BXTR MCH Ltd is a private company limited by shares incorporated in Scotland. The registered office is House Of Gods, 233 Cowgate, Edinburgh, Scotland, EH1 1NQ.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
These financial statements are prepared on the going concern basis. Despite the negative reserves and loss for the year, the directors have a reasonable expectation that the company will continue in operational existence for the foreseeable future given the support by the Company’s ultimate parent undertaking, BXTR Services Limited.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
Borrowing costs directly attributable to the construction of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use, are recognised in profit or loss in the period in which they are incurred.
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
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.
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, including creditors, bank loans and loans from fellow group companies, 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.
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
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.
The directors do not consider there to be any estimates and assumptions in connection with the preparation of the company's year ended 31 January 2024 financial statements that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities at the balance sheet date of 31 January 2024.
The average monthly number of persons (including directors) employed by the company during the year was:
Land and buildings are represented by assets under construction. Assets under construction are in respect of a hotel that is under construction in Manchester. When the completed hotel is placed into service, the hotel's accumulated costs will be removed from assets under construction to freehold land and buildings. No depreciation has been charged in the year ended 31 January 2024 (charge for the period ended 31 January 2023: £NIL) because the hotel has not been placed into service at the balance sheet date.
The company does not have a bank overdraft. Oak North Bank PLC loans are secured by a floating charge over the assets of the group and specific security against the freehold and leasehold properties in the group. A share pledge is also in place whereby the shares of BXTR Holdings Ltd are held by the lender until the loans are repaid in full.
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Material uncertainty related to going concern
We draw attention to note 1.2 headed going concern in the financial statements, which indicated that the company has made a deficit for the year, which has resulted in a net liability position. As stated in note 1.2 and the directors report, these events or conditions, along with other matters as set forth in note 1.2, indicate that the company has relied upon funding and support from the parent, and ultimately external organizations in reaching their going concern conclusion. Our opinion is not modified in respect of this matter.
Conclusions relating to going concern
In auditing the financial statements we have concluded that the director's use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.