Company registration number 05341915 (England and Wales)
THE COODEN BEACH HOTEL LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
31 DECEMBER 2023
Century House
Wargrave Road
Henley-on-Thames
Oxfordshire
United Kingdom
RG9 2LT
THE COODEN BEACH HOTEL LIMITED
CONTENTS
Page
Company information
1
Strategic report
2 - 4
Director's report
5 - 6
Independent auditor's report
7 - 10
Statement of comprehensive income
11
Balance sheet
12
Statement of changes in equity
13
Notes to the financial statements
14 - 27
THE COODEN BEACH HOTEL LIMITED
COMPANY INFORMATION
- 1 -
Director
Mr. T. Hartnoll
Company number
05341915
Registered office
Cooden Beach Hotel
Cooden Sea Road
Bexhill-On-Sea
East Sussex
TN39 4TT
Auditor
Verallo
Century House
Wargrave Road
Henley-on-Thames
Oxfordshire
United Kingdom
RG9 2LT
THE COODEN BEACH HOTEL LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

The director presents the strategic report for the year ended 31 December 2023.

Fair review of the business

Against the backdrop of continued challenging conditions for the hospitality sector the company performance for the year was strong with a year-on-year turnover increase of 29% (2023 v. 2022) and an improvement in operating profit / (loss) following completion of refurbishment works during 2022. Food and Beverage revenues despite a slow Q1 finished the year 19% ahead of 2022.

Accommodation revenues were particularly strong overall (+45% v. 2022). The impact of refurbishment works in 2022 reduced room capacity but nonetheless comparable H2 performance saw strong improvement. Annual occupancy was below expectations offset by an increase in pricing.

Leisure as a segment is impacted by the cost of living crisis as discretionary spend diminishes. To mitigate this management developed other market segments and made operational changes to the business to accommodate corporate and social meetings and events with a particular focus on filling critical midweek periods.

Following a period of refurbishment the business has successfully re-built its standing as a local community venue of choice for social events such as weddings, special occasions and celebrations of life.

The business undertakes constant review and forecasting of its cost base. The primary costs of the business are payroll and food costs. Both of these have been impacted by inflation significantly. Underlying wage growth was driven by an increase in the national minimum wage and the availability of workforce. This increase was offset through restructuring the management team and improved controls the overall business wage growth and labour efficiency.

THE COODEN BEACH HOTEL LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
Principal risks, uncertainties and management objectives

The business manages exposure to principal risks through its financial risk management objectives.

Revenue risk

Exposure to revenue risk is managed through financial risk management objectives which focus on optimizing the mix between price point and occupancy. Robust revenue management processes are adopted including daily competitor comparisons.

Food and beverage price risk arises from being unable to pass on inflationary rises in the cost of goods to the customer. This is mitigated through daily ordering of foodstuffs based on business levels to minimize waste and by implementing flexible menus.

Credit risk

The business has limited exposure to credit risk as the majority of its business is paid for in advance or at the time of service. Credit risk is managed by limiting customer credit facilities to those companies that meet credit requirements.

Cost base risk

The business is fully compliant with statutory minimum pay regulations and labour costs are managed through careful rota management. Food price inflation has impacted margins. Risk is managed through detailed costing of menus, minimising waste and sourcing the best value products without compromising on quality produce. Better pricing can be obtained from suppliers on advance purchase terms and the business balances the benefit of better pricing against cashflow needs of the time.

Energy cost is the largest non-direct cost. The timing of energy contract renewals is critical as favourable pricing often requires longer commitment periods to energy suppliers. The business closely monitors renewal dates and has set consumption targets and implemented best practice processes to reduce energy consumption.

Liquidity risk

Cashflow is carefully monitored weekly; revenues are received on a cash basis and can be relatively accurately forecasted to align with supplier payments and payroll requirements due.

Development and performance

The outlook for 2024 is optimistic but with persisting economic instability continuing to impact the business. Rooms revenues are anticipated to continue to grow as base volume corporate business allows management to seek revenue opportunities from the remaining room stock. The business is benefiting from positive impacts of the sales efforts in 2023 to drive more midweek corporate and weekend leisure business. The opening of a new Spa facility in H2 2024 will enhance the hotel’s offering and the opportunity to expand into the leisure market further.

Food price inflation reached a record high of 19.1% in March 2023 compared to 2022. During the remainder of 2023 food inflation remained high and contributed to rise albeit at a slower rate. Food inflation remains a factor in managing the cost base despite an easing in key staples.

Overall, the outlook remains challenging; the focus is on ensuring continuous control on the cost base whilst seeking out new and alternative revenue opportunities. Longer term as the leisure segment recovers the business should be well placed to maximise the opportunity and drive profitability.

THE COODEN BEACH HOTEL LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -
Key performance indicators

KPIs

2023

2022

Gross profit margin

10%

2%

Operating profit margin

(36%)

(52%)

Accommodation revenue % Turnover

41%

37%

Food and Beverage revenue % Turnover

58%

63%

Administration expense % Turnover

46%

55%

Employee expense % Turnover

63%

69%

 

Other information and explanations

The business is committed to providing a quality hospitality experience for its guests and the local community by investing in its assets and the team. Opportunities to further promote the success of The Cooden Beach Hotel are assessed regularly and tailored to suit market demand. In particular, the business has invested in the development of a new Spa facility opening in 2024.

 

On behalf of the board

Mr. T. Hartnoll
Director
12 March 2025
THE COODEN BEACH HOTEL LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -

The director presents his annual report and financial statements for the year ended 31 December 2023.

Principal activities

The principal activity of the company continued to be that of a hotel.

Results and dividends

The results for the year are set out on page 11.

No ordinary dividends were paid. The director does not recommend payment of a final dividend.

Director

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

Ms. G. Leo
(Resigned 29 May 2024)
Mr. T. Hartnoll
Auditor

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

Statement of director's responsibilities

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

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is required to:

 

 

The director is 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. He is 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.

Strategic report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of principal risks, uncertainties and management objectives, along with future developments.

THE COODEN BEACH HOTEL LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
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.

On behalf of the board
Mr. T. Hartnoll
Director
12 March 2025
THE COODEN BEACH HOTEL LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF THE COODEN BEACH HOTEL LIMITED
- 7 -
Opinion

We have audited the financial statements of The Cooden Beach Hotel Limited (the 'company') for the year ended 31 December 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity 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.

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 director is 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:

THE COODEN BEACH HOTEL LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF THE COODEN BEACH HOTEL LIMITED
- 8 -
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 director's 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 director

As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has 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. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

 

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

The objectives of our audit, in respect to fraud, are: to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses; and to respond appropriately to fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and its management.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

THE COODEN BEACH HOTEL LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF THE COODEN BEACH HOTEL LIMITED
- 9 -

Our approach was as follows:

 

 

Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified fraud risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from fraud or error.

 

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

 

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/Our-Work/Audit/Audit-and-assurance/Standards-and-guidance/Standards-and-guidance-for-auditors/Auditors-responsibilities-for-audit/Description-of-auditors-responsibilities-for-audit.aspx. This description forms part of our auditor’s report.

THE COODEN BEACH HOTEL LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF THE COODEN BEACH HOTEL LIMITED
- 10 -
Use of 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.

Michelle Hewitt-Dutton FCCA (Senior Statutory Auditor)
For and on behalf of Verallo
Statutory Auditor
14 March 2025
THE COODEN BEACH HOTEL LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 11 -
2023
2022
Notes
£
£
Turnover
3
2,680,583
2,072,549
Cost of sales
(2,412,777)
(2,030,718)
Gross profit
267,806
41,831
Administrative expenses
(1,236,710)
(1,135,794)
Other operating income
-
0
6,000
Operating loss
4
(968,904)
(1,087,963)
Interest receivable and similar income
6
1,547
-
0
Interest payable and similar expenses
7
(30)
-
0
Loss before taxation
(967,387)
(1,087,963)
Tax on loss
8
-
0
88,436
Loss for the financial year
(967,387)
(999,527)
The notes on pages 14 to 27 form part of these financial statements
THE COODEN BEACH HOTEL LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 12 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
9
6,721,992
6,679,441
Current assets
Stocks
11
59,186
58,745
Debtors
10
399,525
582,057
Cash at bank and in hand
48,718
163,400
507,429
804,202
Creditors: amounts falling due within one year
12
(8,772,286)
(8,112,733)
Net current liabilities
(8,264,857)
(7,308,531)
Total assets less current liabilities
(1,542,865)
(629,090)
Provisions for liabilities
Provisions
13
53,612
-
0
(53,612)
-
Net liabilities
(1,596,477)
(629,090)
Capital and reserves
Called up share capital
15
1
1
Profit and loss reserves
(1,596,478)
(629,091)
Total equity
(1,596,477)
(629,090)
The financial statements were approved by the board of directors and authorised for issue on 12 March 2025 and are signed on its behalf by:
Mr. T. Hartnoll
Director
Company Registration No. 05341915
The notes on pages 14 to 27 form part of these financial statements
THE COODEN BEACH HOTEL LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2022
1
370,436
370,437
Year ended 31 December 2022:
Loss and total comprehensive income for the year
-
(999,527)
(999,527)
Balance at 31 December 2022
1
(629,091)
(629,090)
Year ended 31 December 2023:
Loss and total comprehensive income for the year
-
(967,387)
(967,387)
Balance at 31 December 2023
1
(1,596,478)
(1,596,477)
The notes on pages 14 to 27 form part of these financial statements
THE COODEN BEACH HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
1
Accounting policies
Company information

The Cooden Beach Hotel Limited is a private company limited by shares incorporated in England and Wales, company registration number 05341915. The registered office is Cooden Beach Hotel, Cooden Sea Road, Bexhill-On-Sea, East Sussex, TN39 4TT.

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.

This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the company are consolidated in the financial statements of The Relais Cooden Beach Holding Limited. These consolidated financial statements are available from its registered office, Century House, Wargrave Road, Henley-on-Thames, Oxfordshire, United Kingdom, RG9 2LT.

THE COODEN BEACH HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 15 -
1.2
Going concern

At the balance sheet date the company's current liabilities exceed its current assets by £8,264,857 (2022 - £7,308,531). The directors have prepared the financial statements on a going concern basis, which assumes the company will continue in operational existence, and will be able to meet its liabilities as they fall due, for a period of at least twelve months from the date of approval of the financial statements.true

 

In reaching this conclusion, the directors have reviewed the budgets and forecasts for the foreseeable future and have considered the support obtained from its parent company, in relation to the £8,167,375 (2022 - £7,388,633) that will not be recalled for the foreseeable future. The parent company has pledged to provide financial support to the company to enable it to meets its financial obligations for a period of 12 months from the approval of the financial statements.

 

The director continues to review the impact of economy on the operations and financial position of the company.

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.

 

Sale of accommodation

The contract to provide accommodation is established when the customer books accommodation. The performance obligation is the right to use accommodation for a given number of nights, and the transaction price is the room rate for each night determined at the time of the booking. The performance obligation is met when the customer is given the right to use the accommodation, and so revenue is recognised for each night as it takes place, at the room rate for that night.

Customers may pay in advance for accommodation. In this case the Company has received consideration for services not yet provided. This is treated as a contract liability until the performance obligation is met.

Sale of food and beverage

The contract is established when the customer orders the food or drink item and the performance obligation is the provision of food and drink by the outlet. The performance obligation is satisfied when the food and drink is delivered to the customer, and revenue is recognised at this point at the price for the items purchased.

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:

Freehold land and buildings
2% straight line
Fixtures and fittings
10% - 20% straight line
Computer equipment
20% straight line
THE COODEN BEACH HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 16 -

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.

Land is not subject to depreciation.

 

Assets under construction are not subject to depreciation.

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.

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.

 

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

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.

THE COODEN BEACH HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
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.

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.

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.

THE COODEN BEACH HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -
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, and loans, loans from fellow group companies, 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.

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.

THE COODEN BEACH HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -
1.10
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.

1.11
Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

 

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.12
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.

THE COODEN BEACH HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
1.13
Retirement benefits

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

1.14
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the director is 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

Due to the scale of the fixed assets, depreciation is considered to be a key accounting estimate. The accounting estimates applied are based on years of use, and how often refurbishment will be required. As a result of the high levels of fixed assets a 1% change would impact the financial statements by £11k.

3
Turnover and other revenue
2023
2022
£
£
Turnover analysed by class of business
Accomodation
1,096,862
756,914
Food and beverage
1,560,921
1,315,635
Other
22,800
-
2,680,583
2,072,549
THE COODEN BEACH HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
3
Turnover and other revenue
(Continued)
- 21 -
2023
2022
£
£
Turnover analysed by geographical market
United Kingdom
2,680,583
2,072,549
2023
2022
£
£
Other revenue
Interest income
1,547
-
Grants received
-
6,000
4
Operating loss
2023
2022
Operating loss for the year is stated after charging/(crediting):
£
£
Government grants
-
(6,000)
Fees payable to the company's auditor for the audit of the company's financial statements
8,800
9,000
Depreciation of owned tangible fixed assets
252,939
166,621
(Profit)/loss on disposal of tangible fixed assets
-
75,420
5
Employees

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

2023
2022
Number
Number
Admin
5
5
Maintenance
2
2
Kitchen
16
16
Food service
33
34
Housekeeping
12
11
Front of House
8
11
Spa
1
1
Total
77
80
THE COODEN BEACH HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
5
Employees
(Continued)
- 22 -

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
1,543,793
1,315,202
Social security costs
125,125
98,419
Pension costs
25,662
22,449
1,694,580
1,436,070
6
Interest receivable and similar income
2023
2022
£
£
Interest income
Other interest income
1,547
-
0
7
Interest payable and similar expenses
2023
2022
£
£
Other interest
30
-
0
8
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
-
0
(22,104)
Adjustments in respect of prior periods
-
0
(1,325)
Total current tax
-
0
(23,429)
Deferred tax
Origination and reversal of timing differences
-
0
(65,007)
Total tax charge/(credit)
-
0
(88,436)
THE COODEN BEACH HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
8
Taxation
(Continued)
- 23 -

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

2023
2022
£
£
Loss before taxation
(967,387)
(1,087,963)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
(241,847)
(206,713)
Tax effect of expenses that are not deductible in determining taxable profit
14,320
933
Unutilised tax losses carried forward
204,231
256,934
Change in unrecognised deferred tax assets
23,793
-
0
Adjustments in respect of prior years
-
0
(1,325)
Effect of change in corporation tax rate
-
0
38,420
Deferred tax adjustments in respect of prior years
-
0
(65,008)
Land remediation
-
0
13,355
Super deduction
(497)
(125,032)
Taxation charge/(credit) for the year
-
(88,436)

At 31 December 2023 the company had tax losses carried forwards amounting to £5,981,727 (2022 - £5,105,782). After accounting for the deferred tax liability on accelerated capital allowances, a balance of £2,475,163 (2022 - £1,504,046) remains available to be carried forward and offset against future trading profits.

 

At 31 December 2023 capital losses amounting to £5,410 (2022 - £5,410) available to be carried forward against future capital gains.

 

THE COODEN BEACH HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
9
Tangible fixed assets
Freehold land and buildings
Fixtures and fittings
Computer equipment
Total
£
£
£
£
Cost
At 1 January 2023
5,751,485
975,551
124,853
6,851,889
Additions
219,178
36,520
39,792
295,490
At 31 December 2023
5,970,663
1,012,071
164,645
7,147,379
Depreciation and impairment
At 1 January 2023
40,828
115,422
16,198
172,448
Depreciation charged in the year
84,616
138,592
29,731
252,939
At 31 December 2023
125,444
254,014
45,929
425,387
Carrying amount
At 31 December 2023
5,845,219
758,057
118,716
6,721,992
At 31 December 2022
5,710,657
860,129
108,655
6,679,441

The carrying value of land and buildings comprises of land valued at £240,000.

10
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
17,902
5,036
Corporation tax recoverable
24,976
23,429
Other debtors
314,412
461,356
Prepayments and accrued income
42,235
92,236
399,525
582,057
11
Stocks
2023
2022
£
£
Finished goods and goods for resale
59,186
58,745
THE COODEN BEACH HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
12
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
183,264
140,116
Amounts owed to group undertakings
8,167,375
7,388,633
Taxation and social security
99,685
24,327
Other creditors
119,759
103,201
Accruals and deferred income
202,203
456,456
8,772,286
8,112,733
13
Provisions for liabilities
2023
2022
£
£
53,612
-
Movements on provisions:
£
At 1 January 2023 and 31 December 2023
53,612

The provision represents expected repairs and maintenance costs of the building to be settled within the next 12 months. The basis has been applied at 2% of turnover, which the directors believe represents the value to repair the property to its current condition.

14
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
25,662
22,449

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.

15
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary share of £1 each
1
1
1
1
THE COODEN BEACH HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
15
Share capital
(Continued)
- 26 -
16
Ultimate controlling party

The immediate parent company is The Relais Cooden Beach Holding Limited, a company incorporated in the United kingdom.

 

The intermediate parent company is HICO Holding Pte Limited, a company incorporated in Singapore.

 

At the year end Mr T. Hartnoll was the ultimate controlling party by virtue of his effective majority shareholding in HICO Holding Pte Limited.

 

On 24 May 2024 Baccata Trustees Ltd, a company incorporated in the Jersey, Channel Islands, became the ultimate parent company.

 

The ultimate controlling party from 24 May 2024 is Mr N. Falla, by virtue of his controlling interest in Baccata Trustees Ltd.

 

The Cooden Beach Hotel Limited is included within the consolidated financial statements of The Relais Cooden Beach Holding Limited, which can be obtained from the registered office; Century House, Wargrave Road, Henley-on Thames, Oxfordshire, England, RG9 2LT

THE COODEN BEACH HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 27 -
17
Related party transactions

The company has taken advantage of the exemption allowed under FRS 102 s.33.1A not to disclose transactions with wholly owned members of the group.

 

During the year, a company related by mutual control was advanced £457,782 (2022 - £148,918) and repayments totalling £449,075 (2022 - £66,576) were made to the company. At the year end, The Cooden Beach Hotel Limited was owed £287,473 (2022 - £278,766). Management charges totalled £22,399 (2022 - £12,449). No interest was charged on the amounts advanced, the loan was unsecured and repayable on demand.

 

During the year, the company incurred management fees of £79,994 (2022 - £80,006) in respect of a director. At the balance sheet date, the total amount owed was £80,000 (2022 - £140,000) and is included within accruals.

 

During the year, the company trade with a related party. Purchases made from the related party amounted to £58,889 (2022 - £nil). At the balance sheet date, the company owed the related party £58,889 (2022 - £nil).

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