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The Nare Hotel Company Limited

Annual Report and Financial Statements
Year Ended 31 December 2023

Registration number: 02323722

 

The Nare Hotel Company Limited

Contents

Strategic Report

1 to 2

Directors' Report

3

Statement of Directors' Responsibilities

4

Independent Auditor's Report

5 to 7

Profit and Loss Account

8

Statement of Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Notes to the Financial Statements

12 to 24

 

The Nare Hotel Company Limited

Strategic Report for the Year Ended 31 December 2023

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

Principal activity

The principal activity of the company is that of running a hotel.

Fair review of the business

2023 saw a 21% decrease in rooms sold compared to 2022, with hospitality businesses returning to pre-COVID trading. Room rates increased by 5% in 2023 which mitigated the decrease in room sales to leave overall income down by 16%.

Gross margin decreased by 17% compared to 2022 and gross profit percentage decreased slightly from 88% to 87%. Overheads are 8% down on last year arising from cost control necessitated by the drop in income. Operating profit decreased by 49% on 2022.

The hotel continues to closely monitor its customer service and maintains its strategy of being service driven to uphold the excellent reputation of the hotel both nationally and internationally.

The company continues to be in a strong net asset position of £14,682,664 (2022 - £14,524,904). The
company continued the construction of a new dining space and an additional suite, both of which opened in Spring 2024.

The company’s existing loan facility was renewed in April 2023. On 1 February 2024, this loan was consolidated with a CBILS loan and a further £1.625m was borrowed to refinance the build costs for the work completed in Spring 2024.

The directors review Key Performance Indicators (KPIs) such as room rates, occupancy rates and
wages as a percentage of turnover. These indicators help the directors to maintain profitability and
positive operating cash flows. The disclosure of these KPIs is deemed to be prejudicial to the interests
of the company.

Principal risks and uncertainties

In line with other hospitality businesses, the principal business risks and uncertainties facing the company surround inflation in the cost of goods and a challenging labour market.

Operational risks continue to arise from the challenging employment environment arising from both Brexit and COVID-19 and a challenging supply chain. The company is mitigating these risks by constantly updating its staff recruitment and retention policy, and securing bulk supplies where possible.

The company mitigates general risks and uncertainties through good communication with long-standing customers and continued investment in the hotel to maintain the high standards on which its reputation is built.

The company's trading activities also expose it to a number of financial risks, including cash flow and overall liquidity risk. The company manages this through the tight control of costs and regular cash flow reviews.

 

The Nare Hotel Company Limited

Strategic Report for the Year Ended 31 December 2023

Approved by the Board on 25 September 2024 and signed on its behalf by:

.........................................
Mr T G H Ashworth
Director

   
     

 

The Nare Hotel Company Limited

Directors' Report for the Year Ended 31 December 2023

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

Directors of the company

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

Mr T G H Ashworth

Mrs K A Ashworth

Mr M Ashley Miller

Mr T Riley

Financial risk management objectives and policies

The directors consider that the hotel's activities do not expose the company to any undue financial risks. The only risk identified was in the area of liquidity and this risk is managed by careful budgeting and forecasting and maintenance of good relationships with the bank.

Going concern

The financial statements have been prepared on a going concern basis. The Directors acknowledge the Company's net current liability position as at the year end of £682,385 (2022 - £260,641). Post year end, the Directors have made further loan drawdowns which has resulted in the Directors believing that the Company can meet its liabilities as they fall due.

Disclosure of information to the auditors

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

Approved by the Board on 25 September 2024 and signed on its behalf by:

.........................................
Mr T G H Ashworth
Director

   
     
 

The Nare Hotel Company Limited

Statement of Directors' Responsibilities

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

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

select suitable accounting policies and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

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

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

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

 

The Nare Hotel Company Limited

Independent Auditor's Report to the Members of The Nare Hotel Company Limited

Opinion

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

In our opinion the financial statements:

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

Conclusions relating to going concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

 

The Nare Hotel Company Limited

Independent Auditor's Report to the Members of The Nare Hotel Company Limited

Opinion on other matter prescribed by the Companies Act 2006

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

the information given in the Strategic Report and Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report and the Directors' Report.

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

adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

the financial statements are not in agreement with the accounting records and returns; or

certain disclosures of directors' remuneration specified by law are not made; or

we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page 4, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor 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:

 

The Nare Hotel Company Limited

Independent Auditor's Report to the Members of The Nare Hotel Company Limited

Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to acts by the company which were contrary to applicable laws and regulations, including fraud.

We considered those laws and regulations that have a direct impact on the preparation of the financial statements, including, but not limited to the reporting framework (FRS 102 and Companies Act 2006) and the relevant tax compliance regulations in the UK. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to fraudulent financial reporting.

Audit procedures performed by the engagement team include, but were not limited to, discussion and inquiries with management of compliance with laws and regulations and review of correspondence and contracts with third parties. We also addressed the risk of management override of internal controls of internal controls, including testing of journals and evaluating whether there was evidence of bias by the Directors that represented a risk of material misstatement due to fraud.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or
through collusion.

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. This risk increases the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements as we are less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment, collusion, omission or misrepresentation.

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

Use of our report

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

......................................
James Barrett (Senior Statutory Auditor)
PKF Francis Clark, Statutory Auditor

Melville Building East
Unit 18, 23 Royal William Yard
Plymouth
PL1 3GW

25 September 2024

 

The Nare Hotel Company Limited

Profit and Loss Account

Year Ended 31 December 2023

Note

2023
 £

2022
 £

Turnover

3

5,710,246

6,812,265

Cost of sales

 

(743,432)

(796,985)

Gross profit

 

4,966,814

6,015,280

Administrative expenses excluding depreciation costs

 

(3,861,495)

(4,185,048)

Operating profit before depreciation costs

 

1,105,319

1,830,232

Depreciation costs

 

(331,762)

(320,848)

Operating profit

4

773,557

1,509,384

Other interest receivable and similar income

8

16,302

8,032

Interest payable and similar charges

9

(219,655)

(160,061)

Profit before tax

 

570,204

1,357,355

Taxation

10

(135,308)

(247,402)

Profit for the financial year

 

434,896

1,109,953

The above results were derived from continuing operations.

 

The Nare Hotel Company Limited

Statement of Comprehensive Income

Year Ended 31 December 2023

2023
 £

2022
 £

Profit for the year

434,896

1,109,953

Deferred tax movement on revalued fixed assets

16,301

16,301

Total comprehensive income for the year

451,197

1,126,254

 

The Nare Hotel Company Limited

Balance Sheet

31 December 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

11

20,189,722

18,258,500

Current assets

 

Stocks

12

196,218

181,353

Debtors

13

6,979,476

6,891,822

Cash at bank and in hand

 

368,316

2,822,432

 

7,544,010

9,895,607

Creditors: Amounts falling due within one year

14

(8,226,395)

(10,156,248)

Net current liabilities

 

(682,385)

(260,641)

Total assets less current liabilities

 

19,507,337

17,997,859

Creditors: Amounts falling due after more than one year

14

(2,147,157)

(795,485)

Provisions for liabilities

17

(2,678,090)

(2,677,470)

Net assets

 

14,682,090

14,524,904

Capital and reserves

 

Called up share capital

10,700

10,700

Share premium reserve

1,532,077

1,532,077

Fair value reserve

7,084,110

7,133,012

Profit and loss account

6,055,203

5,849,115

Shareholders' funds

 

14,682,090

14,524,904

Approved and authorised by the Board on 25 September 2024 and signed on its behalf by:
 

.........................................
Mr T G H Ashworth
Director

Company Registration Number: 02323722

 

The Nare Hotel Company Limited

Statement of Changes in Equity

Year Ended 31 December 2023

Share capital
£

Share premium
£

Fair value reserve
£

Profit and loss account
£

Total
£

At 1 January 2023

10,700

1,532,077

7,133,012

5,849,115

14,524,904

Total comprehensive income

-

-

16,301

434,896

451,197

Dividends

-

-

-

(294,011)

(294,011)

Transfers

-

-

(65,203)

65,203

-

At 31 December 2023

10,700

1,532,077

7,084,110

6,055,203

14,682,090

Share capital
£

Share premium
£

Fair value reserve
£

Profit and loss account
£

Total
£

At 1 January 2022

10,700

1,532,077

7,181,914

5,104,135

13,828,826

Total comprehensive income

-

-

16,301

1,109,953

1,126,254

Dividends

-

-

-

(430,176)

(430,176)

Transfers

-

-

(65,203)

65,203

-

At 31 December 2022

10,700

1,532,077

7,133,012

5,849,115

14,524,904

 

The Nare Hotel Company Limited

Notes to the Financial Statements

Year Ended 31 December 2023

1

General information

The address of its registered office is:
Carne Beach
Veryan
Truro
TR2 5PF

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

The business address is the same as the registered office address.

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

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

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Summary of disclosure exemptions

FRS 102 grants a qualifying entity exemptions from the full requirements of FRS 102. The following exemptions have been taken in these financial statements as the company is deemed to be a qualifying entity.

The company has taken advantage of the exemption under FRS102 paragraph 1.12(b), from preparing a Statement of Cash Flows on the basis that it is a qualifying entity and its ultimate parent company, Cordash Limited, included the company's cash flow in its own consolidated financial statement. The company is also taking exemption from disclosure of key management personnel compensation and exemption from disclosure of related part transactions entered into between the company and Cordash Limited.

Going concern

The financial statements have been prepared on a going concern basis. The Directors acknowledge the Company's net current liability position as at the year end of £682,385 (2022 - £260,641). Post year end, the Directors have made further loan drawdowns which has resulted in the Directors believing that the Company can meet its liabilities as they fall due.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts and after eliminating sales within the company.

 

The Nare Hotel Company Limited

Notes to the Financial Statements

Year Ended 31 December 2023

Tax

Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

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

Deferred tax is recognised on all timing differences at the balance sheet date unless indicated below. Timing differences are differences between taxable profits and the results as stated in the profit and loss account and other comprehensive income. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

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

Tangible assets

Tangible assets, except freehold land and buildings, are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Freehold land and buildings are stated in the balance sheet at deemed cost. An amount equal to the excess of the annual depreciation charge on the deemed cost of the assets over the notional historical cost depreciation charge on those assets is transferred annually from the fair value reserve to the profit and loss reserve.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Land and buildings

2% straight line, land elements are not depreciated

Furniture, fittings and equipment

15% reducing balance / 33% straight line for computer equipment

Motor vehicles

25% reducing balance

Assets under construction

Not depreciated

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Stocks

Stocks are stated at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

 

The Nare Hotel Company Limited

Notes to the Financial Statements

Year Ended 31 December 2023

Leases

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

Defined contribution pension obligation

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

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Financial instruments

Classification
The company holds the following financial instruments:

• Short-term trade and other debtors and creditors;
• Group company loans and bank loans; and
• Cash and bank balances.

All financial instruments are classified as basic.

 Recognition and measurement
The company has chosen to apply the recognition and measurement principles in FRS102.

Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are cancelled.

Except for group company loans, such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.

Group company loans are initially measured at transaction price, including transaction costs, and are subsequently carried at amortised cost using the effective interest method.

 

 

The Nare Hotel Company Limited

Notes to the Financial Statements

Year Ended 31 December 2023

3

Revenue

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

2023
 £

2022
 £

Sale of rooms

3,808,517

4,620,201

Rendering of services

1,901,729

2,192,064

5,710,246

6,812,265

The analysis of the company's turnover for the year by market is as follows:

2023
 £

2022
 £

UK

5,710,246

6,812,265

4

Operating profit

Arrived at after charging

2023
£

2022
£

Depreciation expense

331,762

320,848

Operating lease expense - property

10,948

8,805

5

Staff costs

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

2023
 £

2022
 £

Wages and salaries

2,093,013

2,131,161

Social security costs

172,323

182,315

Pension costs, defined contribution scheme

56,252

129,783

Other employee expense

11,617

13,049

2,333,205

2,456,308

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

2023
 No.

2022
 No.

Management

7

7

Other departments

94

92

101

99

 

The Nare Hotel Company Limited

Notes to the Financial Statements

Year Ended 31 December 2023

6

Directors' remuneration

The directors' remuneration for the year was as follows:

2023
£

2022
£

Remuneration

88,936

154,314

Contributions paid to money purchase schemes

2,751

80,277

91,687

234,591

During the year the number of directors who were receiving benefits was as follows:

2023
No.

2022
No.

Accruing benefits under money purchase pension scheme

2

4

7

Auditor's remuneration

2023
£

2022
£

Audit of the financial statements

11,500

11,500


 

8

Other interest receivable and similar income

2023
£

2022
£

Interest income on bank deposits

16,302

8,032

9

Interest payable and similar expenses

2023
£

2022
£

Interest on bank overdrafts and borrowings

219,655

141,728

Interest expense on other finance liabilities

-

18,333

219,655

160,061

 

The Nare Hotel Company Limited

Notes to the Financial Statements

Year Ended 31 December 2023

10

Taxation

Tax charged in the profit and loss account

2023
 £

2022
 £

Current taxation

UK corporation tax

118,387

274,318

Deferred taxation

Arising from origination and reversal of timing differences

16,921

(26,916)

Tax expense in the income statement

135,308

247,402

The tax on profit before tax for the year is higher than the standard rate of corporation tax in the UK (2022 - lower than the standard rate of corporation tax in the UK) of 23.52% (2022 - 19%).

The differences are reconciled below:

2023
£

2022
£

Profit before tax

570,204

1,357,355

Corporation tax at standard rate

133,998

257,897

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

292

209

Deferred tax expense/(credit) relating to changes in tax rates or laws

1,018

(6,460)

Decrease from effect of tax incentives

-

(4,244)

Total tax charge

135,308

247,402

Deferred tax

Deferred tax assets and liabilities

2023

Liability
£

Difference between accumulated depreciation and capital allowances

1,218,645

Deferred tax on property revaluation

1,459,445

2,678,090

2022

Liability
£

Difference between accumulated depreciation and capital allowances

1,201,724

Deferred tax on property revaluation

1,475,746

2,677,470

 

The Nare Hotel Company Limited

Notes to the Financial Statements

Year Ended 31 December 2023

Tax relating to items recognised in other comprehensive income or equity

2023
£

2022
£

Deferred tax related to items recognised as items of other comprehensive income

(16,301)

(16,301)

11

Tangible assets

Land and buildings
£

Furniture, fittings and equipment
£

Motor vehicles
 £

Assets under construction
£

Total
£

Cost or valuation

At 1 January 2023

17,920,115

3,025,750

315,663

581,321

21,842,849

Additions

413,361

31,582

-

1,818,040

2,262,983

At 31 December 2023

18,333,476

3,057,332

315,663

2,399,361

24,105,832

Depreciation

At 1 January 2023

944,486

2,402,780

237,083

-

3,584,349

Charge for the year

209,875

101,881

20,005

-

331,761

At 31 December 2023

1,154,361

2,504,661

257,088

-

3,916,110

Carrying amount

At 31 December 2023

17,179,115

552,671

58,575

2,399,361

20,189,722

At 31 December 2022

16,975,629

622,970

78,580

581,321

18,258,500

Included within the net book value of land and buildings above is £17,179,115 (2022 - £16,975,629) in respect of freehold land and buildings. Included within freehold land and buildings is freehold land with the net book value £7,659,402 (2022 - £7,659,402).
 

12

Stocks

2023
£

2022
£

Other inventories

196,218

181,353

 

The Nare Hotel Company Limited

Notes to the Financial Statements

Year Ended 31 December 2023

13

Debtors

2023
 £

2022
 £

Trade debtors

39,862

33,717

Amounts due from group undertakings

6,830,315

6,830,315

Other debtors

2,272

397

Prepayments

107,027

27,393

6,979,476

6,891,822

14

Creditors

Note

2023
 £

2022
 £

Due within one year

 

Loans and borrowings

15

486,824

2,346,872

Payments on account

 

212,673

200,214

Trade creditors

 

557,590

446,780

Amounts due to group undertakings

 

6,155,806

6,155,806

Corporation tax

10

87,325

243,256

Social security and other taxes

 

108,269

175,790

Outstanding defined contribution pension costs

 

8,857

10,183

Other creditors

 

489,444

451,738

Accrued expenses

 

119,607

125,609

 

8,226,395

10,156,248

Due after one year

 

Loans and borrowings

15

2,147,157

795,485

No interest is charged on the amounts due to group undertakings. This balance is repayable on demand.

15

Loans and borrowings

2023
 £

2022
 £

Non-current loans and borrowings

Bank borrowings

2,147,157

795,485

2023
 £

2022
 £

Current loans and borrowings

Bank borrowings

486,824

2,346,872

 

The Nare Hotel Company Limited

Notes to the Financial Statements

Year Ended 31 December 2023

Bank borrowings

Handelsbanken Loan is denominated in sterling, £ with a nominal interest rate of 2.75% above SONIA, and the final instalment is due on 5 April 2028. The carrying amount at year end is £1,833,333 (2022 - £2,125,000).

There is a legal charge in relation to this loan over Units A-G Tregony Industrial Estate, Truro, TR2 5TL and The Nare Hotel and the White House, Veryan, Truro, TR2 5PF.

CBILS Loan is denominated in sterling, £ with a nominal interest rate of 2.53% above SONIA, and the final instalment is due on 4 February 2027. The carrying amount at year end is £800,648 (2022 - £1,017,357).

16

Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

2023
£

2022
£

Not later than one year

5,052

5,244

Later than one year and not later than five years

10,204

10,396

Later than five years

26,786

29,337

42,042

44,977

The amount of non-cancellable operating lease payments recognised as an expense during the year was £26,419 (2022 - £22,699).

17

Deferred tax and other provisions

Deferred tax on eligible assets
£

At 1 January 2023

2,677,470

Increase in existing provisions

620

At 31 December 2023

2,678,090

18

Share capital

Allotted, called up and fully paid shares

 

2023

2022

 

No.

£

No.

£

Ordinary shares of £1 each

10,700

10,700

10,700

10,700

         
 

The Nare Hotel Company Limited

Notes to the Financial Statements

Year Ended 31 December 2023

Rights, preferences and restrictions

The holders of ordinary shares are entitled to receive dividends as declared from time to time and are entitled to one vote per share at meetings of the Company. All ordinary shares rank equally with regard to the Company's residual assets.

19

Dividends

   

2023

 

2022

   

£

 

£

Interim dividend of £27.47 (2022 - £40.20) per ordinary share

 

294,011

 

430,176

         

20

Commitments

Capital commitments

The total amount contracted for but not provided in the financial statements was £491,292 (2022 - £298,511).

21

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £56,252 (2022 - £129,783). Contributions totalling £8,857 (2022 - £10,183) were payable to the scheme at the end of the year and are included in creditors.

 

The Nare Hotel Company Limited

Notes to the Financial Statements

Year Ended 31 December 2023

22

Related party transactions

2023

At 1 January 2023
£

Advances to director
£

Repayments by director
£

Interest
paid to/(by)
director
£

At 31 December 2023
£

Mr T G H Ashworth

Unsecured, interest free and repayable on demand loan account

58,502

(143,429)

139,095

-

54,168

           

Mrs K A Ashworth

Unsecured and repayable on demand loan account, interest charged at SONIA + 10.5%

19,637

-

-

-

19,637

           

2022

At 1 January 2022
£

Advances to director
£

Repayments by director
£

Interest
paid to/(by)
director
£

At 31 December 2022
£

Mr T G H Ashworth

Unsecured, interest free and repayable on demand loan account

20,087

(211,125)

249,540

-

58,502

           
         

Mrs K A Ashworth

Unsecured and repayable on demand loan account, interest charged at SONIA + 10.5%

17,833

(451)

-

2,255

19,637

           
         

 

Summary of transactions with key management

The company pays rental charges to Mr T G H Ashworth and Mrs K A Ashworth for three leased properties.
 

Summary of transactions with other related parties

The company received loans from close members of the directors' family.
 

 

The Nare Hotel Company Limited

Notes to the Financial Statements

Year Ended 31 December 2023

Loans from related parties

2023

Other related parties
£

At start of period

154,964

Advanced

31,000

At end of period

185,964

2022

Other related parties
£

At start of period

112,095

Advanced

30,000

Repaid

(3,209)

Interest transactions

16,078

At end of period

154,964

Terms of loans from related parties

The loans incur interest at the Bank of England base rate plus 10.5% and are repayable on demand.

Expenditure with and payables to related parties

2023

Key management
£

Rendering of services

2,177

Leases

21,922

24,099

2022

Key management
£

Rendering of services

4,720

Leases

19,380

24,100

 

The Nare Hotel Company Limited

Notes to the Financial Statements

Year Ended 31 December 2023

23

Parent and ultimate parent undertaking

The company's immediate, and ultimate parent is Cordash Limited, incorporated in England and Wales.

  These financial statements are available upon request from Companies House.

 The ultimate controlling party is Mr T G H Ashworth.

The parent of the smallest and largest group in which these financial statements are consolidated is Cordash Limited, incorporated in England and Wales.

The address of Cordash Limited is:
Md Office
The Nare Hotel
Carne Beach
Veryan
Truro
Cornwall
TR2 5PF