REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Audited Financial Statements |
for the Year Ended 4 April 2024 |
for |
Glynhill Hotel Limited |
REGISTERED NUMBER: |
Strategic Report, Report of the Directors and |
Audited Financial Statements |
for the Year Ended 4 April 2024 |
for |
Glynhill Hotel Limited |
Glynhill Hotel Limited (Registered number: SC044852) |
Contents of the Financial Statements |
for the Year Ended 4 April 2024 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Profit & Loss Account | 10 |
Balance Sheet | 11 |
Statement of Changes in Equity | 12 |
Cash Flow Statement | 13 |
Notes to the Cash Flow Statement | 14 |
Notes to the Financial Statements | 15 |
Glynhill Hotel Limited |
Company Information |
for the Year Ended 4 April 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Statutory Auditors |
Chartered Accountants |
147 Bath Street |
Glasgow |
G2 4SN |
BANKERS: |
1 Moncrieff Street |
Paisley |
PA3 2AW |
Glynhill Hotel Limited (Registered number: SC044852) |
Strategic Report |
for the Year Ended 4 April 2024 |
The directors present their strategic report for the year ended 4 April 2024. |
REVIEW OF BUSINESS |
The results for the year ended 4 April 2024 and the financial position at the year end are reflected in the annexed financial statements. |
The year saw a continuation of the post-Covid recovery, along with expenditure reflecting the investment in the |
business and in the Hotel itself. |
Turnover for the year increased to over £5.5 million, with both room sales & liquor sales experiencing six-figure increases. Leisure Club income rose too by over £85,000, with contributions now from the additional facilities on offer (swimming lessons, spa & beauty treatments). |
Whilst gross profitability remained in line with last year, the challenge of increasing payroll costs remains, with direct wages costs (i.e. excluding administrative & directors' salaries) increasing by £412,472 on last year - the investment in staff, particularly at managerial level, is designed to increase turnover and margins in future periods, whilst controlling staffing & overhead spending going forward. |
Administrative expenses have risen by just over £50,000 on last year, which the directors consider reasonable, particularly in the light of the inflationary pressures on wages and other costs. This includes an increase spend on maintaining the fabric of the Hotel (over £300,000 in the year) for the benefit of customers old and new. |
The year also saw some additional non-recurring expenses, principally in the form of unavoidable legal and professional fees, although the directors are pleased to note the reduction in non-domestic rates following management's intervention in the process. |
Additional finance costs in the year were also required to service the company's additional lending requirements with the Royal Bank of Scotland, resulting in a pre-tax loss of £3,782. |
The balance sheet remains in a strong position going forward, boosted by capital expenditure in the year of nearly £530,000. This was predominantly incurred on much-needed replacement of the Hotel's boiler system with new energy-efficient equivalents, increasingly important in light of increasing energy prices. |
This work was funded with the assistance of the company's bankers who remain supportive, following the advancement of a new term loan in the year. The company continues to meet all ongoing funding liabilities, with repayments totalling nearly £400,000 this year, along with interest charges of £91,527. |
Whilst the loss suffered in the year is disappointing, the directors consider that the investments made and the steps taken in the year and beyond (particularly the new management team) will serve the business going forward, and will result in a return to profitability in future periods. |
Glynhill Hotel Limited (Registered number: SC044852) |
Strategic Report |
for the Year Ended 4 April 2024 |
PRINCIPAL RISKS AND UNCERTAINTIES |
Principal risks and uncertainties facing the business relate mainly to the overall economic factors facing the business as a whole, in the aftermath of the pandemic which still affects businesses and people's everyday lives. This negatively affected the economy as a whole, with particular damage seen in the leisure, hospitality and entertainment sectors of industry. This, together with prevailing local economic conditions (including the rise in business rates, utilities, and staffing costs) are the main risks facing the company. |
The sales plans in place and the targets set are indicative of the pro-active approach adopted by management in attaining the company's stated objectives, in the face of increased competition, both local and beyond. |
Seasonality in the company's trade is also mitigated by the investments made in prior years, which seek to expand the range of activities on offer at the Hotel, whilst finance repayments are structured accordingly in line with anticipated cash flows. |
Financial and cash flow risk is considered with the assistance of financial reporting and forecasts which are reviewed regularly by management in the light of subsequent events. The management team look to retain a level of reserves consistent with ongoing liabilities plus sufficient headroom to cover eventualities. |
These are the most significant risks that may adversely affect business strategy, financial position or future performance. Senior management meet regularly to identify risk factors which may affect the business, evaluating the risk of these materialising and the financial or strategic impact of such events, in order to apply relevant and effective mitigating factors. |
ON BEHALF OF THE BOARD: |
Glynhill Hotel Limited (Registered number: SC044852) |
Report of the Directors |
for the Year Ended 4 April 2024 |
The directors present their report with the financial statements of the company for the year ended 4 April 2024. |
PRINCIPAL ACTIVITY |
The principal activity of the company in the year under review was that of hotel proprietors. |
DIVIDENDS |
No dividends will be distributed for the year ended 4 April 2024. |
FUTURE DEVELOPMENTS |
The company's specific plans for future development centre on the continuation of the refurbishment programme which recommenced in the year under review (principally the upgrade of the Hotel's heating system) - this programme is designed to improve existing facilities and services on offer to both existing and new customers. |
Changes to the management structure continued in the year under review, with an emphasis on driving the company forward via sales initiatives, whilst improving the margins being achieved, and controlling the costs and streamlining the services being provided. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 5 April 2023 to the date of this report. |
Other changes in directors holding office are as follows: |
FIXED ASSETS |
The movement in fixed assets during the year are summarised in the notes to the financial statements. |
No formal valuation has yet been made of the company's interests in land. However, the directors are of the opinion that the market value is substantially higher than the amount at which it is included in the balance sheet, and draw the attention of the members of the company to this fact in accordance with schedule 7, paragraph 1 (2) of the Companies Act 1985. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors 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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
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. |
Glynhill Hotel Limited (Registered number: SC044852) |
Report of the Directors |
for the Year Ended 4 April 2024 |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
AUDITORS |
The auditors, Gillespie & Anderson, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
Report of the Independent Auditors to the Members of |
Glynhill Hotel Limited |
Opinion |
We have audited the financial statements of Glynhill Hotel Limited (the 'company') for the year ended 4 April 2024 which comprise the Profit & Loss Account, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, including a summary of 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: |
- | give a true and fair view of the state of the company's affairs as at 4 April 2024 and of its loss for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
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 Auditors' 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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. |
In connection with our audit of the financial statements, 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 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 the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
Report of the Independent Auditors to the Members of |
Glynhill Hotel Limited |
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 Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 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. |
Report of the Independent Auditors to the Members of |
Glynhill Hotel Limited |
Auditors' 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 a Report of the Auditors 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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
1. Enquiries of management and senior staff, including obtaining and reviewing supporting documentation concerning the company's policies and procedures relating to: |
- identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance; |
- detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; |
- the internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations; |
2. Discussing among the engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud. In doing so, we identified potential audit risks in relation to revenue recognition, possible management override of controls and the applicability of the going concern basis of accounting. |
3. Obtaining an understanding of the legal and regulatory framework that the company operates in, focusing on those laws and regulations that had a direct effect on the financial statements or that had a fundamental effect on the operations of the company. The key laws and regulations we considered in this context included the Companies Act 2006, Health & Safety (& similar) regulations, national & local licencing requirements, pensions legislation and UK tax legislation. |
Audit response to risks identified |
As a result of performing the above, our procedures to respond to risks identified included the following: |
- reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with relevant laws and regulations discussed above; |
- enquiring of management and (if appropriate) external legal counsel concerning actual and potential litigation |
and claims; |
- performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud; |
- reading minutes of meetings of those charged with governance, reviewing relevant internal reports and reviewing correspondence with HMRC; |
- in addressing the area of revenue recognition, the performance of cut-off testing and review of post year end receipts for completeness, along with a review of analytical procedures on profit margins being achieved; |
- in addressing the risk of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business; |
- in consideration of the suitability of the going concern basis of accounting, we carried out the work referred previously in our report. |
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. |
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. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
Report of the Independent Auditors to the Members of |
Glynhill Hotel Limited |
Use of our report |
This report is made solely to the company's members, as a body, 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 members those matters we are required to state to them in a Report of the Auditors 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 members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Statutory Auditors |
Chartered Accountants |
147 Bath Street |
Glasgow |
G2 4SN |
Glynhill Hotel Limited (Registered number: SC044852) |
Profit & Loss Account |
for the Year Ended 4 April 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
TURNOVER |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
46,625 | 285,028 |
Other operating income |
OPERATING PROFIT | 4 |
Income from fixed asset investments | 5 |
Interest receivable and similar income |
2,517 | 153 |
97,146 | 314,964 |
Interest payable and similar expenses | 6 |
(LOSS)/PROFIT BEFORE TAXATION | ( |
) |
Tax on (loss)/profit | 7 |
(LOSS)/PROFIT FOR THE FINANCIAL YEAR |
( |
) |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
( |
) |
Glynhill Hotel Limited (Registered number: SC044852) |
Balance Sheet |
4 April 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 8 |
Investments | 9 |
CURRENT ASSETS |
Stocks | 10 |
Debtors | 11 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 12 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
13 |
( |
) |
( |
) |
PROVISIONS FOR LIABILITIES | 18 | ( |
) | ( |
) |
ACCRUALS AND DEFERRED INCOME | 19 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 20 |
Capital redemption reserve |
Retained earnings |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
Glynhill Hotel Limited (Registered number: SC044852) |
Statement of Changes in Equity |
for the Year Ended 4 April 2024 |
Called up | Capital |
share | Retained | redemption | Total |
capital | earnings | reserve | equity |
£ | £ | £ | £ |
Balance at 5 April 2022 |
Changes in equity |
Total comprehensive income | - |
Balance at 4 April 2023 |
Changes in equity |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 4 April 2024 |
Glynhill Hotel Limited (Registered number: SC044852) |
Cash Flow Statement |
for the Year Ended 4 April 2024 |
2024 | 2023 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 |
Interest paid | ( |
) | ( |
) |
Interest element of finance lease payments paid |
( |
) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities |
Cash flows from investing activities |
Purchase of tangible fixed assets | ( |
) | ( |
) |
Sale of tangible fixed assets |
Interest received |
Dividends received |
Net cash from investing activities | ( |
) | ( |
) |
Cash flows from financing activities |
New loans in year |
Loan repayments in year | ( |
) | ( |
) |
Capital repayments in year | ( |
) |
Net cash from financing activities | ( |
) |
Increase in cash and cash equivalents |
Cash and cash equivalents at beginning of year |
2 |
343,172 |
Cash and cash equivalents at end of year | 2 | 547,118 | 415,108 |
Glynhill Hotel Limited (Registered number: SC044852) |
Notes to the Cash Flow Statement |
for the Year Ended 4 April 2024 |
1. | RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2024 | 2023 |
£ | £ |
(Loss)/profit before taxation | ( |
) |
Depreciation charges |
Loss on disposal of fixed assets |
Decrease in provision | (155,180 | ) | 159,320 |
Government grants | ( |
) |
Finance costs | 100,928 | 50,887 |
Finance income | (2,517 | ) | (153 | ) |
199,181 | 719,944 |
Decrease/(increase) in stocks | ( |
) |
Increase in trade and other debtors | ( |
) | ( |
) |
Increase in trade and other creditors |
Cash generated from operations |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 4 April 2024 |
4.4.24 | 5.4.23 |
£ | £ |
Cash and cash equivalents | 547,118 | 415,108 |
Year ended 4 April 2023 |
4.4.23 | 5.4.22 |
£ | £ |
Cash and cash equivalents | 415,108 | 343,172 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 5.4.23 | Cash flow | At 4.4.24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 415,108 | 132,010 | 547,118 |
415,108 | 547,118 |
Debt |
Finance leases | - | (26,935 | ) | (26,935 | ) |
Debts falling due within 1 year | (222,152 | ) | (90,196 | ) | (312,348 | ) |
Debts falling due after 1 year | (882,934 | ) | (111,236 | ) | (994,170 | ) |
(1,105,086 | ) | (228,367 | ) | (1,333,453 | ) |
Total | (689,978 | ) | (96,357 | ) | (786,335 | ) |
Glynhill Hotel Limited (Registered number: SC044852) |
Notes to the Financial Statements |
for the Year Ended 4 April 2024 |
1. | STATUTORY INFORMATION |
Glynhill Hotel Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
These individual financial statements of the company have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. They are prepared under the going concern basis and under the historical cost convention, as modified by certain financial assets and liabilities measured at fair value through profit and loss. |
Going concern disclosures |
After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company therefore continues to adopt the going concern basis in preparing its financial statements. |
Significant judgements and estimates |
In preparing the financial statements, management are required to make judgements, estimates and assumptions, based on historical experience and other relevant factors. Actual results may differ from these best estimates, which are reviewed on an ongoing basis. |
The items in the financial statements where these judgements are required (and the factors in play) include trade debtors (likelihood of recovery), stock (impairment losses), accruals (likelihood & quantum of liability) and fixed assets (depreciation rates and capitalisation of expense). |
Turnover |
Turnover represents net sales of goods & services, excluding value added tax and any discount offered, and includes all income (including rental income) which the directors consider to be relevant to the main trading activities of the company. Such turnover is recognised when the company becomes entitled to the income concerned and when the outcome of the transaction can be reliably measured. |
For turnover involving the sale of goods, this occurs when: |
- the company has transferred to the buyer the significant risks and rewards of ownership of the goods; |
- the company no longer retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; |
- it is probable that the economic benefits associated with the transaction will flow to the company; and |
- the costs incurred or to be incurred in respect of the transaction can be measured reliably. |
For turnover involving the rendering of services, this occurs by reference to the stage of completion of the transaction at the end of the reporting period and where the outcome of a transaction can be estimated reliably, with the following conditions are satisfied: |
- the amount of revenue can be measured reliably; |
- it is probable that the economic benefits associated with the transaction will flow to the entity; |
- the stage of completion of the transaction at the end of the reporting period can be measured reliably; and |
- the costs incurred for the transaction and the costs to complete the transaction can be measured reliably. |
For example, turnover in relation to room sales is recognised at close of business on the date of the customer's stay, along with all services provided to the guest during that day, whilst the Leisure Club membership fees received in advance of the period of membership are deferred and released according to the period of membership. |
Glynhill Hotel Limited (Registered number: SC044852) |
Notes to the Financial Statements - continued |
for the Year Ended 4 April 2024 |
2. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Land & buildings | - |
Leisure complex plant | - |
Heating installation | - |
Electrical installation | - |
Plant & fittings | - |
Furnishings | - |
Factors such as a change in how an asset is used, significant unexpected wear and tear, technological advancement, and changes in market prices may indicate that the residual value or useful life of an asset has changed since the most recent annual reporting date. If such indicators are present, the company will review its previous estimates and, if current expectations differ, amend the residual value, depreciation method or useful life, accounting for such revisions as a change in an accounting estimate in accordance with FRS 102. |
As permitted by the Companies Act, crockery, glassware and linen have been stated at a fixed quantity and value since their quantity, value and composition is not subject to material variation and their overall value is not material to assessing the company's state of affairs. |
Government grants |
Government grants are recognised when there is reasonable assurance that the entity will comply with the conditions attaching to the grant and the grant will be received. |
A grant that does not impose specified future performance-related conditions on the recipient is recognised in income when the grant proceeds are received or receivable. A grant that imposes specified future performance-related conditions on the recipient is recognised in income only when those conditions are met. |
Grants are classified as either as a grant relating to revenue or a grant relating to assets. Grants relating to revenue are recognised in income on a systematic basis over the periods in which the entity recognises the related costs for which the grant is intended to compensate. Grants relating to assets are recognised in income on a systematic basis over the expected useful life of the asset. |
Stocks |
Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
Financial instruments |
The company has no complex financial instruments but does hold basic financial instruments of; cash at bank, debtors and creditors. |
Cash and cash equivalents comprise cash at bank and on hand, foreign currency on hand, demand deposits with banks and other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. A bank overdraft would be shown within current liabilities. |
Trade and other debtors are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method, less losses for bad debts except where the effective of discounting would be immaterial. In such cases, trade and other debtors are stated at cost less losses for bad debts. |
Trade and other creditors are initially recognised at fair value and subsequently measured at amortised cost using the effective interest rate unless the effect of discounting would be immaterial. In such cases, trade and other creditors are stated at cost. |
Glynhill Hotel Limited (Registered number: SC044852) |
Notes to the Financial Statements - continued |
for the Year Ended 4 April 2024 |
2. | ACCOUNTING POLICIES - continued |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Profit & Loss Account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Foreign currencies |
Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result. |
Hire purchase and leasing commitments |
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter. |
The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability. |
Rentals paid under operating lease are charged to the income statement on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate. |
Employee benefits |
The total cost of employee benefits to which employees have become entitled because of service rendered to the entity during the reporting period are recognised and charged to the profit and loss account in the period to which they relate. |
Provision for liabilities |
A provision is initially recognised when there is an obligation at the balance sheet date as the result of a past event, it is probable that there will be the transfer of funds in settlement and the amount of the obligation can be estimated reliably. The provision is subsequently measured by placing a charge against the provision only for expenditure for which the provision was originally recognised. |
Glynhill Hotel Limited (Registered number: SC044852) |
Notes to the Financial Statements - continued |
for the Year Ended 4 April 2024 |
3. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2024 | 2023 |
Directors | 4 | 4 |
Administration | 12 | 12 |
Others | 115 | 102 |
2024 | 2023 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes |
4. | OPERATING PROFIT |
The operating profit is stated after charging: |
2024 | 2023 |
£ | £ |
Depreciation - owned assets |
Depreciation - assets on finance leases |
Loss on disposal of fixed assets |
Auditors' remuneration |
Auditors' remuneration for non audit work |
Capital grant amortisation |
5. | INCOME FROM FIXED ASSET INVESTMENTS |
2024 | 2023 |
£ | £ |
Franked investment income | - | 17 |
Glynhill Hotel Limited (Registered number: SC044852) |
Notes to the Financial Statements - continued |
for the Year Ended 4 April 2024 |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2024 | 2023 |
£ | £ |
Bank loan interest |
Corporation Tax interest |
Other interest charges |
Hire purchase | ( |
) |
Leasing |
7. | TAXATION |
Analysis of the tax charge |
The tax charge on the loss for the year was as follows: |
2024 | 2023 |
£ | £ |
Current tax: |
UK corporation tax |
Over provision in prior year | (49,821 | ) | (1,580 | ) |
Total current tax | ( |
) |
Deferred tax: |
Movement in timing differences |
Tax on (loss)/profit |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
2024 | 2023 |
£ | £ |
(Loss)/profit before tax | ( |
) |
(Loss)/profit multiplied by the standard rate of corporation tax in the UK of |
( |
) |
Effects of: |
Expenses not deductible for tax purposes |
Income not taxable for tax purposes | ( |
) | ( |
) |
Capital allowances in excess of depreciation | ( |
) | - |
Depreciation in excess of capital allowances | - |
Utilisation of tax losses |
Adjustments to tax charge in respect of previous periods | ( |
) | ( |
) |
Deferred tax movements | 89,165 | 82,783 |
Total tax charge | 39,344 | 156,203 |
Glynhill Hotel Limited (Registered number: SC044852) |
Notes to the Financial Statements - continued |
for the Year Ended 4 April 2024 |
8. | TANGIBLE FIXED ASSETS |
Leisure |
Land & | complex | Heating | Electrical |
buildings | plant | installation | installation |
£ | £ | £ | £ |
COST |
At 5 April 2023 |
Additions |
At 4 April 2024 |
DEPRECIATION |
At 5 April 2023 |
Charge for year |
At 4 April 2024 |
NET BOOK VALUE |
At 4 April 2024 |
At 4 April 2023 |
Crockery, |
Plant & | glassware, |
fittings | Furnishings | linen | Totals |
£ | £ | £ | £ |
COST |
At 5 April 2023 |
Additions |
At 4 April 2024 |
DEPRECIATION |
At 5 April 2023 |
Charge for year |
At 4 April 2024 |
NET BOOK VALUE |
At 4 April 2024 |
At 4 April 2023 |
All buildings owned by the company are classed as freehold property. |
Glynhill Hotel Limited (Registered number: SC044852) |
Notes to the Financial Statements - continued |
for the Year Ended 4 April 2024 |
8. | TANGIBLE FIXED ASSETS - continued |
Fixed assets, included in the above, which are held under finance leases are as follows: |
Plant & |
fittings |
£ |
COST |
Additions |
At 4 April 2024 |
DEPRECIATION |
Charge for year |
At 4 April 2024 |
NET BOOK VALUE |
At 4 April 2024 |
9. | FIXED ASSET INVESTMENTS |
Listed |
investments |
£ |
COST |
At 5 April 2023 |
and 4 April 2024 |
NET BOOK VALUE |
At 4 April 2024 |
At 4 April 2023 |
10. | STOCKS |
2024 | 2023 |
£ | £ |
Goods for resale |
11. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Trade debtors |
Other debtors |
Tax |
Prepayments |
Glynhill Hotel Limited (Registered number: SC044852) |
Notes to the Financial Statements - continued |
for the Year Ended 4 April 2024 |
12. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Bank loans and overdrafts (see note 14) |
Finance leases (see note 15) |
Trade creditors |
Corporation tax |
Social security and other taxes |
VAT | 136,545 | 171,211 |
Deposits | 99,439 | 87,985 |
Accrued expenses |
13. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2024 | 2023 |
£ | £ |
Bank loans (see note 14) |
Finance leases (see note 15) |
14. | LOANS |
An analysis of the maturity of loans is given below: |
2024 | 2023 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank loans |
Amounts falling due between one and two years: |
Bank loans - 1-2 years |
Amounts falling due between two and five years: |
Bank loans - 2-5 years |
Amounts falling due in more than five years: |
Repayable by instalments |
Bank loans more than 5 years | 164,035 | 192,101 |
Glynhill Hotel Limited (Registered number: SC044852) |
Notes to the Financial Statements - continued |
for the Year Ended 4 April 2024 |
14. | LOANS - continued |
In 2015, the bank advanced two loans to the company. The first of these was a loan of £250,000 repayable over twelve years, with interest being levied at base plus 2.25% and monthly repayments of £2,015 which is now due to expire in May 2027. The second loan advanced in the year amounted to £400,000 repayable over twelve years, with interest being levied at base plus 2.04% and monthly repayments of £3,621. |
In 2019, the bank advanced £300,000 to the company, with interest being levied at base plus 2.25% and monthly repayments of £2,827, with a committed term originally of five years but repayment profiles of 12 years. This loan was repaid in the year under review with the balance at October 2023 rolled into a new loan, disclosed appropriately below. |
In 2020, the bank advanced a £600,000 Coronavirus Business Interruption Loan to the company. The loan has interest levied at base plus 3.39% and monthly capital repayments of £10,000 following an initial repayment holiday of 12 months. The loan has committed terms of 6 years including the initial 1 year repayment holiday. Interest for the first 12 months was paid by UK Government. |
In 2023, the bank advanced £285,500 to the company, with interest levied at base plus 3.25% and monthly repayments of £3,229. This loan has a committed term of 12 years, and refinanced an original loan advanced to the company back in 2019. |
In October 2023, the bank advanced £600,000 to the company (which included repayment of the 2019 loan above) with a committed term of 5 years, interest payable at base plus 2.38% and monthly repayments of £12,044. |
All loans with the company's bankers are secured by the existing security held by the bank and disclosed elsewhere in the financial statements. |
15. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Finance leases |
2024 | 2023 |
£ | £ |
Gross obligations repayable: |
Within one year |
Between one and five years |
Finance charges repayable: |
Within one year |
Between one and five years |
Net obligations repayable: |
Within one year |
Between one and five years |
Glynhill Hotel Limited (Registered number: SC044852) |
Notes to the Financial Statements - continued |
for the Year Ended 4 April 2024 |
15. | LEASING AGREEMENTS - continued |
Non-cancellable operating | leases |
2024 | 2023 |
£ | £ |
Within one year |
Between one and five years |
16. | SECURED DEBTS |
The following secured debts are included within creditors: |
2024 | 2023 |
£ | £ |
Bank loans |
Finance leases | 26,935 | - |
The Royal Bank of Scotland plc holds a standard security over the Glynhill Hotel, 169 Paisley Road, Renfrew, dated 26/7/79, together with a bond and floating charge over the company's whole assets and undertakings, dated 7/6/72. |
Hire purchase and finance lease creditors are secured over the assets to which the finance relates. |
17. | FINANCIAL INSTRUMENTS |
All financial assets and liabilities are measured at amortised cost, with the exception of the fixed assets investment, measured at fair value at 4 April 2024 of £414 (2023 - £414). |
18. | PROVISIONS FOR LIABILITIES |
2024 | 2023 |
£ | £ |
Deferred tax |
Accelerated capital allowances | 466,151 | 376,986 |
Other provisions | - | 155,180 |
Deferred | Other |
tax | provisions |
£ | £ |
Balance at 5 April 2023 |
Provided during year |
Utilised during year | ( |
) |
Balance at 4 April 2024 |
Glynhill Hotel Limited (Registered number: SC044852) |
Notes to the Financial Statements - continued |
for the Year Ended 4 April 2024 |
19. | ACCRUALS AND DEFERRED INCOME |
2024 | 2023 |
£ | £ |
Deferred government grants | 28,130 | 32,150 |
20. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary Shares | £1 | 77,800 | 77,800 |
All shares in issue have full rights in relation to voting, dividends and distribution of capital, ranking pari passu. |
21. | PENSION COMMITMENTS |
The company operates three pension schemes. The executive pension scheme is a defined contribution scheme containing two employees, while the other two schemes are group personal pensions for other staff - the most recent scheme was set up in 2019 in response to the requirements of auto enrolment. |
The assets of the schemes are held separately from those of the company in independently administered funds.The pension cost charge represents contributions payable by the company to all funds and amounted to £100,793 in the current year (2023 - £70,845). |
Accrued pension contributions of £5,000 (2023 - £1,827) are included within accrued charges at the financial year end. |
22. | RELATED PARTY DISCLOSURES |
Disclosure of all related party emoluments and pension contributions are disclosed elsewhere in the notes to the financial statements - the directors are considered to be the only employees falling within the definition of related parties contained within FRS 102. |
23. | ULTIMATE CONTROLLING PARTY |
The company is privately owned - Miss M Nicholas & Mr A H Nicholas both own 29,600 shares with the remaining 18,600 shares being owned by Mr R Nicholas. All shareholders are also directors of the company. |