Z Hotels Operations Ltd
Financial Statements
For the year ended 31 March 2024
Pages for Filing with Registrar
Company Registration No. 09559707 (England and Wales)
Z Hotels Operations Ltd
Company Information
Directors
B King
R Meehan
P Leighton
Company number
09559707
Registered office
53-59 Chandos Place
London
WC2N 4HS
Auditor
Moore Kingston Smith LLP
6th Floor
9 Appold Street
London
EC2A 2AP
Z Hotels Operations Ltd
Contents
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 8
Z Hotels Operations Ltd
Balance Sheet
As at 31 March 2024
Page 1
2024
2023
Notes
£
£
£
£
Current assets
Debtors
4
3,735,244
3,971,810
Cash at bank and in hand
4,154
253,169
3,739,398
4,224,979
Creditors: amounts falling due within one year
5
(3,770,048)
(4,257,113)
Net current liabilities
(30,650)
(32,134)
Capital and reserves
Called up share capital
7
100
100
Profit and loss reserves
(30,750)
(32,234)
Total equity
(30,650)
(32,134)

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. 09559707
Z Hotels Operations Ltd
Statement of Changes in Equity
For the year ended 31 March 2024
Page 2
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 April 2022
100
(8,364)
(8,264)
Year ended 31 March 2023:
Loss and total comprehensive income for the year
-
(23,870)
(23,870)
Balance at 31 March 2023
100
(32,234)
(32,134)
Year ended 31 March 2024:
Profit and total comprehensive income for the year
-
1,484
1,484
Balance at 31 March 2024
100
(30,750)
(30,650)
Z Hotels Operations Ltd
Notes to the Financial Statements
For the year ended 31 March 2024
Page 3
1
Accounting policies
Company information

Z Hotels Operations Ltd 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.

1.2
Going concern

The Company made a profit for the year of £1,484 (2023: loss of £23,870) and had net liabilities at the reporting date of £30,650 (2023: liabilities of £32,134).

 

The Group, of which this 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 and therefore 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 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.

Z Hotels Operations Ltd
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
1
Accounting policies
(Continued)
Page 4
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 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
Cash and cash equivalents

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.

1.5
Financial instruments

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

1.6
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.

1.7
Taxation

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

Current tax

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

Deferred tax

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

 

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.

Z Hotels Operations Ltd
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
1
Accounting policies
(Continued)
Page 5
1.8
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.

1.9
Retirement benefits

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

1.10
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Employees

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

2024
2023
Number
Number
General staff
273
252
3
Taxation
2024
2023
£
£
Deferred tax
Origination and reversal of timing differences
(788)
(3,750)
Z Hotels Operations Ltd
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
3
Taxation
(Continued)
Page 6

The actual credit for the year can be reconciled to the expected charge/(credit) for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit/(loss) before taxation
696
(27,620)
Expected tax charge/(credit) based on the standard rate of corporation tax in the UK of 25% (2023: 19%)
174
(5,248)
Tax effect of expenses that are not deductible in determining taxable profit
1,453
-
0
Change in unrecognised deferred tax assets
(2,415)
3,155
Effect of change in corporation tax rate
-
0
(1,657)
Taxation credit for the year
(788)
(3,750)

 

4
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
7,954
-
0
Amounts owed by group undertakings
3,389,405
3,378,103
Other debtors
250,305
9,800
Prepayments and accrued income
81,665
578,780
3,729,329
3,966,683
2024
2023
Amounts falling due after more than one year:
£
£
Deferred tax asset
5,915
5,127
Total debtors
3,735,244
3,971,810
Z Hotels Operations Ltd
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
Page 7
5
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
8,703
6,454
Amounts owed to group undertakings
2,132,358
2,504,287
Taxation and social security
1,055,198
411,170
Other creditors
567,289
1,330,002
Accruals and deferred income
6,500
5,200
3,770,048
4,257,113
6
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Assets
Assets
2024
2023
Balances:
£
£
Retirement benefit obligations
5,915
5,127
2024
Movements in the year:
£
Asset at 1 April 2023
(5,127)
Credit to profit or loss
(788)
Asset at 31 March 2024
(5,915)
7
Called up share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
8
Financial commitments

A composite cross guarantee structure exists between Z Hotels Trading WB Limited, Z Hotels OCS Limited, Z Hotels OS Limited, Z Hotels LBS Limited, Z Hotels Bath Limited, Z Hotels Operations Limited, Z Hotels Management Contracts Limited and Z Hotels Management Limited. The aggregate amount outstanding under these agreements at the balance sheet date was £14,250,000 (2023: £4,056,569 ).

Z Hotels Operations Ltd
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
Page 8
9
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 disclosure 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 £249,605 (2023: £Nil) owed from companies under common control. Included within creditors is an amount of £543,151 (2023: £1,313,931) owed to companies under common control. Sales of £2,758,428 (2023: £2,451,685) were earned from companies under common control during the year.

 

No key management received remuneration from the company during the year or the prior year.

10
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.

The senior statutory auditor was Katherine Edwards.
The auditor was Moore Kingston Smith LLP.
11
Parent company

The immediate parent company is Z Hotels Trading WB Limited. The ultimate controlling party is Z Group Topco Ltd.

 

The smallest and largest group of undertakings for which group accounts have been drawn up is headed by Z Group Topco Ltd. Copies of these accounts can be obtained from Companies House.

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