REGISTERED NUMBER: |
Report of the Members and |
Financial Statements for the Year Ended 31 March 2024 |
for |
Trident Hotels (South Lakes) Investments |
LLP |
REGISTERED NUMBER: |
Report of the Members and |
Financial Statements for the Year Ended 31 March 2024 |
for |
Trident Hotels (South Lakes) Investments |
LLP |
Trident Hotels (South Lakes) Investments |
LLP (Registered number: OC414282) |
Contents of the Financial Statements |
for the Year Ended 31 March 2024 |
Page |
General Information | 1 |
Report of the Members | 2 |
Report of the Independent Auditors | 4 |
Income Statement | 7 |
Balance Sheet | 8 |
Notes to the Financial Statements | 9 |
Trident Hotels (South Lakes) Investments |
LLP |
General Information |
for the Year Ended 31 March 2024 |
DESIGNATED MEMBERS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditor |
The Copper Room |
Deva City Office Park |
Trinity Way |
Manchester |
M3 7BG |
Trident Hotels (South Lakes) Investments |
LLP (Registered number: OC414282) |
Report of the Members |
for the Year Ended 31 March 2024 |
The members present their report with the financial statements of the LLP for the year ended 31 March 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the LLP in the year under review was that of hotel property investment. |
REVIEW OF BUSINESS |
The LLP has continued to hold its property investment in the Holiday Inn Express Barrow in Furness Hotel which opened in December 2019 and the hotel is operated by its subsidiary company, Trident Hotels (South Lakes) 1 Ltd. |
The hotel's trading performance improved significantly year on year even though energy costs were nearly 20% higher. Room revenues increased by more than 11% benefitting from strong corporate demand on key weekday nights and increases in corporate room rates. Room hire and food and beverage revenues also grew strongly. |
During the year the LLP continued to make its scheduled capital repayments on the Coutts senior debt, made an additional amortisation payment of £560,000 in December 2023 and agreed increased quarterly amortisation payments. |
The forecasts for 2024-25 show the hotel achieving a further increase in operating profits. |
DESIGNATED MEMBERS |
The designated members during the year under review were: |
RESULTS FOR THE YEAR AND ALLOCATION TO MEMBERS |
The profit for the year before members' remuneration and profit shares was £236,200 (2023 - £1,873,677 loss). |
MEMBERS' INTERESTS |
In the year members introduced new funds amounting to £460,000 to enable an additional amortisation payment of £560,000 to be made against the senior debt. |
There have been no withdrawals by members in the current or prior years. |
STATEMENT OF MEMBERS' RESPONSIBILITIES |
The members are responsible for preparing the Report of the Members and the financial statements in accordance with applicable law and regulations. |
Legislation applicable to limited liability partnerships requires the members to prepare financial statements for each financial year. Under that law the members have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under legislation applicable to limited liability partnerships the members 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 LLP and of the profit or loss of the LLP for that period. In preparing these financial statements, the members 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 LLP will continue in business. |
The members are responsible for keeping adequate accounting records that are sufficient to show and explain the LLP's transactions and disclose with reasonable accuracy at any time the financial position of the LLP and enable them to ensure that the financial statements comply with the Companies Act 2006 as applied to LLPs by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008. They are also responsible for safeguarding the assets of the LLP and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
Trident Hotels (South Lakes) Investments |
LLP (Registered number: OC414282) |
Report of the Members |
for the Year Ended 31 March 2024 |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the members are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the LLP's auditors are unaware, and each member has taken all the steps that he or she ought to have taken as a member in order to make himself or herself aware of any relevant audit information and to establish that the LLP's auditors are aware of that information. |
AUDITORS |
The auditors, Royce Peeling Green Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE MEMBERS: |
Report of the Independent Auditors to the Members of |
Trident Hotels (South Lakes) Investments |
LLP |
Opinion |
We have audited the financial statements of Trident Hotels (South Lakes) Investments LLP (the 'LLP') for the year ended 31 March 2024 which comprise the Income Statement, Balance Sheet and 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 LLP's affairs as at 31 March 2024 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 as applied to LLPs by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008. |
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 LLP 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 members' 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 LLP'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 members with respect to going concern are described in the relevant sections of this report. |
Other information |
The members are responsible for the other information. The other information comprises the information in the Report of the Members, 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. |
Matters on which we are required to report by exception |
We have nothing to report in respect of the following matters where the Companies Act 2006 as applied to LLPs 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 |
- | we have not received all the information and explanations we require for our audit; or |
- | the members were not entitled to prepare the financial statements in accordance with the small LLPs regime. |
Report of the Independent Auditors to the Members of |
Trident Hotels (South Lakes) Investments |
LLP |
Responsibilities of members |
As explained more fully in the Statement of Members' Responsibilities set out on page two, the members 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 members 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 members are responsible for assessing the LLP'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 members either intend to liquidate the LLP or to cease operations, or have no realistic alternative but to do so. |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
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. The specific procedures for this engagement and the extent to which these are capable of detecting irregularities, including fraud, are detailed below: |
- At the planning stage of the audit we gain an understanding of the laws and regulations which apply to the company and how management seek to comply with them. This helps us to make appropriate risk assessments. |
- During the audit we focus on relevant risk areas and review compliance with laws and regulations through making relevant enquiries and corroboration by, for example, reviewing Board Minutes and other documentation. |
- We assess the risk of material misstatement in the financial statements including as a result of fraud and undertake procedures such as: |
I. Review of controls set in place by management |
II. Enquiry of management as to whether they consider fraud or other irregularities may have occurred or where such opportunity might exist |
III. Challenge of management assumptions with regard to accounting estimates |
IV. Identification and testing of journal entries, particularly those which may appear to be unusual by size or nature. |
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 are 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 FRC's website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Report of the Independent Auditors to the Members of |
Trident Hotels (South Lakes) Investments |
LLP |
Use of our report |
This report is made solely to the LLP's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 as applied to LLPs by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008. Our audit work has been undertaken so that we might state to the LLP'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 LLP and the LLP's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Statutory Auditor |
The Copper Room |
Deva City Office Park |
Trinity Way |
Manchester |
M3 7BG |
Trident Hotels (South Lakes) Investments |
LLP (Registered number: OC414282) |
Income Statement |
for the Year Ended 31 March 2024 |
31.3.24 | 31.3.23 |
Notes | £ | £ |
TURNOVER |
Administrative expenses | ( |
) | ( |
) |
OPERATING PROFIT/(LOSS) | 5 | ( |
) |
Interest payable and similar expenses | 6 | ( |
) | ( |
) |
PROFIT/(LOSS) FOR THE FINANCIAL YEAR BEFORE MEMBERS' REMUNERATION AND PROFIT SHARES AVAILABLE FOR DISCRETIONARY DIVISION AMONG MEMBERS |
( |
) |
Trident Hotels (South Lakes) Investments |
LLP (Registered number: OC414282) |
Balance Sheet |
31 March 2024 |
31.3.24 | 31.3.23 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 8 |
Investments | 9 |
Investment property | 10 |
CURRENT ASSETS |
Debtors | 11 |
CREDITORS |
Amounts falling due within one year | 12 |
NET CURRENT (LIABILITIES)/ASSETS | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
13 |
NET ASSETS ATTRIBUTABLE TO MEMBERS |
3,957,843 |
3,261,643 |
LOANS AND OTHER DEBTS DUE TO MEMBERS |
- |
- |
MEMBERS' OTHER INTERESTS |
Capital accounts | 3,957,843 | 3,261,643 |
3,957,843 | 3,261,643 |
TOTAL MEMBERS' INTERESTS |
Members' other interests | 3,957,843 | 3,261,643 |
The financial statements were approved by the members of the LLP and authorised for issue on |
Trident Hotels (South Lakes) Investments |
LLP (Registered number: OC414282) |
Notes to the Financial Statements |
for the Year Ended 31 March 2024 |
1. | STATUTORY INFORMATION |
Trident Hotels (South Lakes) Investments LLP is registered in England and Wales. The LLP's registered number and registered office address can be found on the General Information page. |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | STATEMENT OF COMPLIANCE |
3. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Preparation of consolidated financial statements |
The financial statements contain information about Trident Hotels (South Lakes) Investments LLP as an individual LLP and do not contain consolidated financial information as the parent of a group. The LLP has taken the option under Section 398 of the Companies Act 2006 as applied to LLPs by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008 not to prepare consolidated financial statements. |
Significant judgements and estimates |
In the application of the partnership's accounting policies, the designated members 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 upon historical experiences 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. |
Going concern |
The designated members in consultation with the general manager and hotel management company have prepared financial projections for the 2024/25 which show a satisfactory cash flow position for the financial period for both the trading hotel and the property owning partnership. |
The designated members are satisfied that the above enables the partnership and subsidiary company to continue trading and developing its operations for the foreseeable future and to meet its liabilities and contractual commitments as they fall due, subject to the ongoing support of its lenders until the expected renewal of facilities in July 2025. The designated members have therefore prepared the financial statements on a going concern basis. |
Turnover |
Turnover represents income in respect of rent receivable from the subsidiary undertaking under the terms of the lease agreement, excluding VAT. The rent varies from year to year dependent upon the financial results of the subsidiary. Turnover is recognised on a monthly basis and finalised on approval of the annual results of the subsidiary. |
Trident Hotels (South Lakes) Investments |
LLP (Registered number: OC414282) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2024 |
3. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Plant and machinery | - |
Computer equipment | - |
Investments in subsidiaries |
Investments in subsidiary undertakings are recognised at cost. |
Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss. A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities. |
Impairment of fixed assets |
At each reporting period end date, the partnership reviews the carrying amounts of its tangible and intangible 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 been adjusted. |
Investment property |
Investment property is shown at fair value. The construction of the hotel was completed in November 2019 and the hotel opened in December 2019. In the previous years accounts a valuation adjustment was reflected based upon a desktop valuation provided by third party valuers. At the year end date the designated members have considered the accounts value of the hotel and believe that no further adjustment to the carrying value is necessary. |
Any aggregate surplus or deficit arising from changes in fair value is recognised in profit and loss account. |
Liability limitation agreement |
The partnership has entered into a liability limitation agreement with Royce Peeling Green Limited, the statutory auditor, in respect of the statutory audit for the year ended 31st March 2024. The proportionate liability agreement follows the standard terms in Appendix B to the Financial Reporting Council's June 2008 Guidance on Auditor Liability Agreements, and has been approved by the shareholders. |
4. | EMPLOYEE INFORMATION |
There were no staff costs for the year ended 31 March 2024 nor for the year ended 31 March 2023. |
The average number of employees during the year was NIL (2023 - NIL). |
5. | OPERATING PROFIT/(LOSS) |
The operating profit (2023 - operating loss) is stated after charging: |
31.3.24 | 31.3.23 |
£ | £ |
Depreciation - owned assets |
Trident Hotels (South Lakes) Investments |
LLP (Registered number: OC414282) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2024 |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
31.3.24 | 31.3.23 |
£ | £ |
Bank interest |
Bank loan interest |
Mezzanine loan interest |
7. | INFORMATION IN RELATION TO MEMBERS |
31.3.24 | 31.3.23 |
The average number of members during the year was | 10 | 10 |
8. | TANGIBLE FIXED ASSETS |
Plant and | Computer |
machinery | equipment | Totals |
£ | £ | £ |
COST |
At 1 April 2023 |
Additions |
At 31 March 2024 |
DEPRECIATION |
At 1 April 2023 |
Charge for year |
At 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 March 2023 |
9. | FIXED ASSET INVESTMENTS |
Shares in |
group |
undertakings |
£ |
COST |
At 1 April 2023 |
and 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 March 2023 |
Trident Hotels (South Lakes) Investments |
LLP (Registered number: OC414282) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2024 |
9. | FIXED ASSET INVESTMENTS - continued |
The LLP's investments at the Balance Sheet date in the share capital of companies include the following: |
Registered office: England and Wales |
Nature of business: |
% |
Class of shares: | holding |
31.3.24 | 31.3.23 |
£ | £ |
Aggregate capital and reserves | ( |
) | ( |
) |
Profit/(loss) for the year | ( |
) |
10. | INVESTMENT PROPERTY |
Total |
£ |
FAIR VALUE |
At 1 April 2023 |
Additions |
At 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 March 2023 |
The hotel construction was completed by November 2019 and the hotel opened in early December 2019. |
The hotel is operated by a wholly owned subsidiary company Trident Hotels (South Lakes) 1 Limited and the LLP receives a rental return based upon operating returns of the hotel company. |
At the previous year end date the designated members of the LLP have obtained a desktop valuation provided by Avison Young of the property which placed the value at £10,500,000. The carrying value of the property has been impaired by a provision of £2,057,902. |
Fair value at 31 March 2024 is represented by: |
£ |
Valuation in 2023 | 10,500,000 |
Cost | 226,608 |
10,726,608 |
11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.3.24 | 31.3.23 |
£ | £ |
Amounts owed by group undertakings |
Prepayments |
Trident Hotels (South Lakes) Investments |
LLP (Registered number: OC414282) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2024 |
12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
31.3.24 | 31.3.23 |
£ | £ |
Bank loans and overdrafts |
Amounts owed to participating interests | 57,171 | 33,459 |
VAT | 23,681 | 24,050 |
Other creditors |
Accruals and deferred income |
13. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
31.3.24 | 31.3.23 |
£ | £ |
Bank loans - 1-2 years |
Bank loans - 2-5 years |
Other loans - 2-5 years |
14. | SECURED DEBTS |
The following secured debts are included within creditors: |
31.3.24 | 31.3.23 |
£ | £ |
Bank overdrafts |
Bank loans |
Loans |
The LLP has maintained the loan facilities provided by Coutts & Company to assist in the funding of the construction of the hotel. The loan facility is fully secured by a fixed charge on the investment property and in the first trading period drawdown requests utilised the total facility of £7,300,000. Loan repayments commenced in December 2021 and the loan is fully repayable in July 2025. In the year the LLP agreed an additional amortisation payment of £560,000 and increases in the quarterly amortisation payments. During the year interest on the loan was charged at fixed rate of 3.473%. The members are in discussion with the existing lender and other third parties regarding securing replacement loan facilities to be in place when the existing loan is fully repayable. |
The other loan has been provided by a related undertaking, Ashall Projects (Barrow) Limited, and is fully secured by a fixed and floating charge on the investment property. In the year an additional loan advance of £202,500 has been made to assist in the funding of fit out of a meeting room at the hotel. The interest rate on the original loan was at 5% per annum on the new loan at 8% per annum. The loan agreement provides that at least 50% of the interest is settled with any unsettled interest added to the loan balance, no amounts have been settled in the year. |
Trident Hotels (South Lakes) Investments |
LLP (Registered number: OC414282) |
Notes to the Financial Statements - continued |
for the Year Ended 31 March 2024 |
15. | RELATED PARTY DISCLOSURES |
Trident Hotels (South Lakes) 1 Limited |
Subsidiary of the limited liability partnership |
In the year the long lease of the hotel property with Trident Hotels (South Lakes) 1 Limited (the subsidiary undertaking) has continued. Rent of £607,500 (2023 £576,000) was due in the year and at the year end £Nil (2023 £48,000) remained outstanding. |
In the year the company made working capital repayments of £115,195 (2023 LLP advanced working capital loans of £32,595). |
At the year end date the total amount outstanding amounted to £440,948 (2023 £556,143). |
Ashall Projects (Barrow) Limited |
A subsidiary of Ashall Projects Limited, a member of the limited liability partnership and of which one of the designated members, Mr A M Ashall is a director and ultimate controlling shareholder. |
The company has provided mezzanine finance at interest rates of 5% and 8% and the loan outstanding at the year end date amounted to £940,047 (2023 £692,154) and interest charges amounted to £45,734 (2023 £33,156). |
The partnership is paying ground rent in relation to the hotel freehold to the company and in the period rental payments amounted to £75,000 (2023 £75,000). |
In the year the company continued provided interest free advances and at the year end date the amount outstanding amounted to £45,171 (2023 £33,459). |
Preston Brook Management Limited |
A company in which one of the designated members, Mr A M Ashall is a director and ultimate controlling shareholder. |
The company has provided management services in the year and charges amounted to £20,000 (2023 £20,000). At the year end date the amount outstanding was £12,000 (2023 £Nil). |
16. | ULTIMATE CONTROLLING PARTY |
A M Ashall has a controlling interest in the equity of the LLP as a result of the combination of his direct interests and indirect interests through shareholdings interests in Ashall Projects Limited and Ashall Hillside Limited. |