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REGISTERED NUMBER: 11335069 (England and Wales)









REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 30 APRIL 2024

FOR

BGAM HOTELS (LX) LTD

BGAM HOTELS (LX) LTD (REGISTERED NUMBER: 11335069)






CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024




Page

Company Information 1

Report of the Directors 2

Report of the Independent Auditors 3

Consolidated Income Statement 6

Consolidated Balance Sheet 7

Company Balance Sheet 8

Notes to the Consolidated Financial Statements 9


BGAM HOTELS (LX) LTD

COMPANY INFORMATION
FOR THE YEAR ENDED 30 APRIL 2024







DIRECTORS: L M Becker
J D Levy
J P Levy
M D Rubin
N S Rubin



REGISTERED OFFICE: Greenhill House
90/93 Cowcross Street
London
EC1M 6BF



REGISTERED NUMBER: 11335069 (England and Wales)



SENIOR STATUTORY AUDITOR: S T Blundell FCA



AUDITORS: Goldwyns Limited
Statutory Auditors and Chartered Accountants
Rutland House
90-92 Baxter Avenue
Southend on Sea
Essex
SS2 6HZ

BGAM HOTELS (LX) LTD (REGISTERED NUMBER: 11335069)

REPORT OF THE DIRECTORS
FOR THE YEAR ENDED 30 APRIL 2024

The directors present their report with the financial statements of the company and the group for the year ended 30 April 2024.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 May 2023 to the date of this report.

L M Becker
J D Levy
J P Levy
M D Rubin
N S Rubin

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing 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). 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

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 group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS
The auditors, Goldwyns Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

ON BEHALF OF THE BOARD:





J D Levy - Director


28 January 2025

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
BGAM HOTELS (LX) LTD

Opinion
We have audited the financial statements of BGAM Hotels (LX) Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 April 2024 which comprise the Consolidated Income Statement, Consolidated Balance Sheet, Company Balance Sheet and 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 group's and of the parent company affairs as at 30 April 2024 and of the group's 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 group 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 group's and the parent 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 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 Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Report of the Directors has been prepared in accordance with applicable legal requirements.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
BGAM HOTELS (LX) LTD


Matters on which we are required to report by exception
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
- the parent company 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; or
- the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption from the requirement to prepare a Group Strategic Report or in preparing the Report of the Directors.

Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page two, 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 group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so.

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.

Irregularities, including 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. In order to address the risks of misstatements in respect of irregularities, including fraud, we have:

- obtained an understanding of the key laws and regulations applicable to the group, including the Companies Act 2006, and applicable taxation legislation;
- assessed the group's own internal controls and systems for the prevention and detection of irregularities and particularly the control environment within which they operate;
- determined a materiality level and audit approach sufficient to identify most irregularities, including fraud, that may occur;
- considered our own involvement in the preparation of the group's statutory financial statements and taxation returns;
- conducted audit verification work, on a sample basis, on the key audit areas and risks we have identified; and
- reflected on the outcome of our work, and the likelihood that conclusions drawn may be indicative of other areas of potential irregularity.

We therefore consider our audit approach has been sufficient to detect material irregularities, including fraud.

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
BGAM HOTELS (LX) LTD


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.




S T Blundell FCA (Senior Statutory Auditor)
for and on behalf of Goldwyns Limited
Statutory Auditors and Chartered Accountants
Rutland House
90-92 Baxter Avenue
Southend on Sea
Essex
SS2 6HZ

28 January 2025

BGAM HOTELS (LX) LTD (REGISTERED NUMBER: 11335069)

CONSOLIDATED
INCOME STATEMENT
FOR THE YEAR ENDED 30 APRIL 2024

2024 2023
Notes £    £   

TURNOVER 3,277,939 2,939,137

Cost of sales 1,791,808 1,520,998
GROSS PROFIT 1,486,131 1,418,139

Administrative expenses 891,722 1,813,493
OPERATING PROFIT/(LOSS) 4 594,409 (395,354 )


Interest payable and similar expenses 632,646 483,668
LOSS BEFORE TAXATION (38,237 ) (879,022 )

Tax on loss 30,457 31,130
LOSS FOR THE FINANCIAL YEAR (68,694 ) (910,152 )

Loss attributable to:
Owners of the parent (68,694 ) (910,152 )

BGAM HOTELS (LX) LTD (REGISTERED NUMBER: 11335069)

CONSOLIDATED BALANCE SHEET
30 APRIL 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 6 1,487,235 1,587,795
Tangible assets 7 9,945,348 9,990,708
Investments 8 - -
11,432,583 11,578,503

CURRENT ASSETS
Stocks 10,922 10,944
Debtors 9 1,146,868 668,372
Cash at bank - 52,640
1,157,790 731,956
CREDITORS
Amounts falling due within one year 10 2,324,431 6,871,019
NET CURRENT LIABILITIES (1,166,641 ) (6,139,063 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

10,265,942

5,439,440

CREDITORS
Amounts falling due after more than one
year

11

(15,611,517

)

(10,721,349

)

PROVISIONS FOR LIABILITIES 14 (32,960 ) (27,932 )
NET LIABILITIES (5,378,535 ) (5,309,841 )

CAPITAL AND RESERVES
Called up share capital 5 5
Retained earnings (5,378,540 ) (5,309,846 )
(5,378,535 ) (5,309,841 )

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Board of Directors and authorised for issue on 28 January 2025 and were signed on its behalf by:





J D Levy - Director


BGAM HOTELS (LX) LTD (REGISTERED NUMBER: 11335069)

COMPANY BALANCE SHEET
30 APRIL 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 6 - -
Tangible assets 7 - -
Investments 8 9,201,982 9,201,982
9,201,982 9,201,982

CREDITORS
Amounts falling due within one year 10 9,911,303 9,896,303
NET CURRENT LIABILITIES (9,911,303 ) (9,896,303 )
TOTAL ASSETS LESS CURRENT
LIABILITIES

(709,321

)

(694,321

)

CAPITAL AND RESERVES
Called up share capital 5 5
Retained earnings (709,326 ) (694,326 )
(709,321 ) (694,321 )

Company's loss for the financial year (15,000 ) -

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Board of Directors and authorised for issue on 28 January 2025 and were signed on its behalf by:





J D Levy - Director


BGAM HOTELS (LX) LTD (REGISTERED NUMBER: 11335069)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 APRIL 2024

1. STATUTORY INFORMATION

BGAM Hotels (LX) Ltd is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

The group operates from its premises in Leigh.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Turnover
Turnover represents the income receivable by the group from its trading activities as a hotel. Sales encompass room hire, food and beverage income and all other associated ancillary hotel and guest services. Turnover is recognised in the period in which the physical goods are sold, as services are performed or otherwise as entitlement accrues to the group.

Goodwill
Goodwill, being the amount paid in connection with the acquisition of a business in 2018, is being amortised evenly over its estimated useful life of five years.

Other intangible assets
Intangible assets, representing the book loss on the disposal of the group's property during 2018, are being amortised over the 175 year life of the replacement leasehold property interest.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Leasehold property - over a period of 175 years
Equipment - 25% on reducing balance
Fixtures and fittings - 25% on reducing balance

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, 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.

BGAM HOTELS (LX) LTD (REGISTERED NUMBER: 11335069)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 APRIL 2024

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 51 (2023 - 43 ) .

4. OPERATING PROFIT/(LOSS)

The operating profit (2023 - operating loss) is stated after charging:

2024 2023
£    £   
Other operating leases 48,084 44,981
Depreciation - owned assets 1,975 1,461
Depreciation - assets on finance leases 58,714 58,715
Goodwill amortisation 91,764 984,324
Other intangibles amortisation 8,796 8,796
Auditors' remuneration 14,500 9,750

5. INDIVIDUAL INCOME STATEMENT

As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements.


6. INTANGIBLE FIXED ASSETS

Group
Other
intangible
Goodwill assets Totals
£    £    £   
COST
At 1 May 2023
and 30 April 2024 4,921,618 1,539,277 6,460,895
AMORTISATION
At 1 May 2023 4,829,854 43,246 4,873,100
Charge for year 91,764 8,796 100,560
At 30 April 2024 4,921,618 52,042 4,973,660
NET BOOK VALUE
At 30 April 2024 - 1,487,235 1,487,235
At 30 April 2023 91,764 1,496,031 1,587,795

BGAM HOTELS (LX) LTD (REGISTERED NUMBER: 11335069)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 APRIL 2024

7. TANGIBLE FIXED ASSETS

Group
Fixtures
Leasehold and
property Equipment fittings Totals
£    £    £    £   
COST
At 1 May 2023 10,275,000 4,362 9,181 10,288,543
Additions - - 16,885 16,885
Disposals - - (4,550 ) (4,550 )
At 30 April 2024 10,275,000 4,362 21,516 10,300,878
DEPRECIATION
At 1 May 2023 288,679 2,190 6,966 297,835
Charge for year 58,714 543 1,432 60,689
Eliminated on disposal - - (2,994 ) (2,994 )
At 30 April 2024 347,393 2,733 5,404 355,530
NET BOOK VALUE
At 30 April 2024 9,927,607 1,629 16,112 9,945,348
At 30 April 2023 9,986,321 2,172 2,215 9,990,708

On 7 June 2018 the group entered into agreement to sell and then leaseback the property from which it trades, over a period of 175 years. This lease substantially amounts to a financing lease, as the group will derive benefit from the property throughout a major part of its useful life, and has been recognised accordingly.

The disposal event created an accounting loss which has been recognised as an intangible fixed asset (above) and is being written down over the same period as the property.

Fixed assets, included in the above, which are held under finance leases are as follows:
Leasehold
property
£   
COST
At 1 May 2023
and 30 April 2024 10,275,000
DEPRECIATION
At 1 May 2023 288,679
Charge for year 58,714
At 30 April 2024 347,393
NET BOOK VALUE
At 30 April 2024 9,927,607
At 30 April 2023 9,986,321

BGAM HOTELS (LX) LTD (REGISTERED NUMBER: 11335069)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 APRIL 2024

8. FIXED ASSET INVESTMENTS

Company
Shares in
group
undertakings
£   
COST
At 1 May 2023
and 30 April 2024 9,201,982
NET BOOK VALUE
At 30 April 2024 9,201,982
At 30 April 2023 9,201,982

The group or the company's investments at the Balance Sheet date in the share capital of companies include the following:

Subsidiary

Leigh Hotels Limited
Registered office: Greenhill House, 90/93 Cowcross Street, London, EC1M 6BF
Nature of business: Hotel
%
Class of shares: holding
Ordinary 100.00

The company acquired the entire issued share capital of Leigh Hotels Limited on 7 June 2018. A proportion of the purchase price was attributed to repaying the subsidiary's debt at that time, with the rest representing the cost of shares acquired.


9. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group
2024 2023
£    £   
Trade debtors 130,642 55,489
Other debtors 1,016,226 612,883
1,146,868 668,372

10. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group Company
2024 2023 2024 2023
£    £    £    £   
Bank loans and overdrafts 51,689 5,259,131 - -
Trade creditors 420,319 385,346 - -
Amounts owed to group undertakings - - 9,327,534 9,312,534
Taxation and social security 263,119 197,777 - -
Other creditors 1,589,304 1,028,765 583,769 583,769
2,324,431 6,871,019 9,911,303 9,896,303

BGAM HOTELS (LX) LTD (REGISTERED NUMBER: 11335069)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 APRIL 2024

11. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR

Group
2024 2023
£ £
Bank loans 4,730,000 -
Finance leases (see note 12) 10,881,517 10,721,349
15,611,517 10,721,349

Group
2024 2023
£ £
Amounts falling due in more than five years:

Repayable by installments
Finance leases 10,881,517 10,721,349
10,881,517 10,721,349

12. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Group
Finance leases
2024 2023
£    £   
Gross obligations repayable:
Within one year 306,641 272,241
Between one and five years 1,254,651 1,110,806
In more than five years 90,080,272 78,007,335
91,641,564 79,390,382

Finance charges repayable:
Within one year 306,641 272,241
Between one and five years 1,254,651 1,110,806
In more than five years 79,198,755 67,285,986
80,760,047 68,669,033

Net obligations repayable:
In more than five years 10,881,517 10,721,349

On 7 June 2018 the group entered into an agreement to lease the property from which it trades for a period of 175 years. This transaction amounts to a finance lease and has been recognised accordingly. The group is liable for an annual rent of £173,000, adjusted for changes in the retail price index but subject to a minimum of 1% and a maximum of 4% increase per year.

Throughout the initial period of the lease the annual interest arising will exceed the rental payments due and therefore the group's recognised finance liability will continue to increase.

BGAM HOTELS (LX) LTD (REGISTERED NUMBER: 11335069)

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued
FOR THE YEAR ENDED 30 APRIL 2024

13. SECURED DEBTS

The following secured debts are included within creditors:

Group
2024 2023
£    £   
Bank overdraft 51,689 -
Bank loans 4,730,000 5,259,131
Finance leases 10,881,517 10,721,349
15,663,206 15,980,480

The subsidiary has also given cross-guarantees in respect of other associated companies' debts. At the balance sheet date, those companies' liabilities to the bank totalled £11,420,000 (2023 - £10,692,409).

The subsidiary has given fixed and floating charges over all of its interest in the property (and any proceeds arising therefrom) as security for its bank loans, and its cross-guarantee.

Finance lease liabilities are secured on the assets to which they relate.

Bank overdraft is guaranteed by the other associated companies.

14. PROVISIONS FOR LIABILITIES

At the balance sheet date the group had recognised provisions totalling £32,960 (2023 - £27,932) in respect of other commercial disputes.

15. RELATED PARTY DISCLOSURES

The group works closely with a portfolio of four other hotels and their respective companies, all under similar (but not identical) control. Further, the whole portfolio is managed by BGAM Limited, a hotel management enterprise, again with ownership similarities and common directors. These close working relationships enables all businesses to access necessary trading expertise when needed, negotiate beneficial relationships with suppliers and leverage various economies of scale for mutual benefit.

During the course of the year, the group incurred management costs totalling £25,745 (2023 - £72,550) to BGAM Limited.

In aggregate at the balance sheet date, the group was owed £1,446,722 by, and owed £914,402 to, these associated companies (2023 - £497,600 and £871,906 respectively).