Company registration number 12261938 (England and Wales)
MOLARD INVESTMENTS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
MOLARD INVESTMENTS LIMITED
COMPANY INFORMATION
Directors
S A J Nahum
W R Collins
(Appointed 11 November 2024)
Company number
12261938
Registered office
4th Floor
Millbank Tower
21-24 Millbank
London
SW1P 4QP
Auditor
Gerald Edelman LLP
73 Cornhill
London
EC3V 3QQ
MOLARD INVESTMENTS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 22
MOLARD INVESTMENTS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

The directors present the strategic report for the year ended 31 March 2024.

Review of the business

The company has continued to focus on driving revenue despite the challenging environment resulting from the cost of living crisis. The improved performance reflects the resilience and adaptability of our team in navigating the hospitality industry trends and external factors during this period.

During this time, our revenue decreased slightly to £14.4M (2023: £15.1M), while the EBITDA significantly improved due to the release of the rent free creditors following the decision for the operations to be taken over by the Virgin brand.

We extend our sincere gratitude to the management and team for their unwavering dedication, innovation, and hard work, which have been instrumental in achieving the results.

Following the year-end the company ceased to operate the hotel and is seeking other suitable opportunities.

Principal risks and uncertainties

The detailed individual risks have been categorised into the following areas:

 

-management;

-financing;

-economic climate

 

In order to provide relevant and timely information to the directors, the company prepares regular monthly management reports including analysis of material variances.

 

The nature of the specific risk area and related controls are as follows;

 

Principal controls

These include regular monitoring of legislative proposals and the use of experienced sector-specific professional advisers to mitigate the impact of changes.

 

Management risk

The company is reliant on its small high calibre team of operational staff.

 

Principal controls

The company benefits from loyal, high-calibre employees who have been with the company for a number of years. The company has tried to ensure that the knowledge base of this team is maintained. They have an experienced understanding of the sectors they operate in.

 

Economic climate

There is ongoing worldwide economic uncertainty following the Covid-19 pandemic and consequential impact on supply lines and higher inflation and cost of living. The company actively manages this risk by preparing short term and long term cash flow forecasts.

MOLARD INVESTMENTS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
Key performance indicators

The directors consider a number of key performance indicators on a monthly basis in order to assess the overall performance.

 

2024

2023

Change

 

£

£

%

 

 

 

 

Revenue

14,392,051

15,115,129

(5%)

Gross profit

6,311,269

5,416,344

17%

Cash at bank

518,614

271,539

91%

EBITDA

2,083,916

(5,443,541)

138%

EBITDAR

934,258

(417,873)

324%

Net profit/(loss)

1,238,213

(6,203,763)

120%

The directors are pleased to report that the company recorded improvement in most of the performance indicators for the 2024 financial year.

On behalf of the board

S A J Nahum
Director
7 March 2025
MOLARD INVESTMENTS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -

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

Principal activities

The principal activity of the company was that of the management and operation of The Mondrian Shoreditch Hotel.

 

Results and dividends

The results for the year are set out on page 8.

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

E M Sawyer
(Resigned 11 November 2024)
S A J Nahum
W R Collins
(Appointed 11 November 2024)
Auditor

The auditor, Gerald Edelman LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Going concern

The company ceased to trade on the 31st July 2024 when the running of the Mondrian Hotel was passed to the Virgin Group under a new lease. The directors have confirmed that they anticipate the company to remain open for a period of not less than twelve months of signing these financial statements. It is the intention of the directors to use the company when a future business opportunity arises. Separately the directors have received confirmation that the ultimate parent undertaking, Partrum Management Limited will continue to provide financial support to the company so that it has adequate resource to meet any day to day liabilities if required.

 

The directors have therefore continued to adopt the going concern basis in preparing the financial statements for the year ended 31 March 2024.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

On behalf of the board
S A J Nahum
Director
7 March 2025
MOLARD INVESTMENTS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

MOLARD INVESTMENTS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MOLARD INVESTMENTS LIMITED
- 5 -
Opinion

We have audited the financial statements of Molard Investments Limited (the 'company') for the year ended 31 March 2024 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The 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:

Basis for opinion

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

Material uncertainty due to going concern

We draw your attention to Note 1.2 of the financial statements which indicates that the company ceased trading on the 31st July 2024. While we have received assurances from the directors that the company will be kept open for a period of at least twelve months following the signing of these financial statements, there isn't a specific need or obvious requirement presently to keep the company open for this period.

 

Our opinion is not modified in respect of this matter.

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

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

MOLARD INVESTMENTS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MOLARD INVESTMENTS LIMITED
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

 

Our audit procedures were primarily directed towards testing the accounting systems in operation which we have based our assessment of the financial statements for the year ended 31 March 2024.

 

We planned our audit so that we have a reasonable expectation of detecting material misstatements in the financial statements resulting from irregularities, fraud or non-compliance with law or regulations.

Extent to which the audit was considered capable of detecting irregularities, including fraud

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

MOLARD INVESTMENTS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MOLARD INVESTMENTS LIMITED
- 7 -
Extent to which the audit was considered capable of detecting irregularities, including fraud

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non compliance with laws and regulations, we designed procedures which included, but are not limited to:

The test nature and other inherent limitations of an audit, together with the inherent limitations of any accounting and internal control system, mean that there is an unavoidable risk that even some material misstatements in respect of irregularities may remain undiscovered even though the audit is properly planned and performed in accordance with ISAs (UK). Furthermore, the more removed that laws and regulations are from financial transactions, the less likely that we would become aware of non-compliance.

 

Our examination should therefore not be relied upon to disclose all such material misstatements or frauds, errors or instances of non-compliance that might exist. The responsibility for safeguarding the assets of the company and for the prevention and detection of fraud, error and non-compliance with law or regulations rests with the directors.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Rowan Lindsay
Senior Statutory Auditor
For and on behalf of Gerald Edelman LLP
7 March 2025
Chartered Accountants
Statutory Auditor
73 Cornhill
London
EC3V 3QQ
MOLARD INVESTMENTS LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
14,392,051
15,115,129
Cost of sales
(8,080,782)
(9,698,785)
Gross profit
6,311,269
5,416,344
Administrative expenses
(5,073,056)
(11,620,239)
Operating profit/(loss)
4
1,238,213
(6,203,895)
Interest receivable and similar income
-
0
132
Profit/(loss) before taxation
1,238,213
(6,203,763)
Tax on profit/(loss)
7
-
0
-
0
Profit/(loss) for the financial year
1,238,213
(6,203,763)

The profit and loss account has been prepared on the basis that all operations are continuing operations.

MOLARD INVESTMENTS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 9 -
2024
2023
£
£
Profit/(loss) for the year
1,238,213
(6,203,763)
Other comprehensive income
-
-
Total comprehensive income for the year
1,238,213
(6,203,763)
MOLARD INVESTMENTS LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 10 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
8
2,919,700
3,476,939
Current assets
Stocks
9
104,932
158,695
Debtors
10
3,213,212
2,331,235
Cash at bank and in hand
518,614
271,539
3,836,758
2,761,469
Creditors: amounts falling due within one year
11
(23,580,707)
(24,300,869)
Net current liabilities
(19,743,949)
(21,539,400)
Net liabilities
(16,824,249)
(18,062,461)
Capital and reserves
Called up share capital
13
2
2
Profit and loss reserves
(16,824,251)
(18,062,463)
Total equity
(16,824,249)
(18,062,461)

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved by the board of directors and authorised for issue on 7 March 2025 and are signed on its behalf by:
S A J Nahum
Director
Company registration number 12261938 (England and Wales)
MOLARD INVESTMENTS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 April 2022
2
(11,858,701)
(11,858,699)
Year ended 31 March 2023:
Loss and total comprehensive income for the year
-
(6,203,763)
(6,203,763)
Balance at 31 March 2023
2
(18,062,463)
(18,062,461)
Year ended 31 March 2024:
Profit and total comprehensive income for the year
-
1,238,213
1,238,213
Balance at 31 March 2024
2
(16,824,251)
(16,824,249)
MOLARD INVESTMENTS LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 MARCH 2024
- 12 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
19
535,539
4,160
Investing activities
Purchase of tangible fixed assets
(288,464)
(290,140)
Interest received
-
0
132
Net cash used in investing activities
(288,464)
(290,008)
Net increase/(decrease) in cash and cash equivalents
247,075
(285,848)
Cash and cash equivalents at beginning of year
271,539
557,387
Cash and cash equivalents at end of year
518,614
271,539
MOLARD INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 13 -
1
Accounting policies
Company information

Molard Investments Limited is a private company limited by shares incorporated in England and Wales. The registered office is 4th Floor, Millbank Tower, 21-24 Millbank, London, SW1P 4QP.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

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 ceased to trade on the 31st July 2024 when the running of the Mondrian Hotel was passed to the Virgin Group under a new lease. The directors have confirmed that they anticipate the company to remain open for a period of not less than twelve months of signing these financial statements. It is the intention of the directors to use the company when a future business opportunity arises. Separately the directors have received confirmation that the ultimate parent undertaking, Partrum Management Limited will continue to provide financial support to the company so that it has adequate resource to meet any day to day liabilities if required. true

 

The directors have therefore continued to adopt the going concern basis in preparing the financial statements for the year ended 31 March 2024.

1.3
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. Turnover of the hotel is derived primarily from the rental of rooms and sale of food and beverage. Revenue is recognised when rooms are occupied and when food and beverage are sold.

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 improvements
10 years straight line
Fixtures, fittings and equipment
3 - 5 years 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
Impairment of fixed assets

At each reporting period end date, the company reviews the carrying amounts of its tangible 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.

MOLARD INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 14 -

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.

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.

1.6
Stocks

Stocks 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 stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks 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.

1.7
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.

1.8
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company 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 debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

MOLARD INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -
Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. 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.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of 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 company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

MOLARD INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 16 -
Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.9
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.

1.10
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.

1.11
Retirement benefits

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

1.12
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.

1.13
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.

MOLARD INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 17 -
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:

Depreciation of tangible fixed assets

Depreciation charged on tangible assets require an estimation of their useful economic lives and residual values. The carrying value of tangible assets are therefore sensitive to the estimates used which are based on the current condition and the value in use of the assets to the company. The estimates are reviewed annually.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Rental of rooms
9,125,852
8,999,780
Food and beverage sales
4,800,663
5,335,963
Other including membership, spa treatments
465,536
779,386
14,392,051
15,115,129

All turnover generated by the company is from operations in the United Kingdom.

2024
2023
£
£
Other revenue
Interest income
-
132
4
Operating profit/(loss)
2024
2023
Operating profit/(loss) for the year is stated after charging/(crediting):
£
£
Exchange gains
(4,007)
-
0
Depreciation of owned tangible fixed assets
845,703
760,354
Cost of stocks recognised as an expense
2,437,042
2,861,582
Operating lease charges
(1,149,658)
5,025,668
MOLARD INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 18 -
5
Employees

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

2024
2023
Number
Number
Direct hospitality operations
154
189
Administration including finance, marketing etc
32
29
Total
186
218

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
5,705,111
6,908,483
Social security costs
552,593
626,221
Pension costs
123,884
136,470
6,381,588
7,671,174
6
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
17,500
15,000
7
Taxation
Total tax charge
-
-
MOLARD INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
7
Taxation
(Continued)
- 19 -

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

2024
2023
£
£
Profit/(loss) before taxation
1,238,213
(6,203,763)
Expected tax charge/(credit) based on the effective rate of corporation tax in the UK of 25.00% (2023: 19.00%)
309,553
(2,053,198)
Tax effect of expenses that are not deductible in determining taxable profit
216,099
185,429
Tax effect of utilisation of tax losses not previously recognised
(262,586)
-
0
Group relief
(263,066)
1,867,769
Taxation charge for the year
-
-
8
Tangible fixed assets
Leasehold improvements
Fixtures, fittings and equipment
Total
£
£
£
Cost
At 1 April 2023
3,035,241
1,657,057
4,692,298
Additions
-
0
288,464
288,464
At 31 March 2024
3,035,241
1,945,521
4,980,762
Depreciation and impairment
At 1 April 2023
496,595
718,764
1,215,359
Depreciation charged in the year
303,524
542,179
845,703
At 31 March 2024
800,119
1,260,943
2,061,062
Carrying amount
At 31 March 2024
2,235,122
684,578
2,919,700
At 31 March 2023
2,538,646
938,293
3,476,939
9
Stocks
2024
2023
£
£
Finished goods and goods for resale
104,932
158,695
MOLARD INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 20 -
10
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
290,918
102,720
Other debtors
1,794,551
1,315,248
Prepayments and accrued income
1,127,743
913,267
3,213,212
2,331,235
11
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
3,806,695
2,595,745
Amounts owed to group undertakings
18,896,405
15,876,637
Taxation and social security
241,423
340,788
Other creditors
3,573
1,947
Accruals and deferred income
632,611
5,485,752
23,580,707
24,300,869

Amounts owed to group undertakings are repayable on demand and interest free.

12
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
123,884
136,470

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

13
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
2
2
2
2
MOLARD INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
14
Operating lease commitments
Lessee

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

2024
2023
£
£
Within one year
1,096,524
4,294,939
Between two and five years
-
0
17,179,756
In over five years
-
0
4,294,939
1,096,524
25,769,634

During the year, the original lease signed in 2020 was surrendered and replaced with a new agreement reducing the annual commitment and the length of the lease.

 

On the operations of the company being transferred to the Virgin Group, the lease signed in this financial period was cancelled.

15
Events after the reporting date

The company ceased trading on 31 July 2024 when the operations of the hotel were transferred to Virgin Group.

 

 

16
Related party transactions

The disclosure requirement of FRS102 allows the company not to disclose transactions entered into between two or more members of a group, provided that any subsidiary which is party to the transaction is wholly owned.

17
Ultimate controlling party

The immediate parent company is Partrum Management Limited and the ultimate parent company is Hightower Investment Corp, both incorporated in British Virgin Islands.

 

The registered address for both companies is 2nd Floor, O'Neal Marketing Associates Building, P O Box 3174, Wickham's Cay II, Road Town, Tortola, British Virgin Islands.

18
Analysis of changes in net funds
1 April 2023
Cash flows
31 March 2024
£
£
£
Cash at bank and in hand
271,539
247,075
518,614
MOLARD INVESTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 22 -
19
Cash generated from operations
2024
2023
£
£
Profit/(loss) for the year after tax
1,238,213
(6,203,763)
Adjustments for:
Investment income
-
0
(132)
Depreciation and impairment of tangible fixed assets
845,703
760,353
Movements in working capital:
Decrease/(increase) in stocks
53,763
(89,082)
Increase in debtors
(881,977)
(622,755)
(Decrease)/increase in creditors
(720,162)
6,159,538
Cash generated from operations
535,539
4,160
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