Company Registration No. 07014917 (England and Wales)
SHENDISH HOTEL LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2023
PAGES FOR FILING WITH REGISTRAR
LB GROUP
The Octagon
Suite E2, 2nd Floor
Middleborough
Colchester
CO1 1TG
SHENDISH HOTEL LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 9
SHENDISH HOTEL LIMITED
BALANCE SHEET
AS AT 31 MARCH 2023
31 March 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
146,969
174,177
Current assets
Stocks
45,346
46,539
Debtors
5
3,904,022
3,489,025
Cash at bank and in hand
49,789
95,313
3,999,157
3,630,877
Creditors: amounts falling due within one year
6
(3,013,366)
(2,965,855)
Net current assets
985,791
665,022
Total assets less current liabilities
1,132,760
839,199
Creditors: amounts falling due after more than one year
7
(32,790)
(52,750)
Provisions for liabilities
(28,376)
(21,232)
Net assets
1,071,594
765,217
Capital and reserves
Called up share capital
8
1
1
Profit and loss reserves
1,071,593
765,216
Total equity
1,071,594
765,217

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

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

The financial statements were approved by the board of directors and authorised for issue on 30 September 2024 and are signed on its behalf by:
Mr S B S Hung
Director
Company Registration No. 07014917
SHENDISH HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 31 MARCH 2023
- 2 -
1
Accounting policies
Company information

Shendish Hotel Limited is a private company limited by shares incorporated in England and Wales. The registered office is Manor of Groves Limited, High Wych, Sawbridgeworth, Hertfordshire, UK, CM21 0JU.

1.1
Reporting period

The financial statements run for the period from 1 February 2022 to 31 March 2023. The comparative year runs for the year ended 31 January 2022, so it is not directly comparable to this year's financial statements.

1.2
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. The principal accounting policies adopted are set out below.

1.3
Going concern

During the year the Group made a trueprofit of £8,979,648 for the period ended 31 March 2023 and the group has net 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.

SHENDISH HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 3 -
1.4
Turnover

Turnover represents amounts receivable in respect of the provision of hotel accommodation, conference facilities, food, beverages 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 the date the facility is used. Food and Beverage income is recognised at the point of sale 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.

1.5
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
Computer equipment
33% 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 credited or charged to profit or loss.

1.6
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.

SHENDISH HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 4 -
1.7
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.

1.8
Cash and cash equivalents

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

1.9
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors 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.

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 company after deducting all of its liabilities.

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.

SHENDISH HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 5 -
1.10
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.

1.11
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.

1.12
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 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 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 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.

1.13
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.

1.14
Retirement benefits

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

SHENDISH HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 6 -
1.15
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 leases asset are consumed.

1.16
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.

1.17
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 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
Employees

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

2023
2022
Number
Number
Total
104
83
SHENDISH HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
- 7 -
4
Tangible fixed assets
Plant and machinery etc
£
Cost
At 1 February 2022
300,839
Additions
36,514
At 31 March 2023
337,353
Depreciation and impairment
At 1 February 2022
126,662
Depreciation charged in the Period
63,721
At 31 March 2023
190,383
Carrying amount
At 31 March 2023
146,969
At 31 January 2022
174,177
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
174,054
-
Amounts owed by group undertakings
1,604,530
1,989,511
Amounts due to related parties
2,119,750
1,298,750
Prepayments and accrued income
5,688
200,764
3,904,022
3,489,025
6
Creditors: amounts falling due within one year
2023
2022
£
£
Bank loans
-
0
56,600
Obligations under finance leases
17,108
17,108
Amounts owed to related undertakings
2,083,535
2,222,970
Trade creditors
121,171
230,617
Corporation tax
72,577
-
0
Other taxation and social security
254,852
71,164
Other creditors
372,324
285,444
Accruals and deferred income
91,799
81,952
3,013,366
2,965,855
SHENDISH HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
- 8 -
7
Creditors: amounts falling due after more than one year
2023
2022
£
£
Other creditors
32,790
52,750
8
Called up share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Share of £1 each
1
1
1
1
9
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.. The following modification was made to the audit report.

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.
Senior Statutory Auditor:
Shaun Roberts
Statutory Auditor:
LB Group Limited (Colchester)
10
Financial commitments, guarantees and contingent liabilities

There is a fixed and floating charge on all of the assets of the company by the Bangkok Bank Public Company Limited.

11
Operating lease commitments
Lessee

The operating leases represent leases of £1,100,000 (2022: £1,100,000) to third parties. The leases are negotiated over terms of over five years, but are cancellable within 12 months.

12
Related party transactions
SHENDISH HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 31 MARCH 2023
12
Related party transactions
(Continued)
- 9 -

The company was under ultimate control of Manor of Groves Limited throughout the year, which shares directors with Shendish Hotel Limited, Mr S B S Hung and Mrs M E Hung.

 

Mr S B S Hung acts as guarantor of the property lease, in that he has indemnified all losses of the lessor as a result of the failure of Shendish Hotel Limited to comply with the terms of the lease.

 

As at 31 March 2023, the company was owed the net sum of £1,604,530 (2022: £1,989,509) by fellow group undertakings being £765,145 due from Manor of Groves Limited, £139,385 owed to Regency Park Hotel Limited and £700,000 owed by Atrium Hotels 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, the company owed the sum of £2,083,535 (2022: £2,222,970) to Regency Homes Limited.

 

All loans above are interest free and repayable on demand. However, support has been provided by Regency Homes and Planned Holdings, who have confirmed that the amounts will not be called in to the detriment of the company's trade.

13
Parent company

Shendish Hotel Limited is owned by Manor of Groves Limited, a company registered in England and Wales.

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

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