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COMPANY REGISTRATION NUMBER: 14062298
T5 OPERATING COMPANY LIMITED
Financial Statements
31 December 2023
T5 OPERATING COMPANY LIMITED
Financial Statements
Year ended 31 December 2023
Contents
Page
Strategic report
1
Directors' report
2
Independent auditor's report to the members
4
Statement of comprehensive income
8
Statement of financial position
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12
T5 OPERATING COMPANY LIMITED
Strategic Report
Year ended 31 December 2023
The directors consider that the key financial performance indicators (KPIs) are those that communicate the financial performance and strength of the company as a whole to the members. These KPIs comprise turnover, operating profit and shareholders' funds. Business Review The entity saw a 81% reduction in loss on prior year.The entity's loss for the year was £106,480 (2022:£546,154). Turnover was £13,208,190 (2022:£1,803,932), considerable increase due to prior year trading being only two months. Operating loss for the year decreased by £527,342 to a loss of £11,595 compared to last year of £538,937. The gross profit margin was 65% (2022:39%) - 26% higher than prior year. The share holers funds deficit has decreased to £252,534 compared to £546,054 in prior year. Principal Risks And Uncertainties The hospitality industry suffered the most from the adverse impact of Covid in the previous years and our business was no exception. 2023 saw the realisation that the road to recovery from will be a long and arduous one. Airport hotels rely heavily on increasing numbers of passenger numbers for its transient business which all the forecasts show that these numbers are reaching will surpass the levels of pre-covid. Other sectors of the Business namely that of meetings and events are still recovering. The introduction of working from home and online platforms for digital conferencing during Covid created a potential new way to carry out business and a habit which to this day is providing difficulties for businesses across the world to operate as it limits human interaction which is so necessary for success. Hospitality industry needs to find creative ways to resurrect the demand in this sector.
This report was approved by the board of directors on 20 February 2025 and signed on behalf of the board by:
Mr B Mazloom
Director
Registered office:
First Floor 690 Great West Road,
Osterley Village, Isleworth,
United Kingdom
TW7 4PU
T5 OPERATING COMPANY LIMITED
Directors' Report
Year ended 31 December 2023
The directors present their report and the financial statements of the company for the year ended 31 December 2023 .
Directors
The directors who served the company during the year were as follows:
Mr B Mazloom
Mr T Tuvovs
(Appointed 5 January 2023)
Dividends
The directors do not recommend the payment of a dividend.
Financial instruments
The company's principal financial instruments are all basic and comprise cash balances, trade and other debtors, trade and other creditors. The purpose of these financial instruments is to provide finance for the company's operations. The existence of these financial instruments exposes the company to a number of financial risks:
Liquidity risk
The company operates a working capital facility which provides short term flexibilty to meet fluctuation in the amount and timing of future cashflows.
Credit risk
The principal credit risk arises from trade debtors. The company operates a very strict credit policy and receives all payments well in advance of the reciprocal supplier settlement. The nature of the business provides the company with ample liquidity.
Currency risk
The company seeks to minimise its exposure to currency risk by operating foreign currency bank accounts for transactions in the relevant currencies.
Directors' responsibilities statement
The directors are responsible for preparing the strategic report, 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 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 judgments 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. Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This report was approved by the board of directors on 20 February 2025 and signed on behalf of the board by:
Mr B Mazloom
Director
Registered office:
First Floor 690 Great West Road,
Osterley Village, Isleworth,
United Kingdom
TW7 4PU
T5 OPERATING COMPANY LIMITED
Independent Auditor's Report to the Members of T5 OPERATING COMPANY LIMITED
Year ended 31 December 2023
Opinion
We have audited the financial statements of T5 OPERATING COMPANY LIMITED (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, statement of financial position, statement of changes in equity, statement of cash flows and the related notes, 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 FRS 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 31 December 2023 and of its loss for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - 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 auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information. 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of directors' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the 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 is 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.
Auditor's 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 auditor’s 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. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 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 auditor's 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.
Paul Mattei
(Senior Statutory Auditor)
For and on behalf of
Leaman Mattei
Chartered accountants & statutory auditor
Suite 1, First Floor
1 Duchess Street
London
W1W 6AN
20 February 2025
T5 OPERATING COMPANY LIMITED
Statement of Comprehensive Income
Year ended 31 December 2023
2023
2022
Note
£
£
Turnover
4
13,208,190
1,803,932
Cost of sales
4,570,250
1,108,783
-------------
------------
Gross profit
8,637,940
695,149
Administrative expenses
8,650,967
1,234,086
------------
------------
Operating loss
( 13,027)
( 538,937)
Other interest receivable and similar income
7
( 7,217)
Interest payable and similar expenses
8
94,885
------------
------------
Loss before taxation
( 107,912)
( 546,154)
Tax on loss
---------
---------
Loss for the financial year and total comprehensive income
( 107,912)
( 546,154)
---------
---------
All the activities of the company are from continuing operations.
T5 OPERATING COMPANY LIMITED
Statement of Financial Position
31 December 2023
2023
2022
Note
£
£
Current assets
Stocks
9
55,249
43,769
Debtors
10
3,261,998
1,293,584
Cash at bank and in hand
228,126
1,496,148
------------
------------
3,545,373
2,833,501
Creditors: amounts falling due within one year
11
3,799,339
3,379,555
------------
------------
Net current liabilities
253,966
546,054
---------
---------
Total assets less current liabilities
( 253,966)
( 546,054)
---------
---------
Net liabilities
( 253,966)
( 546,054)
---------
---------
Capital and reserves
Called up share capital
14
400,100
100
Profit and loss account
15
( 654,066)
( 546,154)
---------
---------
Shareholders deficit
( 253,966)
( 546,054)
---------
---------
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.
These financial statements were approved by the board of directors and authorised for issue on 20 February 2025 , and are signed on behalf of the board by:
Mr B Mazloom
Director
Company registration number: 14062298
T5 OPERATING COMPANY LIMITED
Statement of Changes in Equity
Year ended 31 December 2023
Called up share capital
Profit and loss account
Total
£
£
£
At 1 January 2022
Loss for the year
( 546,154)
( 546,154)
----
---------
---------
Total comprehensive income for the year
( 546,154)
( 546,154)
Issue of shares
100
100
----
---------
---------
Total investments by and distributions to owners
100
100
At 31 December 2022
100
( 546,154)
( 546,054)
Loss for the year
( 107,912)
( 107,912)
----
---------
---------
Total comprehensive income for the year
( 107,912)
( 107,912)
Issue of shares
400,000
400,000
---------
----
---------
Total investments by and distributions to owners
400,000
400,000
---------
---------
---------
At 31 December 2023
400,100
( 654,066)
( 253,966)
---------
---------
---------
T5 OPERATING COMPANY LIMITED
Statement of Cash Flows
Year ended 31 December 2023
2023
2022
Note
£
£
Cash generated from operations
16
( 1,738,451)
438,730
Interest paid
( 94,885)
Interest received
( 7,217)
------------
---------
Net cash (used in)/from operating activities
( 1,833,336)
431,513
------------
---------
Cash flows from financing activities
Proceeds from issue of ordinary shares
400,000
100
Proceeds from loans from group undertakings
165,314
1,064,535
------------
------------
Net cash from financing activities
565,314
1,064,635
------------
------------
Net (decrease)/increase in cash and cash equivalents
( 1,268,022)
1,496,148
Cash and cash equivalents at beginning of year
1,496,148
------------
------------
Cash and cash equivalents at end of year
228,126
1,496,148
------------
------------
T5 OPERATING COMPANY LIMITED
Notes to the Financial Statements
Year ended 31 December 2023
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is First Floor 690 Great West Road,, Osterley Village, Isleworth,, TW7 4PU, United Kingdom.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Going concern
Although the balance sheet is in deficit, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence and meet its liabilities as they fall due for the forseeable future, being a period of at least twelve months from the date these financial statements were approved. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.
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 are associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual may differ from these estimates. The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Revenue recognition
Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods supplied and services rendered, stated net of discounts and of Value Added Tax. Revenue from hire of rooms is recognised at arrival date. Other revenue is recognised when the service is provided.
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.
Financial instruments
A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
4. Turnover
Turnover arises from:
2023
2022
£
£
Hotel related services
13,208,190
1,803,932
-------------
------------
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
5. Auditor's remuneration
2023
2022
£
£
Fees payable for the audit of the financial statements
21,000
--------
----
6. Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
2023
2022
No.
No.
Administrative staff
95
95
----
----
The aggregate payroll costs incurred during the year, relating to the above, were:
2023
2022
£
£
Wages and salaries
3,110,554
Social security costs
319,625
Other pension costs
48,701
------------
----
3,478,880
------------
----
7. Other interest receivable and similar income
2023
2022
£
£
Interest from group undertakings
( 7,217)
----
-------
8. Interest payable and similar expenses
2023
2022
£
£
Other interest payable and similar charges
94,885
--------
----
9. Stocks
2023
2022
£
£
Finished goods and goods for resale
55,249
43,769
--------
--------
10. Debtors
2023
2022
£
£
Trade debtors
780,376
472,748
Amounts owed by group undertakings
1,773,275
336,816
Prepayments and accrued income
69,902
Other debtors
638,445
484,020
------------
------------
3,261,998
1,293,584
------------
------------
11. Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
1,064,276
699,476
Amounts owed to group undertakings
1,229,849
1,064,535
Accruals and deferred income
547,221
897,609
Social security and other taxes
336,582
717,935
Other creditors
621,411
------------
------------
3,799,339
3,379,555
------------
------------
12. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 48,701 (2022: £Nil).
13. Financial instruments
The company's principal financial instruments are all basic and comprise cash balances, trade and other debtors, trade and other creditors. The purpose of these financial instruments is to provide finance for the company's operations. The existence of these financial instruments exposes the company to a number of financial risks.
14. Called up share capital
Issued, called up and fully paid
2023
2022
No.
£
No.
£
Ordinary shares of £ 1 each
400,100
400,100
100
100
---------
---------
----
----
15. Reserves
Profit and loss account - This reserve records retained earnings and accumulated losses.
16. Cash generated from operations
2023
2022
£
£
Loss for the financial year
( 107,912)
( 546,154)
Adjustments for:
Other interest receivable and similar income
7,217
Interest payable and similar expenses
94,885
Accrued (income)/expenses
( 350,388)
897,609
Changes in:
Stocks
( 11,480)
( 43,769)
Trade and other debtors
( 1,968,414)
( 1,293,584)
Trade and other creditors
604,858
1,417,411
------------
------------
( 1,738,451)
438,730
------------
------------
17. Analysis of changes in net debt
At 1 Jan 2023
Cash flows
At 31 Dec 2023
£
£
£
Cash at bank and in hand
1,496,148
(1,268,022)
228,126
Debt due within one year
(1,064,535)
(165,314)
(1,229,849)
------------
------------
------------
431,613
( 1,433,336)
( 1,001,723)
------------
------------
------------
18. Related party transactions
At the year end, the company owed £1,171,352 (2022:£605,938) to Refive Limited and £58,497 (2022:£458,597) to T5 Hotel Management Limited. At the year end, the company was owed £1,773,275 (2022:£336,816) from Rising Star LLP Limited.
19. Controlling party
There is no ultimate controlling party. The immediate parent company is T5 Hotel Management Limited situated at First Floor 690 Great Western Road, Osterley Village, Isleworth TW7 4PU.