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REGISTERED NUMBER: 04241783 (England and Wales)















Steyne Hotels Limited

Strategic Report, Directors' Report and

Audited Financial Statements

for the Year Ended 30 April 2024






Steyne Hotels Limited (Registered number: 04241783)

Contents of the Financial Statements
for the year ended 30 April 2024










Page

Company Information 1

Strategic Report 2

Directors' Report 3

Independent Auditors' Report 4

Statement of Comprehensive Income 7

Balance Sheet 9

Statement of Changes in Equity 10

Cash Flow Statement 11

Notes to the Financial Statements 12


Steyne Hotels Limited

Company Information
for the year ended 30 April 2024







Directors: P M Clinch
N J Clinch
M J Clinch
G M Clinch
D H Langridge
L J Dopson





Secretary: D H Langridge





Registered office: 19 - 23 The Steyne
Worthing
West Sussex
BN11 3DU





Registered number: 04241783 (England and Wales)





Auditors: Cooper Parry Group Limited
Statutory Auditor
250 Fowler Avenue
Farnborough
Hampshire
GU14 7JP

Steyne Hotels Limited (Registered number: 04241783)

Strategic Report
for the year ended 30 April 2024


The directors present their strategic report for the year ended 30 April 2024.

Review of business
The key performance indicators of the business continue to be turnover, gross profit and cash flow. These accounts show the results of the company's performance for the year ended 30 April 2024 with the comparatives covering the year ended 30 April 2023.

The UK economy remains a challenging environment in which to operate given the current economic climate and rising costs of living. The directors and management are focused on keeping the costs and overheads of the business under control in order to ensure that the company remains competitive in its market place.

The directors considered the results for the prior year and the financial position at the year-end to be in need of improvement. In order to achieve this, one of the company's two hotels, Deans Place Hotel, was sold in January 2024. This has stemmed the ongoing losses at that establishment and enabled a reduction in overall company debt and consequently finance charges. The company's remaining hotel, the Chatsworth Hotel in Worthing, continues to operate profitably.

Principal risks and uncertainties
The principal uncertainty is the unpredictable effect of worldwide inflationary pressure and historically high energy prices. This affects not only the cost of running the business but the propensity of customers to spend money. So as to mitigate this, new opportunities are continually being considered and by maintaining a cost effective level of service and accommodation, the company aims to attract new customers as well as encourage repeat business from customers who previously visited the hotels.

There is risk that new Covid variants, or even an entirely new disease pandemic, will emerge and cause further disruption to the world economy and the hospitality industry in particular.

Interest on the company's borrowing is influenced by UK base rate and, although presently fixed until December 2024, there is always a risk that interest rates will escalate to levels that will seriously impair profitability in the future.

A perennial risk for leisure hoteliers in the UK is the weather, however there is nothing that can be done to influence this.

Basis of preparation
The financial statements have been prepared on a going concern basis. The directors have reviewed and considered relevant information, including estimated future cash flows in making their assessment.

Based on these assessments, given the measures that can be undertaken to mitigate the current adverse conditions, and the current resources available, the directors are satisfied that the company is able to meet its obligations and continue in operational existence for at least the twelve months from the date of the approval of financial statements. For this reason, the directors have adopted the going concern basis in preparing these financial statements.

On behalf of the board:





D H Langridge - Secretary


30 January 2025

Steyne Hotels Limited (Registered number: 04241783)

Directors' Report
for the year ended 30 April 2024


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

Principal activity
The principal activity of the company in the year under review was that of hotel proprietor and operator.

Dividends
No dividends will be distributed for the year ended 30 April 2024.

Events since the end of the year
Information relating to events since the end of the year is given in the notes to the financial statements.

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

P M Clinch
N J Clinch
M J Clinch
G M Clinch
D H Langridge
L J Dopson

Other changes in directors holding office are as follows:

J A Dopson - resigned 16 January 2024

Directors' responsibilities statement
The directors are responsible for preparing the Strategic Report, the Directors' 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:

-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.

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.

On behalf of the board:



D H Langridge - Secretary


30 January 2025

Independent Auditors' Report to the Members of
Steyne Hotels Limited


Opinion
We have audited the financial statements of Steyne Hotels Limited (the 'company') for the year ended 30 April 2024 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement 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 company's affairs as at 30 April 2024 and of its profit 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.

Material uncertainty in relation to going concern
We draw attention to note 2 of the financial statements where it is noted that the going concern basis is reliant on the continued support of both the bank lender and the shareholder. The shareholders loan cannot be repaid until the bank loan has been satisfied. Reliance on external funding carries a degree of risk associated with fluctuating interest rates and the associated interest on the loan and the satisfying of related loan covenants.Our opinion is not modified in this respect.

Other information
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Directors' Report, but does not include the financial statements and our Auditors' Report 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Directors' Report have been prepared in accordance with applicable legal requirements.

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 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.

Independent Auditors' Report to the Members of
Steyne Hotels Limited


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 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.

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 an Auditors' 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We discussed with the directors the policies and procedures in place regarding compliance with laws and regulations. We discussed amongst the audit team the identified laws and regulations and remained alert to any indications of non-compliance.

During the audit we focussed on laws and regulations which could reasonably be expected to give rise to a material misstatement in the financial statements, including, but not limited to, the accounting/auditing and tax legislation upon which these accounts are prepared. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management.

Our procedures in relation to fraud, included but were not limited to: inquires of management whether they have any knowledge of any actual, suspected or alleged fraud, and discussions amongst the audit team regarding risk of fraud such as opportunities for fraudulent manipulation of financial statements. We determined that the principal risks related to posting manual journal entries to manipulate financial performance and management bias through judgements in accounting estimates and challenged the assumptions and judgements made by management in its significant accounting estimates. We also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud. Our tests included agreeing the financial statement disclosures to underlying supporting documentation.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.

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 Auditors' Report.

Independent Auditors' Report to the Members of
Steyne Hotels 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 an Auditors' 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 members as a body, for our audit work, for this report, or for the opinions we have formed.




Roslyn McFarlane (Senior Statutory Auditor)
for and on behalf of Cooper Parry Group Limited
Statutory Auditor
250 Fowler Avenue
Farnborough
Hampshire
GU14 7JP

31 January 2025

Steyne Hotels Limited (Registered number: 04241783)

Statement of Comprehensive
Income
for the year ended 30 April 2024

2024 2024 2024
Continuing Discontinued Total
Notes £ £ £

Turnover 4 1,663,340 1,379,052 3,042,392
Cost of sales (209,127 ) (955,075 ) (1,164,202 )
Gross profit 1,454,213 423,977 1,878,190

Administrative expenses (735,687 ) (669,915 ) (1,405,602 )
718,526 (245,938 ) 472,588

Other operating income 71,754 20 71,774


Operating profit/(loss) 790,280 (245,918 ) 544,362

Interest payable and similar expenses 7 (51,069 ) (116,751 ) (167,820 )
Profit/(loss) before taxation 8 739,211 (362,669 ) 376,542
Tax on profit/(loss) 9 (351,109 ) - (351,109 )
Profit/(loss) for the financial year 388,102 (362,669 ) 25,433

Other comprehensive income
Revaluation of freehold property 549,243
Income tax relating to other comprehensive
income

-
Other comprehensive income for the year,
net of income tax

549,243
Total comprehensive income for the year 574,676

Steyne Hotels Limited (Registered number: 04241783)

Statement of Comprehensive
Income
for the year ended 30 April 2024

2023 2023 2023
Continuing Discontinued Total
Notes £ £ £

Turnover 4 1,492,067 1,931,979 3,424,046
Cost of sales (606,732 ) (1,239,794 ) (1,846,526 )
Gross profit 885,335 692,185 1,577,520

Administrative expenses (943,795 ) (858,662 ) (1,802,457 )
(58,460 ) (166,477 ) (224,937 )

Other operating income 66,853 113 66,966


Operating profit/(loss) 8,393 (166,364 ) (157,971 )

8,393 (166,364 ) (157,971 )

Interest payable and similar expenses 7 (18,843 ) (109,830 ) (128,673 )
Loss before taxation 8 (10,450 ) (276,194 ) (286,644 )
Tax on loss 9 351,574 - 351,574
Profit/(loss) for the financial year 341,124 (276,194 ) 64,930

Other comprehensive income
Revaluation of freehold property (1,363,349 )
Income tax relating to other comprehensive
income

-
Other comprehensive income for the year,
net of income tax

(1,726,018

)
Total comprehensive income for the year (1,661,088 )

Steyne Hotels Limited (Registered number: 04241783)

Balance Sheet
30 April 2024

2024 2023
Notes £ £ £ £
Fixed assets
Tangible assets 11 6,065,281 6,742,833
Investments 12 - -
6,065,281 6,742,833

Current assets
Stocks 13 8,179 17,000
Debtors 14 178,452 173,687
Cash at bank and in hand 105,354 49,616
291,985 240,303
Creditors
Amounts falling due within one year 15 1,781,149 3,319,862
Net current liabilities (1,489,164 ) (3,079,559 )
Total assets less current liabilities 4,576,117 3,663,274

Creditors
Amounts falling due after more than one
year

16

(1,022,690

)

(1,035,632

)

Provisions for liabilities 20 (831,360 ) (480,251 )
Net assets 2,722,067 2,147,391

Capital and reserves
Called up share capital 21 1,000 1,000
Revaluation reserve 22 1,702,307 1,153,064
Retained earnings 22 1,018,760 993,327
Shareholders' funds 2,722,067 2,147,391

The financial statements were approved by the Board of Directors and authorised for issue on 30 January 2025 and were signed on its behalf by:





N J Clinch - Director


Steyne Hotels Limited (Registered number: 04241783)

Statement of Changes in Equity
for the year ended 30 April 2024

Called up
share Retained Revaluation Total
capital earnings reserve equity
£ £ £ £
Balance at 1 May 2022 1,000 928,397 2,516,413 3,445,810

Changes in equity
Total comprehensive income - 64,930 (1,363,349 ) (1,298,419 )
Balance at 30 April 2023 1,000 993,327 1,153,064 2,147,391

Changes in equity
Total comprehensive income - 25,433 549,243 574,676
Balance at 30 April 2024 1,000 1,018,760 1,702,307 2,722,067

Steyne Hotels Limited (Registered number: 04241783)

Cash Flow Statement
for the year ended 30 April 2024

2024 2023
Notes £ £
Cash flows from operating activities
Cash generated from operations 25 (761,620 ) 182,638
Interest paid (120,030 ) (110,106 )
Finance costs paid (47,790 ) (18,567 )
Tax paid (30,640 ) (11,286 )
Net cash from operating activities (960,080 ) 42,679

Cash flows from investing activities
Sale of tangible fixed assets 2,000,000 -
Net cash from investing activities 2,000,000 -

Cash flows from financing activities
Bank loan repayments in year (962,557 ) (195,655 )
Other loan repayments in year (63,402 ) -
Amount introduced by directors 57,173 29,000
Amount withdrawn by directors (15,396 ) -
Bank overdraft 111,467 (111,467 )
Net cash from financing activities (872,715 ) (278,122 )

Increase/(decrease) in cash and cash equivalents 167,205 (235,443 )
Cash and cash equivalents at beginning
of year

26

(61,851

)

173,592

Cash and cash equivalents at end of year 26 105,354 (61,851 )

Steyne Hotels Limited (Registered number: 04241783)

Notes to the Financial Statements
for the year ended 30 April 2024


1. Statutory information

Steyne Hotels Limited 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 Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).


Steyne Hotels Limited (Registered number: 04241783)

Notes to the Financial Statements - continued
for the year ended 30 April 2024


2. Accounting policies

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 pound.

The financial statements have been prepared on the historical cost convention, modified to include the revaluation of freehold land and buildings.

The financial statements present information about the company as an individual entity and not about its group.

The company and its subsidiary undertaking comprise a medium sized group and as such consolidated financial statements should be prepared in accordance with the Companies Act 2006. However, the results for Harcourt Hotels (UK) Limited and Deans Place Hotel Limited are not considered material, and are therefore excluded from consolidation.

The directors are of the opinion that there is no value added in preparing the consolidated financial statements as the subsidiary undertakings are dormant and the overall net asset position of the group would be no different to that reported by the company.

Going concern
During the year to 30 April 2024 the company had profits before tax of £376,542. This is split between a trading loss of £403,586 and a gain on disposal of the Deans Place Hotel of £780,128.

The balance sheet as at 30 April 2024 shows net current liabilities of £1,489,164. The overall balance sheet shows a net asset position of £2,722,067 after taking into account the tangible fixed assets valued at £6,065,281.

The financial statements have been prepared on a going concern basis which the directors consider to be an appropriate basis.

There are a number of factors underpinning the going concern assumption which are uncertain both in terms of occurrence and/or timing which may have an impact on the going concern assumption.

The directors have prepared updated forecasts from October 2024 through to April 2026, taking into account the performance seen from May 2024 to October 2024 and the future known business landscape. These forecasts include a profit and loss, balance sheet and cash flows up to April 2026. The company's ability to continue as a going concern relies on the actual trading results and associated cash flows being in line with the forecasts prepared by the directors.

Management intend to obtain new long term financing and are in discussions with a broker who will look to replace the current borrowing with one at a lower interest rate and this reduced interest rate has been reflected in the forecasts. Should the directors not be able to negotiate bank borrowings with more favourable rates of interest then this will not be in line with the forecasts prepared.

The directors have agreed to reduce their level of remuneration and the forecasts reflect this reduction.

The management accounts for November 2024 show the EBITDA (earnings before interest, tax, depreciation and amortisation) as a loss of £23k compared to the forecasts of a loss of £19k. The management accounts for December 2024 show the EBITDA as a loss of £25k compared to the forecasts of a loss of £9k. The entity has a cash balance of £321,817 at the end of December, compared to £105,354 at the end of April 2024. These management accounts have not been verified by Cooper Parry.

Turnover
Turnover represents amounts receivable for goods and services net of VAT and trade discounts. Revenue is recognised on the date when the service is provided. Deposits and other accommodation income received in advance are recognised as deferred income until the date the service is rendered.

Steyne Hotels Limited (Registered number: 04241783)

Notes to the Financial Statements - continued
for the year ended 30 April 2024


2. Accounting policies - continued

Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, 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 the following annual rates:

Hotel furniture and fittings 10 years straight line
Office fixtures, fittings and equipment 20% reducing balance

Freehold buildings operated by the company are not depreciated. This represents a departure from FRS102 which requires property to be depreciated as they have a limited life. The directors are however of the opinion that the adoption of this policy is necessary to give a true and fair view of the financial statements due to the undertaking of an annual revaluation exercise based on the directors' knowledge of the area and the local economic climate. These values are retained subject to the requirement to test assets for impairment in accordance with FRS102.

Stocks
Stock is valued at the lower of cost and net realisable value which is based on the directors' best estimate.

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 in respect of Financial Instruments. Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are measured at transaction price including transaction costs. Financial assets, including trade debtors, are classified as receivable within one year are not amortised.

Other financial assets
Other financial assets, including investments in equity instruments are measured at cost less impairment.

Impairment of financial assets
Financial assets are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset's original effective interest rate. The impairment loss is recognised in profit or loss.

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 and loans from fellow group companies are initially recognised at transaction price unless the arrangement constitutes a financing transaction. Financial liabilities classified as payable within one year are not amortised.

Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.


Steyne Hotels Limited (Registered number: 04241783)

Notes to the Financial Statements - continued
for the year ended 30 April 2024


2. Accounting policies - continued
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax
The tax currently payable is based on taxable profit 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. The company's liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases are charged to the Statement of Comprehensive Income on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease asset are consumed.

Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

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.

Cash and cash equivalents
Cash and cash equivalents include cash in hand and deposits held at call with banks.

Fixed asset investment
Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Other operating income
Other operating income relates to rental income and grants from local authorities. Income is recognised on an accruals basis.

Steyne Hotels Limited (Registered number: 04241783)

Notes to the Financial Statements - continued
for the year ended 30 April 2024


3. Critical accounting judgements and key sources of estimation uncertainty

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Fair value of the freehold land and buildings
On an annual basis the directors consider the fair value of the freehold land and buildings based on their local knowledge of property transactions. At the year end the directors consider the carrying value of the freehold land and buildings, as seen in note 11, to be reflective of the fair value and therefore no adjustments are required.

4. Turnover

The turnover and profit (2023 - loss) before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

2024 2023
£ £
Rooms 2,237,653 2,269,559
Beverage 196,564 296,458
Food 603,515 852,133
Other 4,660 5,896
3,042,392 3,424,046

5. Employees and directors
2024 2023
£ £
Wages and salaries 1,655,080 1,668,769
Social security costs 129,015 136,753
Other pension costs 27,090 30,120
1,811,185 1,835,642

The average number of employees during the year was as follows:
2024 2023

Hotel staff 70 73
Management 18 11
88 84

6. Directors' emoluments
2024 2023
£ £
Directors' remuneration 383,371 375,617
Directors' pension contributions to money purchase schemes 7,396 7,733

The number of directors to whom retirement benefits were accruing was as follows:

Defined benefit schemes 3 3

Steyne Hotels Limited (Registered number: 04241783)

Notes to the Financial Statements - continued
for the year ended 30 April 2024


6. Directors' emoluments - continued

Information regarding the highest paid director is as follows:
2024 2023
£ £
Emoluments etc 105,290 102,186
Pension contributions to money purchase schemes 2,343 3,093

7. Interest payable and similar expenses
2024 2023
£ £
Bank interest 120,030 110,106
Interest on other loans 47,790 18,567
167,820 128,673

8. Profit/(loss) before taxation

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

2024 2023
£ £
Other operating leases 22,452 12,453
Depreciation - owned assets 6,924 8,761
Profit on disposal of fixed assets (780,128 ) -
Auditors' remuneration 16,000 14,600

9. Taxation

Analysis of the tax charge/(credit)
The tax charge/(credit) on the profit for the year was as follows:
2024 2023
£ £
Deferred tax 351,109 (351,574 )
Tax on profit/(loss) 351,109 (351,574 )

Steyne Hotels Limited (Registered number: 04241783)

Notes to the Financial Statements - continued
for the year ended 30 April 2024


9. Taxation - continued

Reconciliation of total tax charge/(credit) 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
£ £
Profit/(loss) before tax 376,542 (286,644 )
Profit/(loss) multiplied by the standard rate of corporation tax in the UK of
25% (2023 - 19%)

94,136

(54,462

)

Effects of:
Expenses not deductible for tax purposes 18,677 316
Income not taxable for tax purposes (195,032 ) -
Depreciation in excess of capital allowances 367 435

Trading losses 19,608 53,711
Deferred tax 351,109 (351,574 )
Chargeable gain 62,244 -
Total tax charge/(credit) 351,109 (351,574 )

Tax effects relating to effects of other comprehensive income

2024
Gross Tax Net
£ £ £
Revaluation of freehold property 549,243 - 549,243

2023
Gross Tax Net
£ £ £
Revaluation of freehold property (1,363,349 ) - (1,363,349 )

10. Prior year statement of comprehensive income

The prior period profit and loss statements have been represented to show the comparative period for the discontinued operations. These operations were not discontinued until the current period, however, the representation is made in line with FRS 102 requirements

Steyne Hotels Limited (Registered number: 04241783)

Notes to the Financial Statements - continued
for the year ended 30 April 2024


11. Tangible fixed assets
Office
fixtures,
Hotel fittings
Freehold furniture and
property and fitting equipment Totals
£ £ £ £
Cost or valuation
At 1 May 2023 6,714,000 1,278,243 116,057 8,108,300
Disposals (2,000,000 ) (411,686 ) (45,032 ) (2,456,718 )
Revaluations 1,336,000 - - 1,336,000
At 30 April 2024 6,050,000 866,557 71,025 6,987,582
Depreciation
At 1 May 2023 - 1,262,759 102,708 1,365,467
Charge for year - 4,579 2,345 6,924
Eliminated on disposal - (409,277 ) (40,813 ) (450,090 )
At 30 April 2024 - 858,061 64,240 922,301
Net book value
At 30 April 2024 6,050,000 8,496 6,785 6,065,281
At 30 April 2023 6,714,000 15,484 13,349 6,742,833

During the year a valuation report on the freehold property was performed by VAS Panel, which valued the Chatsworth building at £6,050,000.

Cost or valuation at 30 April 2024 is represented by:

Office
fixtures,
Hotel fittings
Freehold furniture and
property and fitting equipment Totals
£ £ £ £
Valuation in 2024 6,050,000 866,557 71,025 6,987,582

If freehold property had not been revalued it would have been included at the following historical cost:

2024 2023
£ £
Cost 4,347,692 5,991,021

12. Fixed asset investments

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

Deans Place Hotel Limited
Registered office: 19-23 The Steyne, Worthing, West Sussex, BN11 3DU
Nature of business: Dormant company
%
Class of shares: holding
Ordinary 100.00

Steyne Hotels Limited (Registered number: 04241783)

Notes to the Financial Statements - continued
for the year ended 30 April 2024


12. Fixed asset investments - continued

Harcourt Hotels (UK) Limited
Registered office: 19-23 The Steyne, Worthing, West Sussex, BN11 3DU
Nature of business: Investment company
%
Class of shares: holding
Ordinary 100.00
2024 30/9/23
£ £
Loss for the year - (137 )

13. Stocks
2024 2023
£ £
Goods for resale 8,179 17,000

14. Debtors: amounts falling due within one year
2024 2023
£ £
Trade debtors 68,719 15,256
Other debtors 47,697 80,252
Prepayments 62,036 78,179
178,452 173,687

15. Creditors: amounts falling due within one year
2024 2023
£ £
Bank loans and overdrafts (see note 17) 1,091,281 2,165,305
Other loans (see note 17) 70,161 63,448
Trade creditors 91,603 288,677
Tax 11,454 42,094
PAYE control account 81,339 39,338
VAT 256,362 327,402
Other creditors 76,168 274,074
Director's loan account 70,457 85,853
Accrued expenses 32,324 33,671
1,781,149 3,319,862

16. Creditors: amounts falling due after more than one year
2024 2023
£ £
Other loans (see note 17) 18,717 88,832
Director's loan account 1,003,973 946,800
1,022,690 1,035,632

Steyne Hotels Limited (Registered number: 04241783)

Notes to the Financial Statements - continued
for the year ended 30 April 2024


17. Loans

An analysis of the maturity of loans is given below:

2024 2023
£ £
Amounts falling due within one year or on demand:
Bank overdrafts - 111,467
Bank loans 1,091,281 2,053,838
Other loans 70,161 63,448
1,161,442 2,228,753

Amounts falling due between two and five years:
Other loans - 2-5 years 18,717 88,832

18. Leasing agreements

Minimum lease payments under non-cancellable operating leases fall due as follows:
2024 2023
£ £
Within one year 860 8,499
Between one and five years - 6,687
860 15,186

19. Secured debts

The following secured debts are included within creditors:

2024 2023
£ £
Bank loans 1,091,281 2,053,838

The bank loan is secured by charges over part of the commercial freehold hotel, being the Chatsworth Hotel.

M J Clinch has given a personal guarantee in respect of the company's obligations under the terms of the loan.

20. Provisions for liabilities
2024 2023
£ £
Deferred tax
Other timing differences 831,360 480,251

Deferred tax
£
Balance at 1 May 2023 480,251
Provided during year 351,109
Balance at 30 April 2024 831,360

The deferred tax liability in respect of the Chatsworth Hotel amounts to £837,030 which has arisen due to the revaluation which took place in 2024, as per note 11. The deferred tax asset of £5,670 is in relation to accelerated capital allowances.

Steyne Hotels Limited (Registered number: 04241783)

Notes to the Financial Statements - continued
for the year ended 30 April 2024


21. Called up share capital

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £ £
240 Ordinary 'A' £1 240 240
760 Ordinary 'B' £1 760 760
1,000 1,000

22. Reserves
Retained Revaluation
earnings reserve Totals
£ £ £

At 1 May 2023 993,327 1,153,064 2,146,391
Profit for the year 25,433 25,433
Revaluation of freehold
property - 1,336,000 1,336,000
Disposals - (786,757 ) (786,757 )
At 30 April 2024 1,018,760 1,702,307 2,721,067

23. Post balance sheet events

One of the loans was repaid on 16 December 2024 to the value of £1,198,274. On 16 December 2024, a new loan was entered into for the value of £1,236,750.

24. Ultimate controlling party

The ultimate controlling party is M J Clinch, director and sole shareholder.

25. Reconciliation of profit for the financial year to cash generated from operations

2024 2023
£ £
Profit for the financial year 25,433 64,930
Depreciation charges 6,923 8,761
Profit on disposal of fixed assets (780,128 ) -
Bank overdraft (111,467 ) 111,467
Finance costs 167,820 128,673
Taxation 351,109 (351,574 )
(340,310 ) (37,743 )
Decrease in stocks 8,821 -
Increase in trade and other debtors (4,765 ) (6,615 )
(Decrease)/increase in trade and other creditors (425,366 ) 226,996
Cash generated from operations (761,620 ) 182,638

Steyne Hotels Limited (Registered number: 04241783)

Notes to the Financial Statements - continued
for the year ended 30 April 2024


26. 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 30 April 2024
30/4/24 1/5/23
£ £
Cash and cash equivalents 105,354 49,616
Bank overdrafts - (111,467 )
105,354 (61,851 )
Year ended 30 April 2023
30/4/23 1/5/22
£ £
Cash and cash equivalents 49,616 173,592
Bank overdrafts (111,467 ) -
(61,851 ) 173,592


27. Analysis of changes in net debt

At 1/5/23 Cash flow At 30/4/24
£ £ £
Net cash
Cash at bank and in hand 49,616 55,738 105,354
Bank overdrafts (111,467 ) 111,467 -
(61,851 ) 167,205 105,354
Debt
Debts falling due within 1 year (2,117,286 ) 955,844 (1,161,442 )
Debts falling due after 1 year (88,832 ) 70,115 (18,717 )
(2,206,118 ) 1,025,959 (1,180,159 )
Total (2,267,969 ) 1,193,164 (1,074,805 )

28. Related party transactions

Included in creditors is an amount of £1,074,430 (2023 - £1,033,045) owed to a director and shareholder.

During the year the company incurred costs of £10,463 (2023 - £9,000) charged by a director, for accounting services provided. An outstanding balance of £8,250 (2023 - £6,300) was included within accruals at the balance sheet date.

Included in other creditors is an amount of £8,602 (2023 - £4,147) owed to a director. The movement in the year relates to expenses paid by the company on behalf of the directors of £10,866 (2023 - £8,076) and amounts advanced to the company of £6,411 (2023 - £11,737).