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Registered number: 02271023














DLT CAPITAL LIMITED





ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

 
DLT CAPITAL LIMITED
 

COMPANY INFORMATION


Directors
J Tamman 
D Tamman 




Registered number
02271023



Registered office
70 Portland Place

London




Independent auditors
Anderson Anderson & Brown Audit LLP

Kingshill View

Prime Four Business Park

Kingswells

Aberdeen

AB15 8PU





 
DLT CAPITAL LIMITED
 

CONTENTS



Page
Group strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditors' report
5 - 8
Consolidated statement of comprehensive income
9
Consolidated balance sheet
10
Company balance sheet
11
Consolidated statement of changes in equity
12
Company statement of changes in equity
13
Consolidated Statement of cash flows
14 - 15
Consolidated analysis of net debt
16
Notes to the financial statements
17 - 37

 
DLT CAPITAL LIMITED
 

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

INTRODUCTION
 
The principal activity of the group during the year was the provision of accommodation, holiday and travel facilities.
BUSINESS REVIEW 
 
The Group continues to seek development opportunities in the field of luxury accommodation, holiday and travel facilities, either new build or existing businesses will development potential.
Kingsmills Hotel (Inverness) Limited 
The Directors are pleased to report another very successful year. Revenue grew by 1.3 million, a 13% increase on 2022.  Average room rate increased by 11% and occupancy by 2.7 points.  Despite inflationary pressure GOP was in line with that of 2022 and the hotel continues to maintain net profitability.  Forecast for 2024 anticipates an 8% increase in revenue and a further 9% increase in average room rate.
The hotel was awarded the Green tourism Gold Award for 2023 and in line with its Environmental, Social and Good Governance (ESG) commitment continues to support the local community and local charities such as Highland Hospice, Mikey’s Line suicide prevention and Special Needs Action Project (SNAP) among others.
The Hotel is still the market leader in Inverness despite the addition of 190 rooms into the local market.

 
Twelve Ness Walk Limited 
The Directors are pleased to report that the business, now into its fifth year of operation continues to grow and establish itself as the finest five star hotel in Inverness. 
Revenue for the year grew by 7.5% and GOP was in line with that of 2022, Rooms occupancy was in line with 2022 while average room rate grew by 9%. Despite the impact of increased business rates and energy cost and escalating employee costs the hotel continues to maintain net profitability.  
Actual and forecast results for 2024 as at end of July anticipate growth in revenue of 14% with 91% rooms occupancy, a 7.8 points increase on 2023 and an increase in average room rate by a further 12%.
 
The hotel was awarded the Green tourism Gold Award for 2023 and in line with its Environmental, Social and Good Governance (ESG) commitment continues to support the local community and local charities such as Highland Hospice and Mikey’s Line suicide prevention among others
Kin Hotel (Inverness) Limited
Following the acquisition of 21-23 Church Street in October 2017, planning permission was obtained in June 2018 to convert this used office building into a 70 bedroom city centre hotel.  The Directors had to put the development on hold during the coronavirus outbreak and are now pleased to report that the development of the envisaged city centre hotel is due to commence in 2024.  

Page 1

 
DLT CAPITAL LIMITED
 

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

PRINCIPAL RISKS AND UNCERTAINTIES
 
The directors considers there to be an appropriate structure in place to plan for and mitigate risks. 
Competitive risk: The company operates in a competitive market and to some extent the level of trading is affected by the local economy and tourism.  The risks associated with this are mitigated by ensuring the company offers a high quality of service across all areas of the business and by targeting the tourism sector as well as business customers.
Credit risk: The key credit risk is in relation to debtors. The directors consider there be sufficient controls in place to mitigate this risk, with a regular review of outstanding balances.
The company's financial instruments comprise cash at bank, borrowings, trade debtors and trade creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the company’s operations and the main risk arising from them is interest rate fluctuations.
Liquidity risk: The company continues to enjoy a good relationship with the bank. The company aims to maintain an adequate working capital position, and forecasts to ensure that there are adequate facilities in place to meet liabilities as they fall due.

FINANCIAL KEY PERFORMANCE INDICATORS
 
The key performance indicators used by the group in the operation of the hotels are room occupancy rates and yields.


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



D Tamman
Director

Date: 24 September 2024
Page 2

 
DLT CAPITAL 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.

Results

The loss for the year, after taxation and minority interests, amounted to £62,385 (2022 - loss £3,644,426).

Directors

The directors who served during the year were:

J Tamman 
D Tamman 

Engagement with employees

The company recognises the need for good communication and is committed to involving all employees in its development. 

Disclosure of information to auditors

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

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

Post balance sheet events

Post year end, the Group has refinanced its debt facilities, providing total loan finance of £20.5m. The term of the new debt is three years.

Auditors

The auditorsAnderson Anderson & Brown Audit LLPwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

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





D Tamman
Director

Date: 24 September 2024
Page 3

 
DLT CAPITAL LIMITED
 

DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the directors are required to:

select suitable accounting policies for the Group's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;


prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group 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 the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Page 4

 
DLT CAPITAL LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DLT CAPITAL LIMITED
 

Opinion


We have audited the financial statements of DLT Capital Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2023, which comprise the Consolidated statement of comprehensive income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Group's and of the parent Company's affairs as at 31 December 2023 and of the Group's profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


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


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


Page 5

 
DLT CAPITAL LIMITED
 

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DLT CAPITAL LIMITED (CONTINUED)

Other information


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


We have nothing to report in this regard.


Opinion on other matters prescribed by the Companies Act 2006
 

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


the information given in the Group strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group strategic report or the Directors' report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent Company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 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 Group's and 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 Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


Page 6

 
DLT CAPITAL LIMITED
 

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DLT CAPITAL LIMITED (CONTINUED)

Auditors' responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Group 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:
We obtained an understanding of the legal and regulatory frameworks within which the company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. 
The laws and regulations we considered in this context were the Companies Act 2006 and Taxation legislation.
We identified the greatest risk of material impact on the financial statements from irregularities including fraud to
be:
 
Management override of controls to manipulate the company’s key performance indicators to meet targets
Timing and completeness of revenue recognition
Management judgement applied in calculating provisions
Compliance with relevant laws and regulations which directly impact the financial statements and those that the company needs to comply with for the purpose of trading

Our audit procedures to respond to these risks included:
 
Testing of journal entries and other adjustments for appropriateness
Reviewing a sample of sales transactions to confirm recognition appropriate
Evaluating the business rationale of significant transactions outside the normal course of business
Reviewing judgments made by management in their calculation of accounting estimates for potential management bias
Enquiries of management about litigation and claims and inspection of relevant correspondence
Reviewing legal and professional fees to identify indications of actual or potential litigation, claims and any non-compliance with laws and regulations
Reviewing minutes of meetings of those charged with governance to identify any matters indicating actual or potential fraud

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. 


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.
Page 7

 
DLT CAPITAL LIMITED
 

INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF DLT CAPITAL LIMITED (CONTINUED)



Use of our report
 

This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.





Derek Mair (Senior statutory auditor)
  
for and on behalf of
Anderson Anderson & Brown Audit LLP
 
Statutory Auditor
  
Kingshill View
Prime Four Business Park
Kingswells
Aberdeen
AB15 8PU

25 September 2024
Page 8

 
DLT CAPITAL LIMITED
 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
Restated 2022
Note
£
£

  

Turnover
 4 
16,580,834
14,753,498

Cost of sales
  
(7,586,060)
(6,904,844)

Gross profit
  
8,994,774
7,848,654

Administrative expenses
  
(7,402,458)
(5,818,539)

Exceptional administrative expenses
  
-
(311,063)

Other operating income
  
58,013
60,508

Operating profit
 5 
1,650,329
1,779,560

Interest receivable and similar income
 8 
490,025
410,308

Interest payable and expenses
 9 
(2,026,782)
(1,402,256)

Profit before taxation
  
113,572
787,612

Tax on profit
 10 
(39,584)
(3,392,249)

Profit/(loss) for the financial year
  
73,988
(2,604,637)

  

Unrealised surplus on revaluation of tangible fixed assets
  
-
5,404,646

Other comprehensive income for the year
  
-
5,404,646

Total comprehensive income for the year
  
73,988
2,800,009

Profit/(loss) for the year attributable to:
  

Non-controlling interests
  
136,373
1,039,789

Owners of the parent Company
  
(62,385)
(3,644,426)

  
73,988
(2,604,637)

Total comprehensive income for the year attributable to:
  

Non-controlling interest
  
136,373
1,039,789

Owners of the parent Company
  
(62,385)
1,760,220

  
73,988
2,800,009

The notes on pages 17 to 37 form part of these financial statements.

Page 9

 
DLT CAPITAL LIMITED
REGISTERED NUMBER:02271023

CONSOLIDATED BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
Restated 2022
Note
£
£

Fixed assets
  

Tangible assets
 14 
55,010,203
55,792,389

  
55,010,203
55,792,389

Current assets
  

Stocks
 16 
132,164
121,127

Debtors: amounts falling due within one year
 17 
22,801,547
21,761,715

Cash at bank and in hand
 18 
2,347,860
3,205,179

  
25,281,571
25,088,021

Creditors: amounts falling due within one year
 19 
(21,937,229)
(7,031,617)

Net current assets
  
 
 
3,344,342
 
 
18,056,404

Total assets less current liabilities
  
58,354,545
73,848,793

Creditors: amounts falling due after more than one year
 20 
(28,071,192)
(43,693,113)

Provisions for liabilities
  

Deferred tax
  
(9,206,178)
(9,152,493)

  
 
 
(9,206,178)
 
 
(9,152,493)

Net assets
  
21,077,175
21,003,187


Capital and reserves
  

Called up share capital 
 25 
100
100

Revaluation reserve
  
19,286,652
19,453,787

Profit and loss account
  
(1,230,937)
(1,335,687)

Equity attributable to owners of the parent Company
  
18,055,815
18,118,200

Non-controlling interests
  
3,021,360
2,884,987

  
21,077,175
21,003,187


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




D Tamman
Director

Date: 24 September 2024

The notes on pages 17 to 37 form part of these financial statements.
Page 10

 
DLT CAPITAL LIMITED
REGISTERED NUMBER:02271023

COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023

2023
2022
Note
£
£

Fixed assets
  

Investments
 15 
100
100

  
100
100

Current assets
  

Debtors: amounts falling due within one year
 17 
100
100

  
100
100

Creditors: amounts falling due within one year
 19 
(500)
(500)

Net current liabilities
  
 
 
(400)
 
 
(400)

Total assets less current liabilities
  
(300)
(300)

  

Creditors: amounts falling due after more than one year
 20 
(5,461)
(5,461)

  

Net liabilities
  
(5,761)
(5,761)


Capital and reserves
  

Called up share capital 
 25 
100
100

Profit and loss account brought forward
  
(5,861)
(5,861)

Profit and loss account carried forward
  
(5,861)
(5,861)

  
(5,761)
(5,761)


The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements. The profit after tax of the parent Company for the year £nil (2022 - £nil).
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:  


D Tamman
Director

Date: 24 September 2024

The notes on pages 17 to 37 form part of these financial statements.
Page 11

 
DLT CAPITAL LIMITED
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Other reserve
Profit and loss account
Equity attributable to owners of parent Company
Non-controlling interests
Total equity

£
£
£
£
£
£


At 1 January 2022
100
15,846,923
510,957
16,357,980
1,845,198
18,203,178


Comprehensive income for the year

Loss for the year
-
-
(3,644,426)
(3,644,426)
1,039,789
(2,604,637)

Difference between a historical depreciation charge and the actual depreciation charge for the year calculated on the revalued amount
-
(68,282)
68,282
-
-
-

Surplus on revaluation of leasehold property
-
5,404,646
-
5,404,646
-
5,404,646

Transfer to/from profit and loss account
-
(1,729,500)
1,729,500
-
-
-



At 1 January 2023 (as previously stated)
100
19,453,787
(1,467,547)
17,986,340
2,884,987
20,871,327

Prior year adjustment - correction of error
-
-
131,860
131,860
-
131,860


At 1 January 2023 (as restated)
100
19,453,787
(1,335,687)
18,118,200
2,884,987
21,003,187


Comprehensive income for the year

Profit for the year
-
-
(62,385)
(62,385)
136,373
73,988

Difference between a historical depreciation charge and the actual depreciation charge for the year calculated on the revalued amount
-
(134,685)
134,685
-
-
-

Transfer between P&L reserve and other reserves
-
(32,450)
32,450
-
-
-


At 31 December 2023
100
19,286,652
(1,230,937)
18,055,815
3,021,360
21,077,175


The notes on pages 17 to 37 form part of these financial statements.

Page 12

 
DLT CAPITAL LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 January 2022
100
(5,861)
(5,761)

Profit for the year
-
-
-



At 1 January 2023
100
(5,861)
(5,761)

Profit for the year
-
-
-


At 31 December 2023
100
(5,861)
(5,761)


The notes on pages 17 to 37 form part of these financial statements.
Page 13

 
DLT CAPITAL LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023

2023
Restated
2022
£
£

Cash flows from operating activities

Profit for the financial year
73,988
(2,604,637)

Adjustments for:

Amortisation of intangible assets
-
3,175

Depreciation of tangible assets
1,265,205
816,126

Government grants
(58,013)
(60,508)

Interest paid
2,026,782
1,402,256

Interest received
(490,025)
(410,308)

Taxation charge
39,584
3,392,249

Increase in stocks
(11,037)
(36,920)

Decrease in debtors
41,019
704,173

Increase in amounts owed by groups
(1,080,851)
(1,416,591)

Increase/(decrease) in creditors
251,069
(153,803)

Increase in amounts owed to groups
962,637
262,443

Corporation tax (paid)/received
(270,093)
22,858

Net cash generated from operating activities

2,750,265
1,920,513


Cash flows from investing activities

Purchase of tangible fixed assets
(483,019)
(389,795)

Sale of tangible fixed assets
-
39,696

Government grants received
58,013
60,508

Interest received
490,025
410,308

HP interest paid
(378,101)
(372,100)

Net cash from investing activities

(313,082)
(251,383)
Page 14

 
DLT CAPITAL LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023


2023
2022

£
£



Cash flows from financing activities

Repayment of loans
(1,195,425)
(1,132,754)

Repayment of/new finance leases
(325,396)
(333,587)

Shares treated as debt - issued
(125,000)
(125,000)

Interest paid
(1,648,681)
(1,030,156)

Net cash used in financing activities
(3,294,502)
(2,621,497)

Net (decrease) in cash and cash equivalents
(857,319)
(952,367)

Cash and cash equivalents at beginning of year
3,205,179
4,157,546

Cash and cash equivalents at the end of year
2,347,860
3,205,179


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
2,347,860
3,205,179

2,347,860
3,205,179


The notes on pages 17 to 37 form part of these financial statements.

Page 15

 
DLT CAPITAL LIMITED
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2023




At 1 January 2023
Cash flows
At 31 December 2023
£

£

£

Cash at bank and in hand

3,205,179

(857,319)

2,347,860

Debt due after 1 year

(20,389,035)

16,148,844

(4,240,191)

Debt due within 1 year

(1,290,921)

(14,828,419)

(16,119,340)

Finance leases

(12,493,268)

325,396

(12,167,872)


(30,968,045)
788,502
(30,179,543)

The notes on pages 17 to 37 form part of these financial statements.
Page 16

 
DLT CAPITAL LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1.


GENERAL INFORMATION

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 2).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Profit and loss account in these financial statements.  The following principal accounting policies have been applied:

2.ACCOUNTING POLICIES

 
2.1

Basis of preparation of financial statements

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

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

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.

The following principal accounting policies have been applied:

 
2.2

BASIS OF CONSOLIDATION

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.
In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being 01 January 2015.

Page 17

 
DLT CAPITAL LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.ACCOUNTING POLICIES (CONTINUED)

 
2.3

Going concern

The directors, having made due and careful enquiry, are of the opinion that the Group has adequate working capital to execute its operations over the next 12 months. The directors, therefore, have made an informed judgement, at the time of approving the financial statements, that there is a reasonable expectation that the Group has adequate resources to continue in operational existence for the foreseeable future.
The directors remain confident that the Group can continue to operate as a going concern.  As reported in the Strategic Report, the Group has grown strongly with both high occupancy and increasing room rates. This, along with agreed banking facilities and retained reserves will allow the Group to continue to meet it’s obligations as they fall due and operate as a going concern.
 
As a result, the directors have continued to adopt the going concern basis of accounting in preparing the annual financial statements. 

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.
Page 18

 
DLT CAPITAL LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.ACCOUNTING POLICIES (CONTINUED)

 
2.5

Intangible assets

Goodwill
Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight line basis to the Profit and loss account over its useful economic life.

 The estimated useful lives range as follows:

Goodwill
-
15
years

 
2.6

Tangible fixed assets

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

At each reporting date the Group assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.

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

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

The estimated useful lives range as follows:

Freehold property
-
1.33% straight line
Assets under construction
-
Not depreciated
Plant & machinery
-
10% straight line
Motor vehicles
-
25% straight line
Fixtures & fittings
-
10-33% straight line
Other fixed assets
-
5-25% straight line
Base stocks
-
25% straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Page 19

 
DLT CAPITAL LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.ACCOUNTING POLICIES (CONTINUED)

 
2.7

Revaluation of tangible fixed assets

Individual freehold and leasehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the balance sheet date.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.

Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.

 
2.8

Operating leases

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

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

 
2.9

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.10

Stocks

Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks.

 
2.11

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.12

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.
Page 20

 
DLT CAPITAL LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.ACCOUNTING POLICIES (CONTINUED)

 
2.13

Financial instruments

The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Group's Balance sheet when the Group becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

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

Other financial assets

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

Impairment of financial assets

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

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

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

Financial liabilities

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



 
Page 21

 
DLT CAPITAL LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.ACCOUNTING POLICIES (CONTINUED)


2.13
Financial instruments (continued)

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

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

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

Other financial instruments

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

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

 
2.14

Creditors

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

 
2.15

Government grants

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

 
2.16

Finance costs

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

Page 22

 
DLT CAPITAL LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.ACCOUNTING POLICIES (CONTINUED)

 
2.17

Leased assets

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

 
2.18

Sale and leaseback

Where a sale and leaseback transaction results in a finance lease, no gain is immediately recognised for any excess of sales proceeds over the carrying amount of the asset. Instead, the proceeds are presented as a liability and subsequently measured at amortised cost using the effective interest method.  The Group has a sale and lease back arrangement.  Further details are discussed at Note 14.

 
2.19

Pensions

Defined contribution pension plan

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

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

 
2.20

Holiday pay accrual

A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the balance sheet date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the balance sheet date.

 
2.21

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.22

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

Page 23

 
DLT CAPITAL LIMITED
 

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

2.ACCOUNTING POLICIES (CONTINUED)

 
2.23

Current and deferred taxation

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

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.24

EXCEPTIONAL ITEMS

Exceptional items are transactions that fall within the ordinary activities of the Group but are presented separately due to their size or incidence.

Page 24

 
DLT CAPITAL LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

3.



JUDGEMENTS IN APPLYING ACCOUNTING POLICIES AND KEY SOURCES OF ESTIMATION AND UNCERTAINTY

The preparation of the financial statements, requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the Statement of Financial Position date and the amounts reported during the year for revenue and costs. However, the nature of estimation means that actual outcomes could differ from those estimates. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The following judgements and estimates have had the most significant impact on amounts recognised in the financial statements:
Taxation
The company establishes provisions based on reasonable estimates, for possible consequences of audits by the tax authorities of the respective countries in which it operates. The amount of such provisions is based on various factors, such as experience with previous tax authorities and differing interpretations of tax regulations by the group and the tax authority.
Management estimation is required to determine the amount of deferred tax assets that can be recognised, based upon likely timing and level of future taxable profits together with an assessment of the effect of future tax planning strategies.
Operating lease commitments
As a lessee the company use property, plant and equipment. The classification of such leases as operating or finance lease requires the group to determine, based on an evaluation of the terms and conditions of the arrangements, whether it retains or acquires the significant risks and rewards of ownership of these assets and accordingly whether the lease requires an asset and liability to be recognised in the Balance sheet.
Carrying value of properties
The directors consider, on an annual basis, whether changes in market conditions have led to any impairment in the valuation of properties, using his judgement and market data available. In addition, judgement is applied to select an appropriate useful life and residual value to follow the basis of depreciation. 


4.


TURNOVER

The turnover and profit for the year are attributable to the one principal activity of the group in the United Kingdom.


5.


OPERATING PROFIT

The operating profit is stated after charging:

2023
2022
£
£

Depreciation of tangible fixed assets
1,265,205
816,125

Amortisation of intangible assets, including goodwill
-
3,175

Other operating lease rentals
387
2,361

Defined contribution pension cost
142,028
95,306

Page 25

 
DLT CAPITAL LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

6.


AUDITORS' REMUNERATION

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


2023
2022
£
£

Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements
27,000
25,000


7.


EMPLOYEES

Staff costs were as follows:


Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Wages and salaries
5,393,145
4,891,742
-
-

Social security costs
394,985
368,208
-
-

Cost of defined contribution scheme
142,028
95,306
-
-

5,930,158
5,355,256
-
-


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


        2023
        2022
            No.
            No.







Directors
3
3



Administration
18
13



Food and beverage
138
140



Housekeeping
57
55



Reception and sales
44
34



Maintenance
6
6



Leisure and beauty
5
4



Spa & Beauty
4
4

275
259


8.


INTEREST RECEIVABLE

2023
2022
£
£


Interest receivable from related undertakings
400,423
383,812

Other interest receivable
89,602
26,496

490,025
410,308

Page 26

 
DLT CAPITAL LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

9.


INTEREST PAYABLE AND SIMILAR EXPENSES

2023
2022
£
£


Bank interest payable
1,327,752
712,023

Preference share interest
51,419
55,356

Loans from related undertakings
260,553
262,777

Finance leases and hire purchase contracts
378,101
372,100

Other interest payable
8,957
-

2,026,782
1,402,256


10.


TAXATION


2023
2022
£
£

CORPORATION TAX


Current tax on profits for the year
-
286,607

Adjustments in respect of previous periods
(14,101)
-

(14,101)
286,607


TOTAL CURRENT TAX
(14,101)
286,607

DEFERRED TAX


Origination and reversal of timing differences
53,685
3,105,642

TOTAL DEFERRED TAX
53,685
3,105,642


TAXATION ON PROFIT ON ORDINARY ACTIVITIES
39,584
3,392,249
Page 27

 
DLT CAPITAL LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
10.TAXATION (CONTINUED)


FACTORS AFFECTING TAX CHARGE FOR THE YEAR

The tax assessed for the year is higher than (2022 - higher than) the standard rate of corporation tax in the UK of 25% (2022 - 19%). The differences are explained below:

2023
2022
£
£


Profit on ordinary activities before tax
113,572
787,612


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2022 - 19%)
28,393
124,593

EFFECTS OF:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
3,576
2,954

Fixed asset differences
98,759
33,352

Deferred tax on timing differences
-
3,105,642

Short term timing difference
39,250
-

Charges on income
(13)
(239)

Group relief
(116,280)
149,833

Losses brought forward
-
(23,886)

Prior year adjustment
(14,101)
-

TOTAL TAX CHARGE FOR THE YEAR
39,584
3,392,249


FACTORS THAT MAY AFFECT FUTURE TAX CHARGES

The proceeds from the sale of a hotel previously owned by the group have now been reinvested by the company in other qualifying assets. Under the provisions of S152 TCGA 1992, the Capital Gains Tax liability that would otherwise arise has been deferred until the subsequent disposal of the new assets. The estimated tax liability would be approximately £2,349,382. Under FRS102 this liability has now been recognised as a liability (see note 23).
The proceeds from the sale and leaseback of land, which occurred in 2015, are being reinvested in further hotel developments and therefore the tax liability that would otherwise arise has been deferred until the subsequent disposals of the new assets. The estimated tax liability would be a approximately £1,920,615 and under FRS102 this liability has been recognised as a liability (see note 23).


11.


EXCEPTIONAL ITEMS

2023
2022
£
£


Exceptional foreign currency loss
-
311,063

-
311,063

Page 28

 
DLT CAPITAL LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

12.


INTANGIBLE ASSETS

Group and Company





Goodwill

£



Cost


At 1 January 2023
45,066



At 31 December 2023

45,066



Amortisation


At 1 January 2023
45,066



At 31 December 2023

45,066



Net book value



At 31 December 2023
-



At 31 December 2022
-




13.


PARENT COMPANY PROFIT FOR THE YEAR

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements. The profit after tax of the parent Company for the year was £NIL (2022 - £NIL).
Page 29

 
DLT CAPITAL LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

14.


TANGIBLE FIXED ASSETS

Group






Freehold property
Assets under construction
Motor vehicles
  Fixtures & fittings
  Base stocks
Computer equipment
Total

£
£
£
£
£
£
£



Cost or valuation


At 1 January 2023
47,765,463
8,366,996
121,603
4,182,772
147,196
78,868
60,662,898


Additions
-
326,507
26,415
121,742
7,604
751
483,019



At 31 December 2023

47,765,463
8,693,503
148,018
4,304,514
154,800
79,619
61,145,917



Depreciation


At 1 January 2023
2,017,151
-
70,696
2,611,030
123,191
48,441
4,870,509


Charge for the year on owned assets
476,562
405,916
23,637
323,189
20,056
15,845
1,265,205



At 31 December 2023

2,493,713
405,916
94,333
2,934,219
143,247
64,286
6,135,714



Net book value



At 31 December 2023
45,271,750
8,287,587
53,685
1,370,295
11,553
15,333
55,010,203



At 31 December 2022
45,748,312
8,366,996
50,907
1,571,742
24,005
30,427
55,792,389


A valuation of the hotel was carried out on in December 2022 by external qualified chartered surveyors. This report valued the hotel on an open market existing use basis at £30,500,000, with no allowance for the sale and leaseback arrangement entered in to during 2015. After taking into account this valuation the Directors consider the carrying value recorded above is appropriate as at 31 December 2023.
A valuation of the hotel was carried out in December 2022 by external qualified chartered surveyors. This report valued the hotel on an open market value existing use basis at £18,000,000, with no allowance for the sale and leaseback arrangement entered in to during 2019. After taking into account the finance lease (Note 22) the Directors consider that a value of £14,750,000 is appropriate as at 31 December 2023.

Page 30

 
DLT CAPITAL LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

           14.TANGIBLE FIXED ASSETS (CONTINUED)

If the fixed assets had not been included at valuation they would have been included under the historical cost convention as follows:

2023
2022
£
£

GROUP


Cost
39,444,721
38,829,842

Accumulated depreciation
(7,942,404)
(6,844,334)

NET BOOK VALUE
31,502,317
31,985,508


15.


FIXED ASSET INVESTMENTS

Company





Investments in subsidiary companies

£



Cost or valuation


At 1 January 2023
100



At 31 December 2023
100





SUBSIDIARY UNDERTAKINGS


The following were subsidiary undertakings of the Company:

Name

Registered office

Class of shares

Holding

Patio Hotels (UK) Limited
70 Portland Place, London, W1B 1NP
Ordinary
100%
Kin Hotel (Inverness) Limited
70 Portland Place, London, W1B 1NP
Ordinary
75%
Kingsmills Hotel (Inverness) Limited
Johnstone House, 52-54 Rose Street, Aberdeen, AB10 1HA
Ordinary
90%
DLT Yachting Limited
70 Portland Place, London, W1B 1NP
Ordinary
100%
Patio Hotel (Clydebank) Limited
70 Portland Place, London, W1B 1NP
Ordinary
100%
Twelve Ness Walk Limited
Johnstone House, 52-54 Rose Street, Aberdeen, AB10 1HA
Ordinary
75%

Page 31

 
DLT CAPITAL LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

16.


STOCKS

Group
Group
2023
2022
£
£

Raw materials and consumables
132,164
121,127

132,164
121,127



17.


DEBTORS

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£


Trade debtors
131,360
179,540
-
-

Amounts owed by related undertakings
21,387,349
20,306,498
-
-

Other debtors
1,081,303
1,103,760
100
100

Prepayments and accrued income
201,535
171,917
-
-

22,801,547
21,761,715
100
100



18.


CASH AND CASH EQUIVALENTS

Group
Group
2023
2022
£
£

Cash at bank and in hand
2,347,860
3,205,179

2,347,860
3,205,179


Page 32

 
DLT CAPITAL LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

19.


CREDITORS: Amounts falling due within one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Bank loans
15,994,340
1,190,921
-
-

Trade creditors
1,128,041
881,906
-
-

Amounts owed to related undertakings
1,708,951
1,573,057
-
-

Corporation tax
-
284,194
-
-

Taxation and social security
419,356
411,739
-
-

Obligations under finance lease contracts
304,363
323,417
-
-

Other creditors
112,598
156,950
-
-

Accruals and deferred income
2,144,580
2,109,433
500
500

Share capital treated as debt
125,000
100,000
-
-

21,937,229
7,031,617
500
500


Disclosure of the terms and conditions attached to the non-equity shares is made in note 25.

The existing bank loans were fully repaid in March 2024 with new bank debt secured as detailed in Note 20.


20.


CREDITORS: Amounts falling due after more than one year

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

Bank loans
3,590,191
19,589,035
-
-

Net obligations under finance leases contracts
11,863,509
12,169,851
-
-

Amounts owed to related undertakings
11,635,434
10,808,691
5,461
5,461

Other creditors
332,058
325,536
-
-

Share capital treated as debt
650,000
800,000
-
-

28,071,192
43,693,113
5,461
5,461


Disclosure of the terms and conditions attached to the non-equity shares is made in note 25.

Secured loans
The bank borrowings are secured by a standard security over the land and buildings together with a floating charge over all assets of the group. 
The group has six bank loans in place. The loans are repayable in quarterly installments which commence in 2022. Interest is paid on each loan at Bank of England base rate plus 1.75%.
Post year end, the Group has refinanced its debt facilities, providing total loan finance of £20.5m. The term of the new debt is three years with an option for an additional two years.



Page 33

 
DLT CAPITAL LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

21.


LOANS


Analysis of the maturity of loans is given below:


Group
Group
2023
2022
£
£

AMOUNTS FALLING DUE WITHIN ONE YEAR

Bank loans
15,994,340
1,190,921

AMOUNTS FALLING DUE 1-2 YEARS

Bank loans
3,590,191
15,994,342

AMOUNTS FALLING DUE 2-5 YEARS

Bank loans
-
3,594,693


19,584,531
20,779,956





 
22.
 

FINANCE LEASES
 



Group
Group
Company
2023
2022
2023
£
£
£

Within one year
304,364
320,513
-

Between 2-5 years
1,145,009
948,364
-

Over 5 years
10,720,478
10,996,217
-

12,169,851
12,265,094
-


In 2015, the group entered into an arrangement to sell and leaseback, on a 175 year lease, the land on which one of the hotel operates.  As the group has the option to buy the land at the end of the lease for a nominal amount the transaction was recorded as a financing arrangement and no disposal of land or gain on disposal was recorded in the accounts.
In 2019, the group entered into another arrangement to sell and leaseback, on a 125 year lease, the property from which one of the hotel operates. As the company has the option to buy the property at the end of the lease for a nominal amount the transaction was recorded as a financing arrangement and no disposal of property or gain on disposal was recorded in the accounts.

Page 34

 
DLT CAPITAL LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

23.


FINANCIAL INSTRUMENTS

Group
Group
Company
Company
2023
2022
2023
2022
£
£
£
£

FINANCIAL ASSETS

Financial assets measured at fair value through profit or loss
2,347,860
3,205,179
-
-

Financial assets that are debt instruments measured at amortised cost
22,600,012
21,589,798
100
100

24,947,872
24,794,977
100
100


FINANCIAL LIABILITIES

Financial liabilities measured at amortised cost
(36,641,379)
(36,414,873)
(5,961)
(5,961)


Financial assets measured at fair value through profit or loss comprise cash at bank and in hand.


Financial assets that are debt instruments measured at amortised cost comprise trade debtors, amounts owed to group undertakings, other debtors and accrued income.


Financial liabilities measured at amortised cost comprise trade creditors, accruals, amounts owed by group undertakings, bank overdrafts and bank loans.


24.


DEFERRED TAXATION


Group



2023


£






At beginning of year
9,152,493


Charged to profit or loss
53,685



At end of year
9,206,178

Page 35

 
DLT CAPITAL LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
 
24.DEFERRED TAXATION (CONTINUED)

Company


2023





At beginning of year
-


Charged to profit or loss
-



At end of year
-

The provision for deferred taxation is made up as follows:

Group
Group
2023
2022
£
£

Accelerated capital allowances
1,446,755
1,452,234

Tax losses carried forward
(60,753)
(39,667)

Rollerover relief
4,585,247
4,585,247

Revaluation of assets
3,234,929
3,154,679

9,206,178
9,152,493


25.


SHARE CAPITAL

2023
2022
£
£
Shares classified as equity

Allotted, called up and fully paid



100 (2022 - 100) Ordinary shares of £1.00 each
100
100

2023
2022
£
£
Shares classified as debt

Allotted, called up and fully paid



775,000 (2022 - 900,000) Preference shares of £1.00 each
775,000
900,000


Page 36

 
DLT CAPITAL LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

25.SHARE CAPITAL (CONTINUED)

During the year 125,000 6% Preference shares of £1 were repaid at par.
The preference shares do not hold voting rights. Any income on the shares will be firstly paid to the holders of the Preference shares, referred to as the "Preferred dividend" at a fixed cumulative rate of 6% per annum. The Preferred dividend shall be payable in priority to any other dividend. No dividend shall be paid in respect of the Ordinary shares until the Preferred dividend has been paid in full. Once the deferred dividend has been paid,the profits shall be distributed to the holders of the Ordinary shares pro rata to the amounts paid.
On a return of assets on liquidation, capital reduction or otherwise, the assets will be be applied to firstly paying the holders of the Preference shares the subscription price together with any Preferred dividend due. The balance of the assets shall be distributed amongst the holders of the Ordinary Shares in proportion to the amounts paid.
The Preference shares can be redeemed in whole or in part after the second anniversary of the issue of

26.

PRIOR YEAR ADJUSTMENT

A prior year adjustment has been processed to capitalise items wrongly expensed in the prior year.


27.


PENSION COMMITMENTS

The group contributes to a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the group to the funds and amounted to £142,048 (2022 - £94,071). Contributions totally £4,052 (2022 - £Nil) were payable to the fund at the year end and are included in creditors.


28.


RELATED PARTY TRANSACTIONS

The Group has taken advantage of the exemption given by FRS 102 Section 33 which allows exemption from disclosure of related party transactions with wholly owned group companies.
During the year, the Group incurred management fees totalling £700,000 to companies with common shareholders. The Group received interest on loans with these companies of £400,423 and paid interest on loans of £260,552. The net balance due to the Group from these companies at the year end was £8,042,964.
During the year preference shares totalling £125,000 have been repaid to common shareholders.  Preference dividends amounting to £51,419 have been accrued in the year. 


29.


POST BALANCE SHEET EVENTS

Post year end, the Group has refinanced its debt facilities, providing total loan finance of £20.5m. The term of the new debt is three years.


30.


CONTROLLING PARTY

The ultimate parent undertaking is DLT Capital Group (International) Limited , a company incorporated in Gibraltar. The company and group are ultimately controlled by Daniele Tamman.

Page 37