Z Hotels ZHT Limited
Financial Statements
For Filing with Registrar
For the year ended 31 March 2024
Company Registration No. 09016455 (England and Wales)
Z Hotels ZHT Limited
Company Information
Directors
R Meehan
B King
P Leighton
Company number
09016455
Registered office
53-59 Chandos Place
London
United Kingdom
WC2N 4HS
Auditor
Moore Kingston Smith LLP
6th Floor
9 Appold Street
London
EC2A 2AP
Z Hotels ZHT Limited
Contents
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 9
Z Hotels ZHT Limited
Balance Sheet
As at 31 March 2024
Page 1
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
3
11,940,698
12,209,917
Current assets
Stock
4
48,338
46,595
Debtors
5
3,738,894
3,570,520
Cash at bank and in hand
158,804
69,332
3,946,036
3,686,447
Creditors: amounts falling due within one year
6
(17,675,255)
(16,760,384)
Net current liabilities
(13,729,219)
(13,073,937)
Total assets less current liabilities
(1,788,521)
(864,020)
Creditors: amounts falling due after more than one year
7
(5,380,052)
(5,745,144)
Provisions for liabilities
(1,181,835)
(1,231,170)
Net liabilities
(8,350,408)
(7,840,334)
Capital and reserves
Called up share capital
9
100
100
Revaluation reserve
3,205,505
3,258,799
Profit and loss reserves
(11,556,013)
(11,099,233)
Total equity
(8,350,408)
(7,840,334)
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. 09016455
Z Hotels ZHT Limited
Statement of Changes in Equity
For the year ended 31 March 2024
Page 2
Share capital
Revaluation reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 April 2022
100
3,282,620
(11,526,379)
(8,243,659)
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
-
403,325
403,325
Transfers
-
(23,821)
23,821
-
Balance at 31 March 2023
100
3,258,799
(11,099,233)
(7,840,334)
Year ended 31 March 2024:
Loss and total comprehensive income for the year
-
-
(510,074)
(510,074)
Transfers
-
(53,294)
53,294
-
Balance at 31 March 2024
100
3,205,505
(11,556,013)
(8,350,408)
Z Hotels ZHT Limited
Notes to the Financial Statements
For the year ended 31 March 2024
Page 3
1
Accounting policies
Company information
Z Hotels ZHT Limited is a private company limited by shares incorporated in England and Wales. The registered office is 53-59 Chandos Place, London, United Kingdom, 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, modified to include the revaluation of leasehold properties at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
The Company made a loss for the year of £510,074 (2023: profit of £403,325) and had net liabilities at the reporting date of £8,350,408 (2023: £7,840,334). true
The Company and Group 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.
Z Hotels ZHT Limited
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 benefits will flow to the company and revenue can be reliably measured.
Turnover comprises revenue recognised by the company in respect of goods and services supplied during the year, exclusive of Value Added Tax and trade discounts. Turnover in respect of accommodation is recognised at the point of the customers stay whilst other sales, including food and beverage revenues, are recognised at the point of purchase. Payments made at the time of booking are recognised in creditors and released to turnover during the customer's stay.
1.4
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:
Leasehold land and buildings
Period of the lease
Fixtures and fittings
3 year straight line
Computers
3 year straight line
Food and beverage equipment
3 year 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.
1.5
Stock
Stock are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stock to their present location and condition.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stock over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.6
Cash at bank and in hand
Cash at bank and in hand are basic financial assets and include cash in hand and deposits held at call with banks.
1.7
Financial instruments
The company only has financial instruments classified as basic and measured at amortised cost. The company has no financial instruments that are classified as 'other' or financial instruments measured at fair value.
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs.
Z Hotels ZHT Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
1
Accounting policies
(Continued)
Page 5
1.9
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.
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.
Valuation of leasehold properties
The leasehold properties are held at valuation which the directors reassess at each year end for any changes in value, guided by an external valuation obtained from an external firm of professional valuers.
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.
Z Hotels ZHT Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
Page 6
3
Tangible fixed assets
Leasehold land and buildings
Fixtures and fittings
Computers
Food and beverage equipment
Total
£
£
£
£
£
Cost or valuation
At 1 April 2023
13,813,089
74,472
89,007
5,758
13,982,326
Additions
118,743
10,319
538
129,600
At 31 March 2024
13,813,089
193,215
99,326
6,296
14,111,926
Depreciation and impairment
At 1 April 2023
1,606,784
74,472
85,395
5,758
1,772,409
Depreciation charged in the year
363,502
30,496
4,806
15
398,819
At 31 March 2024
1,970,286
104,968
90,201
5,773
2,171,228
Carrying amount
At 31 March 2024
11,842,803
88,247
9,125
523
11,940,698
At 31 March 2023
12,206,305
3,612
12,209,917
The leasehold property was valued on an open market basis by the directors, guided by an external valuation obtained from an external firm of professional valuer on 31 March 2024.
If revalued assets were stated on an historical cost basis rather than a fair value basis, the total amounts included would have been as follows:
2024
2023
£
£
Cost
9,142,623
9,142,623
Accumulated depreciation
(1,217,519)
(1,014,350)
Carrying value
7,925,104
8,128,273
4
Stock
2024
2023
£
£
Stock
48,338
46,595
Z Hotels ZHT Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
Page 7
5
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
62,176
19,443
Amounts owed by group undertakings
1,722,025
1,643,870
Other debtors
125,504
25,115
Prepayments and accrued income
647,354
650,922
2,557,059
2,339,350
2024
2023
Amounts falling due after more than one year:
£
£
Deferred tax asset
1,181,835
1,231,170
Total debtors
3,738,894
3,570,520
6
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans
455,940
364,752
Trade creditors
95,486
86,558
Amounts owed to group undertakings
8,488,051
8,529,697
Taxation and social security
358,711
65,469
Other creditors
1,181,649
1,212,499
Accruals and deferred income
7,095,418
6,501,409
17,675,255
16,760,384
7
Creditors: amounts falling due after more than one year
2024
2023
£
£
Bank loans
5,380,052
5,745,144
The bank loans are secured by way of a charge over all assets of the company and certain assets of its related parties. At the balance sheet date, this loan was repayable by way of quarterly instalments with a final repayment in October 2025 and bore interest at 4.5% + LIBOR.
Z Hotels ZHT Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
Page 8
8
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
Balances:
£
£
£
£
Accelerated capital allowances
456,972
411,937
-
-
Tax losses
-
-
1,181,835
1,231,170
Revaluations
724,863
819,233
-
-
1,181,835
1,231,170
1,181,835
1,231,170
9
Called up share capital
2024
2023
£
£
Ordinary share capital
Issued and fully paid
100 A Ordinary shares of £1 each
100
100
100
100
10
Financial commitments, guarantees and contingent liabilities
A composite cross guarantee structure exists between Z Hotels Trading WB Limited, Z Hotels Holborn Ltd, Z Hotels ZHT Ltd, Z CHA Holdco Ltd, Z Propco II Ltd, Z Hotels Trafalgar Ltd, Z Hotels Green Mgt Ltd, 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, Z Hotels Operations Ltd and Z Hotels Management Limited. The aggregate amount outstanding under these agreements at the balance sheet date was £14,250,000 (2023: £4,056,549).
11
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
Z Hotels ZHT Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
Page 9
12
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
1,883,222
1,656,121
Between two and five years
7,917,141
6,962,400
In over five years
95,876,522
87,829,404
105,676,885
96,447,925
13
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 creditors is an amount of £334,703 (2023: £nil) due to companies under common control. During the year the company purchased assets amounting to £84,832 (2023: £675) and incurred management fees of £308,176 (2023: £314,755) from companies under common control.
Included within debtors is an amount of £52,000 (2023: £24,515) due from companies under common control.
No key management received remuneration from the company during the year or the prior year.
14
Controlling party
The immediate parent company is Z Hotels Trading GB 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 the group financial statements can be obtained from Companies House.
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