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COMPANY REGISTRATION NUMBER: 06993733
Dolphin Hotel (Hampshire) Limited
Filleted Financial Statements
31 March 2024
Dolphin Hotel (Hampshire) Limited
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 9
Dolphin Hotel (Hampshire) Limited
Officers and Professional Advisers
The board of directors
Mr N Burgin (Resigned 31 October 2024)
Mr G Dyke
Mrs S Howes
Mr G Davies
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
Dolphin Hotel (Hampshire) Limited
Statement of Financial Position
31 March 2024
2024
2023
Note
£
£
Fixed assets
Tangible assets
6
175,543
253,631
Current assets
Stocks
27,472
Debtors
7
719,230
159,400
Cash at bank and in hand
2,009
17,503
---------
---------
721,239
204,375
Creditors: amounts falling due within one year
8
1,271,900
1,190,790
------------
------------
Net current liabilities
550,661
986,415
---------
---------
Total assets less current liabilities
( 375,118)
( 732,784)
Creditors: amounts falling due after more than one year
9
183,472
208,232
Provisions
Taxation including deferred tax
33,949
---------
---------
Net liabilities
( 592,539)
( 941,016)
---------
---------
Capital and reserves
Called up share capital
100
100
Profit and loss account
( 592,639)
( 941,116)
---------
---------
Shareholders deficit
( 592,539)
( 941,016)
---------
---------
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 Davies
Director
Company registration number: 06993733
Dolphin Hotel (Hampshire) Limited
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 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, which presentation exacerbates the net current liability position of the holding company, allied to a net current liability position of this company and, whilst the entity and the group are still considered to be a going concern, a material uncertainty inevitably exists.
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 accomodation, 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, usually on despatch of the goods, 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.
Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that 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 that are expected to apply to the reversal of the timing difference.
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:
Long leasehold property
-
over the lease term
Plant and machinery
-
5 years straight line
Equipment
-
5 years 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.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
Financial instruments
A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
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. Government grants
Income from Government grants are in respect of the Small Business Grant Fund, the Cornavirus Job Retention Scheme and the Bounce Back Loan Scheme.
5. Employee numbers
The average number of persons employed by the company during the year amounted to 17 (2023: 29 ).
6. Tangible assets
Plant and machinery
Equipment
Total
£
£
£
Cost
At 1 April 2023
410,174
104,468
514,642
Additions
8,495
13,499
21,994
Disposals
( 202,124)
( 13,921)
( 216,045)
---------
---------
---------
At 31 March 2024
216,545
104,046
320,591
---------
---------
---------
Depreciation
At 1 April 2023
227,416
33,595
261,011
Charge for the year
50,356
23,132
73,488
Disposals
( 175,531)
( 13,920)
( 189,451)
---------
---------
---------
At 31 March 2024
102,241
42,807
145,048
---------
---------
---------
Carrying amount
At 31 March 2024
114,304
61,239
175,543
---------
---------
---------
At 31 March 2023
182,758
70,873
253,631
---------
---------
---------
Finance leases and hire purchase contracts
Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements:
Equipment
£
At 31 March 2024
38,005
--------
At 31 March 2023
50,005
--------
7. Debtors
2024
2023
£
£
Trade debtors
1,699
70,666
Amounts owed by group undertakings and undertakings in which the company has a participating interest
227,006
69,891
Other debtors
490,525
18,843
---------
---------
719,230
159,400
---------
---------
8. Creditors: amounts falling due within one year
2024
2023
£
£
Bank overdraft and bank loan
103,041
9,500
Trade creditors
74,358
86,262
Amounts owed to group undertakings and undertakings in which the company has a participating interest
347,968
329,705
Social security and other taxes
80,726
81,948
Other creditors
665,807
683,375
------------
------------
1,271,900
1,190,790
------------
------------
Obligations under finance leases and hire purchase contracts are secured on the assets concerned.
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 Dolphin Hotel Hampshire Limited: Vine Hotels Limited Sheffield Park Hotel Property Limited Sheffield Park Hotel Limited Dolphin Hotel Property Limited Vine Kenwood Limited Kenwood Hotel Property Limited Venice Regal Sheffield Limited Cresta Court Hotel Holdings Limited Cresta Court Hotel Property Limited Harrop Hotels Limited In addition, there is an intercreditor deed between Santander Bank, each Obligor above, Greg Dyke, Susan Howes and Garin Davies.
9. Creditors: amounts falling due after more than one year
2024
2023
£
£
Bank overdraft and bank loan
160,708
170,208
Other creditors
22,764
38,024
---------
---------
183,472
208,232
---------
---------
The company has borrowed £190,000 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% over base 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.
The element repayable over five years from the balance sheet date is £132,208 (2023: £141,708).
Obligations under finance leases and hire purchase contracts are secured on the assets concerned.
10. 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.
11. 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 .
12. Directors' advances, credits and guarantees
The company has entered into a deed of guarantee and indemnity made between two of its directors and the following members of the Vine Hotels Group: Vine Hotels Limited Dolphin Hotel Property Limited Sheffield Park Hotel Property Limited Sheffield Park Hotel Limited The guarantee covers loans totalling £1.495 million (2023: £1.495 million), advanced to the holding company, Vine Hotels Limited, by Mr G Dyke and Mrs S Howes . The loans attract interest of 10% per annum and are secured by a fixed and floating charge over all assets of the group companies.
13. Related party transactions
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.
14. Controlling party
Dolphin Hotel (Hampshire) Limited is a private limited company incorporated in England and Wales. The immediate parent company of Dolphin Hotel (Hampshire) Limited is Dolphin Hotel Property Limited. The parent company of Dolphin Hotel Property Limited is Vine Hotels Limited, which is ultimately controlled by Mrs S Howes. The registered office of all three companies is shown on page 1 of these accounts. Vine Hotels Limited will be preparing consolidated group accounts, which include the accounts of Dolphin Hotel Property Limited and its subsidiary, Dolphin Hotel (Hampshire) Limited .