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Registration number: 03004691

Sandringham Hotel Limited

Annual Report and Unaudited Financial Statements

for the Year Ended 29 February 2024

 

Sandringham Hotel Limited

Contents

Balance Sheet

1 to 2

Notes to the Financial Statements

3 to 9

 

Sandringham Hotel Limited

(Registration number: 03004691)
Balance Sheet as at 29 February 2024

Note

2024
£

2023
£

Fixed assets

 

Tangible assets

4

1,748,639

2,137,211

Investment property

5

125,000

-

 

1,873,639

2,137,211

Current assets

 

Stocks

6

8,136

10,961

Debtors

7

282,278

275,385

Cash at bank and in hand

 

73,372

73,537

 

363,786

359,883

Creditors: Amounts falling due within one year

8

(517,994)

(360,333)

Net current liabilities

 

(154,208)

(450)

Total assets less current liabilities

 

1,719,431

2,136,761

Creditors: Amounts falling due after more than one year

8

-

(152,729)

Provisions for liabilities

-

(67,782)

Net assets

 

1,719,431

1,916,250

Capital and reserves

 

Called up share capital

2

2

Retained earnings

1,719,429

1,916,248

Shareholders' funds

 

1,719,431

1,916,250

 

Sandringham Hotel Limited

(Registration number: 03004691)
Balance Sheet as at 29 February 2024

For the financial year ending 29 February 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Director's responsibilities:

The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and

The director acknowledges his responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the director has not delivered to the registrar a copy of the Profit and Loss Account.

Approved and authorised by the director on 28 November 2024
 

K Perrett
Director

   
     
 

Sandringham Hotel Limited

Notes to the Financial Statements for the Year Ended 29 February 2024

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:
Freshford House
Redcliffe Way
Bristol
BS1 6NL

The principal place of business is:
1 Victoria Square
Weston-super-Mare
BS23 1AN

These financial statements were authorised for issue by the director on 28 November 2024.

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 have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

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.

The financial statements are prepared in sterling, which is the functional currency of the company, and rounded to the nearest £.

Going concern

In the accounting period after the year end the company sold its trade and all trading assets.

The directors believe there to be sufficient resources available to satisify current liabilities before liquidating the company and therefore have adopted the basis that the company is no longer a going concern.

 

Sandringham Hotel Limited

Notes to the Financial Statements for the Year Ended 29 February 2024

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.

Government grants

Government grants are recognised when it is reasonable to expect that the grants will be received and that all related conditions will be met, usually on submission of a valid claim or payment.

Government grants in respect of capital expenditure are credited to a deferred income account and are released to profit over the expected useful lives of the relevant assets by equal annual instalments.

Grants of a revenue nature are credited to income so as to match them with the expenditure to which they relate.

Tax

The tax expense for the period comprises current and deferred 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.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used.

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.

 

Sandringham Hotel Limited

Notes to the Financial Statements for the Year Ended 29 February 2024

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 and buildings

Nil

Plant and machinery

25% reducing balance

Furniture, fittings and equipment

25% reducing balance

Motor vehicles

25% reducing balance

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually by external valuers. The valuers use observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.

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.

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 stocks 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.

Creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors 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.

 

Sandringham Hotel Limited

Notes to the Financial Statements for the Year Ended 29 February 2024

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at the amount of the remaining liability due.

Interest expense is recognised on the basis of the interest paid 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. 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.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

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.

3

Staff numbers

The average number of persons employed by the company (including the director) during the year was 51 (2023 - 47).

 

Sandringham Hotel Limited

Notes to the Financial Statements for the Year Ended 29 February 2024

4

Tangible assets

Freehold land and buildings
£

Furniture, fittings and equipment
£

Plant and machinery
£

Motor vehicles
 £

Total
£

Cost or valuation

At 1 March 2023

2,113,439

85,149

66,673

1,200

2,266,461

Impairment

(359,742)

-

-

-

(359,742)

Additions

-

25

125

-

150

Transfers to investment property

(23,000)

-

-

-

(23,000)

At 29 February 2024

1,730,697

85,174

66,798

1,200

1,883,869

Depreciation

At 1 March 2023

-

77,368

50,714

1,168

129,250

Charge for the year

-

1,951

4,021

8

5,980

At 29 February 2024

-

79,319

54,735

1,176

135,230

Carrying amount

At 29 February 2024

1,730,697

5,855

12,063

24

1,748,639

At 28 February 2023

2,113,439

7,781

15,959

32

2,137,211

Freehold land and buildings had previously been carried at historical cost, with the decision not to depreciate based on the value spent in general maintenance and up keep. During the period freehold land and building has been impaired to agree the carrying value to the post year end sale proceeds.

5

Investment properties

2024
£

Transfers from owner-occupied property

23,000

Fair value adjustments

102,000

At 29 February

125,000

The fair value of the investment property has been arrived at on the opinion of the director. The basis of this valuation was open market value.

 

Sandringham Hotel Limited

Notes to the Financial Statements for the Year Ended 29 February 2024

6

Stocks

2024
£

2023
£

Other inventories

8,136

10,961

7

Debtors

Note

2024
£

2023
£

Amounts owed by related parties

11

198,976

199,206

Other debtors

 

79,646

75,330

Prepayments

 

3,656

849

 

282,278

275,385

8

Creditors

Due within one year

Note

2024
£

2023
£

 

Loans and borrowings

9

162,132

95,454

Trade creditors

 

57,477

49,034

Social security and other taxes

 

41,946

31,148

Other creditors

 

47,357

46,122

Accruals

 

95,888

95,535

Corporation tax liability

55,628

43,040

Deferred tax liabilities

57,566

-

 

517,994

360,333

Due after one year

 

Loans and borrowings

9

-

152,729

Bank borrowings totalling £162,132 (2023 - £248,183) are secured by a debenture over the company's assets and a first legal charge over the freehold property at the Sandringham Hotel, 1-9 Victoria Square, Weston-Super-Mare BS23 1AN.

9

Loans and borrowings

2024
£

2023
£

Non-current loans and borrowings

Bank borrowings

-

152,729

 

Sandringham Hotel Limited

Notes to the Financial Statements for the Year Ended 29 February 2024

2024
£

2023
£

Current loans and borrowings

Bank borrowings

162,132

95,454

10

Financial commitments, guarantees and contingencies

Amounts disclosed in the balance sheet

Included in the balance sheet are pension contributions outstanding of £2,970 (2023 - £2,648).

11

Related party transactions

Loans to related parties

Key management comprises the directors' of the company.
Other related parties comprises relatives of key management.

2024

Key management
£

Other related parties
£

Total
£

At start of period

152,206

47,000

199,206

Advanced

25,077

-

25,077

Repaid

(25,307)

-

(25,307)

At end of period

151,976

47,000

198,976

2023

Key management
£

Other related parties
£

Total
£

At start of period

242,687

47,000

289,687

Advanced

34,562

-

34,562

Repaid

(125,043)

-

(125,043)

At end of period

152,206

47,000

199,206

Terms of loans to related parties

Amounts due from key management are interest free and repayable on demand.

 Amounts due from other related parties are interest free and repayable on demand.

12

Non adjusting events after the financial period

The company sold its trade and all trading assets on 9 October 2024. The financial effect of this event is that the company's operations have ceased and the company will likely be exploring liquidation options.