors

Mrs S E Lancaster

R J R Lancaster

Company secretary

Mrs L M Todd

Registered office

30 Bear Street
BARNSTAPLE
Devon
EX32 7DD

Auditors

Glover Stanbury
Chartered Accountants and Registered Auditors
30 Bear Street
BARNSTAPLE
Devon
EX32 7DD

 

The Woolacombe Bay Hotel Limited

Strategic Report for the Year Ended 31 December 2023

The directors present their strategic report for the year ended 31 December 2023.

Principal activity

The principal activity of the company is that of hoteliers and the provision of self-catering accommodation

Fair review of the business

Turnover has increased by 4%, due to the fact that visitor numbers during the 2022 season had a slight decrease due to the return to normal travel for visitors post Covid-19. The hotel also had to increase prices in line with the inflationary pressures in the economy which has meant an increase despite lower visitor numbers. In addition, other operating expenses and wages increased, due to the effects of a rise in the minimum wage and other supplier costs being considerably higher because of the economic climate. This has therefore impacted negatively resulting in loss compared to the previous year' profit before tax as reflected in the KPI table below.

Forward bookings are strong but as with any seasonal business, forward visibility of income is limited thus it is still uncertain what the recent impacts of high inflation, interest rates, the cost of living crisis and the war in Ukraine might have on the company's income over the forthcoming twelve months.

The company has a very strong balance sheet and at the end of the year, net assets totalled £3,536,042 (2022 - £3,686,345). Given the very significant expense of obtaining and then maintaining valuations of the land and buildings included within the company's fixed assets, the directors' have historically decided to keep these assets at cost. However, they believe that the market value of these assets is well in excess of the value stated in the financial statements, but in the absence of formal valuations have not adopted these values in the financial statements.

During the winter of 2024/25, as well as the normal ongoing refurbishment program, more significant work will be undertaken to the tennis courts area and also exterior works to the Camelot Court building which is used for staff accommodation.

The company's key financial and other performance indicators during the year were as follows:

 

Unit

2023

2022

Turnover (reduction)/growth

%

4

(3)

Profit before tax

£

(204,315)

17,120

 

The Woolacombe Bay Hotel Limited

Strategic Report for the Year Ended 31 December 2023

Principal risks and uncertainties

Due to the nature of the business, the company’s primary earnings period is over the summer months and therefore it can be difficult to accurately project future earnings as this can be weather dependant, particularly regarding last minute bookings. However, the directors’ actively monitor the booking deposits received, which are a reasonably reliable indicator of the expected earnings, and manage the business accordingly. The current economic situation does introduce further uncertainities for the company, however as noted above the balance sheet position is extremely strong and should be able to withstand a downturn in trade should the fears of a general recession be realised.

Approved by the Board on 17 September 2024 and signed on its behalf by:


Mrs L M Todd
Company secretary

 

The Woolacombe Bay 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 of the company

The directors who held office during the year were as follows:

Mrs S E Lancaster

R J R Lancaster

R M Lancaster (Died 7 February 2024)

Mrs R J Lancaster (Died 29 April 2024)


Directors' responsibilities

The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

 

The Woolacombe Bay Hotel Limited

Directors' Report for the Year Ended 31 December 2023

Financial instruments

Objectives and policies

As the positive cash flow can be orientated towards the Spring and Summer months, the company is managed to ensure that there is sufficient working capital to adequately finance the company through the Winter and also allow ongoing maintenance and refurbishment to proceed where required.

Price risk, credit risk, liquidity risk and cash flow risk

The business' principal financial instruments comprise bank balances, bank overdrafts, trade debtors, trade creditors, loans to the business and finance lease agreements. The main purpose of these instruments is to finance the business' operations.

In respect of bank balances, the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of overdrafts and loans at floating rates of interest. All of the business' cash balances are held in such a way that achieves a competitive rate of interest.

Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. The amounts presented in the balance sheet are net of allowances for doubtful debtors. Trade creditors' liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

Future developments

As is important with a hotel with the four-star status that Woolacombe Bay Hotel has earned, the high standards that are currently implemented will be continually monitored and improved upon. With the hotel enjoying one of the most enviable locations in England and overlooking one of the finest beaches in Europe the directors are confident that the hotel can continue to generate a profitable return.

The directors have detailed short and medium term plans for the hotel which should maintain or improve its profitability and these dovetail with the long term strategic plan to create a cohesive plan for the future of the hotel.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Approved by the Board on 17 September 2024 and signed on its behalf by:


Mrs L M Todd
Company secretary

 

The Woolacombe Bay Hotel Limited

Independent Auditor's Report to the Members of The Woolacombe Bay Hotel Limited

Opinion

We have audited the financial statements of The Woolacombe Bay Hotel Limited (the 'company') for the year ended 31 December 2023, which comprise the Statement of Comprehensive Income, Balance Sheet, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the company's affairs as at 31 December 2023 and of its 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 auditor responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the director's 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 original financial statements were 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.

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 auditor’s 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.

 

The Woolacombe Bay Hotel Limited

Independent Auditor's Report to the Members of The Woolacombe Bay Hotel Limited

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.

Opinions 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and 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 our 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 and the Directors' Report.

We have nothing to report in respect of the following matters where 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 Statement of Directors' Responsibilities set out on page 4, 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.

 

The Woolacombe Bay Hotel Limited

Independent Auditor's Report to the Members of The Woolacombe Bay Hotel Limited

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Identifying and assessing potential risks related to irregularities
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:
1. The nature of the industry and sector, control environment and business performance;
2. results of our enquiries of management about their own identification and assessment of the risks of irregularities;
3. any matters we identified having obtained and reviewed the company’s documentation 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;
- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations;
4. the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in income. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

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 the UK Companies Act, UK corporate governance legislation and UK tax legislation.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company’s ability to operate or to avoid a material penalty.

Audit response to risks identified
As a result of performing the above, we have not identified any contradictory evidence during our enquiries.

 

The Woolacombe Bay Hotel Limited

Independent Auditor's Report to the Members of The Woolacombe Bay Hotel Limited

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;
- enquiring of management concerning actual and potential litigation and claims;
- performing procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;
- reading minutes of meetings of those charged with governance; and
- in addressing the risk of fraud through management override of controls, testing 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.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.
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 auditor's 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 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.



Nigel Bennett FCA (Senior Statutory Auditor)
For and on behalf of Glover Stanbury, Statutory Auditor

30 Bear Street
BARNSTAPLE
Devon
EX32 7DD

18 September 2024

 

The Woolacombe Bay Hotel Limited

Statement of Comprehensive Income for the Year Ended 31 December 2023

Note

2023
£

2022
£

Turnover

3

3,934,165

3,798,415

Cost of sales

 

(2,229,230)

(2,127,854)

Gross profit

 

1,704,935

1,670,561

Administrative expenses

 

(1,914,500)

(1,656,794)

Other operating income

4

-

2,667

Operating (loss)/profit

5

(209,565)

16,434

Other interest receivable and similar income

7

5,250

686

 

5,250

686

(Loss)/profit before tax

 

(204,315)

17,120

Taxation

11

54,012

(2,024)

(Loss)/profit for the financial year

 

(150,303)

15,096

Retained earnings brought forward

 

3,666,345

3,651,249

Retained earnings carried forward

 

3,516,042

3,666,345

The above results were derived from continuing operations.

 

The Woolacombe Bay Hotel Limited

(Registration number: 01370970)
Balance Sheet as at 31 December 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

12

4,496,093

3,661,467

Current assets

 

Stocks

13

47,226

30,145

Debtors

14

120,422

284,206

Cash at bank and in hand

 

672,046

1,896,084

 

839,694

2,210,435

Creditors: Amounts falling due within one year

15

(1,699,608)

(2,067,141)

Net current (liabilities)/assets

 

(859,914)

143,294

Total assets less current liabilities

 

3,636,179

3,804,761

Provisions for liabilities

16

(100,137)

(118,416)

Net assets

 

3,536,042

3,686,345

Capital and reserves

 

Called up share capital

20,000

20,000

Retained Earnings

3,516,042

3,666,345

Shareholders' funds

 

3,536,042

3,686,345

Approved and authorised for issue by the Board on 17 September 2024 and signed on its behalf by:


Mrs S E Lancaster
Director

 
 

The Woolacombe Bay Hotel Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

1

General information

The company is a private company limited by share capital, incorporated in England.

The address of its registered office is:
30 Bear Street
BARNSTAPLE
Devon
EX32 7DD

The principal place of business is:
Woolacombe Bay Hotel
WOOLACOMBE
Devon
EX34 7BN

These financial statements were authorised for issue by the Board on 17 September 2024.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention.

All amounts are in £'s.

Summary of disclosure exemptions

The individual accounts of Woolacombe Bay Hotel Limited have also adopted the following disclosure exemptions:

- The company has taken advantage of the exemption, under FRS 102 paragraph 1.12(b), from preparing a statement of cash flows on the basis that it is a qualifying entity and its ultimate parent company, Lancaster Leisure Limited, includes the company’s cash flows in its own consolidated financial statements. Being a qualifying entity, it has also taken advantage of the exemption from disclosing key management personnel compensation as this is disclosed in the parent company's consolidated accounts as well as the exemption from disclosing remuneration receivable by auditors for other services.

Name of parent of group

These financial statements are consolidated in the financial statements of Lancaster Leisure Limited.

 

The Woolacombe Bay Hotel Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

The financial statements of Lancaster Leisure Limited may be obtained from the Registrar of Companies from England and Wales..

Going concern

The financial statements have been prepared on a going concern basis.

Judgements

There are no judgements which management have made in the process of applying the accounting policies.

Key sources of estimation uncertainty

There are no key sources of estimation uncertainty that have a significant risk of causing a material adjustment to assets and liabilities to be disclosed.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the Company’s activities. Turnover is shown net of value added tax, refunds and discounts.

The Company recognises revenue when residents of the hotel depart and a bill is produced. Revenue relating to the car park, spa, cinema and non-account extras are recognised at the point of delivery of the service. Function income is recognised on the date of event. Revenue relating to the gym is recognised at the point of delivery of the service except for revenue from gym memberships which are recognised over the life of the membership contract.

Government grants

Grants have been recognised in the accounts under the accrual model. Under the accrual model, grants relating to revenue shall be recognised as income on a systematic basis over the periods in which the entity recognises the related costs for which the grant is intended to compensate.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the UK where the company operates and generates taxable income.

Deferred corporation tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred corporation tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

 

The Woolacombe Bay Hotel Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

No depreciation is provided on freehold hotel premises as it is company policy to maintain them to such a standard that the estimated aggregate residual values are so high that any depreciation is not material to the accounts. Any impairment in the value of the hotel premises is recognised in the profit and loss account when incurred.

Depreciation is provided on remaining tangible fixed assets so as to write off the cost, less any estimated residual value, over their expected useful economic life as follows:

Asset class

Depreciation method and rate

Fixtures and fittings

4 equal annual instalments

Motor vehicles

25% reducing balance

Plant and machinery

25% reducing balance

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at the undiscounted amount of the cash expected to be received (i.e. net of impairment). A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the debts.

Stocks

Stock is valued at the lower of cost and net realisable value on a first in first out basis, after due regard for obsolete and slow moving stocks.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the Company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at the undiscounted amount of the cash expected to be paid.

 

The Woolacombe Bay Hotel Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Borrowings

Interest-bearing borrowings are initially recorded at transaction price net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the interest expense being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing. Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges. Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods. Contributions to defined contribution plans are recognised as employee benefit expense when they are due.

 

The Woolacombe Bay Hotel Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

Financial instruments

Classification
Basic financial assets include trade and other debtors, cash and bank balances. Basic financial liabilities include trade and other payables, bank loans and loans from fellow Group companies.

 Recognition and measurement
Basic financial assets are initially recognised at transaction price, 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. Such assets are subsequently carried at amortised cost using the effective interest method. Other debtors are classified as current assets if payment is due within one year or less and are initially recorded at transaction price and subsequently measured at the undiscounted amount of the cash expected to be received. Trade debtors are referred to above.

Basic financial liabilities are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Other creditors are classified as current liabilities if payment is due within one year or less and are recognised initially at transaction price and subsequently measured at the undiscounted amount of the cash expected to be paid. If not, they are presented as non-current liabilities and are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. Trade creditors and leases are referred to above.

 Impairment
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

3

Turnover

The analysis of the company's Turnover for the year from continuing operations is as follows:

2023
£

2022
£

Accommodation and associated facilities sales

3,934,165

3,798,415

 

The Woolacombe Bay Hotel Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

4

Other operating income

The analysis of the company's other operating income for the year is as follows:

2023
£

2022
£

Government grants

-

2,667

5

Operating (loss)/profit

Arrived at after charging/(crediting)

2023
£

2022
£

Depreciation expense

127,957

142,441

Operating lease expense - plant and machinery

2,968

15,466

Loss/(profit) on disposal of property, plant and equipment

167

(3,851)

6

Government grants

The company received government grants relating to the Coronavirus Job Retention Scheme (CJRS) in the previous year and also received business support grants.

The amount of grants recognised in the financial statements was £Nil (2022 - £2,667).


There are no unfulfilled conditions or other contingencies attaching to the grants that have been recognised in income.

7

Other interest receivable and similar income

2023
£

2022
£

Other finance income

5,250

686

 

The Woolacombe Bay Hotel Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

8

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2023
£

2022
£

Wages and salaries

1,836,233

1,705,867

Social security costs

20,250

138,869

Pension costs, defined contribution scheme

425

24,754

1,856,908

1,869,490

The average number of persons employed by the company (including directors under service contract) during the year, analysed by category was as follows:

2023
No.

2022
No.

Administration and management

10

10

Bar, restaurant, maintenance and other staff

64

66

74

76

9

Directors' remuneration

The directors' remuneration for the year was as follows:

2023
£

2022
£

Remuneration

150,110

150,000

10

Auditors' remuneration

2023
£

2022
£

Audit of the financial statements

6,643

6,500


 

 

The Woolacombe Bay Hotel Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

11

Taxation

Tax charged/(credited) in the profit and loss account

2023
£

2022
£

Current taxation

UK corporation tax

(35,733)

(53,121)

Deferred taxation

Arising from origination and reversal of timing differences

(18,279)

55,145

Tax (receipt)/expense in the income statement

(54,012)

2,024

The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2022 - lower than the standard rate of corporation tax in the UK) of 24.2% (2022 - 19%).

The differences are reconciled below:

2023
£

2022
£

(Loss)/profit before tax

(204,315)

17,120

Corporation tax at standard rate

(49,436)

3,253

Effect of expense not deductible in determining taxable profit (tax loss)

-

(2,460)

Tax (decrease)/increase from effect of capital allowances and depreciation

(4,576)

1,231

Total tax (credit)/charge

(54,012)

2,024

 

The Woolacombe Bay Hotel Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

12

Tangible assets

Land and buildings
£

Fixtures and fittings
£

Plant and machinery
£

Motor vehicles
 £

Total
£

Cost

At 1 January 2023

3,232,936

791,750

2,550,450

57,850

6,632,986

Additions

863,198

-

76,990

22,562

962,750

Disposals

-

-

-

(26,600)

(26,600)

At 31 December 2023

4,096,134

791,750

2,627,440

53,812

7,569,136

Depreciation

At 1 January 2023

-

791,750

2,126,669

53,100

2,971,519

Charge for the year

-

-

125,193

2,764

127,957

Eliminated on disposal

-

-

-

(26,433)

(26,433)

At 31 December 2023

-

791,750

2,251,862

29,431

3,073,043

Carrying amount

At 31 December 2023

4,096,134

-

375,578

24,381

4,496,093

At 31 December 2022

3,232,936

-

423,781

4,750

3,661,467

Included within the net book value of land and buildings above is £4,096,134 (2022 - £3,232,936) in respect of freehold land and buildings.
 

The bank have security over all assets, including stock, by fixed and floating charges.

 

The Woolacombe Bay Hotel Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

13

Stocks

2023
£

2022
£

Food and bar stocks

47,226

30,145

14

Debtors

Current

Note

2023
£

2022
£

Trade debtors

 

2,367

1,831

Amounts owed by group undertakings

21

1,495

-

Other debtors

 

63,510

110,956

Prepayments

 

53,050

71,419

Corporation tax receivable

11

-

100,000

   

120,422

284,206

15

Creditors

Note

2023
£

2022
£

Due within one year

 

Trade creditors

 

83,746

79,799

Amounts owed to group undertakings

21

1,143,677

1,491,644

Social security and VAT

 

13,748

21,493

Outstanding defined contribution pension costs

 

10,063

8,915

Other payables

 

3,111

3,432

Accruals

 

445,263

408,430

Directors' current accounts

 

-

53,428

 

1,699,608

2,067,141

16

Deferred tax and other provisions

Deferred tax
£

Total
£

At 1 January 2023

118,416

118,416

Increase (decrease) in existing provisions

(18,279)

(18,279)

At 31 December 2023

100,137

100,137

The deferred tax provision comprises the difference between accumulated depreciation and capital allowances.

 

The Woolacombe Bay Hotel Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

17

Pension schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £425 (2022 - £24,754).

Contributions totalling £10,063 (2022 - £8,915) were payable to the scheme at the end of the year and are included in creditors.

18

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary Shares of £1 each

20,000

20,000

20,000

20,000

         

Rights

Ordinary shares have the following rights:
Unrestricted ordinary shares with full voting rights and distribution of dividends.

19

Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

2023
£

2022
£

Not later than one year

11,880

11,880

Later than one year and not later than five years

43,986

45,355

Later than five years

-

10,512

55,866

67,747

The amount of non-cancellable operating lease payments recognised as an expense during the year was £7,520 (2022 - £16,406).

 

The Woolacombe Bay Hotel Limited

Notes to the Financial Statements for the Year Ended 31 December 2023

20

Contingent liabilities

The company has given an unlimited multilateral guarantee for the overdrafts of companies in the Lancaster Leisure group. The potential liability at 31 December 2023 of all other company overdrafts amounted to £3,266,241 (31 December 2022 - £3,262,853). Included within this guarantee is a net overdraft position of £3,266,241 (2022 - £3,262,853) relating to Lancasters Trading & Development Co Limited, a company which has a deficit balance sheet position of £1,250,172, at 31 December 2023 (2022 deficit position - £1,229,658). The Lancaster Leisure Group companies, of which Woolacombe Bay Hotel Limited is a member, have agreed to provide continuing financial support to Lancasters Trading & Development Co Limited.

21

Related party transactions

Other transactions with directors

Woolacombe Court Flats
R M and Mrs R J Lancaster, who were both directors, own the Woolacombe Court Flats. The Woolacombe Bay Hotel Limited incurred some share expenses and overheads on behalf of this property during the year. These items have recharged to the directors and reimbursed at cost of £157,300 as reflected below. As at 29/12/2023, there was nothing due to Woolacombe Court Flats as the property was sold to Woolacombe Bay Holiday Village Limited.

Bay Lodge
This property purchase reflected below represents the acquisition of Bay Lodge freehold property from Mr R M & Mrs R J Lancaster which was purchased at open market value.

Expenditure with and payables to related parties

2023

Key management
£

Purchase of property or other assets

863,198

Amounts payable to related party

157,300

2022

Key management
£

Amounts payable to related party

133,514

22

Parent and ultimate parent undertaking

The company's immediate parent is Lancaster Leisure Limited, incorporated in England.

  These financial statements are available upon request from the parent company's registered office which is located at 30 Bear Street, Barnstaple, Devon, EX32 7DD