REGISTERED NUMBER: |
Steyne Hotels Limited |
Strategic Report, Directors' Report and |
Audited Financial Statements |
for the Year Ended 30 April 2024 |
REGISTERED NUMBER: |
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: |
Secretary: |
Registered office: |
Registered number: |
Auditors: |
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: |
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. |
Other changes in directors holding office are as follows: |
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: |
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. |
for and on behalf of |
Statutory Auditor |
250 Fowler Avenue |
Farnborough |
Hampshire |
GU14 7JP |
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 |
Cost of sales | ( |
) | ( |
) | ( |
) |
Gross profit |
Administrative expenses | ( |
) | ( |
) | ( |
) |
718,526 | (245,938 | ) | 472,588 |
Other operating income |
Operating profit/(loss) | ( |
) |
Interest payable and similar expenses | 7 | ( |
) | ( |
) | ( |
) |
Profit/(loss) before taxation | 8 | ( |
) |
Tax on profit/(loss) | 9 | ( |
) | ( |
) |
Profit/(loss) for the financial year | ( |
) |
Other comprehensive income |
Revaluation of freehold property |
Income tax relating to other comprehensive income |
Other comprehensive income for the year, net of income tax |
Total comprehensive income for the year |
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 |
Cost of sales | ( |
) | ( |
) | ( |
) |
Gross profit |
Administrative expenses | ( |
) | ( |
) | ( |
) |
(58,460 | ) | (166,477 | ) | (224,937 | ) |
Other operating income |
Operating profit/(loss) | ( |
) | ( |
) |
8,393 | (166,364 | ) | (157,971 | ) |
Interest payable and similar expenses | 7 | ( |
) | ( |
) | ( |
) |
Loss before taxation | 8 | ( |
) | ( |
) | ( |
) |
Tax on loss | 9 |
Profit/(loss) for the financial year | ( |
) |
Other comprehensive income |
Revaluation of freehold property | ( |
) |
Income tax relating to other comprehensive income |
Other comprehensive income for the year, net of income tax |
( |
) |
Total comprehensive income for the year | ( |
) |
Steyne Hotels Limited (Registered number: 04241783) |
Balance Sheet |
30 April 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
Fixed assets |
Tangible assets | 11 |
Investments | 12 |
Current assets |
Stocks | 13 |
Debtors | 14 |
Cash at bank and in hand |
Creditors |
Amounts falling due within one year | 15 |
Net current liabilities | ( |
) | ( |
) |
Total assets less current liabilities |
Creditors |
Amounts falling due after more than one year |
16 |
( |
) |
( |
) |
Provisions for liabilities | 20 | ( |
) | ( |
) |
Net assets |
Capital and reserves |
Called up share capital | 21 |
Revaluation reserve | 22 |
Retained earnings | 22 |
Shareholders' funds |
The financial statements were approved by the Board of Directors and authorised for issue on |
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 |
Changes in equity |
Total comprehensive income | - | 64,930 | ( |
) | (1,298,419 | ) |
Balance at 30 April 2023 |
Changes in equity |
Total comprehensive income | - |
Balance at 30 April 2024 |
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 | ( |
) |
Interest paid | ( |
) | ( |
) |
Finance costs paid | (47,790 | ) | (18,567 | ) |
Tax paid | ( |
) | ( |
) |
Net cash from operating activities | ( |
) |
Cash flows from investing activities |
Sale of tangible fixed assets |
Net cash from investing activities |
Cash flows from financing activities |
Bank loan repayments in year | ( |
) | ( |
) |
Other loan repayments in year | (63,402 | ) | - |
Amount introduced by directors | 57,173 | 29,000 |
Amount withdrawn by directors | (15,396 | ) | - |
Bank overdraft | ( |
) |
Net cash from financing activities | ( |
) | ( |
) |
Increase/(decrease) in cash and cash equivalents | ( |
) |
Cash and cash equivalents at beginning of year |
26 |
(61,851 |
) |
173,592 |
Cash and cash equivalents at end of year | 26 | 105,354 | ( |
) |
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 |
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 |
£ | £ |
5. | 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 |
Hotel staff | 70 | 73 |
Management | 18 | 11 |
6. | Directors' emoluments |
2024 | 2023 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
The number of directors to whom retirement benefits were accruing was as follows: |
Defined benefit schemes |
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 |
Pension contributions to money purchase schemes |
7. | Interest payable and similar expenses |
2024 | 2023 |
£ | £ |
Bank interest |
Interest on other loans |
8. | Profit/(loss) before taxation |
The profit (2023 - loss) is stated after charging/(crediting): |
2024 | 2023 |
£ | £ |
Other operating leases |
Depreciation - owned assets |
Profit on disposal of fixed assets | ( |
) |
Auditors' remuneration |
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 | ( |
) |
Tax on profit/(loss) | ( |
) |
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 | ( |
) |
Profit/(loss) 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 | ( |
) |
Depreciation in excess of capital allowances |
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 |
2023 |
Gross | Tax | Net |
£ | £ | £ |
Revaluation of freehold property | ( |
) | - | (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 |
Disposals | ( |
) | ( |
) | ( |
) | ( |
) |
Revaluations |
At 30 April 2024 |
Depreciation |
At 1 May 2023 |
Charge for year |
Eliminated on disposal | ( |
) | ( |
) | ( |
) |
At 30 April 2024 |
Net book value |
At 30 April 2024 |
At 30 April 2023 |
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: |
Registered office: 19-23 The Steyne, Worthing, West Sussex, BN11 3DU |
Nature of business: |
% |
Class of shares: | holding |
Steyne Hotels Limited (Registered number: 04241783) |
Notes to the Financial Statements - continued |
for the year ended 30 April 2024 |
12. | Fixed asset investments - continued |
Registered office: 19-23 The Steyne, Worthing, West Sussex, BN11 3DU |
Nature of business: |
% |
Class of shares: | holding |
2024 |
£ | £ |
Loss for the year | ( |
) |
13. | Stocks |
2024 | 2023 |
£ | £ |
Goods for resale |
14. | Debtors: amounts falling due within one year |
2024 | 2023 |
£ | £ |
Trade debtors |
Other debtors |
Prepayments |
15. | Creditors: amounts falling due within one year |
2024 | 2023 |
£ | £ |
Bank loans and overdrafts (see note 17) |
Other loans (see note 17) |
Trade creditors |
Tax |
PAYE control account | 81,339 | 39,338 |
VAT | 256,362 | 327,402 |
Other creditors |
Director's loan account | 70,457 | 85,853 |
Accrued expenses |
16. | Creditors: amounts falling due after more than one year |
2024 | 2023 |
£ | £ |
Other loans (see note 17) |
Director's loan account | 1,003,973 | 946,800 |
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 |
Bank loans |
Other loans |
Amounts falling due between two and five years: |
Other loans - 2-5 years |
18. | Leasing agreements |
Minimum lease payments under non-cancellable operating leases fall due as follows: |
2024 | 2023 |
£ | £ |
Within one year |
Between one and five years |
19. | Secured debts |
The following secured debts are included within creditors: |
2024 | 2023 |
£ | £ |
Bank loans |
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 |
Provided during year |
Balance at 30 April 2024 |
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: | £ | £ |
Ordinary 'A' | £1 | 240 | 240 |
Ordinary 'B' | £1 | 760 | 760 |
1,000 | 1,000 |
22. | Reserves |
Retained | Revaluation |
earnings | reserve | Totals |
£ | £ | £ |
At 1 May 2023 | 2,146,391 |
Profit for the year |
Revaluation of freehold |
property | - | 1,336,000 | 1,336,000 |
Disposals | - | (786,757 | ) | (786,757 | ) |
At 30 April 2024 | 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 |
Depreciation charges |
Profit on disposal of fixed assets | ( |
) |
Bank overdraft | (111,467 | ) | 111,467 |
Finance costs | 167,820 | 128,673 |
Taxation | ( |
) |
(340,310 | ) | (37,743 | ) |
Decrease in stocks |
Increase in trade and other debtors | ( |
) | ( |
) |
(Decrease)/increase in trade and other creditors | ( |
) |
Cash generated from operations | ( |
) |
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 | ( |
) |
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 | ( |
) |
(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 | ) | 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). |