Z Hotels ZHH Limited
Financial Statements
For the year ended 31 March 2024
Pages for Filing with Registrar
Company Registration No. 07302745 (England and Wales)
Z Hotels ZHH Limited
Company Information
Directors
B King
R Meehan
P Leighton
Company number
07302745
Registered office
53-59 Chandos Place
London
WC2N 4HS
Auditor
Moore Kingston Smith LLP
6th Floor
9 Appold Street
London
EC2A 2AP
Z Hotels ZHH Limited
Contents
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 13
Z Hotels ZHH Limited
Balance Sheet
As at 31 March 2024
Page 1
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
5
201
8,295
Tangible assets
6
37,851
51,921
Investments
7
300
301
38,352
60,517
Current assets
Stock
9
9,555
3,478
Debtors
10
37,251,299
33,131,279
Cash at bank and in hand
1,229
3,732
37,262,083
33,138,489
Creditors: amounts falling due within one year
11
(44,412,726)
(41,872,709)
Net current liabilities
(7,150,643)
(8,734,220)
Total assets less current liabilities
(7,112,291)
(8,673,703)
Capital and reserves
Called up share capital
12
120
120
Share premium account
124,988
124,988
Profit and loss reserves
(7,237,399)
(8,798,811)
Total equity
(7,112,291)
(8,673,703)

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 28 February 2025 and are signed on its behalf by:
R Meehan
Director
Company Registration No. 07302745
Z Hotels ZHH Limited
Statement of Changes in Equity
For the year ended 31 March 2024
Page 2
Share capital
Share premium account
Profit and loss reserves
Total
£
£
£
£
Balance at 1 April 2022
120
124,988
(7,394,219)
(7,269,111)
Year ended 31 March 2023:
Loss and total comprehensive income for the year
-
-
(1,404,592)
(1,404,592)
Balance at 31 March 2023
120
124,988
(8,798,811)
(8,673,703)
Year ended 31 March 2024:
Profit and total comprehensive income for the year
-
-
1,561,412
1,561,412
Balance at 31 March 2024
120
124,988
(7,237,399)
(7,112,291)
Z Hotels ZHH Limited
Notes to the Financial Statements
For the year ended 31 March 2024
Page 3
1
Accounting policies
Company information

Z Hotels ZHH Limited is a private company limited by shares incorporated in England and Wales. The registered office is 53-59 Chandos Place, London, WC2N 4HS.

1.1
Accounting convention

These financial statements have been prepared in accordance with Section 1A of FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The company has taken advantage of the exemption under section 400 of the Companies Act 2006 not to prepare consolidated accounts. The financial statements present information about the company as an individual entity and not about its group.

 

Z Hotels ZHH Limited is a wholly owned subsidiary of Z Group Topco Ltd and the results of Z Hotels ZHH Limited are included in the consolidated financial statements of Z Group Topco Ltd which are available from Companies House.

Z Hotels ZHH Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
1
Accounting policies
(Continued)
Page 4
1.2
Going concern

The Company made a profit for the year of £1,561,412 (2023: loss of £1,404,592) and had net liabilities at the reporting date of £7,112,291 (2023: £8,673,703).

 

The Group, of which the Company is a part, has continued to trade at exceptionally high levels of occupancy with the annual rate of occupancy running at 99% at the balance sheet date. ARR continues on a growth trajectory and measures to control costs have taken an annualised £2m out of the cost base. Upgrades to core systems and revenue management improvements are contributing towards increases in ARR, whilst discussions over refinancing and asset optimisation are progressing positively.

 

The Group has loans totalling £104.1m of which £4.3m is repayable on demand at the balance sheet date and £82m is repayable within 12 months of the date of approval of these financial statements. Of the remaining amounts, £14.3m is repayable in May 2028 and £4m repayable in July 2027. The Group has obtained a letter confirming that £4m of the amounts repayable on demand will not be recalled within at least 12 months of the date of approval of these financial statements.

 

The directors have drawn up cash flow forecasts for the Group which extend to March 2026 to assess its ability to continue as a going concern. Should the Group loans of £86.3m be called for repayment, there is unlikely to be sufficient headroom available without either refinancing the loans or renegotiating the terms and conditions of the loans.

 

These factors indicate the existence of material uncertainties which may cast significant doubt on the Group's and therefore the Company’s ability to continue as a going concern. While there can be no certainty over the assumptions made in preparing the cash flow forecast, the directors have prepared the financial statements on a going concern basis as they have a reasonable expectation that, if required, either refinancing will be available to the group or that the terms of the group’s loans can be renegotiated such that repayments can be managed in a reasonable way.

 

The financial statements do not contain any adjustments that would arise if the Company were unable to continue as a going concern.

1.3
Turnover

Turnover is recognised to the extent that it is probable that the economic benefit will flow to the company and the turnover can be reliably measured.

 

Turnover represents amounts receivable for the provision of employment and management services to other group companies net of Value Added Tax. Turnover is recognised in the period to which it relates and when the service has been provided.

1.4
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

Z Hotels ZHH Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
1
Accounting policies
(Continued)
Page 5

Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Brands
10 years straight line
Website costs
5 years straight line
1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Fixtures and fittings
15% straight line
Computers
15% straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.6
Fixed asset investments

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

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

1.7
Impairment of fixed assets

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

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Z Hotels ZHH Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
1
Accounting policies
(Continued)
Page 6

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.8
Stock

Stock held for distribution are measured at the lower of cost and replacement cost.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stock over its estimated replacement cost is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.9
Cash at bank and in hand

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.10
Financial instruments

The company only has basic financial instruments measured at amortised cost, with no financial instruments classified as other or basic instruments at fair value.

1.11
Equity instruments

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

1.12
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Z Hotels ZHH Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
1
Accounting policies
(Continued)
Page 7
Deferred tax

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

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.13
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.14
Retirement benefits

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

1.15
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

2
Judgements and key sources of estimation uncertainty

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

 

The estimates and 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.

Z Hotels ZHH Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
Page 8
Key sources of estimation uncertainty

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

Depreciation of tangible fixed assets

The annual depreciation charge for property, plant and equipment is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets.

Amortisation of intangible fixed assets

The annual amortisation charge for intangible fixed 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 re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments and economic utilisation.

3
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2024
2023
Number
Number
Total
35
35

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
1,735,766
2,027,050
Social security costs
189,533
291,757
Pension costs
23,797
17,366
1,949,096
2,336,173
4
Directors' remuneration
2024
2023
£
£
Remuneration paid to directors
177,044
143,253

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 2 (2023 - 2).

Z Hotels ZHH Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
Page 9
5
Intangible fixed assets
Brands
Website costs
Total
£
£
£
Cost
At 1 April 2023 and 31 March 2024
1,001
52,760
53,761
Amortisation and impairment
At 1 April 2023
700
44,766
45,466
Amortisation charged for the year
100
7,994
8,094
At 31 March 2024
800
52,760
53,560
Carrying amount
At 31 March 2024
201
-
0
201
At 31 March 2023
301
7,994
8,295
6
Tangible fixed assets
Fixtures and fittings
Computers
Total
£
£
£
Cost
At 1 April 2023
91,343
58,264
149,607
Additions
-
0
8,851
8,851
At 31 March 2024
91,343
67,115
158,458
Depreciation and impairment
At 1 April 2023
64,273
33,413
97,686
Depreciation charged in the year
13,701
9,220
22,921
At 31 March 2024
77,974
42,633
120,607
Carrying amount
At 31 March 2024
13,369
24,482
37,851
At 31 March 2023
27,070
24,851
51,921
7
Fixed asset investments
2024
2023
£
£
Investments
300
301
Z Hotels ZHH Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
7
Fixed asset investments
(Continued)
Page 10
Movements in fixed asset investments
Shares in group undertakings
£
Cost or valuation
At 1 April 2023
301
Disposals
(1)
At 31 March 2024
300
Carrying amount
At 31 March 2024
300
At 31 March 2023
301

During the year the company disposed of its shareholding in G1 Propco Limited to a group company that subsequently sold the shareholding to a connected company.

Z Hotels ZHH Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
Page 11
8
Subsidiaries

Details of the company's subsidiaries at 31 March 2024 are as follows:

Name of undertaking
Address
Nature of business
Class of
% Held
shares held
Direct
Z Propco Limited
1
Dormant
Ordinary
100.00
Z Pinot Limited
1
Dormant
Ordinary
100.00
Z Des Limited
1
Property Rental
Ordinary
100.00

Registered office addresses (all UK unless otherwise indicated):

1
53 - 59 Chandos Place, London, WC2N 4HS
9
Stock
2024
2023
£
£
Stock
9,555
3,478
10
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
38,068
119,463
Amounts owed by group undertakings
31,559,973
29,235,169
Other debtors
3,725,999
1,314,449
Prepayments and accrued income
1,927,259
2,462,198
37,251,299
33,131,279
11
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
356,868
309,831
Amounts owed to group undertakings
41,880,392
39,936,772
Corporation tax
205
205
Other taxation and social security
551,965
56,377
Other creditors
558,089
517,276
Accruals and deferred income
1,065,207
1,052,248
44,412,726
41,872,709
Z Hotels ZHH Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
Page 12
12
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
-
-
96
96
'A' Ordinary shares of £1 each
-
-
12
12
'B'  Ordinary shares of £1 each
-
-
12
12
-
-
120
120
13
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

2024
2023
£
£
Within one year
95,000
111,100
Between two and five years
218,630
-
0
313,630
111,100
Z Hotels ZHH Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
Page 13
14
Related party transactions

As a wholly owned subsidiary of Z Group Topco Ltd, advantage has been taken of the exemption in FRS 102 (section 33) "Related Party Disclosure" in respect of the disclosures of transactions and balances with other wholly owned group undertakings as consolidated financial statements including the company are prepared.

 

Included within debtors is an amount of £3,554,694 (2023: £1,144,985) due from companies under common control and £167,693 (2023: £167,693) due from a Unit Trust under common control. There is a balance of £1,870,774 (2023: £2,451,360) included within prepayments and accrued income from related parties in respect of sales earned during the year of £1,870,774 (2023: £1,988,488).

 

Included within creditors is an amount of £493,169 (2023: £511,122) due to companies under common control. During the year the company was charged interest of £nil (2023: £444,992) from companies under common control.

 

Remuneration payable to key management personnel during the year amounted to £175,992 (2023: £143,253).

15
Audit report information

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:

The auditor's report was unqualified.

Senior Statutory Auditor:
Katherine Edwards
Statutory Auditor:
Moore Kingston Smith LLP
16
Parent company

The immediate parent company is Z Hotels Group Limited. The ultimate controlling party is Z Group Topco Ltd, registered office being 53-59 Chandos Place, London, WC2N 4HS.

 

The smallest and largest group of undertakings for which group accounts have been drawn up is headed by Z Group Topco Ltd.

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