Company Registration No. 06876173 (England and Wales)
Kings Harbour Hotel Limited
Annual Report and Financial Statements
For the year ended 31 December 2023
Kings Harbour Hotel Limited
Company information
Directors
M O Warren
G A Hall
Company number
06876173
Registered office
Harbour House
60 Purewell
Christchurch
England
BH23 1ES
Auditor
Fiander Tovell Limited
Stag Gates House
63 - 64 The Avenue
Southampton
SO17 1XS
Kings Harbour Hotel Limited
Contents
Page
Directors' report
1
Independent auditor's report
2 - 4
Statement of comprehensive income
5
Statement of financial position
6
Statement of changes in equity
7
Notes to the financial statements
8 - 17
Kings Harbour Hotel Limited
Directors' report
For the year ended 31 December 2023
- 1 -

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

Directors

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

M O Warren
G A Hall
Auditor

The auditor, Fiander Tovell Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of directors' responsibilities

The Directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

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

 

 

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the 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.

Statement of disclosure to auditor

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

Small companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

On behalf of the board
G A Hall
Director
24 September 2024
Kings Harbour Hotel Limited
Independent auditor's report
to the member of Kings Harbour Hotel Limited
- 2 -
Opinion

We have audited the financial statements of Kings Harbour Hotel Limited (the 'Company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

Conclusions relating to going concern

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

 

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

 

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

Other information

The Directors are responsible for the other information contained within the annual report. 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. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

Kings Harbour Hotel Limited
Independent auditor's report (continued)
to the member of Kings Harbour Hotel Limited
- 3 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the 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:

 

Responsibilities of directors

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

In preparing the financial statements, the Directors are responsible for assessing the 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's responsibilities for the audit of the financial statements

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

 

Extent to which the audit was capable of detecting irregularities, including fraud

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

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

Kings Harbour Hotel Limited
Independent auditor's report (continued)
to the member of Kings Harbour Hotel Limited
- 4 -

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

Audit response to risks identified

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

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

There are inherent limitations in our audit procedures described above. The more removed those laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the Directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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

Use of our report

This report is made solely to the Company's member 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 member those matters we are required to state to the member 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 member for our audit work, for this report, or for the opinions we have formed.

Andrew Jay ACA FCCA (Senior Statutory Auditor)
For and on behalf of Fiander Tovell Limited
24 September 2024
Chartered Accountants
Statutory Auditor
Stag Gates House
63 - 64 The Avenue
Southampton
SO17 1XS
Kings Harbour Hotel Limited
Statement of comprehensive income
For the year ended 31 December 2023
- 5 -
2023
2022
Notes
£
£
Turnover
3
1,958,886
1,957,258
Cost of sales
(1,212,628)
(1,260,416)
Gross profit
746,258
696,842
Administrative expenses
(839,901)
(801,064)
Other operating income
3
-
0
8,667
Operating loss
(93,643)
(95,555)
Interest payable and similar expenses
5
(107,239)
(71,928)
Loss before taxation
(200,882)
(167,483)
Tax on loss
6
9,398
(65,030)
Loss for the financial year
(191,484)
(232,513)
Kings Harbour Hotel Limited
Statement of financial position
As at 31 December 2023
- 6 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
7
4,085,534
4,196,805
Current assets
Stocks
26,841
29,343
Debtors
8
120,717
75,036
Cash at bank and in hand
24,337
93,082
171,895
197,461
Creditors: amounts falling due within one year
9
(1,470,941)
(1,414,819)
Net current liabilities
(1,299,046)
(1,217,358)
Total assets less current liabilities
2,786,488
2,979,447
Creditors: amounts falling due after more than one year
10
(2,418,165)
(2,410,242)
Provisions for liabilities
(176,604)
(186,002)
Net assets
191,719
383,203
Capital and reserves
Called up share capital
12
750,001
750,001
Revaluation reserve
13
288,998
288,998
Profit and loss reserves
13
(847,280)
(655,796)
Total equity
191,719
383,203

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 24 September 2024 and are signed on its behalf by:
G A Hall
Director
Company Registration No. 06876173
Kings Harbour Hotel Limited
Statement of changes in equity
For the year ended 31 December 2023
- 7 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 January 2022
750,001
288,998
(423,283)
615,716
Year ended 31 December 2022:
Loss and total comprehensive income for the year
-
-
(232,513)
(232,513)
Balance at 31 December 2022
750,001
288,998
(655,796)
383,203
Year ended 31 December 2023:
Loss and total comprehensive income for the year
-
-
(191,484)
(191,484)
Balance at 31 December 2023
750,001
288,998
(847,280)
191,719
Kings Harbour Hotel Limited
Notes to the financial statements
For the year ended 31 December 2023
- 8 -
1
Accounting policies
Company information

Kings Harbour Hotel Limited is a private company limited by shares incorporated in England and Wales. The registered office is Harbour House, 60 Purewell, Christchurch, England, BH23 1ES.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties at fair value. The principal accounting policies adopted are set out below.

1.2
Going concern

Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover represents amounts receivable from the provision of hotel services, recognised net of VAT at the point of service to the customer.

1.4
Tangible fixed assets

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

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

Freehold land and buildings
100 years straight line
Plant and equipment
6% straight line
Fixtures and fittings
15% straight line
Computers
25% straight line

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

1.5
Impairment of fixed assets

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

Kings Harbour Hotel Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies
(continued)
- 9 -

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

 

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

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

1.6
Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis.

1.7
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.8
Financial instruments

The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, and loans from related parties.

 

Financial liabilities and equity are classified according to the substance of the financial instrument's contractual obligations, rather than its legal form.

 

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. lf objective evidence of impairment is found, an impairment loss is recognised in the statement of comprehensive income.

1.9
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.10
Taxation

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

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Kings Harbour Hotel Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies
(continued)
- 10 -
Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.11
Employee benefits

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

 

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

 

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

1.12
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.13
Leases

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

1.14
Government grants

Grants are accounted for under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to the statement of income and retained earnings at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.

 

Grants of a revenue nature are recognised in the statement of income and retained earnings in the same period as the related expenditure.

1.15
Foreign exchange

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

Kings Harbour Hotel Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
- 11 -
2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

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

Critical judgements

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

Impairment of assets

Determine whether there are indicators of impairment of the company's tangible assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset and where it is a component of a larger cash-generating unit, the viability and expected future performance of that unit.

Disposal of assets

Where an asset is replaced and historic cost information pertaining to the original asset is not readily available, then the value is assigned to the year seen as most appropiate, and an RPI adjustment is made to determine the original purchase price.

Tax charge

The calculation of the company's tax charge involves a degree of estimation and judgement in respect of certain items, including the differences between the accounting and tax base; which assets qualify for capital allowances; the level of disallowable expenditure; the extent of rollover gains; indexation thereon and the tax base into which they are rolled; the amount of deferred tax assets which can be recognised, based upon the likely timing and level of future taxable profits together with an assessment of future tax planning.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Tangible fixed assets

Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors such as future economic viability, utilisation and continued relevance of the asset.

Freehold property

Freehold property is revalued by an independent valuation expert on a regular basis such that the carrying value is in line with the prevailing market rates. The valuation uses the profit method which is based on the company's estimates and assumptions concerning its future revenue growth, trading and cash flows.

Kings Harbour Hotel Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
- 12 -
3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Provision of hotel services
1,958,886
1,957,258
2023
2022
£
£
Other significant revenue
Grants received
-
0
8,667

Turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.

The company received monies during the previous year in respect of Business Rates Relief support grants.

4
Employees

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

2023
2022
Number
Number
Total
48
45
5
Interest payable and similar expenses
2023
2022
£
£
Interest payable and similar expenses includes the following:
Interest payable to group undertakings
107,239
71,928
6
Taxation
2023
2022
£
£
Deferred tax
Origination and reversal of timing differences
(9,441)
(6,808)
Adjustment in respect of prior periods
43
71,838
Total deferred tax
(9,398)
65,030

The Finance Act 2021 introduced an increase to the main rate of corporation tax to 25% from 1 April 2023.

Kings Harbour Hotel Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
6
Taxation
(continued)
- 13 -

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

2023
2022
£
£
Loss before taxation
(200,882)
(167,483)
Expected tax credit based on the standard rate of corporation tax in the UK of 23.50% (2022: 19.00%)
(47,207)
(31,822)
Tax effect of expenses that are not deductible in determining taxable profit
59
-
0
Adjustments in respect of prior years
43
71,838
Effect of change in corporation tax rate
(601)
(1,634)
Group relief
36,010
27,018
Permanent capital allowances in excess of depreciation
(197)
(2,385)
Depreciation on assets not qualifying for tax allowances
2,495
2,015
Taxation (credit)/charge for the year
(9,398)
65,030

The company has no tax losses available (2022 - £0.3m) to carry forward against future taxable profits.

 

Kings Harbour Hotel Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
- 14 -
7
Tangible fixed assets
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Computers
Total
£
£
£
£
£
Cost or valuation
At 1 January 2023
3,730,011
662,562
738,839
91,841
5,223,253
Additions
9,920
24,973
23,642
1,343
59,878
Disposals
-
0
(6,179)
(13,344)
(689)
(20,212)
At 31 December 2023
3,739,931
681,356
749,137
92,495
5,262,919
Depreciation and impairment
At 1 January 2023
170,176
338,241
449,185
68,846
1,026,448
Depreciation charged in the year
10,706
40,324
111,699
1,361
164,090
Eliminated in respect of disposals
-
0
(3,438)
(9,026)
(689)
(13,153)
At 31 December 2023
180,882
375,127
551,858
69,518
1,177,385
Carrying amount
At 31 December 2023
3,559,049
306,229
197,279
22,977
4,085,534
At 31 December 2022
3,559,835
324,321
289,654
22,995
4,196,805

Freehold property along with fixtures, fittings and equipment were revalued at 31 January 2022 by Cushman & Wakefield, independent valuers not connected with the company, on the basis of market value under the profits method. The valuation, which is consistent with similar properties, conforms to RICS Valuation Professional Standards. The directors have considered the valuation as at 31 December 2023 and do not consider it to be materially different from the Cushman & Wakefield valuation previously adopted.

The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:

Freehold property
2023
2022
£
£
Cost
3,741,862
3,731,942
Accumulated depreciation
(28,416)
(17,691)
Carrying value
3,713,446
3,714,251
Kings Harbour Hotel Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
- 15 -
8
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
36,970
23,093
Amounts owed by group undertakings
-
0
875
Other debtors
21,417
25,263
Prepayments and accrued income
62,330
25,805
120,717
75,036

Amounts owed by group undertakings are interest free and repayable on demand.

9
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
60,853
72,276
Amounts owed to group undertakings
1,102,950
1,001,452
Taxation and social security
89,558
89,422
Other creditors
138,976
153,172
Accruals and deferred income
78,604
98,497
1,470,941
1,414,819

Amounts owed to group undertakings are interest free and repayable on demand.

10
Creditors: amounts falling due after more than one year
2023
2022
£
£
Amounts owed to group undertakings
2,418,165
2,410,242

Borrowing terms and rates for amounts owed to group undertakings changed in the year. Amounts are now repayable on 31 March 2027 and interest is charged at 4.5% per annum in respect of the issued loans.

Kings Harbour Hotel Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
- 16 -
11
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Balances:
£
£
Accelerated capital allowances
33,515
42,320
Tax losses
(77,930)
(77,281)
Revaluations
221,251
221,251
Other short term timing differences
(232)
(288)
176,604
186,002
2023
Movements in the year:
£
Liability at 1 January 2023
186,002
Credit to profit or loss
(9,398)
Liability at 31 December 2023
176,604
12
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
750,001
750,001
750,001
750,001
13
Reserves
Revaluation reserve

The revaluation reserve records the value of asset revaluations and fair value movements on assets recognised in other comprehensive income.

Profit and loss reserves

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

 

14
Financial commitments, guarantees and contingent liabilities

The bank loans of Harbour Hotels Group Limited, an intermediate parent company, are secured by a cross guarantee and a fixed and floating charge debenture over the company's assets.

 

Kings Harbour Hotel Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
- 17 -
15
Operating lease commitments

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

2023
2022
£
£
Within one year
2,200
1,600
Between two and five years
8,800
6,400
In over five years
13,200
11,200
24,200
19,200
16
Related party transactions
Transactions with related parties

During the year the company entered into the following transactions with related parties:

Other costs
2023
2022
£
£
Entities with control, joint control or significant influence over the company
-
3,774
Other information

The company has taken advantage of the exemption available in Section 33.1A of FRS 102 whereby it has not disclosed transactions between group companies who are wholly owned within the group.

17
Ultimate controlling party

The company is a wholly owned subsidiary of Harbour Hotels Group Limited. The ultimate parent company is Global Reach UK Holdings Limited, a company in which Turnstone (Isle of Man) Limited is considered the ultimate controlling party. The financial statements for Global Reach UK Holdings Limited are publicly available from Companies House, Crown Way, Cardiff, CF14 3UZ.

 

The smallest group in which the results of the company are consolidated is that headed by Harbour Hotels Group Limited and the largest group in which the results of the company are consolidated is that headed by Global Reach UK Holdings Limited. The registered office of Harbour Hotels Group Limited is 60 Purewell, Christchurch, England, BH23 1ES. The registered office of Global Reach UK Holdings Limited is c/o Zedra, Booths Hall, Booths Park 3, Chelford Road, Knutsford, Cheshire, England, WA16 8GS.

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