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COMPANY REGISTRATION NUMBER: 07292447
Harrop Hotels Ltd
Filleted Financial Statements
31 March 2024
Harrop Hotels Ltd
Financial Statements
Year ended 31 March 2024
Contents
Pages
Officers and professional advisers
1
Statement of financial position
2
Notes to the financial statements
3 to 8
Harrop Hotels Ltd
Officers and Professional Advisers
The board of directors
Mr N Burgin (Resigned 31 October 2024)
Mr G J Davies
Mr G Dyke
Registered office
C/O Director of Finance
Mosborough Hall Hotel
High Street
Mosborough
Sheffield
S20 5EA
Auditor
Hebblethwaites
Chartered Accountants & Statutory Auditors
2 Westbrook Court
Sharrow Vale Road
Sheffield
S11 8YZ
Harrop Hotels Ltd
Statement of Financial Position
31 March 2024
2024
2023
Note
£
£
Fixed assets
Tangible assets
5
140,183
24,980
Current assets
Stocks
24,357
28,436
Debtors
6
1,695,468
1,727,804
Cash at bank and in hand
41,630
38,058
------------
------------
1,761,455
1,794,298
Creditors: amounts falling due within one year
7
1,363,278
1,151,076
------------
------------
Net current assets
398,177
643,222
---------
---------
Total assets less current liabilities
538,360
668,202
Creditors: amounts falling due after more than one year
8
228,375
241,875
---------
---------
Net assets
309,985
426,327
---------
---------
Capital and reserves
Called up share capital
300,000
300,000
Other reserves
280,199
280,199
Profit and loss account
( 270,214)
( 153,872)
---------
---------
Shareholders funds
309,985
426,327
---------
---------
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
In accordance with section 444 of the Companies Act 2006, the statement of income and retained earnings has not been delivered.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
These financial statements were approved by the board of directors and authorised for issue on 2 December 2024 , and are signed on behalf of the board by:
Mr G J Davies
Director
Company registration number: 07292447
Harrop Hotels Ltd
Notes to the Financial Statements
Year ended 31 March 2024
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is C/O Director of Finance, Mosborough Hall Hotel, High Street, Mosborough, Sheffield, S20 5EA.
2. Statement of compliance
These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Going concern
Management have determined that a material uncertainty exists which may cast doubt on the company's ability to continue as a going concern. Given the then market conditions in the post pandemic era, a valuation of the property held in the parent company was undertaken in March 2022 which resulted in a reduction in the value of the long leasehold property assets in the subsequent financial statements of the parent company. In order to update the position and to satisfy the requirements of the company bankers in relation to the group bank funding, a further property valuation has been undertaken during this latest year, in addition to which the group has undertaken a value in use appraisal and valuation. As a result, the carrying value of the company property in the holding company has again been re-assessed and reduced, this reflected in the holding company financial statements. Despite this downward movement, there remains a net positive revaluation reserve in relation to the holding company property, this as a result of earlier upward valuation movements, with the current carrying value of the property, as revalued, being in excess of cost. The nature of the group property assets is such that the valuation is very much structured around the earning capacity of those assets which itself has been substantially impacted by the effect of world events and macro-economic factors which have significantly affected the financial results recorded during this difficult period. As a result of the reduction in value within the group, there has been a historic technical breach of the 'loan to value' financial covenant applicable to the group debt secured as against the property. Management have subsequently re-negotiated variations to the terms of the group finance facilities which will address the subject covenant going forward and negate the breach. This re-negotiation is also indicative of the ongoing support being provided by the funding provider. As a result of the technical breach during the accounting period, management have determined that the long term portion of the debt be presented as a current liability in the financial statements of the holding company, and, whilst the entity and the group are still considered to be a going concern, a material uncertainty inevitably exists within this company along with the holding company given the fact that the two companies are intrinsically linked.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. In the opinion of management, there are no areas of judgement or key sources of estimation uncertainty that have a significant effect on the financial statements.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for the supply of accommodation, food, drinks and related goods at the company's hotel site, stated net of discounts and of Value Added Tax. Revenue from the sale of the above items is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer, the amount of revenue can be measured reliably, it is probable that the associated economic benefits will flow to the entity, and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Fixtures and fittings
-
25% straight line
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.
Stocks
Stocks are valued at the lower of cost and net relisable value, after making due allowance for obsolete and slow moving items.
Finance leases and hire purchase contracts
Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.
Financial instruments
Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.
4. Employee numbers
The average number of persons employed by the company during the year amounted to 73 (2023: 62 ).
5. Tangible assets
Fixtures and fittings
Total
£
£
Cost
At 1 April 2023
110,770
110,770
Additions
151,336
151,336
---------
---------
At 31 March 2024
262,106
262,106
---------
---------
Depreciation
At 1 April 2023
85,790
85,790
Charge for the year
36,133
36,133
---------
---------
At 31 March 2024
121,923
121,923
---------
---------
Carrying amount
At 31 March 2024
140,183
140,183
---------
---------
At 31 March 2023
24,980
24,980
---------
---------
6. Debtors
2024
2023
£
£
Trade debtors
58,901
89,157
Amounts owed by group undertakings and undertakings in which the company has a participating interest
1,030,321
869,559
Other debtors
606,246
769,088
------------
------------
1,695,468
1,727,804
------------
------------
7. Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans and overdrafts
539,169
330,771
Trade creditors
170,682
157,620
Social security and other taxes
66,676
96,685
Other creditors
586,751
566,000
------------
------------
1,363,278
1,151,076
------------
------------
The bank loan and overdraft are secured upon all assets of the company and also by a debenture from each of (i) Vine Hotels Limited and (ii) Vine Kenwood Limited over all of their assets and undertakings. There is also a cross guarantee from the following companies in respect of the obligations of Harrop Hotel Limited: Vine Hotels Limited Sheffield Park Hotel Property Limited Sheffield Park Hotel Limited Dolphin Hotel Property Limited Dolphin Hotel (Hampshire) Limited Vine Kenwood Limited Kenwood Hotel Property Limited Venice Regal Sheffield Limited Cresta Court Hotel Holdings Limited Cresta Court Hotel Property Limited In addition, there is an inter-creditor deed between Santander Bank, each obligor above, Greg Dyke, Susan Howes and Garin Davies.
8. Creditors: amounts falling due after more than one year
2024
2023
£
£
Bank loans and overdrafts
228,375
241,875
---------
---------
The company has borrowed £270,000 under the Government's Coronavirus Business Interruption Loan Scheme.
This loan is repayable within 6 years from March 2021, with no repayments due for the first 12 months.
Interest of 3.5% is payable monthly, in arrears, on this loan; the Government covers the first 12 months interest charge.
The borrower remains responsible for repaying the whole of the loan at all times.
9. Financial risk management objectives and policies
The exposure of the company to price risk, credit risk, liquidity risk and cash flow risk is not considered material for the assessment of the assets, liabilities, financial position and income or expenditure of the company.
10. Summary audit opinion
The auditor's report dated 3 December 2024 was unqualified .
The senior statutory auditor was Andrew Throssell FCA , for and on behalf of Hebblethwaites .
11. Directors' advances, credits and guarantees
The holding company, Cresta Court Hotel Holdings, has entered into a cross guaranteed debenture loan made between two of its directors, the wife of a director, and the following members of the Cresta Court Hotel group: Cresta Court Hotel Holdings Limited Cresta Court Hotel Property Limited Harrop Hotels Limited The guarantee covers loans totalling £600,000, advanced to the holding company, Cresta Court Hotel Holdings Limited, by Mr G Dyke . The loans attract interest of 10% per annum and are secured by a fixed and floating charge over all assets of the group companies.
12. Related party transactions
The immediate parent company of Harrop Hotels Limited is Cresta Court Hotel Property Limited and the ultimate parent company is Cresta Court Hotel Holdings Limited. The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102, not to disclose related party transactions with fellow 100% group companies.
13. Controlling party
The company is a wholly owned subsidiary of Cresta Court Hotel Property Limited, which is wholly owned by Cresta Court Hotel Holdings Limited, a company which is controlled by Greg Dyke. Cresta Court Hotel Holdings Limited, the ultimate parent company, will be preparing consolidated group accounts.