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REGISTERED NUMBER: 10449423 (England and Wales)









GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2023

FOR

BGAM HOTELS (KW) LIMITED

BGAM HOTELS (KW) LIMITED (REGISTERED NUMBER: 10449423)






CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023




Page

Company Information 1

Group Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 5

Consolidated Income Statement 8

Consolidated Other Comprehensive Income 9

Consolidated Balance Sheet 10

Company Balance Sheet 11

Consolidated Statement of Changes in Equity 12

Company Statement of Changes in Equity 13

Consolidated Cash Flow Statement 14

Notes to the Consolidated Cash Flow Statement 15

Notes to the Consolidated Financial Statements 16


BGAM HOTELS (KW) LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 DECEMBER 2023







DIRECTORS: J D Levy
J P Levy
M D Rubin
N S Rubin
L M Becker





REGISTERED OFFICE: Greenhill House
90/93 Cowcross Street
London
EC1M 6BF





REGISTERED NUMBER: 10449423 (England and Wales)





AUDITORS: Goldwyns Limited
Statutory Auditors and Chartered Accountants
Rutland House
90-92 Baxter Avenue
Southend on Sea
Essex
SS2 6HZ

BGAM HOTELS (KW) LIMITED (REGISTERED NUMBER: 10449423)

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their strategic report of the company and the group for the year ended 31 December 2023.

PRINCIPAL ACTIVITY
The principal activity of the group during the year under review was a hotel operating under the IHG Holiday Inn franchise.

REVIEW OF BUSINESS
The results for the year show revenues generated of £3,467,920 (2022 - £2,722,982) and a resultant loss before tax of £(436,044) (2022 - £(1,320,352)). Full details of the group's financial performance can be found in the annexed financial statements.

Like many, the group entered the financial year among tough trading conditions. However, conditions continued to strengthen and the group saw a return to more normal activities. Bookings increased, footfall increased and cashflows improved. Costs have been cut, or deferred, where possible to do so without damaging the group's core undertaking. The directors remain proud of the business' diverse and experienced workforce.

Furthermore, tireless efforts to tackle the group's pandemic borrowings paid off - by the end of the year most extended credit lines had been repaid or were massively reduced. The final operational challenge remaining is the group's short term debt financing which was due to expire in September 2024. Since the balance sheet date, the directors have secured a refinance of that obligation on a more sustainable, longer term, profile.

Nevertheless, the directors continually review and improve the business. Whilst future bookings are encouraging the business is still evolving to tackle the operative challenges which remain and look at new opportunities for improvement too.

PRINCIPAL RISKS AND UNCERTAINTIES
The principal risk to the business is inadequate occupancy of its available rooms and therefore an inability to generate sufficient revenues to service operations. The directors closely monitor the group's performance against similar businesses operating in comparable markets and respond accordingly.

Similarly, the group carefully monitors its compliance with brand standards, and regularly compares its performance against other (local and national) hotels to ensure it remains competitive.

The group is also susceptible to any loss in key members of operational staff and therefore operates a number of performance reward and incentive programmes to mitigate these risks.

Finally, the current economic situation has put a strain on the group's financing costs. The directors continue to monitor this closely, and seek alternative financing options where they mitigate the business' exposure to the same.


BGAM HOTELS (KW) LIMITED (REGISTERED NUMBER: 10449423)

GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023

SECTION 172(1) STATEMENT
Stakeholder engagement
The board of directors have a legal responsibility under section 172 of the Companies Act 2006 to act in the way we consider, in good faith, would be most likely to promote the group's success for the benefit of its members as a whole, and to have regard to the long-term effect of our decisions on the group and its stakeholders. This statement addresses the ways in which we as a board handle this responsibility.

Decision making
Regular operational and strategic meetings are held by the directors and general managers. This ensures the board has access to the key factors affecting all areas of the business' decision making, shorter term or longer.

Furthermore, the group is in constant communication with IHG and various industry specific news sources. This enables the directors to keep abreast of, and address, all longer-term shifts in the group's operating markets.

Employee engagement
The subsidiary maintains a diverse workforce of local employees spanning all aspects of the hotel delivery, supplemented by outsourced staff and suppliers where necessary. Staff are rewarded in line with comparable local markets, provided with specific training relevant to their needs and have access to wider industry opportunities as a result of the same.

Business relationships
The group actively maintains strong relationships with its key suppliers and support functions, to ensure it has access to the resources it needs to operate effectively.

The wider franchise ensures the company group has access to a broad array of customers, visiting for various purposes. The group monitors compliance with brand standards to ensure all customers' expectations are satisfied and deliver the best possible service it can achieve.

Community and environmental impact
The directors remain ever conscious of the impact their business has on the local community and environment. As well as being a supportive local employer, the group also complies with all franchise environmental incentives.

Business conduct
The directors closely monitor the group's service delivery to ensure at all times the business is honest, fair and professional in its conduct with all stakeholders.

Shareholder engagement
The group is actively managed by its ultimate shareholders, who are all represented on the board of directors.

ON BEHALF OF THE BOARD:





J D Levy - Director


8 October 2024

BGAM HOTELS (KW) LIMITED (REGISTERED NUMBER: 10449423)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 DECEMBER 2023

The directors present their report with the financial statements of the company and the group for the year ended 31 December 2023.

DIVIDENDS
No dividends will be distributed for the year ended 31 December 2023.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 January 2023 to the date of this report.

J D Levy
J P Levy
M D Rubin
N S Rubin
L M Becker

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;
- make judgements and accounting estimates that are reasonable and prudent;
- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS
The auditors, Goldwyns Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





J D Levy - Director


8 October 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
BGAM HOTELS (KW) LIMITED

Opinion
We have audited the financial statements of BGAM Hotels (KW) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of 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:
-give a true and fair view of the state of the group's and of the parent company affairs as at 31 December 2023 and of the group's loss for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 group's and the parent 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. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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.

In connection with our audit of the financial statements, 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 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 the audit:
- the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
BGAM HOTELS (KW) LIMITED


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 its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

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:
- adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent company financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 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 group's and 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 group or the parent company or to cease operations, or have no realistic alternative but to do so.

Auditors' 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 a Report of the Auditors 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.

In order to address the risks of misstatements in respect of irregularities, including fraud, we have:

- obtained an understanding of the key laws and regulations applicable to the group, including the Companies Act 2006, its IHG Holiday Inn franchise agreement and applicable taxation legislation;
- assessed the group's own internal controls and systems for the prevention and detection of irregularities and particularly the control environment within which they operate;
- determined a materiality level and audit approach sufficient to identify most irregularities, including fraud, that may occur;
- considered our own involvement in the preparation of the group's statutory financial statements and taxation returns;
- conducted audit verification work, on a sample basis, on the key audit areas and risks we have identified; and
- reflected on the outcome of our work, and the likelihood that conclusions drawn may be indicative of other areas of potential irregularity.

We therefore consider our audit approach has been sufficient to detect material irregularities, including fraud.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
BGAM HOTELS (KW) LIMITED


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 a Report of the Auditors 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.




S T Blundell FCA (Senior Statutory Auditor)
for and on behalf of Goldwyns Limited
Statutory Auditors and Chartered Accountants
Rutland House
90-92 Baxter Avenue
Southend on Sea
Essex
SS2 6HZ

8 October 2024

BGAM HOTELS (KW) LIMITED (REGISTERED NUMBER: 10449423)

CONSOLIDATED
INCOME STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Notes £    £   

TURNOVER 3,467,920 2,722,982

Cost of sales 1,940,755 1,905,248
GROSS PROFIT 1,527,165 817,734

Administrative expenses 676,585 1,156,022
850,580 (338,288 )

Other operating income - 2,775
OPERATING PROFIT/(LOSS) 4 850,580 (335,513 )


Interest payable and similar expenses 6 1,286,624 984,839
LOSS BEFORE TAXATION (436,044 ) (1,320,352 )

Tax on loss 7 - -
LOSS FOR THE FINANCIAL YEAR (436,044 ) (1,320,352 )
Loss attributable to:
Owners of the parent (436,044 ) (1,320,352 )

BGAM HOTELS (KW) LIMITED (REGISTERED NUMBER: 10449423)

CONSOLIDATED
OTHER COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Notes £    £   

LOSS FOR THE YEAR (436,044 ) (1,320,352 )


OTHER COMPREHENSIVE INCOME - -
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

(436,044

)

(1,320,352

)

Total comprehensive income attributable to:
Owners of the parent (436,044 ) (1,320,352 )

BGAM HOTELS (KW) LIMITED (REGISTERED NUMBER: 10449423)

CONSOLIDATED BALANCE SHEET
31 DECEMBER 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 9 - 3,000
Tangible assets 10 8,239,301 8,375,998
Investments 11 - -
8,239,301 8,378,998

CURRENT ASSETS
Stocks 12 11,540 11,430
Debtors 13 565,399 361,468
Cash at bank and in hand 4,626 923,532
581,565 1,296,430
CREDITORS
Amounts falling due within one year 14 9,025,248 4,042,170
NET CURRENT LIABILITIES (8,443,683 ) (2,745,740 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

(204,382

)

5,633,258

CREDITORS
Amounts falling due after more than one
year

15

8,941,475

14,343,071
NET LIABILITIES (9,145,857 ) (8,709,813 )

CAPITAL AND RESERVES
Called up share capital 19 38 38
Retained earnings 20 (9,145,895 ) (8,709,851 )
SHAREHOLDERS' FUNDS (9,145,857 ) (8,709,813 )

The financial statements were approved by the Board of Directors and authorised for issue on 8 October 2024 and were signed on its behalf by:





J D Levy - Director


BGAM HOTELS (KW) LIMITED (REGISTERED NUMBER: 10449423)

COMPANY BALANCE SHEET
31 DECEMBER 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 9 - -
Tangible assets 10 - -
Investments 11 6,117,176 6,117,176
6,117,176 6,117,176

CURRENT ASSETS
Debtors 13 52,928 52,928

CREDITORS
Amounts falling due within one year 14 5,960,400 5,924,200
NET CURRENT LIABILITIES (5,907,472 ) (5,871,272 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

209,704

245,904

CAPITAL AND RESERVES
Called up share capital 19 38 38
Retained earnings 20 209,666 245,866
SHAREHOLDERS' FUNDS 209,704 245,904

Company's loss for the financial year (36,200 ) (28,250 )

The financial statements were approved by the Board of Directors and authorised for issue on 8 October 2024 and were signed on its behalf by:





J D Levy - Director


BGAM HOTELS (KW) LIMITED (REGISTERED NUMBER: 10449423)

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 January 2022 38 (7,389,499 ) (7,389,461 )

Changes in equity
Total comprehensive income - (1,320,352 ) (1,320,352 )
Balance at 31 December 2022 38 (8,709,851 ) (8,709,813 )

Changes in equity
Total comprehensive income - (436,044 ) (436,044 )
Balance at 31 December 2023 38 (9,145,895 ) (9,145,857 )

BGAM HOTELS (KW) LIMITED (REGISTERED NUMBER: 10449423)

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023

Called up
share Retained Total
capital earnings equity
£    £    £   
Balance at 1 January 2022 38 274,116 274,154

Changes in equity
Total comprehensive income - (28,250 ) (28,250 )
Balance at 31 December 2022 38 245,866 245,904

Changes in equity
Total comprehensive income - (36,200 ) (36,200 )
Balance at 31 December 2023 38 209,666 209,704

BGAM HOTELS (KW) LIMITED (REGISTERED NUMBER: 10449423)

CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 254,101 3,117,620
Interest paid (357,338 ) (312,249 )
Interest element of finance lease
payments paid

(929,286

)

(672,590

)
Tax paid - 2,916
Net cash from operating activities (1,032,523 ) 2,135,697

Cash flows from investing activities
Purchase of tangible fixed assets (23,098 ) (114,411 )
Net cash from investing activities (23,098 ) (114,411 )

Cash flows from financing activities
Rolled up finance interest 193,079 -
Other loan advances - 5,525,000
Loan repayments - (6,207,944 )
Capital repayments in year (104,150 ) (381,869 )
Net cash from financing activities 88,929 (1,064,813 )

(Decrease)/increase in cash and cash equivalents (966,692 ) 956,473
Cash and cash equivalents at
beginning of year

2

913,021

(43,452

)

Cash and cash equivalents at end of
year

2

(53,671

)

913,021

BGAM HOTELS (KW) LIMITED (REGISTERED NUMBER: 10449423)

NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2023

1. RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS
2023 2022
£    £   
Loss before taxation (436,044 ) (1,320,352 )
Depreciation charges 162,794 499,321
Finance costs 1,286,624 984,839
1,013,374 163,808
Increase in stocks (110 ) (4,712 )
(Increase)/decrease in trade and other debtors (203,931 ) 207,493
(Decrease)/increase in trade and other creditors (555,232 ) 2,751,031
Cash generated from operations 254,101 3,117,620

2. CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2023
31/12/23 1/1/23
£    £   
Cash and cash equivalents 4,626 923,532
Bank overdrafts (58,297 ) (10,511 )
(53,671 ) 913,021
Year ended 31 December 2022
31/12/22 1/1/22
£    £   
Cash and cash equivalents 923,532 11,373
Bank overdrafts (10,511 ) (54,825 )
913,021 (43,452 )


3. ANALYSIS OF CHANGES IN NET DEBT

At 1/1/23 Cash flow At 31/12/23
£    £    £   
Net cash
Cash at bank and in hand 923,532 (918,906 ) 4,626
Bank overdrafts (10,511 ) (47,786 ) (58,297 )
913,021 (966,692 ) (53,671 )
Debt
Finance leases (8,757,554 ) (84,091 ) (8,841,645 )
Debts falling due within 1 year (50,644 ) (5,528,768 ) (5,579,412 )
Debts falling due after 1 year (5,623,761 ) 5,523,931 (99,830 )
(14,431,959 ) (88,928 ) (14,520,887 )
Total (13,518,938 ) (1,055,620 ) (14,574,558 )

BGAM HOTELS (KW) LIMITED (REGISTERED NUMBER: 10449423)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023

1. STATUTORY INFORMATION

BGAM Hotels (KW) Limited is a private company, limited by shares, registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The group trades from its property in Kenilworth, Warwick.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Basis of consolidation
The group accounts consolidated the affairs of BGAM Hotels (KW) Limited and all its subsidiary undertakings drawn to 31 December each year. The subsidiary accounts have been included in the group figures under the acquisition method of accounting.

Turnover
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Turnover represents the income receivable by the group from its trading activities as a hotel. Sales encompass room hire, food and beverage income and all other associated ancillary hotel and guest services. Turnover is recognised in the period in which physical goods are sold, as services are performed or otherwise as entitlement accrues to the group.

Goodwill
Goodwill, being the amount paid in connection with the acquisition of a business in 2017, is being amortised evenly over its estimated useful life of five years.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Patents and licences are being amortised evenly over their estimated useful life of ten years.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Long leasehold - over a period of 175 years
Equipment - 25% on reducing balance and 15% on reducing balance
Fixtures and fittings - 15% on reducing balance
Computer equipment - 33% on cost

Pension costs and other post-retirement benefits
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.

3. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 895,187 1,055,862
Social security costs 56,427 73,277
Other pension costs 13,009 15,089
964,623 1,144,228

BGAM HOTELS (KW) LIMITED (REGISTERED NUMBER: 10449423)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

3. EMPLOYEES AND DIRECTORS - continued

The average number of employees during the year was as follows:
2023 2022

Staff 70 66
Directors 5 5
75 71

2023 2022
£    £   
Directors' remuneration - -

4. OPERATING PROFIT/(LOSS)

The operating profit (2022 - operating loss) is stated after charging:

2023 2022
£    £   
Hire of plant and machinery 9,676 10,217
Depreciation - owned assets 59,795 131,137
Depreciation - assets on finance leases 100,000 100,000
Goodwill amortisation - 265,185
Patents and licences amortisation 3,000 3,000

5. AUDITORS' REMUNERATION
2023 2022
£    £   
Fees payable to the company's auditors for the audit of the
company's financial statements

15,000

14,000
Auditors' remuneration - other non-audit services 78 3,824

6. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Leasing 275,094 248,724
Bank charges 82,244 63,525
Loan interest payable 893,086 646,840
Other interest 36,200 25,750
1,286,624 984,839

7. TAXATION

Analysis of the tax charge
No liability to UK corporation tax arose for the year ended 31 December 2023 nor for the year ended 31 December 2022.

BGAM HOTELS (KW) LIMITED (REGISTERED NUMBER: 10449423)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

7. TAXATION - continued

Reconciliation of total tax charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2023 2022
£    £   
Loss before tax (436,044 ) (1,320,352 )
Loss multiplied by the standard rate of corporation tax in the UK of
25 % (2022 - 19 %)

(109,011

)

(250,867

)

Effects of:
Expenses not deductible for tax purposes 25,141 69,587
Losses not recognised 83,870 181,280
Total tax charge - -

Although historically deferred tax assets have not been recognised, the subsidiary does benefit from significant trading losses (£2.5m) carried forward, ongoing capital allowances (£236k) and capital losses (£2.26m) which will reduce its exposure to future taxable profits accordingly.

8. INDIVIDUAL INCOME STATEMENT

As permitted by Section 408 of the Companies Act 2006, the Statement of Comprehensive Income of the parent company is not presented as part of these financial statements.


9. INTANGIBLE FIXED ASSETS

Group
Patents
and
Goodwill licences Totals
£    £    £   
COST
At 1 January 2023
and 31 December 2023 5,303,719 30,000 5,333,719
AMORTISATION
At 1 January 2023 5,303,719 27,000 5,330,719
Amortisation for year - 3,000 3,000
At 31 December 2023 5,303,719 30,000 5,333,719
NET BOOK VALUE
At 31 December 2023 - - -
At 31 December 2022 - 3,000 3,000

BGAM HOTELS (KW) LIMITED (REGISTERED NUMBER: 10449423)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

10. TANGIBLE FIXED ASSETS

Group
Fixtures
Long and Computer
leasehold Equipment fittings equipment Totals
£    £    £    £    £   
COST
At 1 January 2023 8,500,000 22,167 745,666 5,627 9,273,460
Additions - 3,200 17,047 2,851 23,098
At 31 December 2023 8,500,000 25,367 762,713 8,478 9,296,558
DEPRECIATION
At 1 January 2023 322,466 16,206 553,164 5,626 897,462
Charge for year 100,000 1,691 57,391 713 159,795
At 31 December 2023 422,466 17,897 610,555 6,339 1,057,257
NET BOOK VALUE
At 31 December 2023 8,077,534 7,470 152,158 2,139 8,239,301
At 31 December 2022 8,177,534 5,961 192,502 1 8,375,998

On 10 October 2019 the group entered into agreement to sell and then leaseback the property from which it trades, over a period of 225 years. This lease substantially amounts to a financing lease, as the group will subsidiary derive benefit from the property throughout a major part of its useful life, and has been recognised accordingly.

Fixed assets, included in the above, which are held under finance leases are as follows:
Long
leasehold
£   
COST
At 1 January 2023
and 31 December 2023 8,500,000
DEPRECIATION
At 1 January 2023 322,466
Charge for year 100,000
At 31 December 2023 422,466
NET BOOK VALUE
At 31 December 2023 8,077,534
At 31 December 2022 8,177,534

BGAM HOTELS (KW) LIMITED (REGISTERED NUMBER: 10449423)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

11. FIXED ASSET INVESTMENTS

Company
Shares in
group
undertakings
£   
COST
At 1 January 2023
and 31 December 2023 6,117,176
NET BOOK VALUE
At 31 December 2023 6,117,176
At 31 December 2022 6,117,176

The group or the company's investments at the Balance Sheet date in the share capital of companies include the following:

Subsidiary

Khanna Enterprises (Kenilworth) Limited
Registered office: Greenhill House, 90/93 Cowcross Street, London EC1M 6BF
Nature of business: Hotel
%
Class of shares: holding
Ordinary 100.00


The company acquired the entire issued share capital of Khanna Enterprises (Kenilworth) Limited on 21 March 2017. A proportion of the purchase price was attributed to repaying the company's existing financing liabilities at that time, with the majority representing the cost of shares acquired.

From this date the subsidiary's financial affairs have been consolidated into the group figures in full.

12. STOCKS

Group
2023 2022
£    £   
Stocks 11,540 11,430

13. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2023 2022 2023 2022
£    £    £    £   
Trade debtors 167,556 129,602 - -
Other debtors 82,928 104,083 52,928 52,928
Prepayments 314,915 127,783 - -
565,399 361,468 52,928 52,928

BGAM HOTELS (KW) LIMITED (REGISTERED NUMBER: 10449423)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2023 2022 2023 2022
£    £    £    £   
Bank loans and overdrafts (see note 16) 5,583,297 10,511 - -
Other loans (see note 16) 54,412 50,644 - -
Finance leases (see note 17) - 38,244 - -
Trade creditors 368,021 353,699 - -
Amounts owed to group undertakings - - 5,102,963 5,066,763
Social security and other taxes 94,982 60,614 - -
Other creditors 2,863,057 3,458,035 854,437 854,437
Accrued expenses 61,479 70,423 3,000 3,000
9,025,248 4,042,170 5,960,400 5,924,200

15. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR

Group
2023 2022
£    £   
Bank loans (see note 16) - 5,469,520
Other loans (see note 16) 99,830 154,241
Finance leases (see note 17) 8,841,645 8,719,310
8,941,475 14,343,071

16. LOANS

An analysis of the maturity of loans is given below:

Group
2023 2022
£    £   
Amounts falling due within one year or on demand:
Bank overdrafts 58,297 10,511
Bank loans 5,525,000 -
Other loans 54,412 50,644
5,637,709 61,155
Amounts falling due between one and two years:
Bank loans - 5,469,520
Other loans 58,460 112,871
58,460 5,582,391
Amounts falling due between two and five years:
Other loans 41,370 41,370

BGAM HOTELS (KW) LIMITED (REGISTERED NUMBER: 10449423)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

17. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Group
Finance leases
2023 2022
£    £   
Gross obligations repayable:
Within one year 297,403 275,385
Between one and five years 1,019,945 970,701
In more than five years 130,323,230 123,183,984
131,640,578 124,430,070

Finance charges repayable:
Within one year 297,403 237,141
Between one and five years 1,019,945 970,701
In more than five years 121,481,585 114,464,674
122,798,933 115,672,516

Net obligations repayable:
Within one year - 38,244
In more than five years 8,841,645 8,719,310
8,841,645 8,757,554

On 10 October 2019 the group entered into an agreement to lease the property from which it trades for a period of 225 years. This transaction amounts to a finance lease and has been recognised accordingly. The group is liable for an annual rent of £170,306, adjusted for changes in the retail price index but subject to a minimum of 1% and a maximum of 4% increase per year.

Throughout the initial period of the lease the annual interest arising will exceed the rental payments due and therefore the group's recognised finance liability will continue to increase.

BGAM HOTELS (KW) LIMITED (REGISTERED NUMBER: 10449423)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

18. SECURED DEBTS

The following secured debts are included within creditors:

Group
2023 2022
£    £   
Bank overdrafts 58,297 10,511
Bank loans 5,525,000 5,469,520
Other loans 154,242 204,885
Finance leases 8,841,645 8,757,554
14,579,184 14,442,470

The group's bank loans are secured by fixed and floating charge over the group's property and equipment and all assets.

Finance lease liabilities are secured on the assets to which they relate.

Other loans consists of a Coronavirus Business Interruption Loan, which the group drew in September 2020. The loan is backed by a partial guarantee from the UK Government.

The bank overdraft is secured by a guarantee from Dragonglass Milton Keynes Limited, Leigh Hotels Limited, Stonehenge Hotels Limited and Tankersley Hotels Limited. The subsidiary had also given cross-guarantees in respect of other associated companies' bank overdrafts. At the balance sheet date, those companies' liabilities to the bank totalled £229,367 (2022 - £119,889).

19. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
3,800 "A" Ordinary 1p 38 38

20. RESERVES

Group
Retained
earnings
£   

At 1 January 2023 (8,709,851 )
Deficit for the year (436,044 )
At 31 December 2023 (9,145,895 )

Company
Retained
earnings
£   

At 1 January 2023 245,866
Deficit for the year (36,200 )
At 31 December 2023 209,666


BGAM HOTELS (KW) LIMITED (REGISTERED NUMBER: 10449423)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 DECEMBER 2023

21. PENSION COMMITMENTS

The group operates a defined contribution scheme in respect of its eligible employees. During the year, total contributions to this scheme amounted to £13,009 (2022 - £15,089). There was a contribution of £305 outstanding at the balance sheet date (2022 - £3,374).

22. RELATED PARTY DISCLOSURES

The group works closely with a portfolio of four other hotels and their respective companies, all under similar (but not identical) control. Further, the whole portfolio is managed by BGAM Limited, a hotel management enterprise, again with ownership similarities and common directors. These close working relationships enables all businesses to access necessary trading expertise when needed, negotiate beneficial relationships with suppliers and leverage various economies of scale for mutual benefit.

The group utilises management services provided by a company under common control. During the year the total costs arising for these management services amounted to £nil (2022 - £102,817).

At the balance sheet date, the group owed £2,822,351 to other companies under the control of various directors and their immediate family (2022 - £3,273,414).

During the year the group's total compensation to key management personnel (including directors) amounted to £26,463 (2022 - £65,904).

23. GOING CONCERN

The consolidated financial statements show that, as at 31 December 2023, the group has a deficiency of net assets of £9,145,857 (2022 - £8,709,813). The continuation of the group's activities are dependent upon the continued support of its associated companies and the group's bankers, which is forthcoming. The accounts are therefore still prepared on a going concern basis.

The directors have taken into consideration the events after the end of the period when assessing the group's ability to continue as a going concern.