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Everbright Lodge Ltd

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 30 June 2023






Everbright Lodge Ltd (Registered number: 09622667)






Contents of the Financial Statements
for the Year Ended 30 June 2023




Page

Company Information 1

Strategic Report 2

Report of the Directors 3

Report of the Independent Auditors 5

Income Statement 9

Other Comprehensive Income 10

Balance Sheet 11

Statement of Changes in Equity 12

Cash Flow Statement 13

Notes to the Cash Flow Statement 14

Notes to the Financial Statements 15


Everbright Lodge Ltd

Company Information
for the Year Ended 30 June 2023







DIRECTORS: L Ma
Mrs Y Wang
Mrs Y Guan
Ms X Tian
Mrs C Ou
Mrs J Li
K Liu
S Cao
Miss Z Wang
Ms Y Zhou
Ms B Fang
Mrs J Li
Ms F Yang
Ms Z Zhang
Mrs Y Zhou





SECRETARY: Miss Q Hou





REGISTERED OFFICE: 48 - 52 Penny Lane
Mossley Hill
Liverpool
Merseyside
L18 1DG





REGISTERED NUMBER: 09622667 (England and Wales)





AUDITORS: Mitchell Charlesworth (Audit) Limited
3rd Floor
5 Temple Square
Temple Street
Liverpool
Merseyside
L2 5RH

Everbright Lodge Ltd (Registered number: 09622667)

Strategic Report
for the Year Ended 30 June 2023

The directors present their strategic report for the year ended 30 June 2023.

REVIEW OF BUSINESS
The company's principal activity during the year continued to be the operation of hotels.

The company used key financial and performance indicators, such as turnover and gross profit margin, alongside occupancy levels and average room rates, to evaluate hotel performance.

The year saw trade continue at a similar capacity, with both sites operating fully, leading to stable turnover and profitability levels.This trade has continued beyond the year end and the net asset position is expected to remain into 2024.

Following this year-end, the company is also reviewing the freehold property, which is expected to support another higher valuation.

PRINCIPAL RISKS AND UNCERTAINTIES
The directors regularly assess the risks facing the business. The principal risks and uncertainties for the company are broadly categorised as market-based risks, legislative risks, and financing risks:

Market Risks
The company operates in a highly competitive environment, and the directors continually assess customer needs and preferences, along with the activities of competitors, to ensure the best possible customer experience.

Legislative Risks
The company’s operations are subject to regulatory requirements, and the directors closely monitor compliance to ensure that the highest standards of hygiene and safety are maintained.

Financing Risks
The company must maintain adequate levels of working capital to manage ongoing operations effectively. This is closely monitored through regular financial reviews.

EMPLOYEES
The group continues to adhere to the Health & Safety at Work Act, ensuring the welfare of its employees remains a priority.

The group fully considers applications for employment from individuals with disabilities, provided that the requirements of the role can be effectively met by a disabled person.

POLICY ON PAYMENTS TO CREDITORS
Creditors are paid in accordance with the agreed terms of business established with suppliers.

Due to the nature of the company’s operations and the terms agreed with suppliers, the directors have not provided an average creditor days figure, as it is not deemed beneficial.

ON BEHALF OF THE BOARD:





L Ma - Director


25 October 2024

Everbright Lodge Ltd (Registered number: 09622667)

Report of the Directors
for the Year Ended 30 June 2023

The directors present their report with the financial statements of the company for the year ended 30 June 2023.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of the operation of hotels.

DIVIDENDS
No dividends will be distributed for the year ended 30 June 2023.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 July 2022 to the date of this report.

L Ma
Mrs Y Wang
Mrs Y Guan
Ms X Tian
Mrs C Ou
Mrs J Li
K Liu
S Cao
Miss Z Wang
Ms Y Zhou
Ms B Fang
Mrs J Li
Ms F Yang
Ms Z Zhang
Mrs Y Zhou

FINANCIAL INSTRUMENTS
The group utilises conventional working capital to finance day-to-day operations, and the figures in the accounts represent the absolute values of amounts recoverable and payable.

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the 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 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 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 transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT 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 company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

Everbright Lodge Ltd (Registered number: 09622667)

Report of the Directors
for the Year Ended 30 June 2023


AUDITORS
The auditors, Mitchell Charlesworth (Audit) Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:





L Ma - Director


25 October 2024

Report of the Independent Auditors to the Members of
Everbright Lodge Ltd

Opinion
We have audited the financial statements of Everbright Lodge Ltd (the 'company') for the year ended 30 June 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the 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 company's affairs as at 30 June 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 UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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

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

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

Other information
The directors are responsible for the other information. The other information comprises the information in the 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 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 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
Everbright Lodge Ltd


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 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, 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.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page three, 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 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.

Report of the Independent Auditors to the Members of
Everbright Lodge Ltd


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.

Extent to which the audit was considered capable of detecting irregularities, including fraud
We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.


Identifying and assessing potential risks related to irregularities
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:

- the nature of the industry and sector, control environment and business performance;
- the company's own assessment of the risks that irregularities may occur either as a result of fraud or error;
- the results of our enquiries of management of their own identification of and assessment of the risks of irregularities;
- any matters we identified having obtained and reviewed the company's documentation of their policies and procedures relating to:
- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;
- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; and
- the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; and
- the matters discussed among the audit engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas:

(i) The presentation of the Profit and Loss Account, (ii) the accounting policy for revenue recognition and completeness of income (iii) related party transactions. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory framework that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act.

In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty.

Audit response to risks identified
Our procedures to respond to risks identified included the following:

- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with relevant laws and regulations described above as having a direct effect on the financial statements;
- enquiring of management concerning actual and potential litigation and claims;
- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

Report of the Independent Auditors to the Members of
Everbright Lodge Ltd

- in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

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.

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.




Richard Johnson RI (Senior Statutory Auditor)
for and on behalf of Mitchell Charlesworth (Audit) Limited
3rd Floor
5 Temple Square
Temple Street
Liverpool
Merseyside
L2 5RH

25 October 2024

Everbright Lodge Ltd (Registered number: 09622667)

Income Statement
for the Year Ended 30 June 2023

2023 2022
Notes £    £   

TURNOVER 4 4,306,200 4,397,843

Cost of sales 2,252,775 2,244,865
GROSS PROFIT 2,053,425 2,152,978

Administrative expenses 1,660,610 1,687,259
392,815 465,719

Other operating income - 23,680
OPERATING PROFIT 6 392,815 489,399


Interest payable and similar expenses 8 252,907 166,731
PROFIT BEFORE TAXATION 139,908 322,668

Tax on profit 9 110,286 (67,000 )
PROFIT FOR THE FINANCIAL YEAR 29,622 389,668

Everbright Lodge Ltd (Registered number: 09622667)

Other Comprehensive Income
for the Year Ended 30 June 2023

2023 2022
Notes £    £   

PROFIT FOR THE YEAR 29,622 389,668


OTHER COMPREHENSIVE INCOME
Revaluation in year 2,804,258 -
Income tax relating to other
comprehensive income

(701,064

)

-
OTHER COMPREHENSIVE INCOME
FOR THE YEAR, NET OF INCOME TAX

2,103,194

-
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

2,132,816

389,668

Everbright Lodge Ltd (Registered number: 09622667)

Balance Sheet
30 June 2023

2023 2022
Notes £    £    £    £   
FIXED ASSETS
Tangible assets 10 8,433,139 5,545,699

CURRENT ASSETS
Stocks 11 33,592 36,595
Debtors 12 256,576 341,558
Cash at bank and in hand 435,407 444,364
725,575 822,517
CREDITORS
Amounts falling due within one year 13 2,808,402 1,297,909
NET CURRENT LIABILITIES (2,082,827 ) (475,392 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

6,350,312

5,070,307

CREDITORS
Amounts falling due after more than one
year

14

(3,786,002

)

(5,383,163

)

PROVISIONS FOR LIABILITIES 16 (744,350 ) -
NET ASSETS/(LIABILITIES) 1,819,960 (312,856 )

CAPITAL AND RESERVES
Called up share capital 17 1,660 1,660
Revaluation reserve 18 2,103,194 -
Retained earnings 18 (284,894 ) (314,516 )
SHAREHOLDERS' FUNDS 1,819,960 (312,856 )

The financial statements were approved by the Board of Directors and authorised for issue on 25 October 2024 and were signed on its behalf by:





L Ma - Director


Everbright Lodge Ltd (Registered number: 09622667)

Statement of Changes in Equity
for the Year Ended 30 June 2023

Called up
share Retained Revaluation Total
capital earnings reserve equity
£    £    £    £   
Balance at 1 July 2021 1,660 (704,184 ) - (702,524 )

Changes in equity
Total comprehensive income - 389,668 - 389,668
Balance at 30 June 2022 1,660 (314,516 ) - (312,856 )

Changes in equity
Total comprehensive income - 29,622 2,103,194 2,132,816
Balance at 30 June 2023 1,660 (284,894 ) 2,103,194 1,819,960

Everbright Lodge Ltd (Registered number: 09622667)

Cash Flow Statement
for the Year Ended 30 June 2023

2023 2022
Notes £    £   
Cash flows from operating activities
Cash generated from operations 1 724,791 520,166
Interest paid (252,907 ) (166,731 )
Net cash from operating activities 471,884 353,435

Cash flows from investing activities
Purchase of tangible fixed assets (272,288 ) (351,242 )
Net cash from investing activities (272,288 ) (351,242 )

Cash flows from financing activities
New loans in year - 200,000
Loan repayments in year (152,753 ) (127,173 )
Amount withdrawn by directors (55,800 ) -
Net cash from financing activities (208,553 ) 72,827

(Decrease)/increase in cash and cash equivalents (8,957 ) 75,020
Cash and cash equivalents at
beginning of year

2

444,364

369,344

Cash and cash equivalents at end of
year

2

435,407

444,364

Everbright Lodge Ltd (Registered number: 09622667)

Notes to the Cash Flow Statement
for the Year Ended 30 June 2023

1. RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM
OPERATIONS

2023 2022
£    £   
Profit before taxation 139,908 322,668
Depreciation charges 189,107 133,444
Finance costs 252,907 166,731
581,922 622,843
Decrease/(increase) in stocks 3,003 (11,595 )
Decrease in trade and other debtors 17,982 77
Increase/(decrease) in trade and other creditors 121,884 (91,159 )
Cash generated from operations 724,791 520,166

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 30 June 2023
30.6.23 1.7.22
£    £   
Cash and cash equivalents 435,407 444,364
Year ended 30 June 2022
30.6.22 1.7.21
£    £   
Cash and cash equivalents 444,364 369,344


3. ANALYSIS OF CHANGES IN NET DEBT

At 1.7.22 Cash flow At 30.6.23
£    £    £   
Net cash
Cash at bank and in hand 444,364 (8,957 ) 435,407
444,364 (8,957 ) 435,407
Debt
Debts falling due within 1 year (228,974 ) 76,391 (152,583 )
Debts falling due after 1 year (2,307,811 ) 76,359 (2,231,452 )
(2,536,785 ) 152,750 (2,384,035 )
Total (2,092,421 ) 143,793 (1,948,628 )

Everbright Lodge Ltd (Registered number: 09622667)

Notes to the Financial Statements
for the Year Ended 30 June 2023

1. STATUTORY INFORMATION

Everbright Lodge Ltd 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.

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 as modified by the revaluation of certain assets.

Turnover
Turnover derived is from hotel operations and arose wholly in the United Kingdom. Turnover is recognised when services are rendered. The turnover of the hotel is primarily derived from the rentals of rooms, concerts and banqueting, food and beverage sales.

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The company recognises revenue when (a) the amount of revenue can be measured reliably and (b) it is probable that the future economic benefit will flow to the company.

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 provided at the following annual rates in order to write off each asset over its estimated useful life.
Freehold property - 2% straight line
Improvements to property - 10% straight line
Fixtures and fittings - 25% on reducing balance

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.

Stocks
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Everbright Lodge Ltd (Registered number: 09622667)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2023

2. ACCOUNTING POLICIES - continued

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 and loans from fellow group companies 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.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


Everbright Lodge Ltd (Registered number: 09622667)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2023

2. ACCOUNTING POLICIES - continued
Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

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

Going concern
The financial statements are prepared on the going concern basis. The directors have a reasonable expectation that the company will continue in operational existence for the foreseeable future. Although there is a net current liability position at year end, the directors are confident that the current assets plus the cash generated from the trade of the business is sufficient to cover the liabilities as they fall due.

Post Covid the restrictions that impacted the comparative results was lifted and the company has been returning to more normal levels of trade, with occupancy rates on the up. The directors are confident of ongoing profits.

The financial statements have been prepared on a going concern basis due to the director's continued funding and bank facility being sufficient to support the company's cash flow going forward.

3. CRITICAL ACCOUNTING 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.

4. TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

2023 2022
£    £   
Turnover 4,306,200 4,397,843
4,306,200 4,397,843

Everbright Lodge Ltd (Registered number: 09622667)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2023

5. EMPLOYEES AND DIRECTORS
2023 2022
£    £   
Wages and salaries 1,518,220 1,613,569
Social security costs 95,038 58,413
Other pension costs 24,321 21,133
1,637,579 1,693,115

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

Operations 142 126

2023 2022
£    £   
Directors' remuneration - -

6. OPERATING PROFIT

The operating profit is stated after charging:

2023 2022
£    £   
Hire of plant and machinery 4,412 5,159
Depreciation - owned assets 189,106 133,444
Grant income - 23,681

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

6,140

4,850

8. INTEREST PAYABLE AND SIMILAR EXPENSES
2023 2022
£    £   
Bank loan interest 129,100 77,231
Other loan interest 123,807 89,500
252,907 166,731

9. TAXATION

Analysis of the tax charge/(credit)
The tax charge/(credit) on the profit for the year was as follows:
2023 2022
£    £   
Deferred tax 110,286 (67,000 )
Tax on profit 110,286 (67,000 )

Everbright Lodge Ltd (Registered number: 09622667)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2023

9. TAXATION - continued

Reconciliation of total tax charge/(credit) 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
£    £   
Profit before tax 139,908 322,668
Profit multiplied by the standard rate of corporation tax in the UK of
25% (2022 - 19%)

34,977

61,307

Effects of:
Expenses not deductible for tax purposes - 1,339
Capital allowances in excess of depreciation - (6,635 )
Depreciation in excess of capital allowances 16,131 -
Unrecognised deferred tax assets 59,178 (140,698 )
Change in rate of deferred tax - 17,687
Total tax charge/(credit) 110,286 (67,000 )

Tax effects relating to effects of other comprehensive income

2023
Gross Tax Net
£    £    £   
Revaluation in year 2,804,258 (701,064 ) 2,103,194

10. TANGIBLE FIXED ASSETS
Improvements Fixtures
Freehold to and
property property fittings Totals
£    £    £    £   
COST OR VALUATION
At 1 July 2022 4,727,105 1,064,569 265,391 6,057,065
Additions - 246,076 26,212 272,288
Revaluations 2,274,767 - - 2,274,767
Reclassification/transfer 1,310,645 (1,310,645 ) - -
At 30 June 2023 8,312,517 - 291,603 8,604,120
DEPRECIATION
At 1 July 2022 58,060 347,840 105,466 511,366
Charge for year 36,724 106,136 46,246 189,106
Revaluation adjustments (75,515 ) (453,976 ) - (529,491 )
At 30 June 2023 19,269 - 151,712 170,981
NET BOOK VALUE
At 30 June 2023 8,293,248 - 139,891 8,433,139
At 30 June 2022 4,669,045 716,729 159,925 5,545,699

Everbright Lodge Ltd (Registered number: 09622667)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2023

10. TANGIBLE FIXED ASSETS - continued

Land and buildings with a carrying amount of £ 4.67M were revalued at 8 May 2024 by Graham and Sibbald, independent valuers not connected with the company on the basis of market value. The directors consider this reflected property and market conditions as at 30 June 2023 and accordingly an adjustment has been made to record this valuation in the financial statements.

Land and buildings are carried at valuation. If land and buildings were measured using the cost model, including improvements to property the carrying amounts would have been approximately £5,488,990 (2022 - £5,385,774), being cost £6,037,750 (2022 - £5,791,674) and depreciation £548,760 (2022 - £405,900).

11. STOCKS
2023 2022
£    £   
Stocks 33,592 36,595

12. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Trade debtors 55,522 57,458
Other debtors 134,755 125,907
Deferred tax asset - 67,000
Prepayments 66,299 91,193
256,576 341,558

13. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2023 2022
£    £   
Bank loans and overdrafts (see note 15) 152,583 228,974
Trade creditors 166,877 222,498
Social security and other taxes 48,588 54,505
Pension creditor 4,554 4,307
VAT 200,324 103,858
Other creditors 600,296 567,587
Directors' current accounts 1,465,000 -
Accrued expenses 170,180 116,180
2,808,402 1,297,909

14. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
2023 2022
£    £   
Bank loans (see note 15) 2,231,452 2,307,811
Directors' loan accounts 1,554,550 3,075,352
3,786,002 5,383,163

Included within bank loans and overdrafts are secured creditors totalling £2,384,035 (2022 of £2,536,785). Further information is noted under loans and overdrafts below.

Interest is charged on the outstanding Director's loan, further information in relation to this is noted under Director's transactions.

Everbright Lodge Ltd (Registered number: 09622667)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2023

15. LOANS

An analysis of the maturity of loans is given below:

2023 2022
£    £   
Amounts falling due within one year or on demand:
Bank loans 152,583 228,974

Amounts falling due in more than five years:

Repayable by instalments
Bank loans due more than five
years by instalments 2,231,452 2,307,811
2,231,452 2,307,811

Included within bank loans is a loan from Allied Irish Bank of £2,039,591 (2022 - £2,117,323) which is repayable by instalments. It is secured by way of fixed and floating charges against all the property and assets of the company.

Also included within bank loans is a CBILS loan from Welsh Development Bank of £128,631 (2022 - £164,715) and a CBILs loan from Allica Bank of £215,813 (2022 - £254,747).

16. PROVISIONS FOR LIABILITIES
2023
£   
Deferred tax 744,350

Deferred
tax
£   
Balance at 1 July 2022 (67,000 )
Provided during year 811,350
Balance at 30 June 2023 744,350

17. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2023 2022
value: £    £   
1,660 Ordinary 1 1,660 1,660

18. RESERVES
Retained Revaluation
earnings reserve Totals
£    £    £   

At 1 July 2022 (314,516 ) - (314,516 )
Profit for the year 29,622 29,622
Revaluation reserve - 2,103,194 2,103,194
At 30 June 2023 (284,894 ) 2,103,194 1,818,300

Everbright Lodge Ltd (Registered number: 09622667)

Notes to the Financial Statements - continued
for the Year Ended 30 June 2023

19. PENSION COMMITMENTS

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

20. DIRECTOR'S TRANSACTIONS

The amount of money invested by Mr Siyuan Cao in previous years as a director's loan was £200,000.

The amount of money invested by Mrs Dan Li in previous years as a director's loan was £200,000.
£20,000 has been repaid this year meaning the balance at 30 June 2023 was £180,000.

The amount of money invested by Mrs Jia Liin previous years as a director's loan was £200,000.

The amount of money invested by Mr Kequ Liu in previous years as a director's loan was £200,000.

The amount of money invested by Mrs Cheng Ou in previous years as a director's loan was £200,000.

The amount of money invested by Ms XinTianin previous years as a director's loan was £200,000.

The amount of money Invested by Mrs Yang Wang and Mrs Yiblng Guan in previous years as a directors' loan was
£200,000.

The amount of money invested by Ms Zhenyan Wangin previous years as a director's loan was £200,000.

The amount of money invested by Ms Bingqian Zhao in previous years as a director's loan was £200,000.

The amount of money invested by Ms Yongmei Zhouin previous years as a director's loan was £200,000.

The amount of money invested by Ms Fan Yang in previous years as a director's loan was £200,000.

The amount of money invested by Mrs Yanjun Zhou in previous years as a director's loan was £200,000.

The amount of money invested by Ms Zhuo Zhang in previous years as a director's loan was £200,000.

The amount of money invested by Mrs Juan Li in previous years as a director's loan was £100,000.

The amount of money invested by Ms Bao Fangin previous years as a director's loan was £200,000.

The above amounts are Included within other creditors falling due in more than one year.

The loans are repayable on demand, and incur interest at a rate of 3.6% per annum.