BLOC HOTEL GROUP LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
Cash flows from operating activities
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Profit/(loss) for the financial year
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Amortisation of intangible fixed assets
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Depreciation of tangible fixed assets
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(Impairment release)/impairment charge of assets under course of construction
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Share based payment charge
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Loss/(gain) on fair value of interest rate swap
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Net cash generated from operating activities
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Cash flows from investing activities
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Purchase of intangible fixed assets
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Purchase of tangible fixed assets
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Net cash used in investing activities
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Cash flows from financing activities
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Repayment of shareholder loans
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Net cash used in financing activities
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Net (decrease)/increase in cash and cash equivalents
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Cash and cash equivalents at beginning of year
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Cash and cash equivalents at the end of year
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Cash and cash equivalents at the end of year comprise:
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The notes on pages 16 to 40 form part of these financial statements.
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BLOC HOTEL GROUP LIMITED
CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 MARCH 2024
The notes on pages 16 to 40 form part of these financial statements.
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BLOC HOTEL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
Bloc Hotel Group Limited (''the Company'') is a private company, limited by shares, and incorporated in England and Wales. The Company's registered number is 07427035 and registered office address is Bloc Hotels Gatwick South Terminal, London Gatwick Airport, Gatwick, West Sussex, England, RH6 0NN.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of Financial Position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.
In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102.
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BLOC HOTEL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
2.Accounting policies (continued)
Having assessed the Group’s financial position using budgets and cashflow forecasts to 31 March 2026, including stress testing these budgets, and considering the level of bank facilities available to the Group and its compliance with bank covenant tests both during the period and for the period ahead, the directors have a reasonable expectation that the Group has adequate resources to continue in operational existence for more than one year from the signing of these accounts. Accordingly, the directors continue to adopt the going concern basis in preparing the financial statements.
Trading levels are above prior year with strong profitability. The Group paid down the working capital loan in May 2023 that was taken during covid. The Group is cash generative is in a good position to return to a growth strategy.
The Group is due to refinance the current Bank of Ireland facilities in June 2025. The directors remain confident that they will be able to successfully refinance this loan given the strong financial position of the Group. However, at the date of signing these financial statements, this refinance remains outstanding and there is no certainty over the timeline and the nature of the facility that will be obtained. Given this uncertainty over the debt, there is a material uncertainty which casts significant doubt over the going concern basis of the Group.
Revenue primarily relates to accommodation revenue and other sales in relation to the trade of hotels. Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured which is largely at the point of sale. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.
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Operating leases: the Group as lessee
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Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
Interest income is recognised in profit or loss using the effective interest method.
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
All borrowing costs are recognised in profit or loss in the year in which they are incurred.
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BLOC HOTEL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
2.Accounting policies (continued)
Defined contribution pension plan
The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.
The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Group in independently administered funds.
Where share options are awarded to employees, the fair value of the options at the date of grant is charged to profit or loss over the vesting period. Non-market vesting conditions are taken into account by adjusting the number of equity instruments expected to vest at each reporting date so that, ultimately, the cumulative amount recognised over the vesting period is based on the number of options that eventually vest. Market vesting conditions are factored into the fair value of the options granted. The cumulative expense is not adjusted for failure to achieve a market vesting condition.
The fair value of the award also takes into account non-vesting conditions. These are either factors beyond the control of either party (such as a target based on an index) or factors which are within the control of one or other of the parties (such as the Group keeping the scheme open or the employee maintaining any contributions required by the scheme).
Where the terms and conditions of options are modified before they vest, the increase in the fair value of the options, measured immediately before and after the modification, is also charged to profit or loss over the remaining vesting period.
Where equity instruments are granted to persons other than employees, profit or loss is charged with fair value of goods and services received.
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BLOC HOTEL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
2.Accounting policies (continued)
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Current and deferred taxation
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The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company and the Group operate and generate income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
∙Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.
At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.
Amortisation is provided on the following bases:
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BLOC HOTEL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
2.Accounting policies (continued)
Tangible fixed assets are stated at fair value less any subsequent accumulated depreciation and impairment losses. Assets in course of construction are valued at cost less any subsequent impairment losses.
At each reporting date the Group assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
Depreciation is provided on the following bases:
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Land and buildings (freehold)
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Land and buildings (short leasehold)
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The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
Assets under construction relate to assets held by the Group which remain under development. These assets are not yet available foe their intended use and therefore no depreciation is charged on these assets. At each reporting period end date, management assess the valuation of these assets under construction and assess for any possible impairment required.
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Revaluation of tangible fixed assets
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Land and buildings are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the reporting date.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.
Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.
Investments in subsidiaries are measured at cost less accumulated impairment.
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BLOC HOTEL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
2.Accounting policies (continued)
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis.
At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
The Group has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.
Financial instruments are recognised in the Group's Statement of Financial Position when the Group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of
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BLOC HOTEL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
2.Accounting policies (continued)
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Financial instruments (continued)
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financial instruments.
Other financial assets
Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.
Impairment of financial assets
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
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 Group after the deduction of all its liabilities.
Basic financial liabilities, which include trade and other creditors, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Other financial instruments
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BLOC HOTEL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
2.Accounting policies (continued)
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Financial instruments (continued)
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Derivatives, including forward exchange contracts, futures contracts and interest rate swaps, are not classified as basic financial instruments. These are initially recognised at fair value on the date the derivative contract is entered into, with costs being charged to the profit or loss. They are subsequently measured at fair value with changes in the profit or loss.
Debt instruments that do not meet the conditions as set out in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit or loss. This recognition and measurement would also apply to financial instruments where the performance is evaluated on a fair value basis as with a documented risk management or investment strategy.
Derecognition of financial instruments
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Group transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Group will continue to recognise the value of the portion of the risks and rewards retained.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Group's contractual obligations expire or are discharged or cancelled.
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Judgements in applying accounting policies and key sources of estimation uncertainty
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The preparation of these financial statements requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. Judgements and estimates are continually evaluated and are based on historical experiences and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results.
Useful lives of fixed assets
Tangible fixed assets are depreciated over their useful lives. Useful lives are based on management's best estimates that the assets generate revenue, which are periodically reviewed for continued appropriateness.
Valuation of tangible fixed assets - land and buildings
The Group makes an annual assessment of the fair value of the fixed assets by employing a qualified independent valuer who, using their experience and industry knowledge, estimates the future cashflows and applies an estimated discount rate when coming to their conclusion. A judgement or estimate that turned out not be correct could have a significant impact.
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BLOC HOTEL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
3.Judgements in applying accounting policies (continued)
Intercompany debtor recoverability
Judgement is required in assessing the recoverability of the intercompany debtors. When considering this the net assets / liabilities for the company owing the debt, its subsidiaries and the wider Group are reviewed. Management have received assurances that cash would be moved around the companies within the Group, as required, to ensure all debt could be repaid if demanded. Management are also satisfied that the Bloc Hotel Group has sufficient net assets to facilitate this if required.
Impairment of fixed assets under construction
The intention of the directors is to develop the two sites held as assets under construction and operate as Bloc Hotels once fully developed.
As at 31 March 2024, management have performed an impairment assessment given the development of the sites has been on pause since pre Covid-19 and this was considered to be an indicator of impairment. The impairment assessment takes a value in use model of a fully developed hotel with stabilised revenue and costs over a 10 year period, and compares this to the development costs required to build the hotel. The residual value as a result of this calculation was then compared to the carrying value of the fixed asset. This is resulted in a release of a historic impairment charge of £2,913,598 (2023: impairment charge of £6,002,781). This model contains significant estimates and judgements including discount rate, future forecasts of the hotels, and development costs, including the cost of funding this. Any changes to these inputs into the impairment assessment may have a material impact on the outcome of the impairment assessment.
The most sensitive input is the discount rate and an increase of 1% would have a material impact to the impairment charge. The model is also very sensitive to the development costs, specifically the cost of funding. This has been estimated at 7.5% pa (2023: 8.5%). and an increase of 1% to this would also have a material impact to the impairment charge. The future forecasts of the stabilised hotels is based on management’s best estimate of what the sites could achieve while operating under the Bloc brand, given their knowledge of the two sites currently operating like this is the Bloc Hotel Group. If these forecasts were not achieved, then it is likely that there would be a material impact on the value of the sites and impairment would increase by a material amount.
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An analysis of turnover by class of business is as follows:
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All turnover arose within the United Kingdom.
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BLOC HOTEL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
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Insurance claims receivable
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The operating profit/(loss) is stated after charging/(crediting):
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Depreciation of tangible fixed assets
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Amortisation of intangible assets
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Impairment (release)/charge of tangible fixed assets
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During the year, the Group obtained the following services from the Group's auditors:
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Fees payable to the Group's auditors for the audit of the consolidated and parent Company's financial statements
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Fees payable to the Group's auditors in respect of:
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Taxation compliance services
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Statutory accounts preparation
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BLOC HOTEL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
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Staff costs, including directors' remuneration, were as follows:
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Share-based payment compensation
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Cost of defined contribution scheme
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The average monthly number of employees in the Company, including the directors, during the year was as follows:
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The highest paid director received remuneration of £120,000 (2023: £120,000).
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The value of the Group's contributions paid to a defined contribution pension scheme in respect of the highest paid director amounted to £2,700 (2023: £3,600).
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The directors of the Group are deemed to be key management personnel.
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Fair value gain on financial derivative
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BLOC HOTEL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
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Interest payable and similar expenses
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Shareholder loan interest
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Fair value loss on financial derivative
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Interest payable includes the movement in the fair value of an interest rate swap related to the loan facility with Bank of Ireland. The Group uses the interest rate swap to manage its exposure to interest rate fluctuations, fixing the interest payable on the loan with Bank of Ireland at 3.355%. The interest rate is fixed for the term of the loan.
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Current tax on profits for the year
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Origination and reversal of timing differences
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BLOC HOTEL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
12.Taxation (continued)
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Factors affecting tax charge for the year
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The tax assessed for the year is lower than (2023: higher than) the standard rate of corporation tax in the UK of 25% (2023: 19%). The differences are explained below:
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Profit/(loss) on ordinary activities before tax
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Profit/(loss) on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 19%)
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Expenses not deductible for tax purposes
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Deferred tax not recognised
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Total tax charge for the year
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Factors that may affect future tax charges
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There were no factors that may affect future tax charges.
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BLOC HOTEL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
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Charge for the year on owned assets
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BLOC HOTEL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
13.Intangible assets (continued)
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BLOC HOTEL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
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Assets under construction
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Charge for the year on owned assets
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Revaluation
Directors produce an internal cashflow every year to value the portfolio. External valuations will be performed at least every 3 years. The last valuation was carried out on 9 May 2024 by Savills. The valuer has the appropriate recognised professional qualification and recent experience in the location and class of property being valued. The valuation conforms to International Valuation Standards and has specifically been assessed in accordance with the current Royal Institute of Chartered Surveyors (“RICS")
Valuation - Professional Standards.
The valuation is based upon assumptions including future income, anticipated non - recoverable maintenance costs, and an appropriate discount rate. The property is valued on the basis of a ten - year discounted cash flow model supported by comparable evidence. The discounted cash flow calculation is a valuation of income considering non-recoverable costs and applying a discount rate of 10.25% (2023: 10.25%) for the current income risk over a ten - year period. After ten years, a determining residual value (exit scenario) is calculated. A capitalisation rate of 7.75% (2023: 7.75%) is applied to the more uncertain future income discounted to present value.
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BLOC HOTEL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
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The historical cost of properties held at fair value under the revaluation model:
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Charge for the year on owned assets
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BLOC HOTEL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
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Investments in subsidiary companies
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The following were subsidiary undertakings of the Company:
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Bloc Hotel Operations Limited*
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Bloc St. Paul's Birmingham Limited*
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Bloc Grand Central Limited
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All subsidiary undertakings listed above are under direct ownership from Bloc Hotel Group Limited; and have registered office addresses of f Bloc Hotels South Terminal, London Gatwick Airport, Gatwick, West Sussex, England, RH6 0NN.
*Indirect subsidiaries
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Raw materials and consumables
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The difference between purchase price or production cost of stocks and their replacement cost is not material.
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BLOC HOTEL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
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Due after more than one year
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Amounts owed by group undertakings
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Prepayments and accrued income
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Amounts owed by group undertakings are interest free and repayable on demand.
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BLOC HOTEL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
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Creditors: amounts falling due within one year
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Amounts owed to group undertakings
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Other taxation and social security
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Accruals and deferred income
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Amounts owed to group undertakings are interest free and repayable on demand.
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Creditors: amounts falling due after more than one year
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See note 21 for information on the bank loan.
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BLOC HOTEL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
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Analysis of the maturity of loans is given below:
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Amounts falling due within one year
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Amounts falling due 2-5 years
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The bank loan is repayable in quarterly installments of £75k with the remaining outstanding amount being fully repayable initially in July 2024. Post year end a one year extension has been obtained and this loan is now due for full repayment in July 2025. The loan is subject to interest at 3.355% or 3.605% per annum dependent on compliance with covenants which is paid quarterly. Loan arrangement fees of £39k (2023: £114k) have been netted off against the outstanding loan).
The bank loan is secured by a fixed charge over the tangible fixed assets at:
∙77 Caroline Street, Birmingham, B3 1UG;
∙83-85 Northwood Street, Birmingham, Birmingham, B3 1TH; and
∙Norfolk House, South Terminal, London Gatwick Airport, West Sussex, RH6 0NN.
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BLOC HOTEL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
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Charged to profit or loss
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Charged to other comprehensive income
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Charged to profit or loss
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Accelerated capital allowances
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Tax losses carried forward
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Short term timing difference
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Deferred tax charged to Other Comprehensive Income in respect of revaluations
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Allotted, called up and fully paid
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5,446,984 (2023: 5,446,984) ordinary shares of £1.00 each
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10,000 (2023: 10,000) ordinary shares of £0.01 each
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BLOC HOTEL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
23.Share capital (continued)
Share premium account
Fees and costs associated with the new shares issued, together with the excess of share price over the nominal value, have been allocated to the share premium reserve.
Revaluation reserve
Where tangible fixed assets are valued or reclassified under the revaluation model, the cumulative increase in the fair value of the property at the date of reclassification in excess of any previous impairment losses is included in the revaluation reserve.
Share-based payment reserve
The cumulative share-based payment reserve is made up of charges in respect of share options.
Profit and loss account
Includes all current and prior year profits and losses less any dividends paid.
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BLOC HOTEL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
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Weighted average exercise price (pence)
2024
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Weighted average exercise price
(pence)
2023
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Outstanding at the beginning of the year
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Forfeited during the year
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Outstanding at the end of the year
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Weighted average share price (pence)
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Weighted average fair value of options at the grant date
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Commitments under operating leases
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At 31 March 2024 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
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Later than 1 year and not later than 5 years
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BLOC HOTEL GROUP LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
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Related party transactions
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In the year, the Group made sales of £1,609 (2023: £2,857) and purchases of £171,632 (2023: £345,342) to a company related due to common ownership and management. As at the year-end position, the Company had a debtor balance of £871 (2023: £218) and a creditor balance of £4,902 (2023: £1,132) with this related party.
In the year, the Group made sales of £0 (2023: £749) and purchases of £40,676 (2023: £132) to a company related due to common management. As at the year- end position, the Company had a debtor balance of £666 (2023: £666), and a creditor balance of £132 (2023: £132) with this related party.
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In the opinion of the directors, the Group is controlled by R L Morgan.
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