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Registration number: 10667155

Sandy Park Hotel Limited

Annual Report and Financial Statements

for the Period from 1 July 2023 to 31 December 2023

 

Sandy Park Hotel Limited
(Registration number: 10667155)

Contents

Company Information

1

Strategic Report

2

Directors' Report

3 to 4

Statement of Directors' Responsibilities

5

Independent Auditor's Report

6 to 9

Profit and Loss Account

10

Statement of Comprehensive Income

10

Balance Sheet

11

Statement of Changes in Equity

12

Statement of Cash Flows

13

Notes to the Financial Statements

14 to 29

 

Sandy Park Hotel Limited
(Registration number: 10667155)

Company Information

Directors

A G E Rowe CBE Hon LLD

D H Langley

C J Over LLB

M A P Rowe

Registered office

Sandy Park Stadium
Sandy Park Way
Exeter
Devon
EX2 8WA

Auditors

Thompson Jenner LLP
Statutory Auditors
1 Colleton Crescent
Exeter
Devon
EX2 4DG

 

Sandy Park Hotel Limited
(Registration number: 10667155)

Strategic Report for the Period from 1 July 2023 to 31 December 2023

The directors present their strategic report for the period from 1 July 2023 to 31 December 2023.

Principal activity

The principal activity of the company is the operation of Sandy Park Hotel.

Fair review of the business

The board of directors consider that the key financial performance indicators are those that communicate the financial performance and strength of the company as a whole, these being turnover and profit margins.

The company's key financial and other performance indicators during the period were as follows:

Financial KPIs

Unit

31 December 2023

30 June 2023

Turnover

£

3,825,524

5,917,237

Turnover growth *

%

29

74

Gross profit margin

%

50

40

* - Turnover growth has been calculated on a pro-rata basis due to the short period of account for the current period.

Principal risks and uncertainties

The board of directors undertake a regular review of the company have identified that the principal risks faced by Sandy Park Hotel Limited relate to competition and the effects of the current economic climate.

Approved and authorised by the Board on 26 November 2024 and signed on its behalf by:
 

.........................................
A G E Rowe CBE Hon LLD
Director

 

Sandy Park Hotel Limited
(Registration number: 10667155)

Directors' Report for the Period from 1 July 2023 to 31 December 2023

The directors present their report and the financial statements for the period from 1 July 2023 to 31 December 2023.

Directors of the company

The directors who held office during the period were as follows:

A G E Rowe CBE Hon LLD

D H Langley

C J Over LLB

M A P Rowe

K T Northcott (ceased 24 January 2024)

Financial instruments

Objectives and policies

The company's principal financial instruments comprise the bank balance, trade creditors, trade debtor and bank borrowings. The main purpose of these instruments is to raise funds for the company's operations.

Price risk, credit risk, liquidity risk and cash flow risk

The company's approach to managing risks applicable to the financial instruments is shown below.

In respect of the bank balance, the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of bank borrowings at various rates of interest.

Trade debtors are managed in respect of credit and cash flow by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits.

Trade creditors liquidity risk is managed by ensuring that sufficient funds are available to meet amounts due.

Future developments

The directors do not envisage the business of the company changing in the foreseeable future, but continually look for opportunities for further expansion.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

 

Sandy Park Hotel Limited
(Registration number: 10667155)

Directors' Report for the Period from 1 July 2023 to 31 December 2023

Approved and authorised by the Board on 26 November 2024 and signed on its behalf by:
 

.........................................
A G E Rowe CBE Hon LLD
Director

 

Sandy Park Hotel Limited
(Registration number: 10667155)

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities for preparing the Annual Report 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 apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

state whether applicable United Kingdom Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and

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 and in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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.

 

Sandy Park Hotel Limited
(Registration number: 10667155)

Independent Auditor's Report to the Members of Sandy Park Hotel Limited

Opinion

We have audited the financial statements of Sandy Park Hotel Limited (the 'company') for the period from 1 July 2023 to 31 December 2023, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Statement of Cash Flows, 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 December 2023 and of its loss for the period 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 auditor 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 director's 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 original financial statements were 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 included in the annual report, other than the financial statements and our auditor’s report 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.

 

Sandy Park Hotel Limited
(Registration number: 10667155)

Independent Auditor's Report to the Members of Sandy Park Hotel Limited

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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

Opinion on other matter 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 Directors' Report for the financial period for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and Directors' Report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of our 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 and the Directors' Report.

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 5], 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 is 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.

Auditor 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 an auditor’s report 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.

 

Sandy Park Hotel Limited
(Registration number: 10667155)

Independent Auditor's Report to the Members of Sandy Park Hotel Limited

As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit.

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.

The extent to which the audit was considered capable of detecting irregularities including fraud

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 hospitality 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 the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental, fire safety, Licensing Act 2003 and health and safety legislation;

we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management, reviewing licenses, certificates and relevant correspondence including the inspection of 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.

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 were indicative of potential bias; and

investigated the rationale behind significant or unusual transactions.

 

Sandy Park Hotel Limited
(Registration number: 10667155)

Independent Auditor's Report to the Members of Sandy Park Hotel Limited

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;

enquiring of management as to actual and potential litigation and claims; and

reviewing correspondence with HMRC, relevant regulators and the company’s legal advisors.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

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 an auditor’s report 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.

......................................
Mr David Tucker (Senior Statutory Auditor)
For and on behalf of Thompson Jenner LLP, Statutory Auditor

1 Colleton Crescent
Exeter
Devon
EX2 4DG

28 November 2024

 

Sandy Park Hotel Limited
(Registration number: 10667155)

Profit and Loss Account for the Period from 1 July 2023 to 31 December 2023

Note

31 December
2023
£

30 June
2023
£

Turnover

3

3,825,524

5,917,237

Cost of sales

 

(1,927,792)

(3,577,856)

Gross profit

 

1,897,732

2,339,381

Administrative expenses

 

(2,058,225)

(3,614,236)

Other operating income

4

17,732

33,920

Operating loss

5

(142,761)

(1,240,935)

Other interest receivable and similar income

6

573

275

Interest payable and similar expenses

7

(798,655)

(1,193,475)

Loss before tax

 

(940,843)

(2,434,135)

Taxation

10

-

36,488

Loss for the financial period

 

(940,843)

(2,397,647)

The above results were derived from continuing operations.

The company has no recognised gains or losses for the period other than the results above.

Statement of Comprehensive Income for Period from 1 July 2023 to 31 December 2023

31 December
2023
£

30 June
2023
£

Loss for the period

(940,843)

(2,397,647)

Total comprehensive income for the period

(940,843)

(2,397,647)

 

Sandy Park Hotel Limited
(Registration number: 10667155)

Balance Sheet as at 31 December 2023

Note

31 December
2023
£

30 June
2023
£

Fixed assets

 

Tangible assets

11

37,777,911

38,115,954

Current assets

 

Stocks

12

27,321

27,776

Debtors

13

714,041

733,830

Cash at bank and in hand

14

303,026

430,036

 

1,044,388

1,191,642

Creditors: Amounts falling due within one year

15

(15,270,751)

(11,050,768)

Net current liabilities

 

(14,226,363)

(9,859,126)

Total assets less current liabilities

 

23,551,548

28,256,828

Creditors: Amounts falling due after more than one year

15

(16,710,130)

(18,439,073)

Net assets

 

6,841,418

9,817,755

Capital and reserves

 

Called up share capital

19

6,000,613

3,000,613

Capital contribution reserve

20

4,834,074

9,869,568

Profit and loss account

20

(3,993,269)

(3,052,426)

Total equity

 

6,841,418

9,817,755

Approved and authorised by the Board on 26 November 2024 and signed on its behalf by:
 

.........................................
A G E Rowe CBE Hon LLD
Director

 

Sandy Park Hotel Limited
(Registration number: 10667155)

Statement of Changes in Equity for the Period from 1 July 2023 to 31 December 2023

Share capital
£

Other reserves
£

Retained earnings
£

Total
£

At 1 July 2023

3,000,613

9,869,568

(3,052,426)

9,817,755

Loss for the period

-

-

(940,843)

(940,843)

Other share capital movements

3,000,000

-

-

3,000,000

Other movements on reserves

-

(5,035,494)

-

(5,035,494)

At 31 December 2023

6,000,613

4,834,074

(3,993,269)

6,841,418

Share capital
£

Other reserves
£

Retained earnings
£

Total
£

At 1 July 2022

400

15,869,568

(654,779)

15,215,189

Loss for the period

-

-

(2,397,647)

(2,397,647)

New share capital subscribed

213

-

-

213

Other share capital movements

3,000,000

-

-

3,000,000

Other movements on reserves

-

(6,000,000)

-

(6,000,000)

At 30 June 2023

3,000,613

9,869,568

(3,052,426)

9,817,755

 

Sandy Park Hotel Limited
(Registration number: 10667155)

Statement of Cash Flows for the Period from 1 July 2023 to 31 December 2023

Note

2023
£

2023
£

Cash flows from operating activities

Loss for the period

 

(940,843)

(2,397,647)

Adjustments to cash flows from non-cash items

 

Depreciation and amortisation

5

579,221

1,151,312

Finance income

6

(573)

(275)

Finance costs

7

793,337

1,182,397

Income tax expense

10

-

(36,488)

 

431,142

(100,701)

Working capital adjustments

 

Decrease in stocks

12

455

1,408

Decrease in trade debtors

13

19,789

194,424

Increase in trade creditors

15

572,009

1,513,572

Net cash flow from operating activities

 

1,023,395

1,608,703

Cash flows from investing activities

 

Interest received

6

573

275

Acquisitions of tangible assets

11

(241,178)

(542,705)

Proceeds from sale of tangible assets

 

-

96,808

Net cash flows from investing activities

 

(240,605)

(445,622)

Cash flows from financing activities

 

Interest paid

7

(793,337)

(1,182,397)

Proceeds from issue of ordinary shares, net of issue costs

 

-

213

Repayment of bank borrowing

 

(228,942)

(322,655)

Proceeds from issue of preference shares, net of issue costs

19

3,000,000

3,000,000

Repayment of capital contribution

 

(3,000,000)

(3,000,000)

Net cash flows from financing activities

 

(1,022,279)

(1,504,839)

Net decrease in cash and cash equivalents

 

(239,489)

(341,758)

Cash and cash equivalents at 1 July

 

430,036

771,794

Cash and cash equivalents at 31 December

 

190,547

430,036

 

Sandy Park Hotel Limited
(Registration number: 10667155)

Notes to the Financial Statements for the Period from 1 July 2023 to 31 December 2023

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Sandy Park Stadium
Sandy Park Way
Exeter
Devon
EX2 8WA

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Disclosure of long or short period

The year end of the company has been shortened from 30 June 2024 to 31 December 2023. This is due to internal reporting systems which operate on a calendar year basis. Comparative amounts presented in the financial statements (including the related notes) are therefore not entirely comparable.

Going concern

The directors are pleased to see the continued growth of the hotel in the period ended 31 December 2023. The directors work closely with Marriott Hotels Ltd who manage the hotel, and Marriott Hotels Ltd have produced forecasted projections to 31 December 2025 that demonstrate the continued growth of the hotel as the hotel matures, that are based on Marriott Hotels Ltd's experience in developing and running hotels across the country.

In addition to the above, the directors are in regular contact with NatWest, who provided the financing for the original construction of the hotel and the shareholders of Sandy Park Hotel Limited have indicated continued financial support when needed as the hotel continues to strive towards maturity status.

Based on this, the directors consider it appropriate that the financial statements are prepared on a going concern basis.

 

Sandy Park Hotel Limited
(Registration number: 10667155)

Notes to the Financial Statements for the Period from 1 July 2023 to 31 December 2023

Key sources of estimation uncertainty

The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing material adjustments to the carrying amounts of assets and liabilities within the next financial year are addressed below:

a) Useful economic lives and residual values of tangible assets

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on economic utilisation and the physical condition of the assets. See note 11 for the carrying amount of the tangible fixed assets.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Accommodation revenue is recognised when a room is occupied; food and beverage sales are recognised when the goods are sold; sundry and other incomes are recognised at the point of sale.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

The tax expense for the period comprises tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

 

Sandy Park Hotel Limited
(Registration number: 10667155)

Notes to the Financial Statements for the Period from 1 July 2023 to 31 December 2023

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Borrowing costs are capitalised where they are directly attributable to the acquisition, construction or production of a qualifying asset.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Freehold land

Not depreciated

Freehold buildings

2% on cost

Plant and machinery

15% on cost

Fixtures and fittings

15% on cost

Computer equipment

25% on cost

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

 

Sandy Park Hotel Limited
(Registration number: 10667155)

Notes to the Financial Statements for the Period from 1 July 2023 to 31 December 2023

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Share capital

Ordinary shares are classified as equity. Preference shares that are non-redeemable, non-voting and non-interest bearing are also classified as equity.

Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

 

Sandy Park Hotel Limited
(Registration number: 10667155)

Notes to the Financial Statements for the Period from 1 July 2023 to 31 December 2023

3

Turnover

The analysis of the company's Turnover for the period from continuing operations is as follows:

31 December
2023
£

30 June
2023
£

Food and beverage

1,157,872

1,924,271

Hotel accommodation

2,544,540

3,829,210

Other revenue

123,112

163,756

3,825,524

5,917,237

4

Other operating income

The analysis of the company's other operating income for the period is as follows:

31 December
2023
£

30 June
2023
£

Miscellaneous other operating income

17,732

33,920

5

Operating loss

Arrived at after charging/(crediting)

31 December
2023
£

30 June
2023
£

Depreciation expense

579,221

1,151,312

Operating lease expense - plant and machinery

18,199

36,399

6

Other interest receivable and similar income

31 December
2023
£

30 June
2023
£

Interest income on bank deposits

573

275

7

Interest payable and similar expenses

31 December
2023
£

30 June
2023
£

Interest on bank overdrafts and borrowings

748,337

1,071,397

Interest expense on other finance liabilities

45,000

111,000

Foreign exchange gains

5,318

11,078

798,655

1,193,475

 

Sandy Park Hotel Limited
(Registration number: 10667155)

Notes to the Financial Statements for the Period from 1 July 2023 to 31 December 2023

8

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

31 December
2023
£

30 June
2023
£

Wages and salaries

928,975

1,978,106

Social security costs

78,115

147,907

Pension costs, defined contribution scheme

23,024

37,490

Other employee expense

74,149

70,326

1,104,263

2,233,829

The average number of persons employed by the company (including directors) during the period, analysed by category was as follows:

31 December
2023
No.

30 June
2023
No.

Administration and support

6

6

Sales, marketing and distribution

3

3

Other departments

80

84

89

93

9

Auditors' remuneration

31 December
2023
£

30 June
2023
£

Audit of the financial statements

8,000

8,000


 

 

Sandy Park Hotel Limited
(Registration number: 10667155)

Notes to the Financial Statements for the Period from 1 July 2023 to 31 December 2023

10

Taxation

Tax charged/(credited) in the profit and loss account

31 December
2023
£

30 June
2023
£

Deferred taxation

Arising from origination and reversal of timing differences

-

(36,488)

The tax on profit before tax for the period is higher than the standard rate of corporation tax in the UK (2023 - higher than the standard rate of corporation tax in the UK) of 25% (2023 - 19%).

The differences are reconciled below:

31 December
2023
£

30 June
2023
£

Loss before tax

(940,843)

(2,434,135)

Corporation tax at standard rate

(235,211)

(462,486)

Increase from tax losses for which no deferred tax asset was recognised

1,034,734

326,906

Deferred tax credit from unrecognised temporary difference from a prior period

(806,279)

(36,488)

Tax increase from effect of capital allowances and depreciation

6,756

135,580

Total tax credit

-

(36,488)

As of 1 April 2023, the main rate of UK corporation tax increased from 19% to 25%. The company's previous financial period straddled this date and a blended corporation tax was applied in the previous year.

 

Sandy Park Hotel Limited
(Registration number: 10667155)

Notes to the Financial Statements for the Period from 1 July 2023 to 31 December 2023

Deferred tax

Deferred tax assets and liabilities

31 December 2023

Asset
£

Liability
£

Differences between accumulated depreciation and capital allowances

(707,033)

-

Accumulated tax losses

1,238,744

-

Other timing differences

278

-

531,989

-

30 June 2023

Asset
£

Liability
£

Differences between accumulated depreciation and capital allowances

(707,033)

-

Accumulated tax losses

1,238,744

-

Other timing differences

278

-

531,989

-

The directors have considered the deferred tax assets and liabilities and concluded that due to the level of reversal being dependant on events which are not yet known, it is not possible to accurately state the estimated amounts which will reverse within the next 12 months. However it is considered that the vast majority of the balance will reverse over a preiod greater than 12 months after the year end.

 

Sandy Park Hotel Limited
(Registration number: 10667155)

Notes to the Financial Statements for the Period from 1 July 2023 to 31 December 2023

11

Tangible assets

Land and buildings
£

Furniture, fittings and equipment
 £

Other tangible assets
£

Total
£

Cost or valuation

At 1 July 2023

36,669,975

2,084,664

703,027

39,457,666

Additions

200,216

3,952

37,010

241,178

At 31 December 2023

36,870,191

2,088,616

740,037

39,698,844

Depreciation

At 1 July 2023

843,882

374,800

123,030

1,341,712

Charge for the period

362,595

161,123

55,503

579,221

At 31 December 2023

1,206,477

535,923

178,533

1,920,933

Carrying amount

At 31 December 2023

35,663,714

1,552,693

561,504

37,777,911

At 30 June 2023

35,826,093

1,709,864

579,997

38,115,954

Included within the net book value of land and buildings above is £35,663,714 (2023 - £35,826,093) in respect of freehold land and buildings.
 

12

Stocks

31 December
2023
£

30 June
2023
£

Other stocks

27,321

27,776

 

Sandy Park Hotel Limited
(Registration number: 10667155)

Notes to the Financial Statements for the Period from 1 July 2023 to 31 December 2023

13

Debtors

Note

31 December
2023
£

30 June
2023
£

Trade debtors

 

114,366

110,180

Other debtors

 

17,064

42,779

Prepayments and accrued income

 

50,622

48,882

Deferred tax assets

10

531,989

531,989

   

714,041

733,830

Less non-current portion

 

(531,989)

(531,989)

Total current trade and other debtors

 

182,052

201,841

Details of non-current trade and other debtors

£531,989 (2023 -£531,989) of debtors is classified as non-current. This balance is in relation to the deferred tax asset.

14

Cash and cash equivalents

31 December
2023
£

30 June
2023
£

Cash on hand

6,537

16,441

Cash at bank

296,489

413,595

303,026

430,036

Bank overdrafts

(112,479)

-

Cash and cash equivalents in statement of cash flows

190,547

430,036

15

Creditors

Note

31 December
2023
£

30 June
2023
£

Due within one year

 

Loans and borrowings

16

4,030,388

2,417,908

Trade creditors

 

2,249,757

2,453,008

Social security and other taxes

 

137,593

125,723

Outstanding defined contribution pension costs

18

-

2,148

Other creditors

 

8,068,382

5,412,892

Accruals

 

782,643

637,101

Corporation tax liability

10

1,988

1,988

 

15,270,751

11,050,768

 

Sandy Park Hotel Limited
(Registration number: 10667155)

Notes to the Financial Statements for the Period from 1 July 2023 to 31 December 2023

Note

31 December
2023
£

30 June
2023
£

Due after one year

 

Loans and borrowings

16

16,710,130

18,439,073

16

Loans and borrowings

31 December
2023
£

30 June
2023
£

Current loans and borrowings

Bank borrowings

2,417,909

2,417,908

Bank overdrafts

112,479

-

Other borrowings

1,500,000

-

4,030,388

2,417,908

31 December
2023
£

30 June
2023
£

Non-current loans and borrowings

Bank borrowings

16,710,130

16,939,073

Other borrowings

-

1,500,000

16,710,130

18,439,073

Bank borrowings

The company has variable rate loans which is denominated in £ sterling with a nominal interest rate of 2.5% above SONIA%, and the final instalment is due on 30 September 2042. The carrying amount at period end is £19,128,039 (2023 - £19,356,981).

The loans are secured by way of a fixed and floating charge over the assets of the company.

The loan is repayable in monthly instalments.

Included in the loans and borrowings are the following amounts due after more than five years:

31 December
2023
£

30 June
2023
£

After more than five years by instalments

13,038,493

13,267,436

-

-

 

Sandy Park Hotel Limited
(Registration number: 10667155)

Notes to the Financial Statements for the Period from 1 July 2023 to 31 December 2023

17

Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

31 December
2023
£

30 June
2023
£

Not later than one year

36,399

112,028

Later than one year and not later than five years

63,698

-

100,097

112,028

The amount of non-cancellable operating lease payments recognised as an expense during the period was £36,399 (2023 - £36,399).

18

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the period represents contributions payable by the company to the scheme and amounted to £23,024 (2023 - £37,490).

Contributions totalling £Nil (2023 - £2,148) were payable to the scheme at the end of the period and are included in creditors.

19

Share capital

Allotted, called up and fully paid shares

 

31 December
2023

30 June
2023

 

No.

£

No.

£

Ordinary A of £1 each

313

313

313

313

Ordinary B of £1 each

300

300

300

300

Preference of £1 each

6,000,000

6,000,000

3,000,000

3,000,000

 

6,000,613

6,000,613

3,000,613

3,000,613

New shares allotted

During the period 3,000,000 Preference having an aggregate nominal value of £3,000,000 were allotted for an aggregate consideration of £3,000,000.

 

Sandy Park Hotel Limited
(Registration number: 10667155)

Notes to the Financial Statements for the Period from 1 July 2023 to 31 December 2023

Rights, preferences and restrictions

Ordinary A have the following rights, preferences and restrictions:
There are no restrictions on the distribution of dividends and the repayment of capital for this share class. Each Ordinary A share carries voting rights of 1 per share.

Ordinary B have the following rights, preferences and restrictions:
There are no restrictions on the distribution of dividends and the repayment of capital for this share class. Each Ordinary B share carries voting rights of 1 per share.

Preference have the following rights, preferences and restrictions:
Preference shares are non-voting, non-redeemable and non-interest bearing.

20

Reserves

Called up share capital

Called up share capital represents the nominal value of the shares issued.

Profit and loss account

Profit and loss account represents cumulative profits or losses, net of dividends paid and other adjustments.

Capital contribution reserve

Capital contribution reserve represents the accumulated capital contributions made to the company by shareholders.

21

Analysis of changes in net debt

At 1 July 2023
£

Financing cash flows
£

At 31 December 2023
£

Cash and cash equivalents

Cash

430,036

(127,010)

303,026

Overdrafts

-

(112,479)

(112,479)

430,036

(239,489)

190,547

Borrowings

Long term borrowings

(19,356,981)

228,942

(19,128,039)

 

(18,926,945)

(10,547)

(18,937,492)

 

Sandy Park Hotel Limited
(Registration number: 10667155)

Notes to the Financial Statements for the Period from 1 July 2023 to 31 December 2023

22

Related party transactions

Income and receivables from related parties

31 December 2023

Other group entities
£

Amounts receivable from related party

1,153

30 June 2023

Other group entities
£

Receipt of services

764

Expenditure with and payables to related parties

31 December 2023

Entities with joint control or significant influence
£

Other group entities
£

Rendering of services

-

1,227

Amounts payable to related party

2,106,266

-

30 June 2023

Entities with joint control or significant influence
£

Other group entities
£

Rendering of services

-

28,200

Amounts payable to related party

2,106,266

1,993

Loans to related parties

31 December 2023

Other group entities
£

Total
£

At start of period

(249,364)

(249,364)

Advanced

100,000

100,000

At end of period

(149,364)

(149,364)

30 June 2023

Other group entities
£

Total
£

At start of period

195,075

195,075

Advanced

84,194

84,194

Repaid

(528,633)

(528,633)

At end of period

(249,364)

(249,364)

Terms of loans to related parties

 

Sandy Park Hotel Limited
(Registration number: 10667155)

Notes to the Financial Statements for the Period from 1 July 2023 to 31 December 2023

The loan to other group entities is interest free with repayments made on such dates as are agreed from time to time between the Lender and Borrower.
 

Loans from related parties

31 December 2023

Entities with joint control or significant influence
£

Key management
£

Total
£

At start of period

734,666

1,325,668

2,060,334

Advanced

183,405

931,282

1,114,687

Repaid

(400,000)

-

(400,000)

At end of period

518,071

2,256,950

2,775,021

30 June 2023

Entities with joint control or significant influence
£

Key management
£

Total
£

At start of period

-

610,668

610,668

Advanced

734,666

715,000

1,449,666

At end of period

734,666

1,325,668

2,060,334

Terms of loans from related parties

The loan from entities with significant influence is interest free with repayments made on such dates as are agreed from time to time between the Lender and Borrower.

 The loan from key management is interest free and repayable on demand. The loan is secured by way of a fixed and floating charge over the freehold property of the company.
 

Summary of transactions with entities with joint control or significant interest

In addition to the above transactions, the company continued to receive a capital contribution from Exeter Rugby Group Plc, an entity with significant influence. At the year end, the balance due to Exeter Rugby Group Plc was £9,869,568 consisting of a capital contribution of £4,834,074 (30 June 2023: £9,869,568) and scheduled repayments included within current liabilities of £5,035,494 (30 June 2023: £3,000,000). No interest is payable on these amounts. The capital contribution is classed as equity due to the terms of the contribution which require repayment only on sale of the hotel by Sandy Park Hotel Limited. The capital contribution is secured against a charge over all freehold and leasehold land and property owned by Sandy Park Hotel Limited.

23

Parent and ultimate parent undertaking

The ultimate controlling party is A G E Rowe CBE Hon LLD .

 

Sandy Park Hotel Limited
(Registration number: 10667155)

Notes to the Financial Statements for the Period from 1 July 2023 to 31 December 2023

24

Non adjusting events after the financial period

After the year end a further 5,035,494 preference shares were issued for consideration of £5,035,494.