Company Registration No. 02268419 (England and Wales)
DREWHAVEN LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 MARCH 2024
PAGES FOR FILING WITH REGISTRAR
King & King
Chartered Accountants
5th Floor
Watson House
54-60 Baker Street
London
W1U 7BU
DREWHAVEN LIMITED
CONTENTS
Page
Accountants' report
2
Statement of financial position
3 - 4
Statement of changes in equity
5
Notes to the financial statements
6 - 11
DREWHAVEN LIMITED
ACCOUNTANTS' REPORT TO THE BOARD OF DIRECTORS ON THE PREPARATION OF THE UNAUDITED STATUTORY FINANCIAL STATEMENTS OF DREWHAVEN LIMITED FOR THE YEAR ENDED 30 MARCH 2024
- 2 -
In order to assist you to fulfil your duties under the Companies Act 2006, we have prepared for your approval the financial statements of Drewhaven Limited for the year ended 30 March 2024 which comprise, the statement of financial position, the statement of changes in equity and the related notes from the company’s accounting records and from information and explanations you have given us.
As a practising member firm of the Institute of Chartered Accountants in England and Wales (ICAEW), we are subject to its ethical and other professional requirements which are detailed at https://www.icaew.com/regulation.
This report is made solely to the board of directors of Drewhaven Limited, as a body, in accordance with the terms of our engagement letter dated 6 November 2018. Our work has been undertaken solely to prepare for your approval the financial statements of Drewhaven Limited and state those matters that we have agreed to state to the board of directors of Drewhaven Limited, as a body, in this report in accordance with ICAEW Technical Release 07/16 AAF. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than Drewhaven Limited and its board of directors as a body, for our work or for this report.
It is your duty to ensure that Drewhaven Limited has kept adequate accounting records and to prepare statutory financial statements that give a true and fair view of the assets, liabilities, financial position and profit of Drewhaven Limited. You consider that Drewhaven Limited is exempt from the statutory audit requirement for the year.
We have not been instructed to carry out an audit or a review of the financial statements of Drewhaven Limited. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the statutory financial statements.
King & King
Chartered Accountants
5th Floor
Watson House
54-60 Baker Street
London
W1U 7BU
21 October 2024
DREWHAVEN LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
30 MARCH 2024
30 March 2024
- 3 -
2024
2023
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
4
9,317,058
9,226,979
Current assets
Trade and other receivables
5
18,951
16,571
Cash and cash equivalents
17,378
11,119
36,329
27,690
Current liabilities
6
(1,129,975)
(1,078,278)
Net current liabilities
(1,093,646)
(1,050,588)
Total assets less current liabilities
8,223,412
8,176,391
Non-current liabilities
7
(49,893)
Provisions for liabilities
(1,252,009)
(1,214,127)
Net assets
6,971,403
6,912,371
Equity
Called up share capital
8
500,000
500,000
Share premium account
236,997
236,997
Revaluation reserve
6,221,320
6,221,320
Retained earnings
13,086
(45,946)
Total equity
6,971,403
6,912,371
The directors of the company have elected not to include a copy of the income statement within the financial statements.true
For the financial year ended 30 March 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
DREWHAVEN LIMITED
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT
30 MARCH 2024
30 March 2024
- 4 -
The financial statements were approved by the board of directors and authorised for issue on 21 October 2024 and are signed on its behalf by:
Dr M S Sohi
Director
Company Registration No. 02268419
DREWHAVEN LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 MARCH 2024
- 5 -
Share capital
Share premium account
Revaluation reserve
Retained earnings
Total
Notes
£
£
£
£
£
Balance at 31 March 2022
500,000
236,997
6,221,320
22,837
6,981,154
Year ended 30 March 2023:
Profit and total comprehensive income
-
-
-
22,217
22,217
Dividends
-
-
-
(91,000)
(91,000)
Balance at 30 March 2023
500,000
236,997
6,221,320
(45,946)
6,912,371
Year ended 30 March 2024:
Profit and total comprehensive income
-
-
-
119,032
119,032
Dividends
-
-
-
(60,000)
(60,000)
Balance at 30 March 2024
500,000
236,997
6,221,320
13,086
6,971,403
DREWHAVEN LIMITED
STATEMENT OF CHANGES IN EQUITY (CONTINUED)
FOR THE YEAR ENDED 30 MARCH 2024
- 6 -
1
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.
2
Accounting policies
Company information
Drewhaven Limited is a private company limited by shares incorporated in England and Wales. The registered office is 5th Floor, Watson House, 54-60 Baker Street, London, United Kingdom, W1U 7BU.
2.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, [modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.
2.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
2.3
Revenue
Revenue is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT.
.
2.4
Property, plant and equipment
Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
2% on a straight line basis
Fixtures and fittings
25% on a reducing balance basis
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.
DREWHAVEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 MARCH 2024
2
Accounting policies
(Continued)
- 7 -
2.5
Impairment of non-current assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
2.6
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
2.7
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 statement of financial position 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 trade and other receivables 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.
DREWHAVEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 MARCH 2024
2
Accounting policies
(Continued)
- 8 -
Basic financial liabilities
Basic financial liabilities, including trade and other payables, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade payables 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
2.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.
2.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
DREWHAVEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 MARCH 2024
2
Accounting policies
(Continued)
- 9 -
2.10
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or non-current assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
2.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
26
20
4
Property, plant and equipment
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost or valuation
At 31 March 2023
10,664,981
1,584,360
12,249,341
Additions
69,410
170,361
239,771
At 30 March 2024
10,734,391
1,754,721
12,489,112
Depreciation and impairment
At 31 March 2023
1,644,553
1,377,810
3,022,363
Depreciation charged in the year
55,463
94,228
149,691
At 30 March 2024
1,700,016
1,472,038
3,172,054
Carrying amount
At 30 March 2024
9,034,375
282,683
9,317,058
At 30 March 2023
9,020,429
206,550
9,226,979
The freehold land at 14 Pembridge Square, Notting Hill, London has been pledged to secure borrowings of the company. The company is not allowed to pledge this asset as security for other borrowings or to sell them to another entity.
DREWHAVEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 MARCH 2024
4
Property, plant and equipment
(Continued)
- 10 -
The hotels situated at 14 Queensbury Place and 96 Redcliffe Gardens in London are in the names of the directors. The directors have set up a Trust Deed confirming they are holding these properties in trust for the company and this interest will be registered at Land Registry. The Trust Deed was signed on 26 November 2015.
Land and buildings with a carrying amount of £9,034,375 ( 2023 £9,020,429) were revalued at by the director in 2014.
The historical cost is set out below
2024
2023
£
£
Cost
4,518,822
4,449,412
Accumulated depreciation
(1,700,016)
(1,644,553)
Carrying value
2,818,806
2,804,859
5
Trade and other receivables
2024
2023
Amounts falling due within one year:
£
£
Other receivables
18,951
16,571
6
Current liabilities
2024
2023
£
£
Bank loans and overdrafts
903,359
920,543
Trade payables
27,544
40,073
Corporation tax
41,906
1,405
Other taxation and social security
59,244
59,050
Other payables
97,922
57,207
1,129,975
1,078,278
The bank has a Debenture creating a fixed and floating charge over the company, a Legal Mortgage and a First Legal Charge over the freehold property at 14 Pembridge Square, London W2 4EH. The Legal Mortgage contains a fixed charge and a negative pledge. The bank also has a fixed and floating charge over the undertaking.
7
Non-current liabilities
2024
2023
£
£
Bank loans and overdrafts
49,893
DREWHAVEN LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 MARCH 2024
- 11 -
8
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary A shares of £1 each
250,000
250,000
250,000
250,000
Ordinary B shares of £1 each
250,000
250,000
250,000
250,000
500,000
500,000
500,000
500,000
9
Directors' transactions
Dividends totalling £78,840 (2023 - £91,000) were paid in the year in respect of the A Ordinary shares held by the company's directors.
Description
% Rate
Opening balance
Amounts advanced
Amounts repaid
Closing balance
£
£
£
£
Directors loan account
-
(9,960)
(70,040)
70,000
(10,000)
Directors loan account
-
(1,800)
(8,200)
-
(10,000)
(11,760)
(78,240)
70,000
(20,000)
10
Parent company
The company was under the control of Dr M S Sohi and Mrs S K Sohi throughout the current period and previous year.