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Registered number: 11416150













GUEST HOLDINGS LTD

ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2024


 
GUEST HOLDINGS LTD
 

 
COMPANY INFORMATION


Directors
J R Guest 
T D Guest 
T R J Guest 




Registered number
11416150



Registered office
31 Ruvigny Gardens

London

SW15 1JR




Independent auditors
Warrener Stewart
Chartered Accountants

Harwood House

43 Harwood Road

London

SW6 4QP






 
GUEST HOLDINGS LTD
 


CONTENTS



Page
Group Strategic Report
 
Directors' Report
 
Independent Auditors' Report
 
Consolidated Statement of Comprehensive Income
 
Consolidated Balance Sheet
 
Company Balance Sheet
 
Consolidated Statement of Changes in Equity
 
Company Statement of Changes in Equity
 
Consolidated Statement of Cash Flows
 
Consolidated Analysis of Net Debt
 
Notes to the Financial Statements
 



 
GUEST HOLDINGS LTD
 

 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024

Introduction
 
This report provides an overview of the current year performance, position and main issues that have been considered by the directors.

Business review
 
The principal activities of the group are the operation and development of the GuestHouse luxury hotel group. Guest Holdings Ltd acts as a holding company for the group.
Group turnover levels have increased to £8,199 thousand (2023: £6,211 thousand), mostly as a result of the opening of a second hotel. Net losses have also increased to £3,671 thousand (2023: £3,461 thousand) due to continued investment in the group. This includes significant investment in the operating entities as well as the ongoing development of new sites.
The group currently includes four 'hotel' entities, three of which are fully operational at 31 March 2024 in Bath, York and Margate.The other site, Brighton, is still being developed. The hotel in Margate opened in the summer of 2023, with the hotel in Brighton opening in November 2024.
The GuestHouse hotels boast excellent restaurants and bars, and during the year the group has launched a new
restaurant concept called Pearly Cow, initially trialed in York, then in Margate, and soon to be opened in
Brighton, with the idea of creating destination restaurants.
Management is attentive to arising potential growth opportunities and is open to appropriate expansion.

Principal risks and uncertainties
 
Principal risks and uncertainties include those generally associated with the hospitality industry, the most important of which is the risk of reduced occupancy levels. This is particularly significant in the current economy with the cost of living crisis having an impact on the market. 
Inflation, particularly food inflation, is a concern for the group as it is currently at higher levels than can be passed on to customers. The group is monitoring the situation and adjusting prices to remain competitive.
Staff retention and staff shortages are always a risk in the hospitality industry. A fair wage structure and positive working environment is behind the group's favourable staff retention levels. The active cross-training of skills and attractive culture is of a benefit to the group and staff equally.



 
GUEST HOLDINGS LTD
 


GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024

Key performance indicators
 
For operating hotels, the group has invested in a bespoke balanced scorecard which highlights over 40 KPIs within the group. Any areas falling below expectations will quickly be identified. The balanced scorecard looks at four areas:

Performance for rooms, F&B and spa, including:
°Occupancy, revenues per room, average room rates;
°Covers, F&B margins, average spend; and
°Spa capture rate, therapist utilisation rate, repeat guests.
Brand, for example website hit rates, conversion percentages, database size and social media influence.
Product, for example customer reviews, scores and rankings from Net Promotor, Tripadvisor and Google.
People, for example staff turnover, cost per hire, absence days, revenue per employee.

For non-operating sites, KPIs include build timelines and budgets, completion of operational aspects and recruitment levels.


This report was approved by the board and signed on its behalf.



T R J Guest
Director

Date: 27 November 2024



 
GUEST HOLDINGS LTD
 

 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024

The directors present their report and the financial statements for the year ended 31 March 2024.

Directors' responsibilities statement

The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Group's financial statements and then apply them consistently;

make judgments 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 Group 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 the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The loss for the year, after taxation, amounted to £3,671 thousand (2023 - loss £3,461 thousand).

No dividends were paid in the 2024 or 2023  financial years.

Directors

The directors who served during the year were:

J R Guest 
T D Guest 
T R J Guest 

Future developments

The group is continuously reviewing its business to stay aligned to the challenging hospitality market. Management is monitoring possible opportunities for future growth. On the basis of risk analysis and adequate operational processes, the directors have faith that the group will be able to tackle the challenges ahead and to stay on top of its operations. 



 
GUEST HOLDINGS LTD
 

 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Subsequent events

There have been no significant events affecting the Group since the year end.

Auditors

The auditorsWarrener Stewartwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





T R J Guest
Director

Date: 27 November 2024



 
GUEST HOLDINGS LTD
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GUEST HOLDINGS LTD

Opinion


We have audited the financial statements of Guest Holdings Ltd (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 March 2024, which comprise the Consolidated Statement of Comprehensive Income, the Consolidated Balance Sheet, the Company Balance Sheet, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity and the related notes, including a summary of significant accounting policiesThe 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 Group's and of the parent Company's affairs as at 31 March 2024 and of the Group's loss 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 Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 Group's or the parent 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.




 
GUEST HOLDINGS LTD
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GUEST HOLDINGS LTD (CONTINUED)

Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Opinion 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 Group Strategic Report and the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Group Strategic Report and the 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 the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Directors' Report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent Company 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 , 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 Group's and the parent 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 Group or the parent Company or to cease operations, or have no realistic alternative but to do so.




 
GUEST HOLDINGS LTD
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GUEST HOLDINGS LTD (CONTINUED)

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 an Auditors' 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 Group 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 assessment of the susceptibility of the entity's financial statements is considered to be low.  We reached this conclusion after consideration of the following:

A high level of review of the group's environment of systems and controls;
A high level of review of key performance and similar indicators; and
There are a number of individuals which comprise "management" and therefore there is no single individual who is likely to be able to override controls to commit fraud.

We designed our audit procedures to respond to identified risks, including non-compliance with laws and regulations (irregularities) that are material to the financial statements. Some of the specific procedures performed to detect irregularities, including fraud, are detailed below:

The review of control accounts and journal entries for large, unusual or unauthorised entries;
The analytical review of the detailed profit and loss account for unexpected variances or items that fell outside our understanding of the business; and
Obtaining and reviewing a list of connected persons and entities and reviewing ledgers for undisclosed related party transactions.


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 Auditors' Report.




 
GUEST HOLDINGS LTD
 

 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GUEST HOLDINGS LTD (CONTINUED)

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 2006Our 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 Auditors' 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.





Alex Eagle (Senior Statutory Auditor)
  
for and on behalf of
Warrener Stewart
 
Chartered Accountants
  
Harwood House
43 Harwood Road
London
SW6 4QP

 
Date: 
28 November 2024


 
GUEST HOLDINGS LTD
 

 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024

2024
2023
Note
£000
£000

  

Turnover
 4 
8,199
6,211

Cost of sales
  
(5,549)
(3,990)

Gross profit
  
2,650
2,221

Administrative expenses
  
(6,957)
(5,703)

Operating loss
 5 
(4,307)
(3,482)

Interest payable and similar expenses
 9 
(294)
(193)

Loss before taxation
  
(4,601)
(3,675)

Tax on loss
 10 
930
214

Loss for the financial year
  
(3,671)
(3,461)

(Loss) for the year attributable to:
  

Owners of the parent Company
  
(3,671)
(3,461)

  
(3,671)
(3,461)

There were no recognised gains and losses for 2024 or 2023 other than those included in the consolidated statement of comprehensive income.

There was no other comprehensive income for 2024 (2023: £NIL).

The notes on  form part of these financial statements.



 
GUEST HOLDINGS LTD
REGISTERED NUMBER:11416150


CONSOLIDATED BALANCE SHEET
AS AT 31 MARCH 2024

2024
2023
Note
£000
£000

Fixed assets
  

Intangible assets
 11 
2,576
3,033

Tangible assets
 12 
41,440
31,429

  
44,016
34,462

Current assets
  

Stocks
 14 
82
48

Debtors: amounts falling due within one year
 15 
3,189
2,302

Cash at bank and in hand
 16 
1,105
614

  
4,376
2,964

Creditors: amounts falling due within one year
 17 
(57,018)
(41,999)

Net current liabilities
  
 
 
(52,642)
 
 
(39,035)

Total assets less current liabilities
  
(8,626)
(4,573)

Creditors: amounts falling due after more than one year
 18 
(3,831)
(4,213)

Net liabilities
  
(12,457)
(8,786)


Capital and reserves
  

Called up share capital 
 21 
-
-

Profit and loss account
  
(12,457)
(8,786)

Equity attributable to owners of the parent Company
  
(12,457)
(8,786)


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




T R J Guest
Director

Date: 27 November 2024

The notes on  form part of these financial statements.



 
GUEST HOLDINGS LTD
REGISTERED NUMBER:11416150


COMPANY BALANCE SHEET
AS AT 31 MARCH 2024

2024
2023
Note
£000
£000

Fixed assets
  

Investments
 13 
17,940
17,940

  
17,940
17,940

Current assets
  

Debtors: amounts falling due within one year
 15 
14,380
10,165

Cash at bank and in hand
 16 
37
32

  
14,417
10,197

Creditors: amounts falling due within one year
 17 
(26,558)
(22,144)

Net current liabilities
  
 
 
(12,141)
 
 
(11,947)

  

  

Net assets
  
5,799
5,993


Capital and reserves
  

Called up share capital 
 21 
-
-

Profit and loss account carried forward
  
5,799
5,993

  
5,799
5,993


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




T R J Guest
Director

Date: 27 November 2024

The notes on  form part of these financial statements.



 
GUEST HOLDINGS LTD
 


CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024


Called up share capital
Profit and loss account
Total equity

£000
£000
£000


At 1 April 2022
-
(5,325)
(5,325)


Comprehensive income for the year

Loss for the year
-
(3,461)
(3,461)



At 1 April 2023
-
(8,786)
(8,786)


Comprehensive income for the year

Loss for the year
-
(3,671)
(3,671)


At 31 March 2024
-
(12,457)
(12,457)


The notes on  form part of these financial statements.



 
GUEST HOLDINGS LTD
 


COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024


Called up share capital
Profit and loss account
Total equity

£000
£000
£000


At 1 April 2022
-
6,186
6,186


Comprehensive income for the year

Loss for the year
-
(193)
(193)



At 1 April 2023
-
5,993
5,993


Comprehensive income for the year

Loss for the year
-
(194)
(194)


At 31 March 2024
-
5,799
5,799


The notes on  form part of these financial statements.



 
GUEST HOLDINGS LTD
 


CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024

2024
2023
£000
£000

Cash flows from operating activities

Loss for the financial year
(3,671)
(3,461)

Adjustments for:

Amortisation of intangible assets
511
470

Depreciation of tangible assets
2,127
1,493

Interest paid
294
193

Taxation charge
(930)
(214)

(Increase) in stocks
(34)
(4)

Decrease/(increase) in debtors
48
(695)

Increase in creditors
15,016
3,812

Net cash generated from operating activities

13,361
1,594


Cash flows from investing activities

Purchase of intangible fixed assets
(55)
(139)

Purchase of tangible fixed assets
(12,140)
(5,344)

Net cash from investing activities

(12,195)
(5,483)

Cash flows from financing activities

New secured loans
-
4,012

Repayment of loans
(381)
-

Interest paid
(294)
(193)

Net cash used in financing activities
(675)
3,819

Net increase/(decrease) in cash and cash equivalents
491
(70)

Cash and cash equivalents at beginning of year
614
684

Cash and cash equivalents at the end of year
1,105
614


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
1,105
614


The notes on  form part of these financial statements.



 
GUEST HOLDINGS LTD
 


CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 MARCH 2024




At 1 April 2023
Cash flows
At 31 March 2024
£000

£000

£000

Cash at bank and in hand

614

491

1,105

Due after more than 1 year

(4,212)

381

(3,831)

Debt due within 1 year

(39,890)

(14,553)

(54,443)


(43,488)
(13,681)
(57,169)

The notes on  form part of these financial statements.



 
GUEST HOLDINGS LTD
 

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

1.


General information

The group comprises private companies, limited by shares, incorporated in England and Wales. The principal activity of the companies are hotel and hospitality provision. The principal place of business is 31 Ruvigny Gardens, London, England, SW15 1JR.
The principal activities of the group are the operation and development of the GuestHouse luxury hotel group. Guest Holdings Ltd acts as a holding company for the group.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Balance Sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.



 
GUEST HOLDINGS LTD
 

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

2.Accounting policies (continued)

 
2.3

Going concern

For the purposes of assessing whether 'going concern' is an appropriate basis for preparing the financial statements, the directors have reviewed projections for the next 12 months using assumptions which the directors consider to be appropriate to the current financial position of the Group with regards to revenue, cost of sales, borrowing and debt repayment plans.
During the year ended 31 March 2024 the Group incurred a loss after tax of £3,671 thousand, giving rise to a balance sheet deficit of £12,457 thousand at the year end. Included within this are loans from directors, included within other creditors, of £54,208 thousand. The directors have confirmed that they will continue to provide such financial support as is required whilst the Group strengthens its own financial position.
During the year the group has invested significantly in the refurbishment of the hotels, three of which
are operating and one of which was under renovation at the year end. One hotel has opened and
began operating in summer 2023, with the other opening in November 2024. Management has prepared projections that, over the coming year, demonstrate that the company is unlikely to achieve positive earnings. However, the directors acknowledge their awareness of this and emphasise their continued financial support.
In light of the above and, after taking into account all information that could reasonably be expected to be available, the directors are confident that the Group will continue in operation for the foreseeable future and that the going concern basis is therefore appropriate for the preparation of the Group's accounts.

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. 
Accommodation
Revenue from accommodation represents fees receivable in respect of overnight stays in the Group's hotels.
Food and beverage
Revenue from food and beverage represents fees receivable in respect of food and beverage served in the hotels' restaurants and bars, or by room service.
Spa
Revenue from spa represents fees receivable in respect of spa treatments and therapy services within the hotels' spas.
Other
Other revenue includes non-core revenue, such as private events, parking, concierge services and  marketing event sales.



 
GUEST HOLDINGS LTD
 

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

2.Accounting policies (continued)

 
2.5

Operating leases: the Group as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.6

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.7

Borrowing costs

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

 
2.8

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Group in independently administered funds.

 
2.9

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of


 
GUEST HOLDINGS LTD
 

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

2.Accounting policies (continued)


2.9
Current and deferred taxation (continued)

business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.10

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated Statement of Comprehensive Income over its useful economic life.

Other intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 The estimated useful lives range as follows:

Computer software
-
3
years
Branding
-
3
years
Goodwill
-
10
years

 
2.11

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.



 
GUEST HOLDINGS LTD
 

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

2.Accounting policies (continued)


2.11
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

The estimated useful lives range as follows:

Freehold property
-
50 years
Long-term leasehold property
-
15 years
Plant and machinery
-
5 years
Fixtures and fittings
-
5 years
Office equipment
-
3 - 5 years
Computer equipment
-
3 years

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Artwork is determined to be non-depreciating and therefore no depreciation is charged on artwork.

 
2.12

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.13

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is 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.

 
2.14

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.15

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.



 
GUEST HOLDINGS LTD
 

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

2.Accounting policies (continued)

 
2.16

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.17

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.18

Financial instruments

The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of financial statements requires management to make judgments, estimates and assumptions that affect the amounts reported for assets and liabilities as at the Balance Sheet date as well as revenues and expenses reported during the year.
Management have made the following significant judgment in applying the Group's accounting policies within the financial statements for the current year:
Depreciation
Management, using experience and following best-practice guidance, have set a Group accounting policy for depreciation, estimating the useful lives of assets held within the group. This includes, in particular, freehold property of significant value, which is depreciated over the estimated useful life of 50 years, thus resulting in the recognition of similarly significant depreciation charges. Management continue to review the depreciation policies for their appropriateness.
The following estimates are dependent upon assumptions which could change in the next financial year and have a material effect on the carrying amounts of assets and liabilities recognised at the Balance Sheet date:
 


 
GUEST HOLDINGS LTD
 

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

3.Judgments in applying accounting policies (continued)


Valuation of assets
The Group employs external property valuations to assist with business decisions. The valuations, in turn, are utilised in calculating the goodwill on any company purchase, thus affecting the fair value of the assets held, the goodwill and the associated amortisation.


4.


Turnover

An analysis of turnover by class of business is as follows:


2024
2023
£000
£000

Accommodation
4,739
3,924

Food and beverage
2,591
1,442

Spa
679
627

Other
190
218

8,199
6,211


All turnover arose within the United Kingdom.


5.


Operating loss

The operating loss is stated after charging:

2024
2023
£000
£000

Depreciation
2,127
1,493

Amortisation
511
470


6.


Auditors' remuneration

During the year, the Group obtained the following services from the Company's auditors:


2024
2023
£000
£000

Fees payable to the Group's auditors for the audit of the Group's annual financial statements
48
37

Fees payable to the Group's auditors for taxation and related services
34
31



 
GUEST HOLDINGS LTD
 

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

7.


Employees

Staff costs, including directors' remuneration, were as follows:


Group
Group
Company
Company
2024
2023
2024
2023
£000
£000
£000
£000


Wages and salaries
4,328
3,369
30
30

Social security costs
267
227
-
-

Cost of defined contribution scheme
86
72
-
-

4,681
3,668
30
30


The average monthly number of employees, including the directors, during the year was as follows:



Group
Group
Company
Company
        2024
        2023
        2024
        2023
            No.
            No.
            No.
            No.









Directors
3
3
3
3



Employees
180
128
-
-

183
131
3
3


8.


Directors' remuneration

2024
2023
£000
£000

Directors' emoluments
30
30



9.


Interest payable and similar expenses

2024
2023
£000
£000


Bank interest payable
294
193



 
GUEST HOLDINGS LTD
 

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

10.


Taxation


2024
2023
£000
£000

Corporation tax


Adjustments in respect of previous periods
-
10


Total current tax
-
10

Deferred tax


Origination and reversal of timing differences
(930)
(224)

Total deferred tax
(930)
(224)


Taxation on loss on ordinary activities
(930)
(214)

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 - higher than) the standard rate of corporation tax in the UK of25% (2023 - 19%). The differences are explained below:

2024
2023
£000
£000


Loss on ordinary activities before tax
(4,601)
(3,675)


Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 19%)
(1,150)
(698)

Effects of:


Expenses not deductible for tax purposes
282
99

Capital allowances for year in excess of depreciation
(499)
146

Adjustments to tax charge in respect of prior periods
(4)
10

Increase or decrease in pension fund prepayment leading to an increase (decrease) in tax
2
-

Movement in deferred tax not recognised
(1,204)
(224)

Unrelieved tax losses carried forward
1,643
453

Total tax charge for the year
(930)
(214)


Factors that may affect future tax charges

There were no factors that may affect future tax charges.





 
GUEST HOLDINGS LTD
 

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

11.


Intangible assets

Group





Trademarks
Computer software
Goodwill
Total

£000
£000
£000
£000



Cost


At 1 April 2023
70
100
4,401
4,571


Additions
-
55
-
55



At 31 March 2024

70
155
4,401
4,626



Amortisation


At 1 April 2023
20
18
1,501
1,539


Charge for the year on owned assets
23
48
440
511



At 31 March 2024

43
66
1,941
2,050



Net book value



At 31 March 2024
27
89
2,460
2,576



At 31 March 2023
51
81
2,899
3,031




 

GUEST HOLDINGS LTD
 
 
 


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


12.


Tangible fixed assets


Group







Freehold property
L/T leasehold property
Plant and machinery
Fixtures & fittings
Office equipment
Computer equipment
Artwork
Total

£000
£000
£000
£000
£000
£000
£000
£000



Cost or valuation


At 1 April 2023 (as restated)
30,637
17
1,407
4,748
128
277
6
37,220


Additions
9,182
451
-
2,125
1
381
-
12,140


Disposals
-
-
(1,272)
(210)
-
(9)
-
(1,491)



At 31 March 2024

39,819
468
135
6,663
129
649
6
47,869



Depreciation


At 1 April 2023 (as restated)
2,732
1
1,331
1,568
45
116
-
5,793


Charge for the year on owned assets
723
10
27
1,184
25
158
-
2,127


Disposals
-
-
(1,272)
(210)
-
(9)
-
(1,491)



At 31 March 2024

3,455
11
86
2,542
70
265
-
6,429


 

GUEST HOLDINGS LTD
 
 
 


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

           12.Tangible fixed assets (continued)




Net book value



At 31 March 2024
36,364
457
49
4,121
59
384
6
41,440



At 31 March 2023 (as restated)
27,905
16
76
3,181
84
161
6
31,429

Classes have been altered but there has been no effect on the overall brought forward figures. 


 
GUEST HOLDINGS LTD
 

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

13.


Fixed asset investments

Company





Investments in subsidiary companies

£000



Cost or valuation


At 1 April 2023
17,940



At 31 March 2024
17,940





Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Class of shares

Holding

Guesthouse Ltd
31 Ruvigny Gardens, London, SW15 1JR
Ordinary
100%
No.1 York Holdings Ltd
1 Clifton, York, England, YO30 6AA
Ordinary
Preferred
100%
No.15 Great Pulteney Ltd
13-15 Great Pulteney Street, Bath, Somerset, BA2 4BS
A Ordinary
B Ordinary
C Ordinary
100%
No.42 Margate Ltd
31 Ruvigny Gardens, London, SW15 1JR
Ordinary
100%
No.124 Brighton Ltd
31 Ruvigny Gardens, London, SW15 1JR
Ordinary
100%

The aggregate of the share capital and reserves as at 31 March 2024 and the profit or loss for the year ended on that date for the subsidiary undertakings were as follows:

Name
Aggregate of share capital and reserves
Profit/(Loss)
£000
£000

Guesthouse Ltd
(3,772)
(1,662)

No.1 York Holdings Ltd
(2)
-

No.15 Great Pulteney Ltd
(1,541)
103

No.42 Margate Ltd
(1,032)
(528)

No.124 Brighton Ltd

(1,055)
(491)



 
GUEST HOLDINGS LTD
 

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

14.


Stocks

Group
Group
2024
2023
£000
£000

Raw materials and consumables
36
-

Finished goods and goods for resale
46
48

82
48



15.


Debtors

Group
Group
Company
Company
2024
2023
2024
2023
£000
£000
£000
£000


Trade debtors
45
34
-
-

Amounts owed by group undertakings
-
-
14,360
10,150

Other debtors
600
586
7
8

Prepayments and accrued income
361
429
13
7

Deferred taxation
2,183
1,253
-
-

3,189
2,302
14,380
10,165



16.


Cash and cash equivalents

Group
Group
Company
Company
2024
2023
2024
2023
£000
£000
£000
£000

Cash at bank and in hand
1,105
614
37
32




 
GUEST HOLDINGS LTD
 

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

17.


Creditors: amounts falling due within one year

Group
Group
Company
Company
2024
2023
2024
2023
£000
£000
£000
£000

Bank loans
231
231
-
-

Trade creditors
1,449
924
13
18

Amounts owed to group undertakings
-
-
2,961
3,392

Corporation tax
10
10
-
-

Other taxation and social security
306
252
-
-

Other creditors
54,687
40,039
23,574
18,724

Accruals and deferred income
335
543
10
10

57,018
41,999
26,558
22,144



18.


Creditors: amounts falling due after more than one year

Group
Group
2024
2023
£000
£000

Bank loans
3,831
4,212

Accruals and deferred income
-
1

3,831
4,213





19.


Loans


Analysis of the maturity of loans is given below:


Group
Group
2024
2023
£000
£000

Bank loans

Amounts falling due within one year
231
231

Amounts falling due 1-2 years
231
231

Amounts falling due 2-5 years
3,600
3,981


4,062
4,443




 
GUEST HOLDINGS LTD
 

 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
 
19.Loans (continued)

Loan security in favour of the bank includes:
 
A Debenture granted by No.15 Great Pulteney Limited;
A Cross Guarantee between No.15 Great Pulteney Limited and No.1 York Limited; and
A first legal charge over the freehold of the property owned by No.15 Great Pulteney Limited

No.15 Great Pulteney Limited and No.1 York Limited are both subsidriaries of Guest Holdings Limited.
 

20.


Deferred taxation


Group



2024


£000






At beginning of year
1,253


Charged to profit or loss
930



At end of year
2,183

Company


2024





At beginning of year
-



At end of year
-



Group
Group
2024
2023
£000
£000

Accelerated capital allowances
(1,380)
(589)

Tax losses carried forward
3,563
1,842

2,183
1,253



 
GUEST HOLDINGS LTD
 

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

21.


Share capital

2024
2023
£000
£000
Allotted, called up and fully paid



99 (2023 - 99) Ordinary shares of £1.00 each
-
-



22.


Pension commitments

The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group  in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £87 thousand (2023: £30 thousand). Contributions totaling £11 thousand (2023: £nil) were payable to the fund at the balance sheet date.


23.


Related party transactions

The Company has taken advantage of the intra-group trading exemption contained in FRS 102 para 33.1A and has therefore not disclosed transactions or balances with entities that form part of the group headed by the Company.
The Group's Other creditors balance includes loans from directors totaling £54,208 thousand (2023: £39,657 thousand). These loans are interest free and repayable upon demand.


24.


Controlling parties

The ultimate controlling parties are James Guest, Thomas Guest and Tristan Guest by virtue of their equal shareholdings in Guest Holdings Ltd.