Company registration number 04275686 (England and Wales)
CRYSTAL HOTELS PLC
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 AUGUST 2023
CRYSTAL HOTELS PLC
COMPANY INFORMATION
Directors
Mr S Kadir
Mr S Kadir
Company number
04275686
Registered office
9 Bonhill Street
London
EC2A 4DJ
Auditor
Begbies
9 Bonhill Street
London
EC2A 4DJ
CRYSTAL HOTELS PLC
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Independent auditor's report
4 - 6
Statement of comprehensive income
7
Balance sheet
8
Statement of changes in equity
9
Statement of cash flows
10
Notes to the financial statements
11 - 16
CRYSTAL HOTELS PLC
STRATEGIC REPORT
FOR THE YEAR ENDED 29 AUGUST 2023
- 1 -

The directors present the strategic report for the year ended 29 August 2023.

Review of the business

The current financial year saw a welcome return to post-COVID trading, and hence profits, for both Crystal Hotels plc and the hotels which are the company's principal source of income. Three of the four hotels which the company provides management services to reopened throughout late 2021 and early 2022, and have since traded profitably, assisted by the buoyant London hotel market. A fourth hotel was closed for a major refurbishment during the period.

 

Accordingly, company turnover increased from £90,380 to £322,505 during the period. Continued tight cost control meant that the increase in overheads was modest, and the company achieved a profit before tax of £180,611, as against a loss of £35,857 in the prior period. As at the balance sheet date, the company had a solid financial base, with net assets of £128,224. The hotels have continued to trade profitably after the year end.

Principal risks and uncertainties

The principal risk facing the company is a downturn in the London hotel market, which would impact on the operating margins of the hotels and hence the ability of the company to charge management fees. The directors are confident that the group can continue to manage this risk, and the resilient post-COVID trading is evidence of the strength of the business model.

On behalf of the board

Mr S Kadir
Director
20 October 2024
CRYSTAL HOTELS PLC
DIRECTORS' REPORT
FOR THE YEAR ENDED 29 AUGUST 2023
- 2 -

The directors present their annual report and financial statements for the year ended 29 August 2023.

Principal activities

The principal activity of the company continued to be that of providing management services to a group of London hotels

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr S Kadir
Mr S Kadir
Results and dividends

The results for the year are set out on page 6

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Auditor

The auditor, Begbies, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of directors' responsibilities

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

CRYSTAL HOTELS PLC
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 29 AUGUST 2023
- 3 -
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
Mr S Kadir
Director
20 October 2024
CRYSTAL HOTELS PLC
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBER OF CRYSTAL HOTELS PLC
- 4 -
Opinion

We have audited the financial statements of Crystal Hotels plc (the 'company') for the year ended 29 August 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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 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.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

CRYSTAL HOTELS PLC
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF CRYSTAL HOTELS PLC
- 5 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report 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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, included 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.

- Assessment of the susceptibility of the company's financial statements to material misstatement, including how fraud might occur by considering the key risks impacting the financial statements.

 

- Agreement of the financial statements disclosures to underlying supporting documentation;

 

- Incorporating unpredictability into the nature, timing and/or extent of testing;

 

- Evaluation of the selection and application of the accounting policies chosen by the company;

 

- In relation to the risk of management override of controls, by undertaking procedures to review journal entries and evaluating whether there was evidence of bias that represented a risk of material misstatement due to fraud.

 

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentation or through collusion.

 

There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it.

CRYSTAL HOTELS PLC
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBER OF CRYSTAL HOTELS PLC
- 6 -

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

Use of our report

This report is made solely to the company's member in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's member those matters we are required to state to the member in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's member, for our audit work, for this report, or for the opinions we have formed.

Begbies Chartered Accountants
Statutory Auditor
20 October 2024
Mr Andrew Brooker FCA
On behalf of Begbies Chartered Accountants
9 Bonhill Street
London
EC2A 4DJ
CRYSTAL HOTELS PLC
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 29 AUGUST 2023
- 7 -
2023
2022
Notes
£
£
Turnover
2
322,505
90,380
Administrative expenses
(140,889)
(132,910)
Other operating income
-
0
7,810
Operating profit/(loss)
3
181,616
(34,720)
Interest payable and similar expenses
(1,005)
(1,137)
Profit/(loss) before taxation
180,611
(35,857)
Tax on profit/(loss)
6,479
-
0
Profit/(loss) for the financial year
187,090
(35,857)

The profit and loss account has been prepared on the basis that all operations are continuing operations.

CRYSTAL HOTELS PLC
BALANCE SHEET
AS AT
29 AUGUST 2023
29 August 2023
- 8 -
29 August 2023
31 August 2022
Notes
£
£
£
£
Current assets
Debtors
6
249,537
67,310
Cash at bank and in hand
26,098
10,497
275,635
77,807
Creditors: amounts falling due within one year
7
(114,889)
(98,593)
Net current assets/(liabilities)
160,746
(20,786)
Creditors: amounts falling due after more than one year
8
(32,522)
(38,080)
Net assets/(liabilities)
128,224
(58,866)
Capital and reserves
Called up share capital
11
50,000
50,000
Profit and loss reserves
78,224
(108,866)
Total equity
128,224
(58,866)
The financial statements were approved by the board of directors and authorised for issue on 20 October 2024 and are signed on its behalf by:
Mr S Kadir
Director
Company registration number 04275686 (England and Wales)
CRYSTAL HOTELS PLC
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 29 AUGUST 2023
- 9 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 September 2021
50,000
147,750
197,750
Year ended 31 August 2022:
Loss and total comprehensive income for the year
-
(35,857)
(35,857)
Balance at 31 August 2022
50,000
(108,866)
(58,866)
Year ended 29 August 2023:
Profit and total comprehensive income for the year
-
187,090
187,090
Balance at 29 August 2023
50,000
78,224
128,224
CRYSTAL HOTELS PLC
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 29 AUGUST 2023
- 10 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
13
22,164
8,246
Interest paid
(1,005)
(1,137)
Net cash inflow from operating activities
21,159
7,109
Financing activities
Repayment of borrowings
(5,558)
(5,019)
Net cash used in financing activities
(5,558)
(5,019)
Net increase in cash and cash equivalents
15,601
2,090
Cash and cash equivalents at beginning of year
10,497
8,407
Cash and cash equivalents at end of year
26,098
10,497
CRYSTAL HOTELS PLC
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 29 AUGUST 2023
- 11 -
1
Accounting policies
Company information

Crystal Hotels plc is a public company limited by shares incorporated in England and Wales. The registered office is 9 Bonhill Street, London, EC2A 4DJ.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

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

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

1.2
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.true

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for services provided in the normal course of business, and is shown net of VAT and other sales related taxes.

 

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Plant and equipment
33.33%
1.5
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and includes all company bank accounts.

1.6
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

The company only enters into basic financial instruments such as cash at bank, trade debtors and trade creditors, bank loans or amounts due to/from connected companies. Short term receivables are measured at transaction price, less any impairment. Short term payables are measured at transaction price. Long term payables, which relate to a bank loan, are initially measured at transaction price, and subsequently measured at amortised cost using the effective interest method.

1.7
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

CRYSTAL HOTELS PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 AUGUST 2023
1
Accounting policies
(Continued)
- 12 -
Current tax

Charges in respect of current tax are based on the taxable profits for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible.

Deferred tax
Deferred tax liabilities are generally recognised for all timing differences, subject to materiality. In the current and prior year, however, the company has not needed to recognise any deferred tax liabilities. In the current year the company has recognised a deferred tax asset in respect of unutilised tax losses as it is now highly likely these losses will be offset against taxable profits going forwards.
1.8
Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

2
Turnover

An analysis of the company's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Management fees
322,505
90,380
2023
2022
£
£
Turnover analysed by geographical market
UK
322,505
90,380
3
Operating profit/(loss)
2023
2022
Operating profit/(loss) for the year is stated after charging:
£
£
Current year audit fees
3,000
3,500
4
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
Operations
6
5
CRYSTAL HOTELS PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 AUGUST 2023
4
Employees
(Continued)
- 13 -

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
81,205
86,116
Social security costs
-
1,414
Pension costs
1,157
1,456
82,362
88,986
5
Tangible fixed assets
Plant and equipment
£
Cost
At 1 September 2022 and 29 August 2023
16,734
Depreciation and impairment
At 1 September 2022 and 29 August 2023
16,734
Carrying amount
At 29 August 2023
-
0
At 31 August 2022
-
0
6
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
173,845
61,276
Other debtors
1,804
6,034
Prepayments and accrued income
67,409
-
0
243,058
67,310
Deferred tax asset (note 10)
6,479
-
0
249,537
67,310
CRYSTAL HOTELS PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 AUGUST 2023
- 14 -
7
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans
9
5,200
5,200
Trade creditors
2,597
5,732
Taxation and social security
509
1,216
Other creditors
96,583
79,445
Accruals and deferred income
10,000
7,000
114,889
98,593
8
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Bank loan
9
32,522
38,080
9
Loans and overdrafts
2023
2022
£
£
Bank loans
37,722
43,280
Payable within one year
5,200
5,200
Payable after one year
32,522
38,080

Creditors falling due after more than one year represent a bank loan received under the Coronavirus Bounce Back Loan Scheme.

10
Deferred taxation

The following are the deferred tax assets recognised by the company and movements thereon:

Assets
Assets
2023
2022
Balances:
£
£
Tax losses
6,479
-
CRYSTAL HOTELS PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 AUGUST 2023
10
Deferred taxation
(Continued)
- 15 -
2023
Movements in the year:
£
Liability at 1 September 2022
-
Credit to profit or loss
(6,479)
Asset at 29 August 2023
(6,479)

The deferred tax asset set out above is expected to reverse within 12 months and relates to the utilisation of tax losses against future expected profits of the same period.

11
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary of £1 each
50,000
50,000
50,000
50,000
12
Related party transactions

During the year the company invoiced management fees of £322,305 to Kadir & Co Management ltd and Dewanee ltd, which are both companies under common control (2022: £90,380). The fees were charged in the normal course of the company's business.

 

At 31st August 2023, the company's balance sheet showed trade debtors due from the above companies of £173,845 and other creditors payable of £61,276.

 

Crystal Hotels plc, Kadir & Co Management ltd and Dewanee ltd are under common control.

13
Cash generated from operations
2023
2022
£
£
Profit/(loss) for the year after tax
187,090
(35,857)
Adjustments for:
Taxation credited
(6,479)
-
0
Finance costs
1,005
1,137
Movements in working capital:
(Increase) in debtors
(175,748)
(21,414)
Increase in creditors
16,296
64,380
Cash generated from operations
22,164
8,246
CRYSTAL HOTELS PLC
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 29 AUGUST 2023
- 16 -
14
Analysis of changes in net debt
1 September 2022
Cash flows
29 August 2023
£
£
£
Cash at bank and in hand
10,497
15,601
26,098
Borrowings excluding overdrafts
(43,280)
5,558
(37,722)
(32,783)
21,159
(11,624)
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