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Registered number: 05505323










GH BRIGHTON LIMITED

AUDITED
DIRECTORS' REPORT
AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED
31 MAY 2023
 






 



 






 
GH BRIGHTON LIMITED
 

COMPANY INFORMATION


Directors
Mr R J Austin (resigned 23 June 2023)
Mr N D Taee (resigned 23 June 2023)
Mr N S Parker (appointed 23 June 2023)




Registered number
05505323



Registered office
Albany House
Claremont Lane

Esher

Surrey

KT10 9FQ




Independent auditors
Wellden Turnbull Limited
Chartered Accountants & Statutory Auditors

Albany House

Claremont Lane

Esher

Surrey

KT10 9FQ





 
GH BRIGHTON LIMITED
 

CONTENTS



Page
Directors' report
 
 
1 - 2
Independent auditors' report
 
 
3 - 6
Statement of comprehensive income
 
 
7
Balance sheet
 
 
8
Statement of changes in equity
 
 
9
Notes to the financial statements
 
 
10 - 18


 
GH BRIGHTON LIMITED
 

 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2023

The Directors present their report and the financial statements for the year ended 31 May 2023.

Directors' responsibilities statement

The Directors are responsible for preparing the Directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the Directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the Directors are required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

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 transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Principal activity

The Company's principal activity during the year continued to be the provision of intermediate finance.

Results and dividends

The profit for the year, after taxation, amounted to £526,873 (2022 - £615,968).

No dividends were declared in either the current or prior period.

Directors

The Directors who served during the year were:

Mr R J Austin (resigned 23 June 2023)
Mr N D Taee (resigned 23 June 2023)

Disclosure of information to auditors

Each of the persons who are Directors at the time when this Directors' report is approved has confirmed that:
 
so far as the Director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the Director has taken all the steps that ought to have been taken as a Director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Page 1

 
GH BRIGHTON LIMITED
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2023

Small companies note

In preparing this report, the Directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





Mr N S Parker
Director

Date: 18 October 2024

Page 2

 
GH BRIGHTON LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GH BRIGHTON LIMITED
 

Opinion


We have audited the financial statements of GH Brighton Limited (the 'Company') for the year ended 31 May 2023, which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and the related notes, including a summary of significant accounting policiesThe 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 Company's affairs as at 31 May 2023 and of its profit 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 Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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.


Emphasis of matter


We draw attention to note 2.12 of the financial statements, which describes the accounting treatment for fair value gains and losses on financial instrument swaps held by the Company. Our opinion is not modified in this respect.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the Directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant sections of this report.


Page 3

 
GH BRIGHTON LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GH BRIGHTON LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Director's Report other than the financial statements and  our auditors' report thereon.  The Directors are responsible for the other information contained within the Director's 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.


Opinion 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 Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Directors' report has been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors' report.


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


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the 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; or
the Directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemptions in preparing the Directors' report and from the requirement to prepare a strategic report.


Responsibilities of directors
 

As explained more fully in the directors' responsibilities statement set out on page 1, the Directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the Directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the Directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Page 4

 
GH BRIGHTON LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GH BRIGHTON LIMITED (CONTINUED)


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 an auditors' 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. We have identified the greatest risk of a material impact on the financial statements from irregularities, including fraud, to relate to the timing and recognition of revenue, the valuation of loans held at amortised cost and said recoverability of such loans, and the override of controls by management. We have obtained an understanding of the legal and regulatory frameworks that the Company operates within including both those that directly have an impact on the financial statements and more widely those for which non-compliance could have a significant impact on the Company’s operations and reputation. We have identified The Companies Act 2006 in this regard. Auditing standards limit the required procedures as to non-compliance with laws and regulations to enquiries of those charged with governance and review of any applicable correspondence.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Enquiry of management and those charged with governance as to actual and potential litigation and claims;

Enquiry of management and those charged with governance to identify any instances of non-compliance with laws and regulations;

Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business, and reviewing accounting estimates for bias;

Assessing the reasonableness of revenue recognised in the period based on contractual terms and obligations and the requirement of accounting standards;

Reviewing and challenging the underlying assumptions and valuation methodology used for the fair valuation of the Company's swap instruments including assessing the reasonableness of valuation inputs and assumptions in the context of market available data to assess for indicators of management bias;

Reviewing and challenging the underlying assumptions and valuation methodology used for the valuation of the Company's loans including assessing the reasonableness of valuation inputs and assumptions in the context of market available data to assess for indicators of management bias; and

Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance.  The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


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 auditors' report.


Page 5

 
GH BRIGHTON LIMITED
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GH BRIGHTON LIMITED (CONTINUED)


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 2006Our 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 auditors' 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.





Mark Nelligan FCA (Senior Statutory Auditor)
  
for and on behalf of
Wellden Turnbull Limited
 
Chartered Accountants
Statutory Auditors
  
Albany House
Claremont Lane
Esher
Surrey
KT10 9FQ

18 October 2024
Page 6

 
GH BRIGHTON LIMITED
 

STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2023

2023
2022
£
£

  

Turnover
  
2,086,335
1,478,777

Cost of sales
  
(1,754,718)
(1,234,930)

Gross profit
  
331,617
243,847

Administrative expenses
  
(21,600)
(1,800)

Other operating charges
  
(441,333)
(257,894)

Operating loss
  
(131,316)
(15,847)

Interest receivable and similar income
  
2,741,061
3,405,967

Interest payable and similar expenses
  
(1,952,358)
(2,774,152)

Profit before tax
  
657,387
615,968

Tax on profit
  
(130,514)
-

Profit for the financial year
  
526,873
615,968

Other comprehensive income for the year
  

Fair value (losses) / gains on swaps
  
(3,083,576)
217,318

Deferred tax arising on fair value adjustments
  
770,900
(1,271,338)

Other comprehensive income for the year
  
(2,312,676)
(1,054,020)

Total comprehensive income for the year
  
(1,785,803)
(438,052)

There were no recognised gains and losses for 2023 or 2022 other than those included in the statement of comprehensive income.

The notes on pages 10 to 18 form part of these financial statements.

Page 7

 
GH BRIGHTON LIMITED
REGISTERED NUMBER: 05505323

BALANCE SHEET
AS AT 31 MAY 2023

2023
2022
                                                                           Note
£
£

  

Current assets
  

Debtors: amounts falling due after more than one year
 5 
60,810,543
67,893,565

Deferred tax asset
 10 
1,224,122
2,593,361

Debtors: amounts falling due within one year
 5 
6,702,585
7,601,426

Cash at bank and in hand
 6 
203,156
87,201

  
68,940,406
78,175,553

Current liabilities
  

Creditors: amounts falling due within one year
 7 
(2,686,391)
(2,798,522)

Net current assets
  
 
 
66,254,015
 
 
75,377,031

Total assets less current liabilities
  
66,254,015
75,377,031

Creditors: amounts falling due after more than one year
 8 
(44,789,174)
(49,986,248)

Provisions for liabilities
  

Deferred tax liability
 10 
(5,578,428)
(7,718,567)

  
 
 
(5,578,428)
 
 
(7,718,567)

Net assets
  
15,886,413
17,672,216


Capital and reserves
  

Called up share capital 
 11 
2
2

Other reserves
 12 
(82,106)
(82,106)

Fair value reserve
 12 
13,062,921
15,375,597

Profit and loss account
 12 
2,905,596
2,378,723

  
15,886,413
17,672,216


The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.

The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




Mr N S Parker
Director

Date: 18 October 2024

The notes on pages 10 to 18 form part of these financial statements.

Page 8

 
GH BRIGHTON LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2023


Called up share capital
Other reserves
Fair value reserve
Profit and loss account
Total equity

£
£
£
£
£

At 1 June 2022
2
(82,106)
15,375,597
2,378,723
17,672,216


Comprehensive income for the year

Profit for the year
-
-
-
526,873
526,873

Fair value movement on swaps
-
-
(3,083,576)
-
(3,083,576)

Deferred tax arising on fair value adjustments
-
-
770,900
-
770,900
Total comprehensive income for the year
-
-
(2,312,676)
526,873
(1,785,803)


At 31 May 2023
2
(82,106)
13,062,921
2,905,596
15,886,413



STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2022


Called up share capital
Other reserves
Fair value reserve
Profit and loss account
Total equity

£
£
£
£
£

At 1 June 2021
2
(82,106)
16,429,617
1,762,755
18,110,268


Comprehensive income for the year

Profit for the year
-
-
-
615,968
615,968

Fair value loss on swaps
-
-
217,318
-
217,318

Deferred tax arising on fair value adjustments
-
-
(1,271,338)
-
(1,271,338)
Total comprehensive income for the year
-
-
(1,054,020)
615,968
(438,052)


At 31 May 2022
2
(82,106)
15,375,597
2,378,723
17,672,216


The notes on pages 10 to 18 form part of these financial statements.

Page 9

 
GH BRIGHTON LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

1.


General information

GH Brighton Limited is a private company, limited by shares and incorporated in England and Wales, registered number 05505323. The registered address is Albany House, Claremont Lane, Esher, Surrey, KT10 9FQ. 

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006. 
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).
These financial statements are presented in sterling which is the functional currency of the Company and rounded to the nearest £.
The following principal accounting policies have been applied:

  
2.2

Compliance with accounting standards

The financial statements have been prepared using FRS102 The Financial Reporting Standard applicable in the UK and the Republic of Ireland, including the disclosure and presentation requirements of Section 1A applicable to small companies, with the exception of the matters set out within note 2.12.

  
2.3

Going concern

The financial statements have been prepared on a going concern basis. The the Company has been profitable in the period, is in a net asset position at the year end date and has generated sufficient cash from its operations to meet its liabilities as they fall due. 
In assessing the appropriateness of the going concern basis of preparation the directors have taken into account the key risks of the business, and have considered the Company’s business model and availability of cash resources. The Company is part of a financing structure, has pre-arranged finance and is projected to trade profitably over the structure term. The Company is projected to have sufficient cash flows to meet its debts as they fall due and further has the support of fellow group companies if required. Having undertaken this assessment the Directors consider it appropriate to prepare the financial statements on a going concern basis.

  
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured.
Revenue is derived from interest which is recognised using the effective interest method, which takes into account related fees and transaction costs.

 
2.5

Interest payable

Interest payable is recognised using the effective interest method, which takes into account related fees and transaction costs. Interest payable is included within cost of sales as it is lending directly attributable to the interest receivable recognised as revenue.

Page 10

 
GH BRIGHTON LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

2.Accounting policies (continued)

 
2.6

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.7

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.8

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.9

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.10

Financial instruments

Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.
 
Page 11

 
GH BRIGHTON LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

2.Accounting policies (continued)


2.10
Financial instruments (continued)


Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an
impairment loss is recognised in the Statement of comprehensive income.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
Derivatives, including interest rate and inflation swaps are not basic financial instruments.

  
2.11

Derivatives

Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured to fair value at each reporting date. Fair value gains and losses are recognised in the statement of other comprehensive income unless hedge accounting is applied and the hedge is a cash flow hedge. 
To qualify for hedge accounting, the Company documents the hedged item, the hedging instrument and the hedging relationship between them and the causes of hedge ineffectiveness.
The Company elects to adopt hedge accounting for interest rate swaps and inflation rate swaps (the 'swaps') where:
 
The swaps are a qualifying hedging instrument with an external party that hedges rate risk on a loan, part of the nominal amount of a loan, or a group of loans managed together that share the same risk and that qualify as a hedged item;

The hedging relationship between the swaps and the interest rate risk on the loan is consistent with the risk management objectives for undertaking hedges (i.e. to manage the risk that fixed interest rates become unfavourable in comparison to current market rates or the variability in cash flows arising from variable interest rates);

The change in the fair value of the swaps is expected to move inversely to the change in the fair value of the interest rate risk on the loan.

  
2.12

Hedge accounting

The Company uses interest rate swaps to manage its exposure to interest rate cash flow risk on its variable rate debt. These derivatives are measured at fair value at each balance sheet date. The Company also uses RPI swaps to manage its exposure to changes in inflation. These derivatives are measured at fair value at each balance sheet date.
To better reflect the nature of the long term financing structure in operation and in a modification to accounting standards, all cumulative hedging gains or losses on the hedged item are recognised as an asset or liability with a corresponding gain or loss recognised in the statement of comprehensive income. The treatment better reflects the financing profile in operation across the life of the structure.

Page 12

 
GH BRIGHTON LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

In preparing the financial statements, management is required to make judgements, estimates and assumptions which affect reported income, expenses, assets, liabilities and disclosure of contingent assets and liabilities. Use of available information and application of judgement are inherent in the formation of estimates, together with past experience and expectations of future events that are believed to be reasonable under the circumstances. Actual results in the future could differ from such estimates.
Other debtors and bank loans

Other debtors and bank loans attract interest at a variable rate based on SONIA, the risk free rate administered by the Bank of England. Other debtors and bank loans are held at amortised cost which requires the Directors to forecast the expected interest receivable and payable over the life of the loan and recognise, in the statement of comprehensive income, interest annually at an effective rate. Each year end the Directors update their forecasts and recognise any difference between actual and forecast interest receivable and payable as an adjustment to the effective interest expense. Forecasts require an estimation as to future SONIA rates, based on current market data. Actual rates will vary from forecast over the loan lifetime, rendering the effective interest rate calculated an estimate subject to these variations. If interest receivable and payable over the life of the loan were to be considerably different to the Directors forecasts there could be a material impact on the carrying value of other debtors and bank loans and associated interest receivable and payable.


4.


Employees

The average monthly number of employees, including Directors, during the year was 2 (2022 - 2).

Page 13

 
GH BRIGHTON LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

5.


Debtors

2023
2022
£
£

Due after more than one year

Other debtors
40,533,500
39,843,330

Financial instruments (swaps)
20,277,042
28,050,235

60,810,542
67,893,565


2023
2022
£
£

Due within one year

Amounts owed by group undertakings
4,334,423
4,343,787

Financial instruments (swaps)
2,036,671
2,824,035

Prepayments and accrued income
331,491
433,604

6,702,585
7,601,426


Other debtors
Other debtors comprise loan receivable balances held at amortised cost which attract interest at a variable rate based on SONIA. The loan is repayable in instalments with a final bullet repayment due on maturity.
Financial instruments (swaps)
Refer to note 9 for details of financial instruments. 
Amounts owed by group undertakings
Amounts owed by group undertakings are interest free and repayable on demand.

Page 14

 
GH BRIGHTON LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

6.


Cash and cash equivalents

2023
2022
£
£

Cash at bank and in hand
203,156
87,201



7.


Creditors: Amounts falling due within one year

2023
2022
£
£

Bank loans
1,996,371
1,225,242

Corporation tax
130,514
-

Financial instruments (swaps)
298,150
1,097,185

Other creditors
185,647
186,092

Accruals and deferred income
75,709
290,003

2,686,391
2,798,522


Refer to note 8 for details of bank loans and financial instruments. 

Page 15

 
GH BRIGHTON LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

8.


Creditors: Amounts falling due after more than one year

2023
2022
£
£

Bank loans
30,669,902
32,096,119

Interest roll up bond
8,211,659
7,118,925

Financial instruments (swaps)
4,598,338
9,276,284

Other creditors
1,309,275
1,494,920

44,789,174
49,986,248


Bank loans 
Bank loans comprise loans held at amortised cost which attract interest at a variable rate based on SONIA + 1%. The loan is repayable in instalments with a final bullet repayment due on maturity in 2032.
The loan is secured by a mortgage debenture over all assets of the Company.
Interest roll up bond
Interest roll up bonds comprise an interest bearing bond, with both accrued interest and bond principal being payable upon redemption in 2032. The bond is subordinated to the bank loan.
Financial instruments (swaps)
Refer to note 9 for details of financial instruments. 

The aggregate amount of liabilities repayable wholly or in part more than five years after the balance sheet date is:

2023
2022
£
£


Repayable by instalments
12,533,640
15,301,476

Repayable other than by instalments
18,873,162
17,780,428

31,406,802
33,081,904


Page 16

 
GH BRIGHTON LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

9.

Complex financial instruments

Financial instruments measured at fair value through the statement of comprehensive income comprise:

Notional
2023
Notional
2022
Fair value
2023
Fair value
2022
        £
        £
        £
        £
Swap assets

40,000,000

40,000,000

22,313,713
 
30,874,270
 
Swap liabilities

(32,893,091)

(34,151,740)

(4,896,488)
 
(10,373,409)
 

7,106,909

5,848,260

17,417,225
 
20,500,861
 

Swap assets and liabilities comprise derivatives used to manage the Company's interest rate and inflation exposures and variability in cashflows required to service its loan obligations. Fair values are calculated using valuation techniques, the inputs for which are based on market data at the balance sheet date.
The fair value of the swaps is determined using the forward curve for GBP SONIA and the UK Retail Price Index.
All swaps meet the conditions for hedge accounting as set out in the accounting policies. 


10.


Deferred taxation




2023
2022


£

£






At beginning of year
(5,125,206)
(3,853,867)


Charged to other comprehensive income
770,900
(1,271,338)



At end of year
(4,354,306)
(5,125,205)

The provision for deferred taxation is made up as follows:

2023
2022
£
£


Asset
1,224,122
2,593,367

Liability
(5,578,428)
(7,718,573)

(4,354,306)
(5,125,206)


11.


Share capital

2023
2022
£
£
Allotted, called up and fully paid



2 (2022 - 2) Ordinary shares of £1.00 each
2
2


Page 17

 
GH BRIGHTON LIMITED
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2023

12.


Reserves

Other reserves

The other reserve represents the impact from transition to FRS 102 from previous UK GAAP. This is an undistributable reserve.

Fair value reserve

The fair value reserve represents unrealised gains from fair value movements on swap positions held to manage the Company's exposure to interest rate and inflation risk. This is an undistributable reserve

Profit and loss account

The profit and loss account represents cumulative profits and losses net of all adjustments.


13.


Related party transactions

The Company has taken advantage of the disclosure exemption under FRS 102 section 33 paragraph 1A not to disclose transactions between members of a group which are wholly owned. 


14.


Controlling party

GH Finance Limited holds 100% of the issued share capital of the Company.
The ultimate controlling party is Mr N Parker by virtue of his 100% shareholding of GH Finance Limited.


Page 18