Company Registration No. 06015825 (England and Wales)
RMH (Guildford) Limited
Annual Report and Financial Statements
For the year ended 31 December 2023
RMH (Guildford) Limited
Company information
Directors
M O Warren
G A Hall
Company number
06015825
Registered office
Harbour House
60 Purewell
Christchurch
England
BH23 1ES
Auditor
Fiander Tovell Limited
Stag Gates House
63 - 64 The Avenue
Southampton
SO17 1XS
RMH (Guildford) Limited
Contents
Page
Directors' report
1
Independent auditor's report
2 - 4
Income statement
5
Statement of financial position
6
Statement of changes in equity
7
Notes to the financial statements
8 - 17
RMH (Guildford) 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
RMH (Guildford) Limited
Independent auditor's report
to the member of RMH (Guildford) Limited
- 2 -
Opinion

We have audited the financial statements of RMH (Guildford) Limited (the 'Company') for the year ended 31 December 2023 which comprise the income statement, 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:

RMH (Guildford) Limited
Independent auditor's report (continued)
to the member of RMH (Guildford) 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:

RMH (Guildford) Limited
Independent auditor's report (continued)
to the member of RMH (Guildford) 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
RMH (Guildford) Limited
Income statement
For the year ended 31 December 2023
- 5 -
2023
2022
Notes
£
£
Administrative expenses
(374,439)
(377,723)
Other operating income
310,000
310,000
Operating loss
(64,439)
(67,723)
Interest payable and similar expenses
4
(292,988)
(204,982)
Loss before taxation
(357,427)
(272,705)
Tax on loss
5
(77,622)
86,429
Loss for the financial year
(435,049)
(186,276)
RMH (Guildford) Limited
Statement of financial position
As at 31 December 2023
- 6 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
6
7,453,549
7,827,772
Investments
7
13,081,205
13,081,205
20,534,754
20,908,977
Current assets
Debtors
8
4,055,649
3,923,086
Cash at bank and in hand
1,578
3,795
4,057,227
3,926,881
Creditors: amounts falling due within one year
9
(19,609,223)
(19,418,051)
Net current liabilities
(15,551,996)
(15,491,170)
Total assets less current liabilities
4,982,758
5,417,807
Creditors: amounts falling due after more than one year
10
(5,893,138)
(5,893,138)
Net liabilities
(910,380)
(475,331)
Capital and reserves
Called up share capital
2,654,306
2,654,306
Profit and loss reserves
13
(3,564,686)
(3,129,637)
Total equity
(910,380)
(475,331)

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. 06015825
RMH (Guildford) Limited
Statement of changes in equity
For the year ended 31 December 2023
- 7 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2022
2,654,306
(2,943,361)
(289,055)
Year ended 31 December 2022:
Loss and total comprehensive income for the year
-
(186,276)
(186,276)
Balance at 31 December 2022
2,654,306
(3,129,637)
(475,331)
Year ended 31 December 2023:
Loss and total comprehensive income for the year
-
(435,049)
(435,049)
Balance at 31 December 2023
2,654,306
(3,564,686)
(910,380)
RMH (Guildford) Limited
Notes to the financial statements
For the year ended 31 December 2023
- 8 -
1
Accounting policies
Company information

RMH (Guildford) 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 leasehold properties at fair value. The principal accounting policies adopted are set out below.

The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

 

RMH (Guildford) Limited is a wholly owned subsidiary of Harbour Hotels Group Limited and the results of RMH (Guildford) Limited are included in the consolidated financial statements of Harbour Hotels Group Limited which are available from Companies House, Crown Way, Cardiff, CF14 3UZ.

1.2
Going concern

Notwithstanding the net liabilities at 31 December 2023, the truefinancial statements have been prepared on the going concern basis which the directors consider to be appropriate.

 

The directors of the company and the wider group have prepared cash flow forecasts for a period of at least 12 months from the date of approval of these financial statements. These demonstrate the Group has sufficient cash reserves to enable the Group to meet its obligations as they fall due for a period of at least 12 months from the date of approval of the financial statements. In addition and where necessary, the company’s parent has issued a letter of support confirming that should the company require financial support to meet its liabilities as they fall due in the next 12 months that such support will be provided.

 

As such, the directors are satisfied that the company has adequate resources to continue to operate for the foreseeable future. For this reason the company continues to adopt the going concern basis in preparing these financial statements.

1.3
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:

Leasehold land and buildings
50 years straight line
Plant and equipment
6% straight line
Fixtures and fittings
15% straight line
Finance lease asset
Nil
RMH (Guildford) Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies
(continued)
- 9 -

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.

1.4
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at transaction price excluding transaction costs, and are subsequently measured at fair value at each reporting date. Transaction costs are expensed to profit or loss as incurred. Changes in fair value are recognised in other comprehensive income except to the extent that a gain reverses a loss previously recognised in profit or loss, or a loss exceeds the accumulated gains recognised in equity; such gains and loss are recognised in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

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.

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
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.

RMH (Guildford) Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies
(continued)
- 10 -
1.7
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.

1.8
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.

1.9
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.

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.

1.10
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

RMH (Guildford) Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
1
Accounting policies
(continued)
- 11 -
1.11
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.

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.

Leases

Determine whether leases entered into by the company either as a lessor or a lessee are operating leases or finance leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis.

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.

RMH (Guildford) Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
2
Judgements and key sources of estimation uncertainty
(continued)
- 12 -
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.

Leasehold property

Leasehold 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.

3
Employees

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

2023
2022
Number
Number
Total
-
0
-
0
4
Interest payable and similar expenses
2023
2022
£
£
Interest payable and similar expenses includes the following:
Interest payable to group undertakings
125,161
96,912
5
Taxation
2023
2022
£
£
Deferred tax
Origination and reversal of timing differences
69,238
211,820
Adjustment in respect of prior periods
8,384
(298,249)
Total deferred tax
77,622
(86,429)

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

RMH (Guildford) Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
5
Taxation
(continued)
- 13 -

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

2023
2022
£
£
Loss before taxation
(357,427)
(272,705)
Expected tax credit based on the standard rate of corporation tax in the UK of 23.50% (2022: 19.00%)
(83,995)
(51,814)
Tax effect of expenses that are not deductible in determining taxable profit
145,383
-
0
Adjustments in respect of prior years
8,384
-
0
Effect of change in corporation tax rate
4,024
50,837
Depreciation on assets not qualifying for tax allowances
3,826
3,091
Deferred tax adjustments in respect of prior years
-
0
(298,248)
Share of partnership (losses)/profits
-
0
209,705
Taxation charge/(credit) for the year
77,622
(86,429)

The company has tax losses of approximately £2.5m (2022 - £5.2m) available to carry forward against future taxable profits.

 

6
Tangible fixed assets
Leasehold land and buildings
Plant and equipment
Fixtures and fittings
Finance lease asset
Total
£
£
£
£
£
Cost or valuation
At 1 January 2023 and 31 December 2023
3,681,432
1,704,552
1,704,552
3,171,000
10,261,536
Depreciation and impairment
At 1 January 2023
47,445
1,116,454
1,269,865
-
0
2,433,764
Depreciation charged in the year
16,267
102,273
255,683
-
0
374,223
At 31 December 2023
63,712
1,218,727
1,525,548
-
0
2,807,987
Carrying amount
At 31 December 2023
3,617,720
485,825
179,004
3,171,000
7,453,549
At 31 December 2022
3,633,987
588,098
434,687
3,171,000
7,827,772
RMH (Guildford) Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
6
Tangible fixed assets
(continued)
- 14 -

The company part owns the Guildford Harbour Hotel, the other part being owned by RMH (Guildford) LLP, a subsidiary undertaking which is 99.9% owned by the company. The hotel trading business and operating assets and liabilities were transferred by the company to RMH (Guildford) LLP with effect from 1 January 2016. All of the revaluation of the hotel as at 31 December 2021 has been reflected in the accounts of RMH (Guildford) LLP, as this undertaking now owns the hotel trade and incurs the cost of refurbishment. The directors have considered the valuation as at 31 December 2023 and do not consider it to be materially different from that 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:

Leasehold property
2023
2022
£
£
Cost
2,963,845
2,963,845
Accumulated depreciation
(5,745)
(3,830)
Carrying value
2,958,100
2,960,015
7
Fixed asset investments
2023
2022
£
£
Shares in group undertakings and participating interests
13,081,205
13,081,205
8
Debtors
2023
2022
Amounts falling due within one year:
£
£
Amounts owed by group undertakings
3,198,626
2,996,002
Other debtors
60,021
52,460
3,258,647
3,048,462
Deferred tax asset
797,002
874,624
4,055,649
3,923,086

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

RMH (Guildford) Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
- 15 -
9
Creditors: amounts falling due within one year
2023
2022
£
£
Amounts owed to group undertakings
19,609,223
19,418,051

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

10
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Obligations under finance leases
11
3,073,158
3,073,158
Amounts owed to group undertakings
2,819,980
2,819,980
5,893,138
5,893,138

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.

11
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
In over five years
3,073,158
3,073,158

In 2013 the company entered into a sale and leaseback arrangement with a third party in respect of an interest in the hotel’s freehold land. The lease is for a term of 994 years, with annual payments of £169,000 (2022: £144,000) per annum increasing with movements in RPI. The arrangement resulted in a finance lease with the proceeds of £3.17m (net of finance costs). Because the term is so long, measuring the liability at amortised cost using the effective interest method results in no reduction of the liability for the foreseeable future. The land subject to the finance lease arrangement has been shown within fixed assets as a separate class of asset which is not subject to depreciation at a cost equivalent to the proceeds received.

 

RMH (Guildford) Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
- 16 -
12
Deferred taxation

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

Assets
Assets
2023
2022
Balances:
£
£
Accelerated capital allowances
(150,199)
(231,576)
Tax losses
1,130,696
1,289,695
Revaluations
(183,495)
(183,495)
797,002
874,624
2023
Movements in the year:
£
Asset at 1 January 2023
(874,624)
Charge to profit or loss
77,622
Asset at 31 December 2023
(797,002)
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.

 

15
Related party transactions

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.

RMH (Guildford) Limited
Notes to the financial statements (continued)
For the year ended 31 December 2023
- 17 -
16
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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