Company Registration No. 12498207 (England and Wales)
BELFONT HOTELS LTD
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
PAGES FOR FILING WITH REGISTRAR
BELFONT HOTELS LTD
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 7
BELFONT HOTELS LTD
BALANCE SHEET
- 1 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
3
308,330
358,329
Tangible assets
4
12,173,970
4,244,247
12,482,300
4,602,576
Current assets
Debtors
5
389,252
91,365
Cash at bank and in hand
1,277,589
280,514
1,666,841
371,879
Creditors: amounts falling due within one year
6
(11,323,417)
(6,198,727)
Net current liabilities
(9,656,576)
(5,826,848)
Total assets less current liabilities
2,825,724
(1,224,272)
Creditors: amounts falling due after more than one year
7
(1,293,108)
Provisions for liabilities
(803,972)
Net assets/(liabilities)
728,644
(1,224,272)
Capital and reserves
Called up share capital
8
4
4
Other reserves
2,524,489
Profit and loss reserves
(1,795,849)
(1,224,276)
Total equity
728,644
(1,224,272)
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
For the financial year ended 30 June 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
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.
The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
BELFONT HOTELS LTD
BALANCE SHEET (CONTINUED)
- 2 -
The financial statements were approved by the board of directors and authorised for issue on 3 January 2025 and are signed on its behalf by:
A A Dhamecha
K M Thakerar
Director
Director
Company Registration No. 12498207
BELFONT HOTELS LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -
1
Accounting policies
Company information
Belfont Hotels Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 5 Churchill Court, 58 Station Road, North Harrow, Harrow, United Kingdom, HA2 7SA.
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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
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
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The validity of this assumption is on the basis of that the company will continue to be supported by the directors; the shareholders and the Bank which provided the loan to finance the refurbishment of the hotel post year-end. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
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 of assets less their residual values over their useful lives on the following bases:
Freehold land
Not depreciated
Freehold buildings
Straight line over 50 years
Plant and equipment
Straight line over 5 years
Fixtures and fittings
Straight line over 5 years
BELFONT HOTELS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 4 -
Properties whose fair value can be measured reliably are held under the revaluation model and are carried at a revalued amount, being their fair value at the date of valuation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The fair value of the land and buildings is usually considered to be their market value.
Revaluation gains and losses are recognised in other comprehensive income and accumulated in equity, except to the extent that a revaluation gain reverses a revaluation loss previously recognised in profit or loss or a revaluation loss exceeds the accumulated revaluation gains recognised in equity; such gains and losses are recognised in profit or loss.
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss.
1.6
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks.
1.7
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.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs.
BELFONT HOTELS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 5 -
1.9
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense.
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.
1.10
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.11
Government grants
Government grants, which include amounts received under the Coronavirus Job Retention Scheme and from local authority grants, are recognised at the fair value of the grant received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received. The income is recognised in other income on a systematic basis over the periods in which the associated costs are incurred, using the accrual model.
1.12
Other reserve comprises the fair value uplift on the company's freehold property. An increase in the fair value of the freehold property during the year is taken to the other reserve account net of the associated deferred tax. A decrease in the fair value as a result of a revaluation loss and the deferred tax associated with it firstly reverses a previous revaluation uplift to the extent the revaluation reserve account is reduced to nil. Any excess loss is then reported in the profit and loss account. The reserve is not distributable.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
Total
4
4
3
Intangible fixed assets
Goodwill
£
Cost
At 1 July 2023 and 30 June 2024
499,994
Amortisation and impairment
At 1 July 2023
141,665
Amortisation charged for the year
49,999
At 30 June 2024
191,664
Carrying amount
At 30 June 2024
308,330
At 30 June 2023
358,329
BELFONT HOTELS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 6 -
4
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost or valuation
At 1 July 2023
4,376,591
96,863
4,473,454
Additions
4,681,924
4,681,924
Revaluation
3,328,461
3,328,461
At 30 June 2024
12,386,976
96,863
12,483,839
Depreciation and impairment
At 1 July 2023
176,905
52,302
229,207
Depreciation charged in the year
62,262
18,400
80,662
At 30 June 2024
239,167
70,702
309,869
Carrying amount
At 30 June 2024
12,147,809
26,161
12,173,970
At 30 June 2023
4,199,686
44,561
4,244,247
Land and buildings with a carrying amount of £12,147,809 were revalued at 24 July 2024 by Savills, independent Chartered Surveyors not connected with the company on the basis of market value. The valuation was based on recent market transactions on arm's length terms for similar properties, given consideration of various factors which may affect the value.
Land and buildings are carried at valuation. If land and buildings were measured using the cost model, the carrying amounts would have been approximately £8,819,348 (2023 - £4,199,686), being cost £9,058,515 (2023 - £4,376,591) and depreciation £239,167 (2023 - £176,905).
5
Debtors
2024
2023
Amounts falling due within one year:
£
£
Other debtors
337,408
49,444
Prepayments
51,844
41,921
389,252
91,365
6
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
867,952
73,043
Other creditors
10,436,078
6,099,996
Accruals
19,387
25,688
11,323,417
6,198,727
BELFONT HOTELS LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 7 -
7
Creditors: amounts falling due after more than one year
2024
2023
£
£
Bank loans and overdrafts
1,293,108
The bank loans were for a facility of up to £7,250,000 to assist the finance of the hotel refurbishment. The loan is secured by a first ranking fixed legal charge over the property including land and buildings and a debenture containing fixed and floating charges over all the assets of the company.
8
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
4 Ordinary shares of £1 each
4
4
4
4
9
Related party transactions
Included within other creditors is an amount of £10,299,996 (2023: £6,099,996) due to the shareholders, in respect of loans provided to the company. These amounts are interest free and repayable on demand.