Company registration number 03210984 (England and Wales)
MANOR OF GROVES LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2023
LB GROUP
The Octagon
Suite E2, 2nd Floor
Colchester
CO1 1TG
MANOR OF GROVES LIMITED
COMPANY INFORMATION
Directors
Mrs M Hung
Mr S B S Hung
Secretary
Mrs M Hung
Company number
03210984
Registered office
Manor of Groves Limited
High Wych
Sawbridgeworth
Hertfordshire
UK
CM21 0JU
Auditor
LB Group Limited (Colchester)
The Octagon
Suite E2, 2nd Floor
Middleborough
Colchester
CO1 1TG
MANOR OF GROVES LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 9
Profit and loss account
10
Group statement of comprehensive income
11
Group balance sheet
12
Company balance sheet
13
Group statement of changes in equity
14
Company statement of changes in equity
15
Group statement of cash flows
16
Notes to the financial statements
17 - 32
MANOR OF GROVES LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 31 MARCH 2023
- 1 -

The directors present the strategic report for the Period ended 31 March 2023.

Fair review of the business

The hotel industry, is facing an uncertain future, Uncertainty, due to the current economic climate resulting in higher levels of inflation and higher interest rates, as well as an economic slowdown, may impact corporate budgets and travel, a vital segment for hotels.

 

The company extended its accounting period to 14 months, with the new year end being 31 March 2023. As such, the reporting period is not directly comparable to the previous accounting period.

 

Turnover for the group rose to £34,589,478 for the period ended 31 March 2023 and gross margins have increased. This is a direct result of the impacts of Covid-19 on the prior year figures. The hotels spent a proportion of the 2022 year closed as a result of Government policy. Increases in administrative costs (including rent) and falls in other operating income led to the group making a net profit of £8,979,648 for the year, compared to £194,734 for the previous year. This represents significant growth in the reporting period.

 

The balance sheet has also been significantly strengthened as a direct result of the performance of the group, with the group showing a net current asset position of £7,547,412 compared with a net current liability of £1,281,604 at the end of the previous accounting period,.

Principal risks and uncertainties

The key risk areas are:

 

The directors consider there to be an appropriate structure in place to plan for and mitigate risks.

 

The group operates in a competitive market . The risks associated with this are mitigated by ensuring the group offers a high quality service across all areas of the business.

 

The group's financial instruments comprise cash at bank, trade debtors and trade creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the group's operations, and to settle the debts held within the related parties, to maintain cash liquidity buffer to mitigate this risk.

 

Customer pricing is under constant review. Excellent customer service and investment of capital expenditures, as well as strong client relationships are used to mitigate this risk.

Key performance indicators

Given the straight forward nature of the business, the group's directors are of the opinion that a more detailed analysis, using key performance indicators, is not necessary to understand the development, performance or position of the business.

MANOR OF GROVES LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
- 2 -
Going concern

Despite the success of the underlying trade, the group has experienced short term cash flow challenges. This is mainly due to complexities within the group's financing arrangements and the continued impacts on the hotel and hospitality industry of the recent global pandemic.

 

The group is financed via a related party, that owns the properties from which the group generates its trade. As part of this arrangement, the related party is due a rental amount each year, in order for this related entity to continue to repay its own debts. At the period end, the related company is owed £6.8m, which the group would be unable to settle should the balance be called in.

 

As part of preparing these financial statements, the directors have been given support from this related company, to state that this balance will not be called in to the detriment of the trade. However, due to the structure of the debts within the related company, there was uncertainty as to whether this support could be provided. This led to a delay in the approval of these financial statements and in certain liabilities being settled. Since the period end, the related company has restructured its debt profile. This has allowed the group to obtain the required cash in order to settle the outstanding liabilities, and place reliance on the support offered.

 

This, when added to the underlying strength of the group's trade, demonstrated by the financial statements this year, and the forecasted position going forward, the directors believe that there is sufficient cash resource to meet all liabilities as they fall due. Therefore, the accounts continue to be prepared on a going concern basis.

On behalf of the board

Mr S B S Hung
Director
30 September 2024
MANOR OF GROVES LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 31 MARCH 2023
- 3 -

The directors present their annual report and financial statements for the Period ended 31 March 2023.

Principal activities

The principal activity of the company and group continued to be that of the operation of a hotel, including conference and banqueting facilities and golf course.

Results and dividends

The results for the Period are set out on page 10.

Ordinary dividends were paid amounting to £78,700. The directors do not recommend payment of a further dividend.

Directors

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

Mrs M Hung
Mr S B S Hung
Disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the group continues and that the appropriate training is arranged. It is the policy of the group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Employee involvement

The group's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.

 

Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.

 

There is no employee share scheme at present, but the directors are considering the introduction of such a scheme as a means of further encouraging the involvement of employees in the company's performance.

Auditor

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

Energy and carbon report

As the group has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report on its emissions, energy consumption or energy efficiency activities.

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 auditor of the company 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 auditor of the company is aware of that information.

MANOR OF GROVES LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
- 4 -
On behalf of the board
Mr S B S Hung
Director
30 September 2024
MANOR OF GROVES LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE PERIOD ENDED 31 MARCH 2023
- 5 -

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 group and company, and of the profit or loss of the group 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 group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

MANOR OF GROVES LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MANOR OF GROVES LIMITED
- 6 -
Opinion

We have audited the financial statements of Manor of Groves Limited (the 'parent company') and its subsidiaries (the 'group') for the Period ended 31 March 2023 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows 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 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:

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 group and parent 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.

Material uncertainty relating to going concern

We draw attention to note 1.3 to the financial statements, which indicates the company's continuing operation is dependent on the financial position and performance of the company's landlord and related entities. As stated in note 1.3, these conditions indicate that a material uncertainty exists that may cast significant doubt on the company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.

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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. 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:

MANOR OF GROVES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MANOR OF GROVES LIMITED
- 7 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

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

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 parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent 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.

 

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 extent to which the audit was considered capable of detecting irregularities including fraud

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:

 

MANOR OF GROVES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MANOR OF GROVES LIMITED
- 8 -

 

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

 

 

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 that 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 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.

MANOR OF GROVES LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MANOR OF GROVES LIMITED
- 9 -

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.

Shaun Roberts
Senior Statutory Auditor
For and on behalf of LB Group Limited (Colchester)
30 September 2024
Chartered Accountants
Statutory Auditor
The Octagon
Suite E2, 2nd Floor
Middleborough
Colchester
CO1 1TG
MANOR OF GROVES LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE PERIOD ENDED 31 MARCH 2023
- 10 -
Period
Year
ended
ended
31 March
31 January
2023
2022
Notes
£
£
Turnover
3
34,589,478
17,847,057
Cost of sales
(9,659,945)
(8,563,452)
Gross profit
24,929,533
9,283,605
Administrative expenses
(14,432,092)
(11,656,055)
Other operating income
278,636
2,533,326
Operating profit
4
10,776,077
160,876
Interest receivable and similar income
8
6,739
403
Interest payable and similar expenses
9
(154,386)
(22,426)
Profit before taxation
10,628,430
138,853
Tax on profit
10
(1,648,782)
55,881
Profit for the financial Period
8,979,648
194,734
Profit for the financial Period is all attributable to the owners of the parent company.

The profit and loss account has been prepared on the basis that all operations are continuing operations.

MANOR OF GROVES LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 31 MARCH 2023
- 11 -
Period
Year
ended
ended
31 March
31 January
2023
2022
£
£
Profit for the Period
8,979,648
194,734
Other comprehensive income
-
-
Total comprehensive income for the Period
8,979,648
194,734
Total comprehensive income for the Period is all attributable to the owners of the parent company.
MANOR OF GROVES LIMITED
GROUP BALANCE SHEET
AS AT 31 MARCH 2023
31 March 2023
- 12 -
31 March 2023
31 January 2022
Notes
£
£
£
£
Fixed assets
Tangible assets
12
1,190,956
1,427,806
Current assets
Stocks
15
138,955
157,554
Debtors
16
21,111,104
12,666,458
Cash at bank and in hand
534,352
943,311
21,784,411
13,767,323
Creditors: amounts falling due within one year
17
(14,236,999)
(15,048,927)
Net current assets/(liabilities)
7,547,412
(1,281,604)
Total assets less current liabilities
8,738,368
146,202
Creditors: amounts falling due after more than one year
18
(49,185)
(106,092)
Provisions for liabilities
Deferred tax liability
19
234,266
251,141
(234,266)
(251,141)
Net assets/(liabilities)
8,454,917
(211,031)
Capital and reserves
Called up share capital
21
150,002
385,002
Profit and loss reserves
8,304,915
(596,033)
Total equity
8,454,917
(211,031)
The financial statements were approved by the board of directors and authorised for issue on 30 September 2024 and are signed on its behalf by:
30 September 2024
Mr S B S Hung
Director
Company registration number 03210984 (England and Wales)
MANOR OF GROVES LIMITED
COMPANY BALANCE SHEET
AS AT 31 MARCH 2023
31 March 2023
- 13 -
31 March 2023
31 January 2022
Notes
£
£
£
£
Fixed assets
Tangible assets
12
449,746
525,787
Investments
13
102
102
449,848
525,889
Current assets
Stocks
15
82,696
85,652
Debtors
16
11,152,160
10,104,198
Cash at bank and in hand
175,316
121,857
11,410,172
10,311,707
Creditors: amounts falling due within one year
17
(10,844,738)
(9,802,895)
Net current assets
565,434
508,812
Total assets less current liabilities
1,015,282
1,034,701
Creditors: amounts falling due after more than one year
18
(16,395)
(53,342)
Provisions for liabilities
Deferred tax liability
19
96,519
111,434
(96,519)
(111,434)
Net assets
902,368
869,925
Capital and reserves
Called up share capital
21
150,002
385,002
Profit and loss reserves
752,366
484,923
Total equity
902,368
869,925

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £346,142 (2022 - £243 loss).

The financial statements were approved by the board of directors and authorised for issue on 30 September 2024 and are signed on its behalf by:
30 September 2024
Mr S B S Hung
Director
Company registration number 03210984 (England and Wales)
MANOR OF GROVES LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 MARCH 2023
- 14 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 February 2021
385,002
(712,067)
(327,065)
Year ended 31 January 2022:
Profit and total comprehensive income
-
194,734
194,734
Dividends
11
-
(78,700)
(78,700)
Balance at 31 January 2022
385,002
(596,033)
(211,031)
Period ended 31 March 2023:
Profit and total comprehensive income
-
8,979,648
8,979,648
Dividends
11
-
(78,700)
(78,700)
Redemption of shares
21
(235,000)
-
(235,000)
Balance at 31 March 2023
150,002
8,304,915
8,454,917
MANOR OF GROVES LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 31 MARCH 2023
- 15 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 February 2021
385,002
563,866
948,868
Year ended 31 January 2022:
Loss and total comprehensive income for the year
-
(243)
(243)
Dividends
11
-
(78,700)
(78,700)
Balance at 31 January 2022
385,002
484,923
869,925
Period ended 31 March 2023:
Profit and total comprehensive income
-
346,143
346,143
Dividends
11
-
(78,700)
(78,700)
Redemption of shares
21
(235,000)
-
(235,000)
Balance at 31 March 2023
150,002
752,366
902,368
MANOR OF GROVES LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 31 MARCH 2023
- 16 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
26
4,900,502
3,132,282
Interest paid
(154,386)
(22,426)
Income taxes refunded
143,758
-
Net cash inflow from operating activities
4,889,874
3,109,856
Investing activities
Purchase of tangible fixed assets
(156,769)
(421,544)
Interest received
6,740
403
Net cash used in investing activities
(150,029)
(421,141)
Financing activities
Redemption of shares
(235,000)
-
0
Repayment of borrowings
(4,525,502)
(1,458,398)
Repayment of bank loans
(111,847)
(165,469)
Payment of finance leases obligations
(197,755)
(176,109)
Dividends paid to equity shareholders
(78,700)
(78,700)
Net cash used in financing activities
(5,148,804)
(1,878,676)
Net (decrease)/increase in cash and cash equivalents
(408,959)
810,039
Cash and cash equivalents at beginning of Period
943,311
133,272
Cash and cash equivalents at end of Period
534,352
943,311
MANOR OF GROVES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2023
- 17 -
1
Accounting policies
Company information

Manor of Groves Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is High Wych, Sawbridgeworth, Hertfordshire, CM21 0JU.

 

The group consists of Manor of Groves Limited and all of its subsidiaries.

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.

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. The principal accounting policies adopted are set out below.

1.2
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Manor of Groves Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 March 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

MANOR OF GROVES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 18 -
1.3
Going concern

During the year the Group made a profit of £8,979,648 for the period ended 31 March 2023 and the group has net current assets of £8,454,917, as at 31 March 2023.

The financial statements have been prepared on a going concern basis which assumes that the company will continue in operational existence for the foreseeable future. During the period subsequent to the year end the Group is trading strongly and is generating a positive cashflow to the benefit of the operations and related entities.

The validity of this assumption depends upon the continued financial support of the landlord and related entities of which there are amounts owing will not be recalled to the detriment of the company. Furthermore, the group of hotels at the end of the trading period have a liability in relation to Corporation Tax, based on the profits in the period, that will require ongoing funding and support in order to meet HMRC requirements. The directors are positive that additional funding, in excess of £42m, in related entities both as part of ongoing construction operations, and release of equity on a completed build at practical completion, will allow for the funds to be made available for the Group to meet its HMRC requirements. As at the date of the signing of the balance sheet the directors are aware of the main funding being complete via Bangkok Bank and are in the process of closure of the funding relating to the equity release on a completed build.

This funding, alongside the cash generation of the Group, and financial support of related entities will allow the entities to meet its tax requirements in a timely and efficient manner with HMRC and to settle all taxes due post year end.

In respects to the trading environment, the directors are aware that the post-Covid period has allowed for an increase in revenue generation for luxury hotel sites that the businesses operate, and will continue to support the entities. This has had a positive impact on the Group in relation to the fluctuation and uncertainty surrounding the business during the period and the government support required to maintain the financial support of the business.

Taking into account the factors above and positive generation of cashflow and debts from third parties, including support, the directors are confident in the going concern basis of the Group.

At the time of signing the financial statements the company believes that there is sufficient support available to suggest that the company can continue to rely on the support given by this related party. This is, despite, recent cash flow challenges within that related entity. The related party has completed refinancing in order to confirm that they can continue to offer support.

1.4
Reporting period

The financial statements run for the period from 1 February 2022 to 31 March 2023. The corresponding year runs for the year ended 31 January 2022. The comparative figures and the related notes are therefore not directly comparable.

1.5
Turnover

Turnover represents amounts receivable in respect of the provision of hotel accommodation, conference facilities and meals and golf income during the year, excluding VAT. Income for accommodation is recognised on a daily basis of the customers use of the hotel. Income related to Conference Facilities is recognised on an invoice basis issued after the use of the facility. Food and Beverage income is recognised at the point of sales to the customer. Income related to golf sales is recognised on a daily basis of the customers use of the golf course.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

MANOR OF GROVES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 19 -
1.6
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:

Plant and machinery
20% reducing balance
Fixtures, fittings & equipment
20% reducing balance
Computer equipment
33% reducing balance
Motor vehicles
20% reducing balance

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 recognised in the profit and loss account.

1.7
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

1.8
Impairment of fixed assets

At each reporting period end date, the group 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

1.9
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.10
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.

MANOR OF GROVES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 20 -
1.11
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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 and cash and bank balances, 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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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

MANOR OF GROVES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 21 -
Basic financial liabilities

Basic financial liabilities, including 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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.12
Equity instruments

Equity instruments issued by the group 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 group.

1.13
Derivatives

Derivatives are initially recognised at fair value at the date a derivative contract is entered into and are subsequently remeasured to fair value at each reporting end date. The resulting gain or loss is recognised in profit or loss immediately unless the derivative is designated and effective as a hedging instrument, in which event the timing of the recognition in profit or loss depends on the nature of the hedge relationship.

 

A derivative with a positive fair value is recognised as a financial asset, whereas a derivative with a negative fair value is recognised as a financial liability.

1.14
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 profit and loss account 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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

MANOR OF GROVES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 22 -
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 profit and loss account, 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 if, and only if, there is 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.

1.15
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.

1.16
Retirement benefits

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

1.17
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 balance sheet 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.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

1.18
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

MANOR OF GROVES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 23 -
1.19
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 group’s accounting policies, the directors are 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.

3
Turnover and other revenue

An analysis of the group's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Hotel Accomodation
26,095,926
10,000,824
Food & Beverage
4,404,481
5,297,748
Room & Equipment Hire
1,355,696
916,858
Health club & Beauty Salon
1,354,321
875,206
Golf Club
1,330,783
684,487
Miscellaneous
48,271
71,934
34,589,478
17,847,057
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
34,589,478
17,847,057
2023
2022
£
£
Other revenue
Interest income
6,739
403
Grants received
12,809
769,139
MANOR OF GROVES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
- 24 -
4
Operating profit
2023
2022
£
£
Operating profit for the period is stated after charging/(crediting):
Government grants
(12,809)
(769,139)
Depreciation of owned tangible fixed assets
368,611
362,375
Depreciation of tangible fixed assets held under finance leases
25,007
122,756
(Profit)/loss on disposal of tangible fixed assets
-
373,505
Operating lease charges
7,600,000
7,600,000
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
8,500
7,500
Audit of the financial statements of the company's subsidiaries
15,000
13,400
23,500
20,900
6
Employees

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

 

Number of administrative staff

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Administrative and direct hotel staff
342
317
161
132

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
6,230,473
5,194,424
2,283,330
1,605,112
Social security costs
419,776
320,459
179,338
121,886
Pension costs
82,264
66,318
36,201
26,596
6,732,513
5,581,201
2,498,869
1,753,594
MANOR OF GROVES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
- 25 -
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
9,828
7,301
8
Interest receivable and similar income
2023
2022
£
£
Interest income
Interest on bank deposits
6,739
403
9
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
2,292
859
Other finance costs:
Interest on finance leases and hire purchase contracts
8,335
19,355
Other interest
143,759
2,212
Total finance costs
154,386
22,426
10
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
1,665,657
-
0
Deferred tax
Origination and reversal of timing differences
(16,875)
(55,881)
Total tax charge/(credit)
1,648,782
(55,881)
MANOR OF GROVES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
10
Taxation
(Continued)
- 26 -

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

2023
2022
£
£
Profit before taxation
10,628,430
138,853
Expected tax charge based on the standard rate of corporation tax in the UK of 19.00% (2022: 19.00%)
2,019,402
26,382
Tax effect of expenses that are not deductible in determining taxable profit
72,244
4,336
Tax effect of utilisation of tax losses not previously recognised
-
0
(25,210)
Unutilised tax losses carried forward
(399,849)
-
0
Permanent capital allowances in excess of depreciation
(51,978)
(35,167)
Depreciation on assets not qualifying for tax allowances
25,838
30,187
Deferred tax
(16,875)
(56,409)
Taxation charge/(credit)
1,648,782
(55,881)
11
Dividends
2023
2022
Recognised as distributions to equity holders:
£
£
Final paid
78,700
78,700
12
Tangible fixed assets
Group
Plant and machinery
Fixtures, fittings & equipment
Computer equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 February 2022
1,827,974
74,842
631,401
20,415
2,554,632
Additions
145,932
4,850
5,987
-
0
156,769
At 31 March 2023
1,973,906
79,692
637,388
20,415
2,711,401
Depreciation and impairment
At 1 February 2022
670,875
49,290
393,244
13,418
1,126,827
Depreciation charged in the Period
302,064
11,176
78,337
2,041
393,618
At 31 March 2023
972,939
60,466
471,581
15,459
1,520,445
Carrying amount
At 31 March 2023
1,000,967
19,226
165,807
4,956
1,190,956
At 31 January 2022
1,157,098
25,552
238,159
6,997
1,427,806
MANOR OF GROVES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
12
Tangible fixed assets
(Continued)
- 27 -
Company
Plant and machinery
Fixtures, fittings & equipment
Computer equipment
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 February 2022
594,569
74,842
148,825
20,415
838,651
Additions
55,100
4,850
-
0
-
0
59,950
At 31 March 2023
649,669
79,692
148,825
20,415
898,601
Depreciation and impairment
At 1 February 2022
187,055
49,290
63,101
13,418
312,864
Depreciation charged in the Period
102,772
11,176
20,002
2,041
135,991
At 31 March 2023
289,827
60,466
83,103
15,459
448,855
Carrying amount
At 31 March 2023
359,842
19,226
65,722
4,956
449,746
At 31 January 2022
407,514
25,552
85,724
6,997
525,787

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2023
2022
2023
2022
£
£
£
£
Other assets
60,717
405,305
60,717
85,724
13
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
102
102
MANOR OF GROVES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
13
Fixed asset investments
(Continued)
- 28 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 February 2022 and 31 March 2023
102
Carrying amount
At 31 March 2023
102
At 31 January 2022
102
14
Subsidiaries

Details of the company's subsidiaries at 31 March 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Atrium Hotel Limited
England and Wales
Ordinary
100.00
Regency Park Hotel Limited
England and Wales
Ordinary
100.00
Shendish Hotel Limited
England and Wales
Ordinary
100.00
15
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Hotel goods and consumables
138,955
157,554
82,696
85,652
16
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
201,817
63,369
27,762
10,856
Other debtors
20,863,221
11,200,951
11,109,538
9,888,419
Prepayments and accrued income
46,066
1,402,138
14,860
204,923
21,111,104
12,666,458
11,152,160
10,104,198

Included within other debtors is £13,946,809 (2022: £11,170,183) due from related parties. Details of this balance have been included within note 24 below.

MANOR OF GROVES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
- 29 -
17
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans
-
0
111,847
-
0
-
0
Obligations under finance leases
48,889
189,737
31,781
30,213
Amounts owed to related undertakings
6,780,374
11,305,876
-
0
724,448
Trade creditors
471,342
733,776
239,389
171,457
Amounts owed to group undertakings
-
0
-
0
9,475,491
8,077,424
Corporation tax payable
1,809,415
-
0
89,883
-
0
Other taxation and social security
1,650,331
425,629
646,754
277,215
Other creditors
2,652,339
1,892,124
310,866
426,213
Accruals and deferred income
824,309
389,938
50,574
95,925
14,236,999
15,048,927
10,844,738
9,802,895
18
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Obligations under finance leases
49,185
106,092
16,395
53,342
19
Deferred taxation

Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
234,266
251,141
Liabilities
Liabilities
2023
2022
Company
£
£
Accelerated capital allowances
96,519
111,434
MANOR OF GROVES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
19
Deferred taxation
(Continued)
- 30 -
Group
Company
2023
2023
Movements in the Period:
£
£
Liability at 1 February 2022
251,141
111,434
Credit to profit or loss
(16,875)
(14,915)
Liability at 31 March 2023
234,266
96,519
20
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
82,264
66,318

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

21
Share capital
Group and company
2023
2022
Ordinary share capital
£
£
Issued and fully paid
2 Ordinary shares of £1 each
2
2
Preference share capital
Issued and fully paid
150,000 (2022: 385,000) Preference shares of £1 each
150,000
385,000
Total equity share capital
150,002
385,002

The preference shares are redeemable at the discretion of the directors. Dividends paid on these are also at the Directors' discretion.

22
Financial commitments, guarantees and contingent liabilities

There is a floating charge on all the assets of Manor of Groves Limited, Shendish Hotel Limited, Atrium Hotel Limited and Regency Park Hotel Limited by the Bangkok Bank Public Company Limited.

23
Operating lease commitments
Lessee

The operating leases represent leases of £7,600,000 (2022: £7,600,000) to third parties. The leases are negotiated over terms of over five years, but are cancellable within 12 months.

MANOR OF GROVES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
- 31 -
24
Related party transactions

The company was under the joint control of Mr S B S Hung and Mrs M E Hung throughout the current and previous year.

 

Mr S B S Hung has acted as guarantor of the property lease since 6 December 1996, in that he has indemnified the lessor against all losses as a result of any failure by Manor of Groves Limited to comply with the terms of the lease.

 

Company

 

As at 31 March 2023, Manor of Groves Limited owed the net sum of £9,475,491 (31 January 2022: £8,076,424) to the fellow group undertakings being £765,144 owed to Shendish Hotel Limited, £1,928,125 owed to Regency Park Hotel Limited and £6,782,222 owed to Atrium ,Hotel Limited.

 

As at the 31 March 2023, the company was owed £11,092,552 (31 January 2022: £9,871,433) by related undertakings being £6,199,801 from Planned Holdings Limited, £3,409,29 from SMIS North Street Limited and £8,077 from Regency Homes Management Services Limited.

 

Mr S B S Hung is a director and shareholder of Regency Homes Limited, a company registered in England and Wales.

 

As at 31 March 2023 Manor of Groves Limited was owed the sum of £1,475,381 (31 January 2022: creditor balance of £724,448) by Regency Homes Limited.

 

As at 31 March 2023, Mr S B S Hung was owed the sum of £2,314 (31 January 2022: £58,544) from the company.

 

The loan is interest free and repayable on demand.

 

Group

 

Mr S B S Hung is a director and shareholder of Regency Homes Limited, a company registered in England and Wales.

 

As at the 31 March 2023, the group was owed £3,417,370 (31 January 2022: £3,482,132) by related undertakings being £3,409,293 (31 January 2022: £3,409,293) from SMIS North Street Limited and £8,077 (31 January 2022: £72,839) from Regency Homes Management Services Limited.

 

As at the 31 March 2023, the group owed £6,780,374 (31 January 2022: £11,305,876) to related undertakings being £3,725,964 (31 January 2022: £5,647,500) to Planned Holdings Limited and £3,054,410 (31 January 2022: £5,658,375) to Regency Homes Limited.

 

As at 31 March 2023, Mr S B S Hung was owed the sum of £6,498 (31 January 2022: £62,728) by the group. The loan is interest free and repayable on demand.

25
Controlling party

The ultimate controlling parties are Mr S B S Hung and Mrs M E Hung.

MANOR OF GROVES LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
- 32 -
26
Cash generated from group operations
2023
2022
£
£
Profit for the Period after tax
8,979,648
194,734
Adjustments for:
Taxation charged/(credited)
1,648,782
(55,881)
Finance costs
154,386
22,426
Investment income
(6,739)
(403)
(Gain)/loss on disposal of tangible fixed assets
-
373,505
Depreciation and impairment of tangible fixed assets
393,618
485,131
Movements in working capital:
Decrease/(increase) in stocks
18,599
(50,970)
(Increase)/decrease in debtors
(8,444,646)
1,037,988
Increase in creditors
2,156,854
1,125,752
Cash generated from operations
4,900,502
3,132,282
27
Analysis of changes in net debt - group
1 February 2022
Cash flows
31 March 2023
£
£
£
Cash at bank and in hand
943,311
(408,959)
534,352
Borrowings excluding overdrafts
(11,417,723)
4,637,349
(6,780,374)
Obligations under finance leases
(295,829)
197,755
(98,074)
(10,770,241)
4,426,145
(6,344,096)
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