Caseware UK (AP4) 2024.0.164 2024.0.164 2024-05-312024-05-312024-05-31falsefalse2023-06-01the provision of hotel accommodation, restaurants and golf138147falsefalse 03163780 2023-06-01 2024-05-31 03163780 2022-04-01 2023-05-31 03163780 2024-05-31 03163780 2023-05-31 03163780 2022-04-01 03163780 1 2023-06-01 2024-05-31 03163780 d:Director1 2023-06-01 2024-05-31 03163780 d:Director2 2023-06-01 2024-05-31 03163780 d:RegisteredOffice 2023-06-01 2024-05-31 03163780 d:Agent1 2023-06-01 2024-05-31 03163780 c:Buildings 2023-06-01 2024-05-31 03163780 c:Buildings 2024-05-31 03163780 c:Buildings 2023-05-31 03163780 c:Buildings c:OwnedOrFreeholdAssets 2023-06-01 2024-05-31 03163780 c:LandBuildings 2024-05-31 03163780 c:LandBuildings 2023-05-31 03163780 c:PlantMachinery 2023-06-01 2024-05-31 03163780 c:PlantMachinery 2024-05-31 03163780 c:PlantMachinery 2023-05-31 03163780 c:PlantMachinery c:OwnedOrFreeholdAssets 2023-06-01 2024-05-31 03163780 c:MotorVehicles 2023-06-01 2024-05-31 03163780 c:MotorVehicles 2024-05-31 03163780 c:MotorVehicles 2023-05-31 03163780 c:MotorVehicles c:OwnedOrFreeholdAssets 2023-06-01 2024-05-31 03163780 c:FurnitureFittings 2023-06-01 2024-05-31 03163780 c:FurnitureFittings 2024-05-31 03163780 c:FurnitureFittings 2023-05-31 03163780 c:FurnitureFittings c:OwnedOrFreeholdAssets 2023-06-01 2024-05-31 03163780 c:OfficeEquipment 2023-06-01 2024-05-31 03163780 c:OfficeEquipment 2024-05-31 03163780 c:OfficeEquipment 2023-05-31 03163780 c:OfficeEquipment c:OwnedOrFreeholdAssets 2023-06-01 2024-05-31 03163780 c:OwnedOrFreeholdAssets 2023-06-01 2024-05-31 03163780 c:ComputerSoftware 2024-05-31 03163780 c:ComputerSoftware 2023-05-31 03163780 c:CurrentFinancialInstruments 2024-05-31 03163780 c:CurrentFinancialInstruments 2023-05-31 03163780 c:Non-currentFinancialInstruments 2024-05-31 03163780 c:Non-currentFinancialInstruments 2023-05-31 03163780 c:CurrentFinancialInstruments c:WithinOneYear 2024-05-31 03163780 c:CurrentFinancialInstruments c:WithinOneYear 2023-05-31 03163780 c:Non-currentFinancialInstruments c:AfterOneYear 2024-05-31 03163780 c:Non-currentFinancialInstruments c:AfterOneYear 2023-05-31 03163780 c:ShareCapital 2023-06-01 2024-05-31 03163780 c:ShareCapital 2024-05-31 03163780 c:ShareCapital 2022-04-01 2023-05-31 03163780 c:ShareCapital 2023-05-31 03163780 c:ShareCapital 2022-04-01 03163780 c:RetainedEarningsAccumulatedLosses 2023-06-01 2024-05-31 03163780 c:RetainedEarningsAccumulatedLosses 2024-05-31 03163780 c:RetainedEarningsAccumulatedLosses 2022-04-01 2023-05-31 03163780 c:RetainedEarningsAccumulatedLosses 2023-05-31 03163780 c:RetainedEarningsAccumulatedLosses 2022-04-01 03163780 c:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2024-05-31 03163780 c:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2023-05-31 03163780 c:AcceleratedTaxDepreciationDeferredTax 2024-05-31 03163780 c:AcceleratedTaxDepreciationDeferredTax 2023-05-31 03163780 c:TaxLossesCarry-forwardsDeferredTax 2024-05-31 03163780 c:TaxLossesCarry-forwardsDeferredTax 2023-05-31 03163780 d:OrdinaryShareClass1 2023-06-01 2024-05-31 03163780 d:OrdinaryShareClass1 2024-05-31 03163780 d:OrdinaryShareClass1 2023-05-31 03163780 d:FRS102 2023-06-01 2024-05-31 03163780 d:Audited 2023-06-01 2024-05-31 03163780 d:FullAccounts 2023-06-01 2024-05-31 03163780 d:PrivateLimitedCompanyLtd 2023-06-01 2024-05-31 03163780 c:HirePurchaseContracts c:WithinOneYear 2024-05-31 03163780 c:HirePurchaseContracts c:WithinOneYear 2023-05-31 03163780 c:HirePurchaseContracts c:BetweenOneFiveYears 2024-05-31 03163780 c:HirePurchaseContracts c:BetweenOneFiveYears 2023-05-31 03163780 d:Consolidated 2024-05-31 03163780 d:ConsolidatedGroupCompanyAccounts 2023-06-01 2024-05-31 03163780 c:ComputerSoftware c:ExternallyAcquiredIntangibleAssets 2023-06-01 2024-05-31 03163780 6 2023-06-01 2024-05-31 03163780 7 2023-06-01 2024-05-31 03163780 10 2023-06-01 2024-05-31 03163780 11 2023-06-01 2024-05-31 03163780 12 2023-06-01 2024-05-31 03163780 c:ComputerSoftware c:OwnedIntangibleAssets 2023-06-01 2024-05-31 03163780 e:PoundSterling 2023-06-01 2024-05-31 iso4217:GBP xbrli:shares xbrli:pure

Registered number: 03163780









CAVE HOTELS UK LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MAY 2024

 
CAVE HOTELS UK LIMITED
 
 
COMPANY INFORMATION


Directors
James Nettlam Tory 
David Johnathan Callister 




Registered number
03163780



Registered office
The Estate Office
Etchinghill Golf

Etchinghill

Folkestone

Kent

CT18 8FA




Trading Address
Brickfield Lane
Boughton-under-Blean

Faversham

Kent

ME13 9AJ






Independent auditors
Pure Audit Limited
Chartered Certified Accountants

76 Canterbury Innovation Centre

Canterbury

Kent

CT2 7FG




Bankers
Natwest Bank Plc
Europa House

49 Sandgate Road

Folkestone

Kent

CT20 1RU





 
CAVE HOTELS UK LIMITED
 

CONTENTS



Page
Group strategic report
 
 
1
Directors' report
 
 
2 - 3
Independent auditors' report
 
 
4 - 8
Consolidated statement of comprehensive income
 
 
9
Consolidated statement of financial position
 
 
10 - 11
Company statement of financial position
 
 
12 - 13
Consolidated statement of changes in equity
 
 
14 - 15
Company statement of changes in equity
 
 
16 - 17
Consolidated statement of cash flows
 
 
18 - 19
Consolidated analysis of net debt
 
 
20
Notes to the financial statements
 
 
21 - 46


 
CAVE HOTELS UK LIMITED
 
 
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 MAY 2024

Introduction
 
The directors present their strategic report and the financial statements for the year ended 31 May 2024.

Business review
 
The directors are pleased to report another successful financial year for the Group. The Group successfully managed to sustain profitability, despite continued economic uncertainty, producing an EBITDA of £1,382,348 in difficult trading conditions.
The successful performance comes despite continued uncertainty and the difficulties endured by one of its restaurants, impacting demand and also leading to increased costs throughout the financial year.
The Group ensures that it complies fully with all Health and Safety, and other legislation and ensures
procedures are updated accordingly. 

Principal risks and uncertainties
 
The business has continued to operate successfully and benefit from its investment in the hotel infrastructure
and new systems with hotel room bookings being particularly successful.
There are risks and uncertainties around the current economic climate, cost of living crisis in the UK and the Autumn 2024 Budget changes due to hit the business from April 2025. It is unclear how this will impact consumer spending behaviours and patterns.

Financial key performance indicators
 
EBITDA:
EBITDA for the year was £1,382,348 which is an increase of 22% on the previous year (£1,135,232).
Investing in staff:
The total number of employees increased in the year by 3% from 162 to 167. This was in response to the
demand of hotel bookings and golf tee-time bookings when the Group was able to reopen in between the
national lockdowns.


This report was approved by the board and signed on its behalf.



................................................
David Johnathan Callister
Director

Date: 26 February 2025

Page 1

 
CAVE HOTELS UK LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MAY 2024

The directors present their report and the financial statements for the year ended 31 May 2024.

Directors' responsibilities statement

The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Group's financial statements 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 Group 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 the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The loss for the year, after taxation, amounted to £381,346 (2023 - profit £505,127).

The directors do not recommend a further dividend.

Directors

The directors who served during the year were:

James Nettlam Tory 
David Johnathan Callister 

Future developments

The Group continues to implement and utilise new internal systems and as a result is expecting high capacity utilisation of the business in the next 12 months.
The Group has expanded the Food and Beverage side of the business by opening another new site post year end. The Group is looking to consolodate these sites and increase their respective revenues and profits. 

Page 2

 
CAVE HOTELS UK LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Post balance sheet events

On 14 February 2025, Camden Cowgirl Ltd, a subsidiary of the Group, entered voluntary liquidation following a decision made by the company's shareholders and board of directors. The liquidation was initiated after the year ended 31 May 2024 and therefore does not impact the recognition or measurement of assets and liabilities as at the reporting date.
In anticipation of the liquidation, the Group conducted an impairment review of CCL’s assets as at 31 May 2024. As a result, an impairment loss of £505,672 was recognised in the consolidated profit and loss account for the year ended 31 May 2024. This impairment primarily related to non-recoverable assets, including the subsidiary’s leasehold property, which has been fully written off in the current year’s financial statements.
Following the recognition of this impairment loss, the directors believe that all non-recoverable assets of CCL have been appropriately removed from the Group’s consolidated financial statements as at 31 May 2024.
The directors have assessed the financial implications of CCL’s liquidation and concluded that no further adjustments to the carrying values of assets or liabilities are required. The liquidation is not expected to have a material adverse impact on the Group’s consolidated financial position or performance.
The Group will continue to monitor the liquidation process and provide additional disclosures in future financial statements if necessary.

Auditors

The auditorsPure Audit Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





................................................
David Johnathan Callister
Director

Date: 26 February 2025

Page 3

 
CAVE HOTELS UK LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CAVE HOTELS UK LIMITED
 

Opinion


We have audited the financial statements of Cave Hotels UK Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 May 2024, which comprise the Consolidated statement of comprehensive income, the Consolidated statement of financial position, the Company statement of financial position, the Consolidated statement of cash flows, the Consolidated statement of changes in equity, the Company statement of changes in equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Group's and of the parent Company's affairs as at 31 May 2024 and of the Group's loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Page 4

 
CAVE HOTELS UK LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CAVE HOTELS UK LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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. 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 course of 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.


Opinion 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 Group 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 Group 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 Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent Company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Page 5

 
CAVE HOTELS UK LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CAVE HOTELS UK LIMITED (CONTINUED)


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 2, 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 Group's and the parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or the parent Company or to cease operations, or have no realistic alternative but to do so.


Page 6

 
CAVE HOTELS UK LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CAVE HOTELS UK LIMITED (CONTINUED)


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 Group 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:

Extent the audit was considered capable of detecting irregularities, including fraud:
We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or
error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.
Identifying and assessing potential risks related to irregularities:
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and noncompliance with laws and regulations, we considered the following:
The nature of the industry and sector, control environment and business performance including the design of
the Company’s remuneration policies, key drivers for directors’ remuneration, bonus levels and performance
targets; results of our enquiries of management about their own identification and assessment of the risks of
irregularities and any matters we identified having reviewed the Company’s policies and procedures; the
matters discussed among the audit engagement team regarding how and where fraud might occur in the
financial statements and any potential indicators of fraud.
As a result of these procedures, we considered the opportunities and incentives that may exist within the
organisation for fraud and identified the greatest potential for fraud in relation to revenue recognition. In
common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the
risk of management override.
We also obtained an understanding of the legal and regulatory frameworks that the Company operates in and
focused on those laws and regulations that had a direct effect on the determination of material amounts and
disclosures in the financial statements. The key laws and regulations we considered in this context included
the Companies Act 2006 and local tax legislation.
Audit response to risks identified
As a result of performing the above, we identified revenue recognition as key audit matter related to the
potential risk of fraud. Our procedures to respond to risks identified included the following:
- reviewing the financial statement disclosures and testing to supporting documentation to assess
compliance with provisions of relevant laws and regulations described as having a direct effect on the financial
statements;
- enquiring of management, concerning actual and potential litigation and claims;
- performing analytical procedures to identify any unusual or unexpected relationships that may indicate
risks of material misstatement due to fraud;
 
Page 7

 
CAVE HOTELS UK LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF CAVE HOTELS UK LIMITED (CONTINUED)



- obtaining an understanding of provisions and discussing with management to understand the basis of
recognition or non-recognition of tax provisions; and in addressing the risk of fraud through management
override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether
the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the
business rationale of any significant transactions that are unusual or outside the normal course of business.
We also communicated relevant identified laws and regulations and potential fraud risks to all engagement
team members and remained alert to any indications of fraud or noncompliance with laws and regulations
throughout the audit.
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.


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.


Use of our report
 

This report is made solely to the Group's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006Our audit work has been undertaken so that we might state to the Group'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 Group and the Group's members, as a body, for our audit work, for this report, or for the opinions we have formed.





R M Asif Rafique (Senior statutory auditor)
  
for and on behalf of
Pure Audit Limited
 
Chartered Certified Accountants
  
76 Canterbury Innovation Centre
Canterbury
Kent
CT2 7FG

26 February 2025
Page 8

 
CAVE HOTELS UK LIMITED
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MAY 2024

2024
2023
Note
£
£

  

Turnover
 4 
10,843,403
12,014,174

Cost of sales
  
(5,444,564)
(6,231,611)

Gross profit
  
5,398,839
5,782,563

Administrative expenses
  
(5,431,805)
(5,354,709)

Other operating income
 5 
94,878
16,818

Operating profit
 6 
61,912
444,672

Interest payable and similar expenses
 9 
(395,436)
(232,306)

(Loss)/profit before taxation
  
(333,524)
212,366

Tax on (loss)/profit
  
(47,822)
292,761

(Loss)/profit for the financial year
  
(381,346)
505,127

(Loss)/profit for the year attributable to:
  

Owners of the parent Company
  
(381,346)
505,127

  
(381,346)
505,127

Total comprehensive income for the year attributable to:
  

Owners of the parent Company
  
(381,346)
505,127

  
(381,346)
505,127

There were no recognised gains and losses for 2024 or 2023 other than those included in the consolidated statement of comprehensive income.

There was no other comprehensive income for 2024 (2023:£NIL).

The notes on pages 21 to 46 form part of these financial statements.

Page 9

 
CAVE HOTELS UK LIMITED
REGISTERED NUMBER: 03163780

CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 31 MAY 2024

2024
2023
Note
£
£

Fixed assets
  

Intangible assets
 12 
51,209
23,292

Tangible assets
 13 
11,007,977
12,003,517

  
11,059,186
12,026,809

Current assets
  

Stocks
 14 
127,916
103,281

Debtors: amounts falling due within one year
 15 
662,545
809,847

Cash at bank and in hand
 16 
176,434
226,788

  
966,895
1,139,916

Creditors: amounts falling due within one year
 17 
(4,234,145)
(6,165,406)

Net current liabilities
  
 
 
(3,267,250)
 
 
(5,025,490)

Total assets less current liabilities
  
7,791,936
7,001,319

Creditors: amounts falling due after more than one year
 18 
(9,199,449)
(7,805,264)

Provisions for liabilities
  

Net assets excluding pension asset
  
(1,407,513)
(803,945)

Net liabilities
  
(1,407,513)
(803,945)


Capital and reserves
  

Called up share capital 
 22 
100
100

Profit and loss account
 23 
(1,407,613)
(804,045)

Equity attributable to owners of the parent Company
  
(1,407,513)
(803,945)

  
(1,407,513)
(803,945)


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




................................................
David Johnathan Callister
Director

Date: 26 February 2025
Page 10

 
CAVE HOTELS UK LIMITED
REGISTERED NUMBER: 03163780
    
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 MAY 2024


The notes on pages 21 to 46 form part of these financial statements.

Page 11

 
CAVE HOTELS UK LIMITED
REGISTERED NUMBER: 03163780

COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 31 MAY 2024

2024
2023
Note
£
£

Fixed assets
  

Intangible assets
 12 
50,364
22,447

Tangible assets
 13 
9,759,667
10,059,742

Fixed Asset Investments
  
-
200

  
9,810,031
10,082,389

Current assets
  

Stocks
 14 
102,985
95,307

Debtors: amounts falling due after more than one year
 15 
2,740,050
2,572,210

Debtors: amounts falling due within one year
 15 
527,682
570,276

Cash at bank and in hand
 16 
47,121
130,167

  
3,417,838
3,367,960

Creditors: amounts falling due within one year
 17 
(3,944,578)
(5,870,852)

Net current liabilities
  
 
 
(526,740)
 
 
(2,502,892)

Total assets less current liabilities
  
9,283,291
7,579,497

  

Creditors: amounts falling due after more than one year
  
(9,199,449)
(7,805,264)

  

Net assets excluding pension asset
  
83,842
(225,767)

Net assets/(liabilities)
  
83,842
(225,767)


Capital and reserves
  

Called up share capital 
 22 
100
100

Profit and loss account brought forward
  
(225,867)
(1,309,172)

Profit for the year
  
531,831
1,083,305

Other changes in the profit and loss account

  

(222,222)
-

Profit and loss account carried forward
  
83,742
(225,867)

  
83,842
(225,767)


Page 12

 
CAVE HOTELS UK LIMITED
REGISTERED NUMBER: 03163780
    
COMPANY STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 MAY 2024

The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 


................................................
David Johnathan Callister
Director

Date: 26 February 2025

The notes on pages 21 to 46 form part of these financial statements.

Page 13

 
CAVE HOTELS UK LIMITED
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2024


Called up share capital
Profit and loss account
Equity attributable to owners of parent Company
Total equity

£
£
£
£

At 1 June 2023
100
(804,045)
(803,945)
(803,945)


Comprehensive income for the year

Loss for the year

-
(381,346)
(381,346)
(381,346)


Other comprehensive income for the year
-
-
-
-


Total comprehensive income for the year
-
(381,346)
(381,346)
(381,346)


Contributions by and distributions to owners

Dividends: Equity capital
-
(222,222)
(222,222)
(222,222)


Total transactions with owners
-
(222,222)
(222,222)
(222,222)


At 31 May 2024
100
(1,407,613)
(1,407,513)
(1,407,513)


The notes on pages 21 to 46 form part of these financial statements.

Page 14

 
CAVE HOTELS UK LIMITED
 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2023


Called up share capital
Profit and loss account
Equity attributable to owners of parent Company
Total equity

£
£
£
£

At 1 April 2022
100
(1,309,172)
(1,309,072)
(1,309,072)


Comprehensive income for the period

Profit for the period

-
505,127
505,127
505,127


Other comprehensive income for the period
-
-
-
-


Total comprehensive income for the period
-
505,127
505,127
505,127


Total transactions with owners
-
-
-
-


At 31 May 2023
100
(804,045)
(803,945)
(803,945)


The notes on pages 21 to 46 form part of these financial statements.

Page 15

 
CAVE HOTELS UK LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2024


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 June 2023
100
(225,867)
(225,767)


Comprehensive income for the period

Profit for the year

-
531,831
531,831


Other comprehensive income for the year
-
-
-


Total comprehensive income for the year
-
531,831
531,831


Contributions by and distributions to owners

Dividends: Equity capital
-
(222,222)
(222,222)


Total transactions with owners
-
(222,222)
(222,222)


At 31 May 2024
100
83,742
83,842


The notes on pages 21 to 46 form part of these financial statements.

Page 16

 
CAVE HOTELS UK LIMITED
 

COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MAY 2023


Called up share capital
Profit and loss account
Total equity

£
£
£

At 1 April 2022
100
(1,309,172)
(1,309,072)


Comprehensive income for the period

Profit for the period

-
1,083,305
1,083,305


Other comprehensive income for the period
-
-
-


Total comprehensive income for the period
-
1,083,305
1,083,305


Total transactions with owners
-
-
-


At 31 May 2023
100
(225,867)
(225,767)


The notes on pages 21 to 46 form part of these financial statements.

Page 17

 
CAVE HOTELS UK LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MAY 2024

2024
2023
£
£

Cash flows from operating activities

(Loss)/profit for the financial year
(381,346)
505,127

Adjustments for:

Amortisation of intangible assets
23,050
13,974

Depreciation of tangible assets
791,714
676,586

Impairment loss
505,672
-

Interest paid
395,436
232,306

Taxation charge
47,822
(292,761)

(Increase) in stocks
(24,635)
(13,163)

Decrease/(increase) in debtors
99,480
(38,148)

(Decrease)/increase in creditors
(264,144)
187,032

(Decrease)/increase in amounts owed to participating ints
(200,000)
200,000

Net cash generated from operating activities

993,049
1,470,953


Cash flows from investing activities

Purchase of intangible fixed assets
(50,967)
(1,013)

Purchase of tangible fixed assets
(320,008)
(3,540,672)

Sale of tangible fixed assets
18,162
-

HP interest paid
(4,834)
(2,097)

Net cash from investing activities

(357,647)
(3,543,782)

Cash flows from financing activities

New secured loans
365,360
783,507

Repayment of/new finance leases
(16,255)
26,716

Dividends paid
(222,222)
-

Interest paid
(390,602)
(230,209)

Net cash used in financing activities
(263,719)
580,014

Net increase/(decrease) in cash and cash equivalents
371,683
(1,492,815)

Cash and cash equivalents at beginning of year
(418,208)
1,074,607

Cash and cash equivalents at the end of year
(46,525)
(418,208)


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
176,434
226,788

Bank overdrafts
(222,959)
(644,996)
Page 18

 
CAVE HOTELS UK LIMITED
 

CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE YEAR ENDED 31 MAY 2024


2024
2023

£
£


(46,525)
(418,208)


The notes on pages 21 to 46 form part of these financial statements.

Page 19

 
CAVE HOTELS UK LIMITED
 

CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 MAY 2024




At 1 June 2023
Cash flows
At 31 May 2024
£

£

£

Cash at bank and in hand

226,788

(50,354)

176,434

Bank overdrafts

(644,996)

422,037

(222,959)

Debt due after 1 year

(2,877,684)

(1,360,596)

(4,238,280)

Debt due within 1 year

(1,207,926)

995,236

(212,690)

Finance leases

(45,433)

16,255

(29,178)


(4,549,251)
22,578
(4,526,673)

The notes on pages 21 to 46 form part of these financial statements.

Page 20

 
CAVE HOTELS UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

1.


General information

Cave Hotels UK Ltd is a private company, limited by shares, incorporated in England & Wales, registered number 03163780. The Company's registered office is:
The Estate Office, Etchinghill Golf, Etchinghill, Folkestone, Kent, CT18 8FA.
The Company's principal place of business is:
Brickfield Lane, Boughton, Boughton-under-Blean, Kent, ME13 9AJ.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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 judgment 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:

 
2.2

Basis of consolidation

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, being 01 January 2015.

Page 21

 
CAVE HOTELS UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.Accounting policies (continued)

 
2.3

Going concern

The Group's financial statements have been prepared on a going concern basis. The directors have assessed the Group’s financial position, including the liquidation of Camden Cowgirl Ltd on 14 February 2025 and the financial support provided by the directors.
In the current year, the Group recognised an impairment loss of £505,672 related to non-recoverable assets of CCL, including leasehold property. This impairment has been fully recognised in these financial statements, and all known liabilities associated with the liquidation have been accounted for.
The parent company has a liability of £4.8 million owed to its directors. The directors have confirmed that they will not seek repayment of this amount in a manner that would be detrimental to the Group’s ability to meet its obligations as they fall due. This commitment provides assurance that the Group has adequate resources to continue in operational existence for the foreseeable future.
Following the liquidation of CCL, the directors expect the Group will return to profitability, as the remaining operations comprising the parent company and its subsidiary, Riverside Cowgirl Ltd are generating positive profits and cash flows. The parent company reported a profit before tax of £579,653 for the year and held net assets of £83,842 as at 31 May 2024.
Based on this assessment, the directors are satisfied that the Group has sufficient financial resources and that there are no material uncertainties that may cast significant doubt on the Group’s ability to continue as a going concern.

Page 22

 
CAVE HOTELS UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.Accounting policies (continued)

 
2.4

Revenue

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. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Group has transferred the significant risks and rewards of ownership to the buyer;
the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.5

Operating leases: the Group as lessee

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.

 
2.6

Leased assets: the Group as lessee

Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Page 23

 
CAVE HOTELS UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.Accounting policies (continued)

 
2.7

Finance costs

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.

 
2.8

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.9

Pensions

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.

 
2.10

Current and deferred taxation

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.


Page 24

 
CAVE HOTELS UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.Accounting policies (continued)

 
2.11

Intangible assets

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.

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.

  
2.12

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
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 basis:
ole682b.png
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.
 

 
2.13

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in unlisted Group shares, whose market value can be reliably determined, are remeasured to market value at each reporting date. Gains and losses on remeasurement are recognised in the Consolidated statement of comprehensive income for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

Investments in listed company shares are remeasured to market value at each reporting date. Gains and losses on remeasurement are recognised in profit or loss for the period.

Page 25

 
CAVE HOTELS UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.Accounting policies (continued)

 
2.14

Stocks

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 first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

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.

 
2.15

Debtors

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.

 
2.16

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

 
2.17

Creditors

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.

 
2.18

Holiday pay accrual

A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the reporting date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the reporting date.

 
2.19

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

Page 26

 
CAVE HOTELS UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.Accounting policies (continued)

 
2.20

Financial instruments

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 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
Page 27

 
CAVE HOTELS UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.Accounting policies (continued)


2.20
Financial instruments (continued)

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

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.

Page 28

 
CAVE HOTELS UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

2.Accounting policies (continued)

 
2.21

Financial liabilities

Financial liabilities and equity are classified according to the substance of the financial instrument's contractual obligations, rather than the financial instrument's legal form.

Financial liabilities within the scope of IAS 39 are initially classified as financial liabilities at fair value through profit or loss, loans and borrowings, or as derivatives designated as hedging instruments in an effective hedge, as appropriate.
The Group determines the classification of its financial liabilities at initial recognition. All financial liabilities are recognised initially at fair value and in the case of loans and borrowings, plus directly attributable transaction costs.
Subsequently, the measurement of financial liabilities depends on their classification as follows:

Financial liabilities at fair value through profit or loss

Financial liabilities at fair value through profit or loss includes financial liabilities held for trading and financial liabilities designated upon initial recognition as at fair value through profit or loss.

Financial liabilities are classified as held for trading if they are acquired for the purpose of repurchasing in the near term. Derivatives, including separately embedded derivatives are also classified as held for trading unless they are designated as effective hedging instruments. Gains or losses on liabilities held for trading are recognised in profit or loss.

Interest bearing loans and borrowings

Obligations for loans and borrowings are recognised when the Group becomes party to the related contracts and are measured initially at the fair value of consideration received less directly attributable transaction costs.
After initial recognition, interest bearing loans and borrowings are subsequently measured at amortised cost using the effective interest method.
Gains and losses arising on the repurchase, settlement or otherwise cancellation of liabilities are recognised respectively in finance revenue and finance cost.

Derecognition of financial liabilities

A liability is derecognised when the contract that gives rise to it is settled, sold, cancelled or expires.
Where an existing financial liability is replaced by another from the same lender on substantially different terms, or the terms of an existing liability are substantially modified, such as an exchange or modification, this is treated as a derecognition of the original liability, such that the difference in the respective carrying amounts together with any costs or fees incurred are recognised in profit or loss.

 
2.22

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 29

 
CAVE HOTELS UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

Estimates and judgements are continually evaluated and are based on historic experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
Key sources of estimation uncertainty
The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are outlined below:
Useful economic lives of tangible fixed assets
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and physical condition of the assets.


4.


Turnover

An analysis of turnover by class of business is as follows:


2024
2023
£
£

Hotel
3,339,413
3,866,369

Golf
1,286,632
1,805,829

Food and Beverage
6,080,023
6,161,413

Miscellaneous
137,335
180,563

10,843,403
12,014,174


Analysis of turnover by country of destination:

2024
2023
£
£

United Kingdom
10,843,403
12,014,174

10,843,403
12,014,174


Page 30

 
CAVE HOTELS UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

5.


Other operating income

2024
2023
£
£

Other operating income
94,878
16,818

94,878
16,818



6.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Other operating lease rentals
110,114
88,600


7.


Auditors' remuneration

During the year, the Group obtained the following services from the Company's auditors:


2024
2023
£
£

Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements
15,750
15,000

Page 31

 
CAVE HOTELS UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

8.


Employees

Staff costs were as follows:


Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£


Wages and salaries
3,493,056
4,111,858
2,994,973
3,735,388

Social security costs
281,129
439,389
245,969
406,118

Cost of defined contribution scheme
51,666
76,802
45,302
75,298

3,825,851
4,628,049
3,286,244
4,216,804


The average monthly number of employees, including the directors, during the year was as follows:



Group
Group
Company
Company
        2024
        2023
        2024
        2023
            No.
            No.
            No.
            No.









Administration and Management
167
162
138
147


9.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
390,602
230,209

Finance leases and hire purchase contracts
4,834
2,097

395,436
232,306

Page 32

 
CAVE HOTELS UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

10.


Taxation



Factors affecting tax charge for the year/period

The tax assessed for the year/period is the same as (2023 - lower than) the standard rate of corporation tax in the UK of 25% (2023 19.86%). The differences are explained below:

2024
2023
£
£


(Loss)/profit on ordinary activities before tax
(333,524)
212,366


(Loss)/profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 19.86%)
(83,381)
42,176

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
430,330
185,783

Capital allowances for year/period in excess of depreciation
(298,624)
(473,770)

Utilisation of tax losses
(399,569)
(46,950)

Unrelieved tax losses carried forward
351,244
292,761

Total tax charge for the year/period
-
-


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


11.


Dividends

2024
2023
£
£


Dividends analysis
222,222
-

222,222
-

Page 33

 
CAVE HOTELS UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

12.


Intangible assets

Group





Computer software

£



Cost


At 1 June 2023
49,886


Additions
50,967



At 31 May 2024

100,853



Amortisation


At 1 June 2023
26,594


Charge for the year on owned assets
23,050



At 31 May 2024

49,644



Net book value



At 31 May 2024
51,209



At 31 May 2023
23,292



Page 34

 
CAVE HOTELS UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
 
           12.Intangible assets (continued)

Company




Computer software

£



Cost


At 1 June 2023
48,873


Additions
50,967



At 31 May 2024

99,840



Amortisation


At 1 June 2023
26,426


Charge for the year
23,050



At 31 May 2024

49,476



Net book value



At 31 May 2024
50,364



At 31 May 2023
22,447


13.


Tangible fixed assets

Group






Freehold property
Long-term leasehold property
Plant and machinery
Motor vehicles
Fixtures and fittings

£
£
£
£
£



Cost or valuation


At 1 June 2023
9,782,674
1,178,246
732,475
390,527
1,460,242


Additions
28,435
7,732
-
3,950
261,680


Disposals
-
(325,485)
(131,282)
(10,562)
(233,016)



At 31 May 2024

9,811,109
860,493
601,193
383,915
1,488,906



Depreciation


At 1 June 2023
615,136
28,181
319,883
166,847
508,400
Page 35

 
CAVE HOTELS UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

           13.Tangible fixed assets (continued)



Charge for the year on owned assets
181,829
75,573
70,946
90,752
339,358


Disposals
-
(46,516)
(62,097)
(4,335)
(81,436)



At 31 May 2024

796,965
57,238
328,732
253,264
766,322



Net book value



At 31 May 2024
9,014,144
803,255
272,461
130,651
722,584



At 31 May 2023
9,167,538
1,150,065
412,592
223,680
951,842

Office equipment
Total

£
£



Cost or valuation


At 1 June 2023
128,277
13,672,441


Additions
18,211
320,008


Disposals
(27,512)
(727,857)



At 31 May 2024

118,976
13,264,592



Depreciation


At 1 June 2023
30,477
1,668,924


Charge for the year on owned assets
33,255
791,713


Disposals
(9,638)
(204,022)



At 31 May 2024

54,094
2,256,615



Net book value



At 31 May 2024
64,882
11,007,977



At 31 May 2023
97,800
12,003,517

Page 36

 
CAVE HOTELS UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

           13.Tangible fixed assets (continued)




The net book value of land and buildings may be further analysed as follows:


2024
2023
£
£

Freehold
9,014,144
9,167,538

Long leasehold
803,255
1,150,065

9,817,399
10,317,603


Page 37
 


 
CAVE HOTELS UK LIMITED


 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

           13.Tangible fixed assets (continued)



Company







Freehold property
Plant and machinery
Motor vehicles
Fixtures and fittings
Office equipment

£
£
£
£
£

Cost or valuation


At 1 June 2023
9,782,674
307,459
374,965
1,067,335
97,867


Additions
28,435
-
3,950
221,428
16,086



At 31 May 2024

9,811,109
307,459
378,915
1,288,763
113,953



Depreciation


At 1 June 2023
615,136
287,889
165,048
475,212
27,273


Charge for the year on owned assets
181,829
10,626
86,862
265,536
25,121



At 31 May 2024

796,965
298,515
251,910
740,748
52,394



Net book value



At 31 May 2024
9,014,144
8,944
127,005
548,015
61,559



At 31 May 2023
9,167,538
19,570
209,917
592,123
70,594
Page 38
 
CAVE HOTELS UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

           13.Tangible fixed assets (continued)


Total

£

Cost or valuation


At 1 June 2023
11,630,300


Additions
269,899



At 31 May 2024

11,900,199



Depreciation


At 1 June 2023
1,570,558


Charge for the year on owned assets
569,974



At 31 May 2024

2,140,532



Net book value



At 31 May 2024
9,759,667



At 31 May 2023
10,059,742





The net book value of land and buildings may be further analysed as follows:


2024
2023
£
£

Freehold
9,014,144
9,167,538

9,014,144
9,167,538


Page 39

 
CAVE HOTELS UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

14.


Stocks

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Raw materials and consumables
44,257
30,208
27,564
26,044

Finished goods and goods for resale
83,659
73,073
75,421
69,263

127,916
103,281
102,985
95,307


The difference between purchase price or production cost of stocks and their replacement cost is not material.


15.


Debtors

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£


Amounts owed by group undertakings
-
-
2,740,050
2,572,210

-
-
2,740,050
2,572,210


Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£


Trade debtors
62,961
76,362
41,681
68,632

Other debtors
107,488
164,045
41,224
28,567

Prepayments and accrued income
247,157
276,679
199,838
180,316

Deferred taxation
244,939
292,761
244,939
292,761

662,545
809,847
527,682
570,276



16.


Cash and cash equivalents

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Cash at bank and in hand
176,434
226,788
47,121
130,167

Less: bank overdrafts
(222,959)
(644,996)
(222,633)
(643,893)

(46,525)
(418,208)
(175,512)
(513,726)


Page 40

 
CAVE HOTELS UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

17.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Bank overdrafts
222,959
644,996
222,633
643,893

Bank loans
212,690
1,207,926
212,690
1,207,926

Trade creditors
612,952
782,449
429,474
570,350

Amounts owed to other participating interests
2,256,052
2,456,052
2,256,052
2,456,052

Other taxation and social security
302,040
332,826
250,890
294,921

Obligations under finance lease and hire purchase contracts
3,146
16,255
3,146
16,255

Other creditors
363,987
431,451
344,349
417,976

Accruals and deferred income
260,319
293,451
225,344
263,479

4,234,145
6,165,406
3,944,578
5,870,852


Page 41

 
CAVE HOTELS UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

18.


Creditors: Amounts falling due after more than one year

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Bank loans
4,238,280
2,877,684
4,238,280
2,877,684

Net obligations under finance leases and hire purchase contracts
26,032
29,178
26,032
29,178

Other creditors
4,935,137
4,898,402
4,935,137
4,898,402

9,199,449
7,805,264
9,199,449
7,805,264



The following liabilities were secured:
Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£


Bank loans
4,673,929
4,730,606
4,673,929
4,730,606

4,673,929
4,730,606
4,673,929
4,730,606

Details of security provided:

The long term loan is repayable in 240 monthly instalments from November 2023. Interest is charged at
 2.67% above base rate. The loan is repayable in monthly instalments of £36,036.68 and a final instalment of an amount sufficient to repay the loan and interest in full. The Group's bank, Natwest Bank Plc has secured the loan by way of legal charges over the Group as listed below:
 i) A fixed and floating charge covering all property or undertaking of Cave Hotels (UK) Ltd date 2nd
 March 2017. The charge contains a negative pledge.
i) A freehold first legal charge over the land at Boughton Golf Course, Brickfield Lane, Boughton Under Blean, Faversham and its associated assets.
 The CBILS loan is repayable in 60 monthly installments from May 2022. Interest is charged at 3.96%
 above base rate.

Please provide details of the terms of payment or repayment and the rates of any interest payable on the amounts repayable more than five years after the reporting date.

Page 42

 
CAVE HOTELS UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

19.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Within one year
3,146
16,255
3,146
16,255

Between 1-5 years
26,032
29,178
26,032
29,178

29,178
45,433
29,178
45,433


20.


Financial instruments

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Financial assets

Financial assets measured at fair value through profit or loss
176,434
226,788
-
94,626




21.


Deferred taxation


Group



2024


£






At beginning of year
292,761


Charged to profit or loss
(47,822)



At end of year
244,939

Page 43

 
CAVE HOTELS UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024
 
21.Deferred taxation (continued)

Company


2024


£






At beginning of year
292,761


Charged to profit or loss
(47,822)



At end of year
244,939

Group
Group
Company
Company
2024
2023
2024
2023
£
£
£
£

Accelerated capital allowances
(113,805)
(261,937)
(113,805)
(261,937)

Tax losses carried forward
358,744
554,698
358,744
554,698

244,939
292,761
244,939
292,761


22.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



100 (2023 - 100) Ordinary shares of £1.0 each
100
100



23.


Reserves

Profit and loss account

The profit and loss account includes all current and prior period retained profits and losses.


24.


Pension commitments

The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group  in an independently administered fund. The pension cost charge represents contributions payable by the Group  to the fund and amounted to £51,666 (2023: £76,802) . Contributions totalling £16,545 (2023: £28,094) were payable to the fund at the reporting date and are included in creditors.

Page 44

 
CAVE HOTELS UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

25.


Commitments under operating leases

At 31 May 2024 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
2024
2023
£
£

Not later than 1 year
286,625
261,625

Later than 1 year and not later than 5 years
746,500
1,140,500

Later than 5 years
281,531
368,156

1,314,656
1,770,281

26.


Related party transactions

Directors and key management personnel:
At the year end, the Group owed £4.8 million (2023: £4.7 million) to its directors.
Connected company - Pentland Properties:
At the year end, the Group owed Pentland Properties £2.3 million (2023: £2.5 million). The loan is interest free and repayable on demand.
Mrs V Tory:
The Group owed Mrs V Tory (Close family member of a director) £119k (2023: £150k) at the
year end. Interest is charged on the loan at 11% and the loan is repayable on demand.

Page 45

 
CAVE HOTELS UK LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MAY 2024

27.


Post balance sheet events

On 14 February 2025, Camden Cowgirl Ltd, a subsidiary of the Group, entered voluntary liquidation following a decision made by the company's shareholders and board of directors. The liquidation was initiated after the year ended 31 May 2024 and therefore does not impact the recognition or measurement of assets and liabilities as at the reporting date.
In anticipation of the liquidation, the Group conducted an impairment review of CCL’s assets as at 31 May 2024. As a result, an impairment loss of £505,672 was recognised in the consolidated profit and loss account for the year ended 31 May 2024. This impairment primarily related to non-recoverable assets, including the subsidiary’s leasehold property, which has been fully written off in the current year’s financial statements.
Following the recognition of this impairment loss, the directors believe that all non-recoverable assets of CCL have been appropriately removed from the Group’s consolidated financial statements as at 31 May 2024.
The directors have assessed the financial implications of CCL’s liquidation and concluded that no further adjustments to the carrying values of assets or liabilities are required. The liquidation is not expected to have a material adverse impact on the Group’s consolidated financial position or performance.
The Group will continue to monitor the liquidation process and provide additional disclosures in future financial statements if necessary.


28.


Controlling party

J N Tory is the ultimate controlling party by virtue of his majority shareholding in the Parent Company.


29.


Subsidiary undertaking

At the reporting date of 31 May 2024, Cave Hotels (UK) Ltd had the following subsidiary undertakings:
Riverside Cowgirl Ltd - 100% owned
Camden Cowgirl Ltd - 100% owned

 
Page 46