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REGISTERED NUMBER: 10702111 (England and Wales)















STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2024

FOR

QUEENS HOTEL (PORTSMOUTH) LIMITED

QUEENS HOTEL (PORTSMOUTH) LIMITED (REGISTERED NUMBER: 10702111)

CONTENTS OF THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024










Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 6

Statement of Income and Retained Earnings 9

Balance Sheet 10

Notes to the Financial Statements 11


QUEENS HOTEL (PORTSMOUTH) LIMITED

COMPANY INFORMATION
FOR THE YEAR ENDED 31 MARCH 2024







DIRECTORS: F Yeganeh
P Stewart
T Schwerdtfeger





REGISTERED OFFICE: The Queens Hotel Osborne Road
Clarence Parade
Portsmouth
PO5 3LJ





REGISTERED NUMBER: 10702111 (England and Wales)





AUDITORS: Lewis Brownlee (Chichester) Limited
Chartered Accountants
Statutory Auditors
Appledram Barns
Birdham Road
Chichester
West Sussex
PO20 7EQ

QUEENS HOTEL (PORTSMOUTH) LIMITED (REGISTERED NUMBER: 10702111)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024


The directors present their strategic report for the year ended 31 March 2024.

REVIEW OF BUSINESS
The principal activity of the company is the operation of The Queens Hotel, a three star (aspiring 4 star), 74-bedroom Victorian hotel, located in Southsea on the South Coast of England.

Turnover for the year for the hotel was £4.14m, an increase of 17% on the previous year.

Average occupancy rates of rooms during the year were 61% (2023: 54%).

Adjusted EBITDA for the year was £605k (2023: £291k).

The hotel has now been fully refurbished, with just the currently vacant 4th floor remaining unused. A period of trading consolidation is underway, while options surrounding this are decided upon.

PRINCIPAL RISKS AND UNCERTAINTIES
The management of the business and execution of the company's strategy are subject to a number of risks. The key business risks and uncertainties affecting the company are considered to relate to competitor activity, market trends and forecasts and customer behaviour. These risks are addressed by the board undertaking regular strategic reviews including assessments of competitor activity and pricing and by focusing on investment in training and development of staff and their long-term retention within the Company. We have a flexible workforce, providing us with flexibility to draw on extra staff or conversely, reduce staff presence to counteract occupancy levels. As we provide non-residency facilities for events such as weddings, conferences and fine dining we can call upon external security teams to provide reassurance to attendees and protect our licence, have CCTV systems in place to discourage inappropriate behaviour and number plate recognition in our car park which visitors log in upon arrival.

KEY PERFORMANCE INDICATORS
The company's KPIs included the following, and are monitored on a monthly basis:

- Turnover: performance is compared with prior year and current year forecast.
- Occupancy %: performance is compared with prior year and current year forecast.
- Average Room Rate (ARR): accommodation income for the month, divided by the number of days in the month and
number of rooms (74).
- Revenue Per Available Room (Rev Par): similar to ARR but rooms can be decommissioned at various times, for
various reasons, e.g. maintenance, refurbishment. This KPI provides a higher room rate achieved than ARR.
- Gross Profit %: we set a percentage of return we strive for when deducting cost of sales e.g. direct wages, food and
liquor costs from turnover, and compare this to prior year, current year forecast and competitors / market trends
where available.


QUEENS HOTEL (PORTSMOUTH) LIMITED (REGISTERED NUMBER: 10702111)

STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024

OTHER INFORMATION AND EXPLANATIONS
Environment
The company recognises its corporate responsibility to carry out its operations whilst minimising environmental impacts.

Health and Safety
The safety of our staff and customers is of paramount importance to the company. We are committed to and strive to achieve the highest practicable standards.

Dividends
As in previous years, a dividend has not been paid to shareholders. Retained profits have been reinvested into the company.

Future Developments
Future plans for the 4th floor of the hotel have yet to be decided.

ON BEHALF OF THE BOARD:





F Yeganeh - Director


22 November 2024

QUEENS HOTEL (PORTSMOUTH) LIMITED (REGISTERED NUMBER: 10702111)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 MARCH 2024


The directors present their report with the financial statements of the company for the year ended 31 March 2024.

DIVIDENDS
No dividends will be distributed for the year ended 31 March 2024.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 April 2023 to the date of this report.

F Yeganeh
P Stewart
T Schwerdtfeger

FINANCIAL INSTRUMENTS
The company has a normal level of exposure to price, credit, liquidity and cash flow risks arising from trading activities which are conducted in sterling only. The company does not enter into any formally designated hedging arrangements.

The company operates policies to ensure there is sufficient liquidity and cash with regular reviews of the cash position to ensure the company is able to cover its interest and capital payments.

DISCLOSURE IN THE STRATEGIC REPORT
The company has chosen in accordance with the Companies Act 2006 to set out in the company's strategic report information required by Schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 to be contained in the directors' report. It has done so in respect of future developments.

DIRECTORS' RESPONSIBILITIES STATEMENT
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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

QUEENS HOTEL (PORTSMOUTH) LIMITED (REGISTERED NUMBER: 10702111)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 31 MARCH 2024


AUDITORS
Lewis Brownlee (Chichester) Limited were appointed auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

ON BEHALF OF THE BOARD:





F Yeganeh - Director


22 November 2024

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
QUEENS HOTEL (PORTSMOUTH) LIMITED


Opinion
We have audited the financial statements of Queens Hotel (Portsmouth) Limited (the 'company') for the year ended 31 March 2024 which comprise the Statement of Income and Retained Earnings, 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 company'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.

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 other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

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
QUEENS HOTEL (PORTSMOUTH) LIMITED


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 Directors' Responsibilities Statement set out on page four, 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.

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.

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 extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities
and skills to identify or recognise non-compliance with applicable laws and regulations;
- we identified the laws and regulations applicable to the company through discussions with directors and other
management, and from our commercial knowledge and experience of the sector;
- we focused on specific laws and regulations which we considered may have a direct material effect on the financial
statements or the operations of the company, including legislation such as the Companies Act 2006, taxation
legislation, data protection, employment, environmental and health and safety legislation;
- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of
management and inspecting legal correspondence; and
- identified laws and regulations were communicated within the audit team regularly and the team remained alert to
instances of non-compliance throughout the audit.

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of
actual, suspected and alleged fraud; and
- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
QUEENS HOTEL (PORTSMOUTH) LIMITED


To address the risk of fraud through management bias and override of controls, we:

- performed analytical procedures to identify any unusual or unexpected relationships;
- tested journal entries to identify unusual transactions;
- assessed whether judgements and assumptions made in determining the accounting estimates set out in the
accounting policies were indicative of potential bias; and
- investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

- agreeing financial statement disclosures to underlying supporting documentation;
- reading the minutes of meetings of those charged with governance, where applicable;
- enquiring of management as to actual and potential litigation and claims; and
- reviewing correspondence with HMRC, relevant regulators and the company’s legal advisors.

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

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our 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.




Sam Ede BFP FCA FCCA (Senior Statutory Auditor)
for and on behalf of Lewis Brownlee (Chichester) Limited
Chartered Accountants
Statutory Auditors
Appledram Barns
Birdham Road
Chichester
West Sussex
PO20 7EQ

22 November 2024

QUEENS HOTEL (PORTSMOUTH) LIMITED (REGISTERED NUMBER: 10702111)

STATEMENT OF INCOME AND
RETAINED EARNINGS
FOR THE YEAR ENDED 31 MARCH 2024

2024 2023
Notes £ £

TURNOVER 3 4,140,650 3,536,712

Cost of sales 2,808,340 2,608,676
GROSS PROFIT 1,332,310 928,036

Administrative expenses 994,292 1,051,631
OPERATING PROFIT/(LOSS) 5 338,018 (123,595 )

Interest receivable and similar income 2,461 62
340,479 (123,533 )

Interest payable and similar expenses 6 223,341 141,916
PROFIT/(LOSS) BEFORE TAXATION 117,138 (265,449 )

Tax on profit/(loss) 7 29,285 (120,641 )
PROFIT/(LOSS) FOR THE FINANCIAL
YEAR

87,853

(144,808

)

Retained earnings at beginning of year 915,535 1,060,343

RETAINED EARNINGS AT END OF YEAR 1,003,388 915,535

QUEENS HOTEL (PORTSMOUTH) LIMITED (REGISTERED NUMBER: 10702111)

BALANCE SHEET
31 MARCH 2024

2024 2023
Notes £ £ £ £
FIXED ASSETS
Tangible assets 8 5,005,716 5,238,482

CURRENT ASSETS
Stocks 9 41,451 29,893
Debtors 10 380,596 416,140
Cash at bank and in hand 164,563 73,309
586,610 519,342
CREDITORS
Amounts falling due within one year 11 4,530,504 4,733,855
NET CURRENT LIABILITIES (3,943,894 ) (4,214,513 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

1,061,822

1,023,969

CREDITORS
Amounts falling due after more than one year 12 58,334 108,334
NET ASSETS 1,003,488 915,635

CAPITAL AND RESERVES
Called up share capital 15 100 100
Retained earnings 1,003,388 915,535
SHAREHOLDERS' FUNDS 1,003,488 915,635

The financial statements were approved by the Board of Directors and authorised for issue on 22 November 2024 and were signed on its behalf by:





F Yeganeh - Director


QUEENS HOTEL (PORTSMOUTH) LIMITED (REGISTERED NUMBER: 10702111)

NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024


1. STATUTORY INFORMATION

Queens Hotel (Portsmouth) Limited 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.

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 £.

Going concern
The financial statements have been prepared on a going concern basis.

The company made a profit during the year, in contrast to the loss made last year. This is in line with the directors' strategic plans of investing into the company to improve the hotel and its activities to increase revenue levels and therefore profitability.

The company does have significant net assets to support continued trading.

The company is reliant on the continued support of its bankers. The arrangement for £2,864,000 of the £2,972,334 in bank loans reported in these financial statements expires in January 2025. The directors are pleased to report that, after the balance sheet date, the company has secured a new long term finance arrangement with its bankers.

The directors are of the opinion that the company can continue to trade on its own merit, but they remain fully committed through their desire and ability financially to support the company if required.

Having taken all of the above into consideration, assessing cash reserves at the time these financial statements are approved and preparing financial modelling scenarios together with accessing the external financing available post year end, the directors are of the opinion that the going concern basis remains applicable for at least 12 months following the date of approval of the financial statements.

Financial Reporting Standard 102 - reduced disclosure exemptions
The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows.

Related party exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Turnover
Turnover represents the amounts (excluding value added tax) derived from the provision of services to customers during the year. Turnover in respect of accommodation is recognised overnight during each night the customer stays. Other sales, including restaurant and bar revenue, are recognised at the point of purchase by the customer.

QUEENS HOTEL (PORTSMOUTH) LIMITED (REGISTERED NUMBER: 10702111)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2024


2. ACCOUNTING POLICIES - continued

Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost, 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.
Land and buildings- 2% on cost
Plant and machinery- 33% on cost and 10% on reducing balance

Assets under construction are not depreciated until they are brought into use.

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

Borrowing costs
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.

All other borrowing costs are recognised in profit or loss in the period in which they are incurred.

Financial instruments
Financial instruments are classified by the directors as basic or advanced following the conditions in FRS 102 Section 11. Basic financial instruments are recognised at amortised cost using the effective interest method, unless the effect of discounting would be immaterial, in which case they are stated at cost. The company has no advanced financial instruments.

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.

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.

QUEENS HOTEL (PORTSMOUTH) LIMITED (REGISTERED NUMBER: 10702111)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2024


2. ACCOUNTING POLICIES - continued

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 fixed 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.

3. TURNOVER

The turnover and profit (2023 - loss) before taxation are attributable to the one principal activity of the company.

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

2024 2023
£ £
Hotel and event services 1,800,199 1,609,978
Food and drink 2,340,451 1,926,734
4,140,650 3,536,712

4. EMPLOYEES AND DIRECTORS
2024 2023
£ £
Wages and salaries 1,650,803 1,525,328
Social security costs 103,180 100,657
Other pension costs 21,971 23,188
1,775,954 1,649,173

The average number of employees during the year was as follows:
2024 2023

Management 2 2
Housekeeping 25 22
Front of house 6 6
Food and beverage 44 42
Kitchen 21 19
Maintenance 2 2
Nights 3 3
Sales and marketing 6 6
109 102

2024 2023
£ £
Directors' remuneration - -

QUEENS HOTEL (PORTSMOUTH) LIMITED (REGISTERED NUMBER: 10702111)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2024


5. OPERATING PROFIT/(LOSS)

The operating profit (2023 - operating loss) is stated after charging:

2024 2023
£ £
Depreciation - owned assets 241,325 254,664
Audit fees 11,700 11,700

Auditors' remuneration for non-audit fees was £2,000 (2023: £2,000).

6. INTEREST PAYABLE AND SIMILAR EXPENSES
2024 2023
£ £
Bank loan interest 223,341 141,916

7. TAXATION

Analysis of the tax charge/(credit)
The tax charge/(credit) on the profit for the year was as follows:
2024 2023
£ £
Deferred tax 29,285 (120,641 )
Tax on profit/(loss) 29,285 (120,641 )

UK corporation tax has been charged at 25% .

Reconciliation of total tax charge/(credit) included in profit and loss
The tax assessed for the year is the same as the standard rate of corporation tax in the UK.

2024 2023
£ £
Profit/(loss) before tax 117,138 (265,449 )
Profit/(loss) multiplied by the standard rate of corporation tax in the UK of
25% (2023 - 19%)

29,285

(50,435

)

Effects of:
Expenses not deductible for tax purposes - 9,165
Change in deferred tax assets - (79,371 )
Total tax charge/(credit) 29,285 (120,641 )

QUEENS HOTEL (PORTSMOUTH) LIMITED (REGISTERED NUMBER: 10702111)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2024


8. TANGIBLE FIXED ASSETS
Assets
Freehold Plant and under
property machinery construction Totals
£ £ £ £
COST
At 1 April 2023 3,100,000 2,367,681 723,459 6,191,140
Additions - 63,084 3,475 66,559
Disposals - - (58,000 ) (58,000 )
At 31 March 2024 3,100,000 2,430,765 668,934 6,199,699
DEPRECIATION
At 1 April 2023 289,333 663,325 - 952,658
Charge for year 62,000 179,325 - 241,325
At 31 March 2024 351,333 842,650 - 1,193,983
NET BOOK VALUE
At 31 March 2024 2,748,667 1,588,115 668,934 5,005,716
At 31 March 2023 2,810,667 1,704,356 723,459 5,238,482

During the year borrowing costs of £Nil (2023: £154,129) have been capitalised into fixed assets. At the balance sheet date borrowing costs of £154,129 (2023: £154,129) are included in assets under construction.

The fixed assets of the company are pledged as security on a bank loan as detailed in the secured debts note.

9. STOCKS
2024 2023
£ £
Stocks 41,451 29,893

10. DEBTORS
2024 2023
£ £
Amounts falling due within one year:
Trade debtors 10,429 31,550
Other debtors 229,160 72,801
Prepayments and accrued income 44,525 46,022
284,114 150,373

Amounts falling due after more than one year:
Deferred taxation 96,482 265,767

Aggregate amounts 380,596 416,140

The deferred tax debtor, due within and after more than one year, of £236,482 (2023: £265,767) comprises £567,835 (2023: £637,475) in relation to tax losses carried forward to future periods offset by deferred tax liabilities of £247,105 (2023: £263,650) for accelerated capital allowances and £84,248 (2023: £108,058) for chargeable gains on property held in fixed assets that would become due if the property was sold.

QUEENS HOTEL (PORTSMOUTH) LIMITED (REGISTERED NUMBER: 10702111)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2024


11. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£ £
Bank loans and overdrafts (see note 13) 2,914,000 3,071,033
Trade creditors 154,778 155,634
Amounts owed to group undertakings 920,000 1,036,000
Social security and other taxes 22,329 22,613
VAT 110,577 80,328
Other creditors 366,721 329,272
Pension creditor 5,491 4,578
Accruals and deferred income 36,608 34,397
4,530,504 4,733,855

12. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2024 2023
£ £
Bank loans (see note 13) 58,334 108,334

13. LOANS

An analysis of the maturity of loans is given below:

2024 2023
£ £
Amounts falling due within one year or on demand:
Bank loans 2,914,000 3,071,033

Amounts falling due between one and two years:
Bank loans - 1-2 years 50,000 50,000

Amounts falling due between two and five years:
Bank loans - 2-5 years 8,334 58,334

Bank loans of £2,864,000 are repayable in January 2025. See the disclosures in the accounting policies for going concern regarding the renewal of these facilities.

Bank loans of £108,334 are repayable by equal monthly instalments over a total period of 6 years with no repayments in the first year and interest charged at 4.29% above the base rate.

14. SECURED DEBTS

The following secured debts are included within creditors:

2024 2023
£ £
Bank loans 2,972,334 3,179,367

Bank loans are secured by a charge over The Queens Hotel, 2 Osborne Road, Southsea, P05 3LJ on the bank's standard form dated 30 July 2018 and a fixed and floating charge against all assets held by the company dated 10 July 2018.

QUEENS HOTEL (PORTSMOUTH) LIMITED (REGISTERED NUMBER: 10702111)

NOTES TO THE FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 31 MARCH 2024


15. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £ £
100 Ordinary 1 100 100

The company has one class of ordinary shares which carry no right to fixed income. The shareholders are entitled to one vote per share at meetings of the company. All shares rank equally with regard to the company's residual assets.

16. RELATED PARTY DISCLOSURES

During the year, the company made purchases of £1,175 (2023: £90,099) from an entity under significant influence of a shareholder and director of the company. At the balance sheet date, the amount owed by the company was £Nil (2023: £205).

During the year, the company made purchases of £22,912 (2023: £26,809) from, and recharged £486 (2023: £3,268) to an entity under significant influence of a shareholder and director of the company. The company also received customer deposits of £Nil (2023: £18,372) from the entity. At the balance sheet date the company owed the entity £Nil (2023: £12,580) and the entity owed the company £Nil (2023: £886).

During the year, the company recharged £131,924 (2023: £Nil) to the joint venture of another group company.

Key management personnel compensation was £Nil (2023: £Nil).

17. PARENT COMPANY

The immediate and ultimate parent undertaking is 104 Limited, a company incorporated in England and Wales.

The company’s results are included in the consolidated accounts of 104 Limited. The registered office of 104 Limited is The Queens Hotel, Clarence Parade, Southsea, Hampshire, P05 3LJ, from which copies of the accounts can be obtained.