Company registration number 06772001 (England and Wales)
EDEN HOTEL COLLECTION LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
EDEN HOTEL COLLECTION LIMITED
COMPANY INFORMATION
Directors
Sir Peter Rigby
Mrs M Cartter
Mr M Chambers
Mr D G Buck
Company number
06772001
Registered office
C/O Mallory Court Hotel
Harbury Lane
Bishops Tachbrook
Leamington Spa
Warwickshire
United Kingdom
CV33 9QB
Auditor
Ormerod Rutter Limited
The Oakley
Kidderminster Road
Droitwich
Worcestershire
WR9 9AY
EDEN HOTEL COLLECTION LIMITED
CONTENTS
Page
Strategic report
1 - 4
Directors' report
5 - 6
Independent auditor's report
7 - 9
Group statement of comprehensive income
10
Group balance sheet
11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Notes to the financial statements
15 - 35
EDEN HOTEL COLLECTION LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

The directors present the strategic report for the year ended 31 March 2024.

 

Background

Eden Hotel Collection (“EHC”) is a group consisting of a portfolio of six luxury sites across the Midlands, Cotswolds & South West, with a total of 200 hotel bedrooms and 22 three bedroom lodges.

 

• Bovey Castle Estate, Dartmoor

• Mallory Court Country House Hotel & Spa, Royal Leamington Spa

• Arden Hotel, Stratford-upon-Avon

• Arden House - Stratford-upon-Avon (sold post balance sheet date)

• Brockencote Hall, Chaddesley Corbett

• The Greenway Hotel & Spa, Cheltenham

 

Multi award winning, EHC is widely recognised as one of UK’s Top 5 privately owned group of luxury boutique hotel operators. The collection sits in the traditional hotels sector and is a major player in the 4 & 5 red star market. EHC operates within the non-branded core hotel, restaurant and spa space. The business operates across the leisure, corporate, M&E markets and, without exception, ranks in local and regional territories as a ‘best in class’. A leading operator of weddings, both local and destination, makes the group a stand-out performer in this space, whilst excellence around food is a cornerstone of the business, as is the luxury spa brand ‘Elan’ which operates at 3 key locations.

 

EHC Ltd is a subsidiary of the Rigby Group (RG) plc (Rigby Group). Rigby Group is a family-owned highly successful business operating across Europe. Diversifying from its origins as a technology re-seller, Rigby Group is currently comprised of five key divisions: Technology, Airports, Real Estate, Hotels, and Technology Investments. Since its origins in 1975 the Group has grown to be the 12th largest family business in the United Kingdom (source https://familybusinessindex.com), employing over 8000 people and with a consolidated turnover of over £3.5bn. The group has a distinguished reputation as both an investor and business operator built around core family values of foresight, working hard and enabling others. The Rigby Group is a keen supporter of job creation, enterprise and charitable causes in the regions in which it operates and takes its responsibility for the environment seriously. Further information is available at www.rigbygroupplc.com.

Review of Business

Post covid the group commenced and asset refurbishment and improvement program with, prior to the current year, the addition of the 3 bedroom lodge at Brockencote Hall, a £1.2m refurbishment of the bedrooms at Greenway Hotel & Spa and a £1m total refurbishment of the Great Western kitchen at Bovey Castle which completed in the current year. The program continued into the current year with the commencement of a £1.2m refurbishment of the Manor House bedrooms at Mallory Court. Additionally, Manor Court, a mews apartment complex within the grounds of the Bovey Castle was purchased to provide a staff village for our employee accommodation as part of our continual upgrades in the employee package.

 

Whilst the direct impact of the Covid 19 pandemic has come to an end and in general terms the sector has recovered, there continue to be longer term and regional effects which have impacted the business. In particular the South West has seen a much reduced demand for another year and customer booking patterns are much less predictable with a greater degree of cancellation than historic norms.

 

Inflation and cost of living has had an impact during the year, both on the customer base which has been forced to be more selective in their discretionary spend, and in the internal cost base where food inflation in particular has been extreme, together with increased payroll putting pressure on margins.

 

The EHC employee brand goes from strength to strength with expansion of Eden Extras, the fully featured benefits program, to encompass a peer to peer recognition platform, the Happy Hub. Support has also grown with improved family friendly policies, including extended maternity, paternity and adoption benefits, together with various mental, physical and financial wellbeing workshops and activities. In the industry Springboard Awards, EHC was again nominated as Best Employer, and additionally nominated as Best for Employee Engagement and Best for Employee Health and Wellbeing, winning the latter two awards immediately post year end.

 

Across the wider ESG agenda EHC has committed to be NetZero for 2040 and all hotels were awarded either bronze or silver Green Tourism awards in the year on their first submission.

EDEN HOTEL COLLECTION LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
Review of Business (continued)

The group saw turnover increase by £472,000 to £16,932,000 in 2024 whilst the operating loss increased by £687,000 to £2,944,000. As at 31st March 2024 the group had net assets of £22,767,000, a decrease of £2,786,000 from the prior year end

 

The directors recognise that trade continues to be affected by both market changes from Covid recovery and the current economic uncertainty. Additionally, disruption from the kitchen refurbishment at Bovey Castle and the commencement of the bedroom refurbishment at Mallory Court, were significant in the final performance. The directors remain confident in the underlying trade and returning to future profitability.

Principal risks and uncertainties

The group uses various financial instruments. These include loans from related undertakings; cash and overdrafts; preference shares; loans from banks and various working capital items such as trade debtors and trade creditors which arise from its operations. The main purpose of these financial instruments is to raise finance for the group's operations. The existence of these financial instruments exposes the group to a number of financial risks, the principal ones of which are market risk, interest rate risk, liquidity risk and credit risk. The principal commercial risks facing the group centre on economic conditions, competition and property valuations.

 

Market risk

Property values are cyclical, so the business will always be subject to variations in valuations. The group takes a long term view, with less focus on short term fluctuations, and more emphasis on underlying revenue generation and capital enhancement programmes when assessing valuations of properties.

 

Interest rate risk and financing risk

The group finances its operations primarily through investments made by related parties, including preference shares held by the principal shareholder and preferred ordinary shares held by Rigby Group (RG) plc ("Rigby Group").

 

In addition, there are short term banking facilities including a bank loan (repaid post year end) secured over the freehold property of Bovey Castle owned by the group. The group's exposure to interest rate fluctuations on its borrowings is managed actively to ensure that competitive rates are obtained, with interest rate swaps purchased where appropriate and matched to the group's long term funding requirements. As part of its bank facilities, the group is subject to a number of financial covenant tests which it monitors on a regular basis.

 

Liquidity risk

The group seeks to manage financial risks by ensuring sufficient liquidity is available to meet foreseeable needs and to invest cash assets safely and profitably. The group's operations are financed primarily by shareholders and bank borrowings.

 

Credit risk

The group's principal credit risk relates to the recovery of trade debtors, although it is not considered significant due to the nature of the group's business. Amounts owed by credit card companies represent a more significant proportion of the group's trade debtors. However, the directors consider credit risk to be limited due to the terms that the group has with the credit card companies. In order to manage credit risk related to other trade debtors, credit controllers and the directors review the aged debtors and collection history on a regular basis, and a high level of deposits are taken.

 

Economic conditions

The division operates in an industry which is impacted by consumer discretionary spending levels. The division's coverage, not being concentrated in one location or region together with the fact that the hotels operate in a variety of markets, including corporate, leisure, conference and functions, provides adequate sheltering from the impact of any drop in consumer spending levels.

 

EDEN HOTEL COLLECTION LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -
Shock Events/Covid 19 Pandemic

The unpredictable nature of external shock events, such as pandemics, presents an infrequent but high risk to any business. In so far as possible the effects of these are mitigated by means of appropriate insurance cover, but the company recognises that the greatest protection comes from an ability to respond rapidly to events. The Directors and Shareholders remain close to the business and can quickly approve any decisive actions needed. The directors also ensure operations retain flexibility and scaleability and can work with EHC sister companies to manage risk. The company also benefits from the additional security of belonging to a large and diversified group.

 

Competition

The division operates in competitive markets. Product and service offerings by competitors could adversely impact the division. The division's focus on quality and standards, the quality of operations, strong focus on quality on cost control, continual investment in its hotels and products, combined with the unique, award winning hotels in sought after locations reduces the possible effect of any single competitor. Significant efforts are made to develop the division's brand and ensure new business is won continually, and key customer relationships are monitored on a regular basis. The division focuses on areas where it has a competitive advantage including quality, and the development of its staff to provide high levels of service.

 

 

Section 172 Statement

 

The directors consider a wide range of stakeholders when making decisions including, but not necessarily restricted to, the shareholders, employees, suppliers, customers and those external parties immediately affected by and in the area of the company’s operations.

 

Statement on employee engagement

Our employees are central to our operations. Development of our employees has been a key strategic thread for a number of years with a gradual expansion of our apprentice programs and training resources, including in house supervisor and management programs. The directors regularly visit all operations and engage personally with employees, whilst also giving regard to feedback from engagement surveys. The Eden Engage platform supports this two way communication, Eden Extras is a fully featured benefits platform for discounts, healthy living and wellbeing, and the Happy Hub delivers peer to peer recognition. Wellbeing is also supported through open HR clinics at each property and engagement with Hospitality Action, the sector’s own support charity. Both Wellbeing and Green Champions are in place across the business and support Mental, Physical, Financial and Environmental wellbeing activities.

 

Major business decisions are taken with regard to the wellbeing of our employees. During the Covid 19 pandemic, consideration of the health and security of our employees drove decisions on reopening, or not, of facilities as much as the potential economic benefit. During major strategic changes which affect our employees, such as the recent divestments or changes to operations, we are as open as we can reasonably be with the teams and discuss opportunities to transfer or change contracts.

EDEN HOTEL COLLECTION LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -
Section 172 Statement (continued)

 

Statement on business relationships

The directors understand the mutual benefits to be gained by engagement with suppliers. Growth in the company spa business has been achieved by support and engagement with our product house, new dining concepts are developed with support of our food suppliers and a close relationship with our champagne house allows us to deliver shared marketing activities.

 

The directors recognise customer feedback is important and, if not listened to, can rapidly spread online. For some years the company has subscribed to Trust You, a reputation management and customer feedback suite, with engagement and satisfaction scores being reviewed monthly with operations. The company has continues to enhance its social media presence and monitoring, both as a marketing tool and also to capture customer sentiment for development of new concepts.

 

The company assets are all listed buildings, generally set within extensive grounds, none the least Bovey Castle, within the national park of Dartmoor. The directors discuss the environmental credentials of our suppliers to support, in so far as is economically possible, a low impact footprint for the business. The gardens support not only customer wellbeing, but also zero food mile produce for our kitchens. At a local level each business engages with local charity and other organisations, often supporting by offering venues for meeting or fundraising activity.

 

The shareholders, being Rigby Group and ultimately the Rigby family, have a seat at the Board and support a long term vision for the company, whether this be through investment decisions or shorter term liquidity support, such as in the early part of the Covid 19 crisis. The reputation of Eden is critically important to both the directors and the Rigby family, both operationally and professionally, with fair and ethical treatment paramount and considered in all areas.

On behalf of the board

Sir Peter Rigby
Director
2 September 2024
EDEN HOTEL COLLECTION LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 5 -

The directors present their annual report and financial statements for the year ended 31 March 2024.

Principal activities

The principal activity of the company in the year under review was that of a holding company.

 

The principal activity of the group in the year under review was that of hoteliers and restauranteurs.

Results and dividends

The results for the year are set out on page 10.

No ordinary dividends were paid. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Sir Peter Rigby
Mrs M Cartter
Mr M Chambers
Mr D G Buck
Qualifying third party indemnity provisions

The company has made qualifying third party indemnity provisions for the benefits of its directors which were made during the year and remain in force at the date of this report.

Disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment with the group continues and that appropriate training is arranged. It is the policy of the group that the training, career development and promotion of disabled persons should, as far as possible, be identical with that of other employees.

Employee involvement

The group places considerable value on the involvement of its employees and has continued to keep them informed on matters affecting them as employees and on the various factors concerning the performance of the group. This is achieved through formal and informal meetings with employees. Employee representatives are consulted regularly on a wide range of matters affecting their current and future interests.

Auditor

Ormerod Rutter Limited will be proposed for re-appointment in accordance with Section 487(2) of the Companies Act 2006.

Energy and carbon report

Details regarding the group carbon energy emissions are included within the ultimate parent company consolidated financial statements.

EDEN HOTEL COLLECTION LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 6 -
Statement of directors' responsibilities

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

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

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Disclosures in the strategic report

Information about the future developments of the company have been set out in the Strategic Report.true

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

On behalf of the board
Sir Peter Rigby
Director
2 September 2024
EDEN HOTEL COLLECTION LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF EDEN HOTEL COLLECTION LIMITED
- 7 -
Opinion

We have audited the financial statements of Eden Hotel Collection Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

 

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's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent 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.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

 

EDEN HOTEL COLLECTION LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF EDEN HOTEL COLLECTION LIMITED
- 8 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their 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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent 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 parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

 

We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

 

To address the risk of fraud through management bias and override of controls, we:

 

EDEN HOTEL COLLECTION LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF EDEN HOTEL COLLECTION LIMITED
- 9 -

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

 

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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.

Colm McGrory FCA (Senior Statutory Auditor)
For and on behalf of Ormerod Rutter Limited
20 September 2024
Chartered Accountants
Statutory Auditor
The Oakley
Kidderminster Road
Droitwich
Worcestershire
WR9 9AY
EDEN HOTEL COLLECTION LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
2024
2023
Notes
£
£
Turnover
3
16,932,271
16,460,257
Cost of sales
(11,747,802)
(10,911,969)
Gross profit
5,184,469
5,548,288
Administrative expenses
(8,219,932)
(7,890,079)
Other operating income
91,316
84,706
Operating loss
4
(2,944,147)
(2,257,085)
Share of results of joint ventures
(223,859)
(149,521)
Interest payable and similar expenses
8
(306,045)
(261,587)
Loss before taxation
(3,474,051)
(2,668,193)
Tax on loss
9
789,099
696,262
Loss for the financial year
24
(2,684,952)
(1,971,931)
Other comprehensive income
Cash flow hedges (loss)/gain arising in the year
(101,378)
305,984
Total comprehensive income for the year
(2,786,330)
(1,665,947)
Loss for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
EDEN HOTEL COLLECTION LIMITED
GROUP BALANCE SHEET
AS AT 31 MARCH 2024
31 March 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
39,090,814
37,017,241
Investments
12
2,797,799
2,890,442
41,888,613
39,907,683
Current assets
Stocks
16
255,128
314,248
Debtors
17
2,857,110
1,765,898
Cash at bank and in hand
94,343
158,043
3,206,581
2,238,189
Creditors: amounts falling due within one year
18
(21,995,432)
(9,729,992)
Net current liabilities
(18,788,851)
(7,491,803)
Total assets less current liabilities
23,099,762
32,415,880
Creditors: amounts falling due after more than one year
19
-
(6,652,000)
Provisions for liabilities
Deferred tax liability
21
333,128
210,916
(333,128)
(210,916)
Net assets
22,766,634
25,552,964
Capital and reserves
Called up share capital
23
30,873,357
30,873,357
Hedging reserve
24
400,534
501,912
Other reserves
24
10,790,915
10,790,915
Profit and loss reserves
24
(19,298,172)
(16,613,220)
Total equity
22,766,634
25,552,964
The financial statements were approved by the board of directors and authorised for issue on 2 September 2024 and are signed on its behalf by:
02 September 2024
Sir Peter Rigby
Director
Company registration number 06772001 (England and Wales)
EDEN HOTEL COLLECTION LIMITED
COMPANY BALANCE SHEET
AS AT 31 MARCH 2024
31 March 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
15,560
74,444
Investments
12
28,998,737
28,998,739
29,014,297
29,073,183
Current assets
Debtors
17
22,326,085
18,132,913
Cash at bank and in hand
620,048
128,077
22,946,133
18,260,990
Creditors: amounts falling due within one year
18
(11,759,477)
(6,459,921)
Net current assets
11,186,656
11,801,069
Net assets
40,200,953
40,874,252
Capital and reserves
Called up share capital
23
30,873,357
30,873,357
Other reserves
24
8,300,000
8,300,000
Profit and loss reserves
24
1,027,596
1,700,895
Total equity
40,200,953
40,874,252

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £673,299 (2023 - £872,958 loss).

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 2 September 2024 and are signed on its behalf by:
02 September 2024
Sir Peter Rigby
Director
Company registration number 06772001 (England and Wales)
EDEN HOTEL COLLECTION LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 13 -
Share capital
Hedging reserve
Capital reserve
Merger reserve
Profit and loss reserves
Total
£
£
£
£
£
£
Balance at 1 April 2022
30,873,357
195,928
8,300,000
2,490,915
(14,641,290)
27,218,910
Year ended 31 March 2023:
Loss for the year
-
-
-
-
(1,971,931)
(1,971,931)
Other comprehensive income:
Cash flow hedges gains arising in the year
-
305,984
-
-
-
305,984
Total comprehensive income for the year
-
305,984
-
-
(1,971,931)
(1,665,947)
Dividends
-
-
-
-
1
1
Balance at 31 March 2023
30,873,357
501,912
8,300,000
2,490,915
(16,613,220)
25,552,964
Year ended 31 March 2024:
Loss for the year
-
-
-
-
(2,684,952)
(2,684,952)
Other comprehensive income:
Cash flow hedges gains arising in the year
-
(101,378)
-
-
-
(101,378)
Total comprehensive income for the year
-
(101,378)
-
-
(2,684,952)
(2,786,330)
Balance at 31 March 2024
30,873,357
400,534
8,300,000
2,490,915
(19,298,172)
22,766,634
EDEN HOTEL COLLECTION LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 14 -
Share capital
Capital reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 April 2022
30,873,357
8,300,000
2,573,853
41,747,210
Year ended 31 March 2023:
Loss and total comprehensive income for the year
-
-
(872,958)
(872,958)
Balance at 31 March 2023
30,873,357
8,300,000
1,700,895
40,874,252
Year ended 31 March 2024:
Loss and total comprehensive income for the year
-
-
(673,299)
(673,299)
Balance at 31 March 2024
30,873,357
8,300,000
1,027,596
40,200,953
EDEN HOTEL COLLECTION LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 15 -
1
Accounting policies
Company information

Eden Hotel Collection Limited is a company incorporated in England and Wales under the Companies Act 2006.

 

The registered office is Mallory Court Hotel, Harbury Lane, Bishops Tachbrook, Leamington Spa, Warwickshire, CV33 9QB.

 

The nature of the group's operations and its principal activities are set out in the report of the directors on pages 5 to 6.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The functional currency of Eden Hotel Collection Limited is considered to be pounds sterling because that is the currency of the primary economic environment in which the company operates.

The financial statements have been prepared under the historical cost convention, modified to include certain items at fair value, and in accordance with Financial Reporting Standard 102 (FRS 102) issued by the Financial Reporting Council.

Eden Hotel Collection Limited meets the definition of a qualifying entity under FRS 102 and has therefore taken advantage of the disclosure exemptions available to it in respect of its financial statements. Exemptions have been taken in relation to related party transactions with wholly owned group companies, share-based payments, financial instruments, presentation of a cash flow statement and remuneration of key management personnel.

1.2
Business combinations

The group financial statements consolidate the financial statements of the Eden Hotel Collection Limited and its subsidiary undertakings drawn up to 31 March each year.

 

The results of subsidiaries acquired or sold are consolidated for the periods from or to the date on which control passed.

 

Business combinations are accounted for under the purchase method. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by the Group.

 

EDEN HOTEL COLLECTION LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 16 -
1.3
Basis of consolidation

In accordance with Section 35 of FRS 102, Section 19 of FRS 102 has not been applied in these financial statements in respect of business combinations effected prior to the date of transition.

 

The financial statements of the subsidiary companies used in the consolidation are drawn up to the same reporting date as of the company.

 

The consolidated financial statements have been prepared on the following basis:

 

 

 

 

 

In the group financial statements investments in associates and jointly controlled entities are accounted for using the equity method. Investments in associates and jointly controlled entities are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group's share of associates' and jointly controlled entities' profits and losses. The consolidated profit and loss account includes the group's share of associates' and jointly controlled entities' profits and losses. Goodwill arising on the acquisition of associates and joint ventures is accounted for in accordance with the policy set out above. Any unamortised balance of goodwill is included in the carrying value of the investment in associates and joint ventures. Jointly controlled entities are where the group owns less than or equal to 50% participating interest and it does not retain operating control of the entity.

1.4
Going concern

The group’s business activities, together with factors likely to affect its future developments, performance and position are set out in the Strategic Report. These reports describe the financial position of the group; its cash flows and liquidity position; the group’s objectives, policies and processes for managing its capital; its financial risk management objectives; and its exposure to credit risk and liquidity risk.

 

The group is funded by means of external financing facilities and funding from parent company, Rigby Group (RG) plc. The group relies on support from the parent company and this is considered to be available for the foreseeable future and for at least the next twelve months from the date of approval of the accounts. As a consequence the directors believe the group is well placed to manage its business risks successfully and have a reasonable expectation of having adequate resources to continue operational existence for the foreseeable future. Accordingly they continue to adopt the going concern basis in preparing the annual report and accounts.

EDEN HOTEL COLLECTION LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 17 -
1.5
Turnover

Revenue is stated net of VAT and trade discounts and is recognised when the significant risks and rewards are considered to have been transferred to the buyer.

 

Revenue from the supply of services represents the value of services provided under contracts to the extent that there is a right to consideration and is recorded at the fair value of the consideration received or receivable.

1.6
Intangible fixed assets - goodwill

Goodwill arising on the acquisition of subsidiary undertakings and businesses, representing any excess of the fair value of the consideration given over the fair value of the identifiable assets and liabilities acquired, is capitalised and written off on a straight line basis over its useful economic life. In the opinion of the directors, the normal expected useful life will not exceed 10 years. Provision is made for any impairment.

 

Negative goodwill arising on the acquisition of businesses, representing any deficit of the fair value of the consideration given over the fair value of the identifiable assets and liabilities acquired, is capitalised and is credited to the profit and loss account in the period in which the acquired non-monetary assets are recovered through the depreciation or sale. Negative goodwill in excess of the fair values of the non-monetary assets acquired is credited to the profit and loss account in the periods expected to benefit.

1.7
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

 

Freehold buildings:

- Land            - not depreciated

- Structural buildings        - over up to 200 years

- Ancillary buildings        - over up to 50 years

 

Fixtures and equipment:

- Fixtures            - over up to 10 years

- Furniture            - over up to 5 years

- Plant            - over up to 10 years

- Small equipment        - over up to 5 years

- Computer equipment        - over up to 4 years

- Antiques            - over up to 100 years

 

Motor vehicles        - over up to 4 years

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

Assets under construction represents on-going construction costs of freehold buildings and fixtures and fittings not yet completed. Such costs will be transferred to either freehold buildings or fixtures and fittings upon completion. Assets under construction are not depreciated as they are not available for use until they have been completed.

 

On transition to FRS 102, in accordance with Section 35 of FRS 102, the company elected to measure items of property, plant and equipment on the date of transition to this FRS at its fair value and use that fair value as its deemed cost at that date.

EDEN HOTEL COLLECTION LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 18 -
1.8
Fixed asset investments

Investments in non-convertible preference shares and non-puttable ordinary or preference shares (where shares are publicly traded or their fair value is reliably measurable) are measured at fair value through profit or loss. Where fair value cannot be measured reliably, investments are measured at cost less impairment.

 

In the company balance sheet, investments in subsidiaries and associates are measured at cost less impairment. For investments in subsidiaries acquired for consideration including the issue of shares qualifying for merger relief, cost is measured by reference to the nominal value of the shares issued plus fair value of other consideration. Any premium is ignored.

1.9
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.10
Stocks

Stocks held for resale are stated at the lower of cost and net realisable value. Provision is made for obsolete, slow-moving or defective items where appropriate.

EDEN HOTEL COLLECTION LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 19 -
1.11
Financial instruments

Financial assets and financial liabilities are recognised when the group becomes a party to the contractual provisions of the instrument.

 

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

 

All financial assets and liabilities are initially measured at transaction price (including transaction costs), except for those financial assets classified as at fair value through profit or loss, which are initially measured at fair value (which is normally the transaction price excluding transaction costs), unless the arrangement constitutes a financing transaction. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Fair value measurement of financial instruments

Financial assets and liabilities are only offset in the statement of financial position when, and only when there exists a legally enforceable right to set off the recognised amounts and the group intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously

Basic financial assets

Debt instruments which meet the following conditions are subsequently measured at amortised cost using the effective interest method:

 

  1. The contractual return to the holder is:

    1. a fixed amount;

    2. a positive fixed rate or a positive variable rate; or

    3. a combination of a positive or a negative fixed rate and a positive variable rate.

       

  2. The contract may provide for repayments of the principal or the return to the holder (but not both) to be linked to a single relevant observable index of general price inflation of the currency in which the debt instrument is denominated, provided such links are not leveraged.

     

  3. The contract may provide for a determinable variation of the return to the holder during the life of the instrument, provided that:

    1. the new rate satisfies condition (a) and the variation is not contingent on future events other than:

      1. a change of a contractual variable rate;

      2. to protect the holder against credit deterioration of the issuer;

      3. changes in levies applied by a central bank or arising from changes in relevant taxation or law; or

    2. the new rate is a market rate of interest and satisfies condition (a).

       

  4. There is no contractual provision that could, by its terms, result in the holder losing the principal amount or any interest attributable to the current period or prior periods.

     

  5. Contractual provisions that permit the issuer to prepay a debt instrument or permit the holder to put it back to the issuer before maturity are not contingent on future events, other than to protect the holder against the credit deterioration of the issuer or a change in control of the issuer, or to protect the holder or issuer against changes in levies applied by a central bank or arising from changes in relevant taxation or law.

     

  6. Contractual provisions may permit the extension of the term of the debt instrument, provided that the return to the holder and any other contractual provisions applicable during the extended term satisfy the conditions of paragraphs (a) to (c).

EDEN HOTEL COLLECTION LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 20 -

Debt instruments that are classified as payable or receivable within one year on initial recognition and which meet the above conditions are measured at the undiscounted amount of the cash or other consideration expected to be paid or received, net of impairment.

 

With the exception of some hedging instruments, other debt instruments not meeting these conditions are measured at fair value through profit or loss.

 

Commitments to make and receive loans which meet the conditions mentioned above are measured at cost (which may be nil) less impairment.

Financial assets are derecognised when and only when:

 

  1. the contractual rights to the cash flows from the financial asset expire or are settled;

     

  2. the group transfers to another party substantially all of the risks and rewards of ownership of the financial asset; or

     

  3. the group, despite having retained some, but not all, significant risks and rewards of ownership, has transferred control of the asset to another party.

Financial liabilities are derecognised only when the obligation specified in the contract is discharged, cancelled or expires.

1.12
Equity instruments

Equity instruments issued by the company are recorded at the fair value of cash or other resources received or receivable, net of direct issue costs.

1.13
Derivatives

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

 

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.

Hedge accounting

The company designates certain hedging instruments, including derivatives, embedded derivatives and non-derivatives, as either fair value hedges or cash flow hedges. At the inception of the hedge relationship, the company documents the relationship between the hedging instrument and the hedged item along with risk management objectives and strategy for undertaking various hedge transactions. At the inception of the hedge and on an ongoing basis, the company documents whether the hedging instrument is highly effective in offsetting changes in fair values or cash flows of the hedged item.

EDEN HOTEL COLLECTION LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 21 -

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

 

For derivatives that are designated and qualify as cash flow hedges, the effective portion of changes in the fair value of the hedge is recognised in other comprehensive income. The gain or loss relating to the ineffective portion is recognised immediately in profit or loss.

 

Any gain or loss previously recognised in other comprehensive income is reclassified to profit or loss when the hedge relationship ends. This occurs when the hedging instrument expires or no longer meets the hedging criteria, the forecast transaction is no longer highly probable, the hedged debt instrument is derecognised, or the hedging instrument is terminated.

1.14
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

Current tax, including UK corporation tax and foreign tax, is provided at amounts expected to be paid (or recovered) using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date where transactions or events that result in an obligation to pay more tax in the future or a right to pay less tax in the future have occurred at the balance sheet date. Timing differences are differences between the company's taxable profits and its results as stated in the financial statements that arise from the inclusion of gains and losses in tax assessments in periods different from those in which they are recognised in the financial statements.

 

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that, on the basis of all available evidence, it can be regarded as more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.

 

Deferred tax liabilities are recognised for timing differences arising from investments in subsidiaries and associates, except where the company is able to control the reversal of the timing difference and it is probable that it will not reverse in the foreseeable future.

 

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date that are expected to apply to the reversal of the timing difference. Deferred tax relating to property, plant and equipment measured using the revaluation model and investment property is measured using the tax rates and allowances that apply to sale of the asset.

 

Where items recognised in other comprehensive income or equity are chargeable to or deductible for tax purposes, the resulting current or deferred tax expense or income is presented in the same component of comprehensive income or equity as the transaction or other event that resulted in the tax expense or income.

 

Current tax assets and liabilities are offset only when there is a legally enforceable right to set off the amounts and the company intends either to settle on a net basis or to realise the asset and settle the liability simultaneously.

EDEN HOTEL COLLECTION LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 22 -

Deferred tax assets and liabilities are offset only if: a) the company has a legally enforceable right to set off current tax assets against current tax liabilities; and b) the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities which intend either to settle current tax liabilities and assets on a net basis, or to realise the assets and settle the liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered.

1.15
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.16
Retirement benefits

For defined contribution schemes the amount charged to the profit and loss account in respect of pension costs and other retirement benefits is the contributions payable in the year. Differences between contributions payable in the year and contributions actually paid are shown as either accruals or prepayments in the balance sheet.

1.17
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.18
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

EDEN HOTEL COLLECTION LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 23 -
2
Judgements and key sources of estimation uncertainty

In the application of the group's accounting policies, which are described above, the directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates. Future results could differ due to changes in these estimates and the difference between the actual result and the estimates are recognised in the period in which the results are known / materialise.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Depreciation of tangible fixed assets

The carrying value of tangible fixed assets is dependent on both the annual depreciation charge and any provisions for impairment.

 

The annual depreciation charge for tangible fixed assets is sensitive to changes in useful economic lives, which are reassessed annually, is based on physical condition, economic utilisation, schedule of repairs and renovation and, where relevant, technical advancements.

 

Management perform an annual assessment for impairment on tangible fixed assets, which includes consideration of the current estimation of the market value of the hotel as a whole, the economic utilisation of individually material assets and the feasibility of completing ongoing capital projects whose costs are held within assets under construction at the year end.

 

The accounting policies for depreciation of tangible fixed assets can be found in note 1 and the carrying value of tangible fixed assets can be found in note 11.

3
Turnover and other revenue

An analysis of the group's turnover is as follows:

2024
2023
£
£
Turnover analysed by class of business
Sale of goods
6,680,726
6,152,551
Rendering of services
10,251,545
10,307,706
16,932,271
16,460,257
2024
2023
£
£
Other revenue
Grants received
-
3,181
EDEN HOTEL COLLECTION LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 24 -
4
Operating loss
2024
2023
£
£
Operating loss for the year is stated after charging/(crediting):
Exchange losses
1,142
421
Government grants
-
(3,181)
Depreciation of owned tangible fixed assets
1,111,348
975,048
Profit on disposal of tangible fixed assets
(631)
(1,834)
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
9,060
5,921
Audit of the financial statements of the company's subsidiaries
29,273
26,874
38,333
32,795
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Hotel staff
365
327
-
-
Head office staff
21
22
21
22
Directors
4
4
4
4
Total
390
353
25
26

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
8,625,447
8,043,335
964,651
1,085,390
Social security costs
757,710
739,571
119,366
128,997
Pension costs
150,210
150,130
25,065
30,218
9,533,367
8,933,036
1,109,082
1,244,605
EDEN HOTEL COLLECTION LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 25 -
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
231,948
230,283
Company pension contributions to defined contribution schemes
19,014
18,831
250,962
249,114

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 2).

Remuneration disclosed above includes the following amounts paid to the highest paid director:
2024
2023
£
£
Remuneration for qualifying services
142,002
141,793
Company pension contributions to defined contribution schemes
16,813
16,813

Sir Peter Rigby receives no remuneration for his qualifying services to the company. The total emoluments of Sir Peter Rigby are included in the directors' emoluments of Rigby Group (RG) plc, the ultimate parent company.

 

Mrs M Cartter receives no remuneration for her qualifying services to the company.

8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
301,064
248,867
Other interest on financial liabilities
996
3,945
302,060
252,812
Other finance costs:
Interest on finance leases and hire purchase contracts
3,985
8,775
Total finance costs
306,045
261,587
9
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
(657,348)
-
0
Adjustments in respect of prior periods
(253,963)
3,917
Total current tax
(911,311)
3,917
EDEN HOTEL COLLECTION LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
9
Taxation
2024
2023
£
£
(Continued)
- 26 -
Deferred tax
Origination and reversal of timing differences
(207,325)
(520,755)
Changes in tax rates
-
0
(165,562)
Adjustment in respect of prior periods
329,537
(13,862)
Total deferred tax
122,212
(700,179)
Total tax credit
(789,099)
(696,262)

The actual credit for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Loss before taxation
(3,474,051)
(2,668,193)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
(868,513)
(506,957)
Tax effect of expenses that are not deductible in determining taxable profit
67,931
61,973
Tax effect of income not taxable in determining taxable profit
-
0
(46,700)
Effect of change in corporation tax rate
-
(165,562)
Under/(over) provided in prior years
75,577
(9,948)
Effects of tax reliefs
(5,648)
-
0
Transfer pricing adjustments
(58,446)
(29,068)
Taxation credit
(789,099)
(696,262)

The Company is member of a group that is in scope of the Global Minimum Tax rules, otherwise known as Pillar Two, implemented by the OECD. The Company has reviewed the rules and does not expect there to be a material impact to tax expense and liability for the current and future periods as a result of these rules.

The standard rate of corporation tax in the UK is currently 25%. An increase to the main rate of corporation tax in the UK to 25% from April 2023 was substantively enacted on 24 May 2021. Deferred tax at the balance sheet date has been measured using these enacted tax rates and reflected in these financial statements.

 

EDEN HOTEL COLLECTION LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 27 -
10
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 April 2023 and 31 March 2024
12,458,391
Amortisation and impairment
At 1 April 2023 and 31 March 2024
12,458,391
Carrying amount
At 31 March 2024
-
0
At 31 March 2023
-
0
The company had no intangible fixed assets at 31 March 2024 or 31 March 2023.
11
Tangible fixed assets
Group
Freehold land and buildings
Assets under construction
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 April 2023
36,697,394
2,457,444
8,935,746
189,765
48,280,349
Additions
-
0
3,216,340
-
0
-
0
3,216,340
Disposals
-
0
-
0
(38,218)
(31,740)
(69,958)
Transfers
2,139,296
(4,058,205)
1,881,169
37,740
-
0
At 31 March 2024
38,836,690
1,615,579
10,778,697
195,765
51,426,731
Depreciation and impairment
At 1 April 2023
4,114,379
-
0
6,972,111
176,618
11,263,108
Depreciation charged in the year
299,622
-
0
799,190
12,536
1,111,348
Eliminated in respect of disposals
-
0
-
0
(30,604)
(7,935)
(38,539)
At 31 March 2024
4,414,001
-
0
7,740,697
181,219
12,335,917
Carrying amount
At 31 March 2024
34,422,689
1,615,579
3,038,000
14,546
39,090,814
At 31 March 2023
32,583,015
2,457,444
1,963,635
13,147
37,017,241
EDEN HOTEL COLLECTION LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
11
Tangible fixed assets
(Continued)
- 28 -
Company
Assets under construction
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
Cost
At 1 April 2023
38,827
119,773
42,988
201,588
Additions
6,254
-
0
-
0
6,254
Disposals
-
0
-
0
(31,740)
(31,740)
Transfers
(38,427)
6,687
31,740
-
0
At 31 March 2024
6,654
126,460
42,988
176,102
Depreciation and impairment
At 1 April 2023
-
0
97,303
29,841
127,144
Depreciation charged in the year
-
0
29,997
11,336
41,333
Eliminated in respect of disposals
-
0
-
0
(7,935)
(7,935)
At 31 March 2024
-
0
127,300
33,242
160,542
Carrying amount
At 31 March 2024
6,654
(840)
9,746
15,560
At 31 March 2023
38,827
22,470
13,147
74,444

Included in cost of freehold land and buildings is freehold land of £12,397,620 (2023: £12,397,620) which is not depreciated.

 

Freehold land and buildings have been charged as security for loans of £6,652,000 (2023: £7,252,000).

12
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
13
-
0
-
0
28,998,737
28,998,739
Investments in joint ventures
2,797,799
2,890,442
-
0
-
0
2,797,799
2,890,442
28,998,737
28,998,739
EDEN HOTEL COLLECTION LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
12
Fixed asset investments
(Continued)
- 29 -
Movements in fixed asset investments
Group
Shares in joint ventures
£
Cost or valuation
At 1 April 2023
2,890,442
Share of loss of joint venture
(92,643)
At 31 March 2024
2,797,799
Carrying amount
At 31 March 2024
2,797,799
At 31 March 2023
2,890,442
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 April 2023
28,998,739
Disposals
(2)
At 31 March 2024
28,998,737
Carrying amount
At 31 March 2024
28,998,737
At 31 March 2023
28,998,739
13
Subsidiaries

Details of the company's subsidiaries at 31 March 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Arden Hotel Investments Ltd
1
ordinary
100.00
100.00
Bovey Castle Property Ltd
2
ordinary
100.00
100.00
Brockencote Hall Hotel Ltd
1
ordinary and preference
100.00
100.00
EHC Estates Ltd
1
ordinary
100.00
100.00
Mallory Court Hotel Ltd
1
ordinary
100.00
100.00
The Greenway Hotel & Spa Ltd
1
ordinary
100.00
100.00
EDEN HOTEL COLLECTION LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 30 -
14
Joint ventures
The following entities are joint ventures of the company or its subsidiary undertakings:
Name of undertaking
Nature of business
Nature of
% Held
ownership
Direct
Indirect
Arden Hotel Waterside LLP
Hotelier and restaurateur
Designated member
-
50

The registered office of Arden Hotel Waterside LLP is 44 Waterside, Stratford-Upon-Avon, Warwickshire, CV37 6BA.

The aggregate capital and reserves and the profit for the year of the undertakings noted above was as follows:
Name of undertaking
Profit/(Loss)
Capital and Reserves
2024
2023
2024
2023
£
£
£
£
Arden Hotel Waterside LLP
(447,719)
(299,038)
5,333,171
5,780,890
15
Financial instruments
Group
Company
2024
2023
2024
2023
£
£
£
£
Carrying amount of financial assets
Instruments measured at fair value through profit or loss
400,534
501,912
-
-

During the year ended 31st March 2022 the group entered into an interest rate swap to hedge £5m of the bank loan. At the year end, there was a fair value loss recognised in other comprehensive income of £101,378 (2023: Fair value gain £305,984).

16
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Finished goods and goods for resale
255,128
314,248
-
0
-
0
EDEN HOTEL COLLECTION LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 31 -
17
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
148,192
124,212
-
0
-
0
Amounts owed by group undertakings
-
1
21,192,048
17,252,021
Amounts owed by undertakings in which the company has a participating interest
308,279
323,508
-
-
Other debtors
1,496,769
312,226
630,855
279,056
Prepayments and accrued income
503,336
504,039
323,110
315,476
2,456,576
1,263,986
22,146,013
17,846,553
Deferred tax asset (note 21)
-
0
-
0
180,072
286,360
2,456,576
1,263,986
22,326,085
18,132,913
Amounts falling due after more than one year:
Derivative financial instruments
400,534
501,912
-
-
Total debtors
2,857,110
1,765,898
22,326,085
18,132,913
18
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans
20
6,652,000
600,000
-
0
-
0
Payments received on account
1,590,894
1,348,490
-
0
-
0
Trade creditors
1,507,200
1,546,184
456,077
318,216
Amounts owed to group undertakings
10,880,795
5,176,188
10,876,771
5,778,985
Amounts owed to undertakings in which the group has a participating interest
103,745
-
0
-
0
-
0
Other taxation and social security
104,187
245,995
-
-
Other creditors
726,130
520,716
379,464
325,935
Accruals and deferred income
430,481
292,419
47,165
36,785
21,995,432
9,729,992
11,759,477
6,459,921
19
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
20
-
0
6,652,000
-
0
-
0
EDEN HOTEL COLLECTION LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 32 -
20
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
6,652,000
7,252,000
-
0
-
0
Payable within one year
6,652,000
600,000
-
0
-
0
Payable after one year
-
0
6,652,000
-
0
-
0

The all group companies are party to an unlimited intercompany guarantee securing all amounts due to National Westminster Bank Plc due from Eden Hotel Collection Limited and all its subsidiaries.

 

The bank loan is secured by way of a fixed charge over a subsidiary company's freehold land and buildings.

21
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Group
£
£
£
£
Accelerated capital allowances
3,031,587
2,741,943
-
-
Tax losses
(2,692,167)
(2,517,118)
-
-
Non trading timing differences
(404)
(923)
-
-
Other short term timing differences
(5,888)
(12,986)
-
-
333,128
210,916
-
-
Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Company
£
£
£
£
Accelerated capital allowances
-
-
9,551
6,392
Tax losses
-
-
170,117
279,045
Other short term timing differences
-
-
404
923
-
-
180,072
286,360
EDEN HOTEL COLLECTION LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
21
Deferred taxation
(Continued)
- 33 -
Group
Company
2024
2024
Movements in the year:
£
£
Liability/(asset) at 1 April 2023
210,916
(286,360)
Charge to profit or loss
(93,418)
106,288
Liability/(asset) at 31 March 2024
117,498
(180,072)
The deferred tax assets and liabilities will reverse over the following periods:
Group
Company
2024
2024
£
£
Deferred tax (assets)
Recoverable within 12 months
(6,350)
(404)
Recoverable after 12 months
(2,701,682)
(179,668)
(2,708,032)
(180,072)
Group
Company
2024
2024
£
£
Deferred tax liabilities
Payable within 12 months
28,691
-
Payable after 12 months
3,012,469
-
3,041,160
-
22
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
150,210
150,130

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

EDEN HOTEL COLLECTION LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 34 -
23
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
101
101
101
101
B Preferred Ordinary of £1 each
22,297,256
22,297,256
22,297,256
22,297,256
A Preference of £1000 each
8,576
8,576
8,576,000
8,576,000
22,305,933
22,305,933
30,873,357
30,873,357

The A preference shares carry a preferential fixed rate dividend of £102.00 per share in respect of any distributions made in any single accounting period. The A preference shares carry no voting rights and are redeemable at the option of the company.

 

The A preference shares are disclosed as equity in the company's balance sheet in accordance of FRS 25 Financial Instruments: Presentation.

 

After payment of the A preference dividend, if any, any other dividends issued shall be paid pro rata on each ordinary share and B preferred ordinary share as if those shares were of one class, unless such a distribution would not be sufficient to pay at least £0.102 on each B preferred ordinary share where upon the whole balance shall be paid to the holders of the B preferred ordinary shares in priority to the payment of any dividends to be paid to the holders of the ordinary shares.

 

The holders of the B preferred ordinary shares have a right on a winding up to receive a repayment of capital in priority to the ordinary shares, but sub-ordinate to the A preference shares. The balance of any distribution after returns of capital have been made on the A preference shares and the B preferred ordinary shares shall be apportioned and paid pro-rata on each ordinary share and each B preferred ordinary share as if those shares were of one class.

 

The B preferred ordinary shares carry voting rights. They are not redeemable and are not liable to be redeemed at the option of the company or the holders of the shares.

24
Reserves
Capital reserve

During 2012 the group received a capital contribution from Rigby Group (RG) plc of £8,300,000. This was prior to the change in share capital that resulted in the group being considered a subsidiary of Rigby Group (RG) plc. This was intended to be an irrevocable gift and not as a loan. Accordingly, it will not be repayable and will be the absolute and unfettered property of the group. Rigby Group (RG) plc acknowledged that it had no powers at the time to direct how the capital contribution can be put to use by the group.

Merger reserve

On 13th February 2009 Eden Hotel Collection Ltd acquired the share capital of five subsidiaries by way of a scheme of arrangement for the merger of the six companies within the group at that time. The combination of the companies has been treated as a merger on the basis that it meets the requirements of a group reconstruction. This resulted in the creation of a merger reserve.

 

Hedging reserve

Hedging reserve reflects the changes in fair value of cash flow hedging instruments and is not distributable.

EDEN HOTEL COLLECTION LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 35 -
25
Capital commitments

Amounts contracted for but not provided in the financial statements:

Group
Company
2024
2023
2024
2023
£
£
£
£
Acquisition of tangible fixed assets
340,000
750,000
-
-

The capital commitment relates to ongoing project work at Mallory Court Hotel Limited (2023: Bovey Castle Property Limited).

26
Controlling party

Rigby Group (RG) plc is regarded by the directors as being the company's immediate and ultimate parent company.

 

The Rigby Family control the company as a result of being members of the group of trustees and the only beneficiaries of trusts which own 100% of the issued ordinary share capital and control 100% of the voting rights of Rigby Group (RG) Plc, the ultimate parent company.

The registered office address of Rigby Group (RG) plc continues to be Bridgeway House, Bridgeway, Stratford-upon-Avon, Warwickshire, CV37 6YX.

 

Rigby Group (RG) plc continues to be the largest group to consolidate and prepare consolidated accounts.

 

The consolidated statements are available at the above address.

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