Company Registration No. 03792478 (England and Wales)
The Royal Clarence Hotel Limited
Financial statements
for the period ended 31 December 2023
Pages for filing with the registrar
The Royal Clarence Hotel Limited
Contents
Page
Statement of financial position
1
Notes to the financial statements
2 - 5
The Royal Clarence Hotel Limited
Statement of financial position
As at 31 December 2023
1
Period ended 31 December 2023
Period ended 1 January 2023
Notes
£
£
£
£
Current assets
Debtors
3
345,464
345,044
Cash at bank and in hand
665,664
663,805
1,011,128
1,008,849
Creditors: amounts falling due within one year
4
(5,600)
(7,500)
Net current assets
1,005,528
1,001,349
Capital and reserves
Called up share capital
1
1
Profit and loss reserves
1,005,527
1,001,348
Total equity
1,005,528
1,001,349
The directors of the company have elected not to include a copy of the income statement within the financial statements.true
These financial statements have been prepared and delivered 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
25 September 2024 and are signed on its behalf by:
2024-09-26
Jeremy Hancock
Director
Company Registration No. 03792478
The Royal Clarence Hotel Limited
Notes to the financial statements
For the period ended 31 December 2023
2
1
Accounting policies
Company information
The Royal Clarence Hotel Limited is a private company limited by shares incorporated in England and Wales. The registered office is 4 Queen Square, Bath, BA1 2HA.
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 £1.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The financial statements of the company are drawn up to either a 52 or 53 week period each year which is in accordance with the company management accounts. This is in line with the Companies Act 2006 as the period end is never more than seven days before or after the year end date of 31 December each year.
The Royal Clarence Hotel Limited constitutes a qualifying entity, as set out within FRS 102 Section 1 "Scope", due to it being a 100% subsidiary of Andrew Brownsword Hotels Limited, and is included within the consolidated accounts of that company, which can be located at Companies House.
As the company meets the criteria of a qualifying entity, it has taken advantage of the following exemptions available to it:
The requirements of Section 7 "Statement of Cash Flows" and Section 3 "Financial Statement Presentation" paragraph 3.17(d);
The requirements of Section 11 "Basic Financial Instruments" and Section 12 "Other Financial Instruments Issues" outlined in paragraph 1.12(c); and
The requirement of Section 33 "Related Party Disclosures" paragraph 33.7.
1.2
Going concern
At 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, particularly given that the ultimate parent company, The Bath Priory Limited, is prepared to fully support the company. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.true
1.3
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.
The Royal Clarence Hotel Limited
Notes to the financial statements (continued)
For the period ended 31 December 2023
1
Accounting policies (continued)
3
1.4
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's statement of financial position when the company 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 debtors, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities
Basic financial liabilities, including trade and other creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as 'creditors: amounts falling due within one year' if payment is due within one year or less. If not, they are presented as 'creditors: amounts falling due after more than one year'. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities classified as payable within one year are not amortised.
1.5
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.
2
Employees
The average monthly number of persons (including directors) employed by the company during the period was:
Period ended 31 December 2023
Period ended 1 January 2023
Number
Number
Total
The Royal Clarence Hotel Limited
Notes to the financial statements (continued)
For the period ended 31 December 2023
4
3
Debtors
Period ended 31 December 2023
Period ended 1 January 2023
Amounts falling due within one year:
£
£
Other debtors
420
Amounts falling due after more than one year:
Other debtors
345,044
345,044
Total debtors
345,464
345,044
In the period ended 3 January 2021 the company sold its fixed assets. As part of the consideration was deferred, management have had to apply an appropriate discount rate and time period to the expected future cash flows that will be generated from the asset. The discount rate applied is in line with the borrowing rate that the company would have been able to obtain from a commercial third party.
4
Creditors: amounts falling due within one year
Period ended 31 December 2023
Period ended 1 January 2023
£
£
Other creditors
5,600
7,500
5
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Senior Statutory Auditor:
Michael Strong
Statutory Auditors:
Saffery LLP
Date of audit report:
26 September 2024
6
Related party transactions
No guarantees have been given or received.
The company has taken advantage of the exemption available in FRS 102 section 33 'Related Party Disclosures' whereby it has not disclosed transactions with the ultimate parent company or any wholly owned subsidiary undertaking of the group.
All balances due to or from the parent company and subsidiaries of the group are disclosed in note 3 and note 4.
The Royal Clarence Hotel Limited
Notes to the financial statements (continued)
For the period ended 31 December 2023
5
7
Parent company
The Company's immediate parent company is Andrew Brownsword Hotels Limited, which is a wholly-owned subsidiary of The Bath Priory Limited.
The company's ultimate parent company is The Bath Priory Limited, which is incorporated in England and Wales. The ultimate controlling party is Alessandra Brownsword-Matthews, by virtue of her shareholding in the ultimate parent company.
8
Contingent assets
As at the date of signing the financial statements, the company is undergoing a claim against various financial institutions in relation to finance charges. Although settlement is considered probable, the expected settlement cannot be reliably estimated at this stage.