69
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No description of principal activity
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Sage Accounts Production Advanced 2023 - FRS102_2023
325,114
325,114
47,291
240,597
193,306
292,281
3,783
296,064
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COMPANY REGISTRATION NUMBER:
06562406
Brook Hotels No. 1 Limited |
|
Annual Report and Financial Statements |
|
Brook Hotels No. 1 Limited |
|
Annual Report and Financial Statements |
|
Year ended 25 March 2024
Officers and professional advisers |
1 |
|
|
Independent auditor's report to the members |
6 |
|
|
Statement of income and retained earnings |
10 |
|
|
Statement of financial position |
11 |
|
|
Notes to the annual report and financial statements |
12 |
|
|
Brook Hotels No. 1 Limited |
|
Officers and Professional Advisers |
|
Registered office |
Brook Marston Farm Hotel |
|
Dog Lane |
|
Bodymoor Heath |
|
Sutton Coldfield |
|
England |
|
B76 9JD |
|
|
Company number
06562406
Auditor |
Chowdhary & Co |
|
Chartered accountants & statutory auditor |
|
46 Syon Lane |
|
Isleworth |
|
Middlesex |
|
TW7 5NQ |
|
|
Bankers |
Santander UK Plc |
|
P O Box 10102 |
|
23 Prescott Street |
|
London |
|
BD1 5AN |
|
|
Brook Hotels No. 1 Limited |
|
Year ended 25 March 2024
Fair review of the business
The director presents the strategic report for the year ended 25 March 2024. The performance of the company has been satisfactory during the year. The director therefore is pleased with the core trading results for the year, both in respect of turnover and profitability. Indeed, the income derived from hotel accommodation and ancillary services have increased from £3.1M to £3.5M. The profit before taxation increased from £235k to £373k in the year. Maximising room occupancy continues to be the focus for the director, and this has resulted in a higher turnover for the company. The director continues to apply cost control procedures implemented in previous years. This has continued to strengthen the operating performance of the company. PRINCIPAL ACTIVITY The principal activity of the company during the year was the operation of several hotels. FINANCIAL KEY PERFORMANCE INDICATORS (KPI) The director considers the following KPIs in evaluating the performance of the business: - Revenue per available room - Occupancy levels - Average room rates; and - EBITDA All the above improved during the year and continue to improve. POST BALANCE SHEET EVENTS Subsequent to the yearend, the company disposed of one of its hotels. The bulk of the proceed was used to reduce the bank loans. In addition, the company underwent refinancing post yearend to amend the existing loan agreement.
Principal risks and uncertainties
Principal risks The director has considered the exposure of the company to risks. The principal risks are interest rate risk, credit risk and liquidity risk. The company is funded through its retained earnings and borrowings. The director regularly monitors cash flow projections of the company in order to ensure that it has sufficient available funds for its continuing operations. The company currently has borrowings that are at a floating rate of interest that have been used to finance the business and, including integral fixed assets. The risk is managed by monitoring key ratios Such as interest cover, as well as cash flow. The company does not use derivative financial instruments to manage this risk and, as such, no hedge accounting is applied. The company is not exposed to any significant direct currency risk since there are no foreign subsidiaries or balances held in foreign locations, and all invoicing is in sterling. The company has policies in place such that credit checks are made on all potential customers as part of setting new account procedures. Key suppliers are also subject to credit checks in order to mitigate supply chain failure. As it is well documented, the hospitality industry operates in a cyclic marketplace where there is a fierce competition both offline and online. The company has extensive internal controls which allows a flexible financial control and revenue management to assist monitor costs and achieve better returns in a volatile market. Despite well managed occupancy and optimisation of room rates, the profitability can naturally be adversely affected by various external events which may reduce the level of travel and increase operating costs. Such events can include global pandemics, political unrest, acts of terrorism. Insurance has been taken out to mitigate eventual loss form such events. Future developments The director will continue to focus on maximising hotel occupancy and closely managing operating costs. It is expected that growth will be achieved in both turnover and profitability for 2025. Going forward, the company is expected to have more competition and more staffing costs. However, the director believes that the company is well established with more investment in people and technology allowing it to continue successfully in the future.
This report was approved by the board of directors on 14 March 2025 and signed on behalf of the board by:
Registered office: |
Brook Marston Farm Hotel |
Dog Lane |
Bodymoor Heath |
Sutton Coldfield |
England |
B76 9JD |
|
Brook Hotels No. 1 Limited |
|
Year ended 25 March 2024
The director presents his report and the Annual Report and Financial Statements of the company for the year ended
25 March 2024
.
Director
The director who served the company during the year was as follows:
Results and dividends
No ordinary dividends were paid. The director does not recommend the payment of a full dividend. During the year profit after taxation, amounted to £325,114.
Director's responsibilities statement
The director is responsible for preparing the strategic report, director's report and the Annual Report and Financial Statements in accordance with applicable law and regulations. Company law requires the director to prepare Annual Report and Financial Statements for each financial year. Under that law the director has elected to prepare the Annual Report and 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 Annual Report and Financial Statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and the profit or loss of the company for that period. In preparing these Annual Report and Financial Statements, the director is required to: - select suitable accounting policies and then apply them consistently; - make judgments and accounting estimates that are reasonable and prudent; - prepare the Annual Report and Financial Statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. 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 Annual Report and 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.
Auditor
Each of the persons who is a director at the date of approval of this report confirms that: - so far as they are aware, there is no relevant audit information (as defined by section 418(3) of the Companies Act 2006) of which the company's auditor are unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
The auditors, Chowdhary & Co, were re-appointed under section 487/(2) of the Companies Act 2006.
This report was approved by the board of directors on
14 March 2025
and signed on behalf of the board by:
Registered office: |
Brook Marston Farm Hotel |
Dog Lane |
Bodymoor Heath |
Sutton Coldfield |
England |
B76 9JD |
|
Brook Hotels No. 1 Limited |
|
Independent Auditor's Report to the Members of
Brook Hotels No. 1 Limited |
|
Year ended 25 March 2024
Opinion
We have audited the Annual Report and Financial Statements of Brook Hotels No. 1 Limited (the 'company') for the year ended 25 March 2024 which comprise the statement of income and retained earnings, statement of financial position and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the Annual Report and Financial Statements: - give a true and fair view of the state of the company's affairs as at 25 March 2024 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - have been prepared in accordance with the requirements of the Companies Act 2006.
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 annual report and 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 Annual Report and 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 related to going concern
We draw your attention to Note (20) in the financial statements, which indicates that the company has a cross guarantee amounting to £4,800,000 during the year ended 25 March 2024.
As stated in Note (20), these events indicate that there is a material uncertainty exists that may cast significant doubt on the company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.
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. 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. In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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 the audit:
-
the information given in the strategic report and the director's report for the financial year for which the Annual Report and Financial Statements are prepared is consistent with the Annual Report and Financial Statements; and
-
the strategic report and the director's report have been prepared in accordance with applicable legal requirements.
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: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of directors' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit
Responsibilities of the director
As explained more fully in the director's responsibilities statement, the director is responsible for the preparation of the Annual Report and Financial Statements and for being satisfied that they give a true and fair view, and for such internal control as thedirector determines is necessary to enable the preparation of Annual Report and Financial Statements that are free from material misstatement, whether due to fraud or error. In preparing the Annual Report and 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 annual report and 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. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: Obtaining an understanding of the legal and regulatory framework applicable to the entity and how the entity is complying with that framework. Assessing the susceptibility of the entity's financial statements to material misstatement, including how fraud might occur. Discussions with management of any unknown or suspected fraud or instances of non-compliance with laws and irregularities. Identifying and testing any unusual journal entries, specifically those impacting revenue or costs classification. The engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. Understanding and evaluating the entity's current activities, and effectiveness of management controls to prevent and detect irregularities. A further description of our responsibilities is located on the Financial Reporting Council's website at: https:www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report. Given the inherent limitations of an audit, there is a risk that we will not detect all irregularities including those leading to a material misstatement in the financial statements. This risk increases not only by the requirement to law compliance, but also with irregularities occurring because of fraud as this involves intentional concealment, forgery, collusion, omission or misrepresentation.
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.
Bhupindar Chowdhary FCA |
(Senior Statutory Auditor) |
|
For and on behalf of |
Chowdhary & Co |
Chartered accountants & statutory auditor |
46 Syon Lane |
Isleworth |
Middlesex |
TW7 5NQ |
|
Brook Hotels No. 1 Limited |
|
Statement of Income and Retained Earnings |
|
Year ended 25 March 2024
|
2024 |
2023 |
|
Continuing operations |
Discont'd operations |
Total |
Continuing operations |
Discont'd operations |
Total |
Note |
£ |
£ |
£ |
£ |
£ |
£ |
Turnover |
4 |
3,515,537 |
– |
3,515,537 |
2,898,441 |
246,110 |
3,144,551 |
|
|
|
|
|
|
|
|
Cost of sales |
(
1,770,123) |
– |
(
1,770,123) |
(
1,877,714) |
(
28,421) |
(
1,906,135) |
|
------------ |
---- |
------------ |
------------ |
--------- |
------------ |
Gross profit |
1,745,414 |
– |
1,745,414 |
1,020,727 |
217,689 |
1,238,416 |
|
|
|
|
|
|
|
Administrative expenses |
(
1,111,365) |
– |
(
1,111,365) |
(
842,545) |
(
176,819) |
(
1,019,364) |
|
|
------------ |
---- |
------------ |
------------ |
--------- |
------------ |
Operating profit |
5 |
634,049 |
– |
634,049 |
178,182 |
40,870 |
219,052 |
|
|
|
|
|
|
|
|
Exceptional items |
8 |
– |
– |
– |
– |
199,791 |
199,791 |
Interest payable and similar expenses |
9 |
(
260,579) |
– |
(
260,579) |
(
183,528) |
(
64) |
(
183,592) |
|
------------ |
---- |
------------ |
------------ |
--------- |
------------ |
Profit before taxation |
373,470 |
– |
373,470 |
(
5,346) |
240,597 |
235,251 |
|
|
|
|
|
|
|
|
Tax on profit |
10 |
(
48,356) |
– |
(
48,356) |
(
41,945) |
– |
(
41,945) |
|
--------- |
---- |
--------- |
-------- |
--------- |
--------- |
Profit for the financial year and total comprehensive income |
325,114 |
– |
325,114 |
(
47,291) |
240,597 |
193,306 |
|
--------- |
---- |
--------- |
-------- |
--------- |
--------- |
|
|
|
|
|
|
|
|
Retained earnings at the start of the year |
|
|
343,560 |
|
|
150,254 |
|
|
|
--------- |
|
|
--------- |
Retained earnings at the end of the year |
|
|
668,674 |
|
|
343,560 |
|
|
|
--------- |
|
|
--------- |
|
|
|
|
|
|
|
Brook Hotels No. 1 Limited |
|
Statement of Financial Position |
|
25 March 2024
Fixed assets
Tangible assets |
11 |
8,522,966 |
8,572,507 |
|
|
|
|
Current assets
Stocks |
12 |
17,703 |
49,703 |
Debtors |
13 |
1,840,721 |
98,613 |
Cash at bank and in hand |
18,854 |
4,676 |
|
------------ |
--------- |
|
1,877,278 |
152,992 |
|
|
|
|
Creditors: amounts falling due within one year |
14 |
(
1,859,730) |
(
1,949,415) |
|
------------ |
------------ |
Net current assets/(liabilities) |
17,548 |
(
1,796,423) |
|
------------ |
------------ |
Total assets less current liabilities |
8,540,514 |
6,776,084 |
|
|
|
|
Creditors: amounts falling due after more than one year |
15 |
(
7,575,775) |
(
6,140,242) |
|
|
|
|
Provisions |
16 |
(
296,064) |
(
292,281) |
|
------------ |
------------ |
Net assets |
668,675 |
343,561 |
|
------------ |
------------ |
|
|
|
|
Capital and reserves
Called up share capital |
19 |
1 |
1 |
Profit and loss account |
668,674 |
343,560 |
|
--------- |
--------- |
Shareholders funds |
668,675 |
343,561 |
|
--------- |
--------- |
|
|
|
|
These Annual Report and Financial Statements were approved by the
board of directors
and authorised for issue on
14 March 2025
, and are signed on behalf of the board by:
Company registration number:
06562406
Brook Hotels No. 1 Limited |
|
Notes to the Annual Report and Financial Statements |
|
Year ended 25 March 2024
1.
General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Brook Marston Farm Hotel, Dog Lane, Bodymoor Heath, Sutton Coldfield, B76 9JD, England.
2.
Statement of compliance
These Annual Report and Financial Statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3.
Accounting policies
Basis of preparation
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies. The following principal accounting policies have been applied: Financial reporting standard 102-reduced disclosure exemption The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland": " The requirements of Section 7 Statements of Cash flows; The exemption is available as Brook Hotels No 1 Limited is a subsidiary within a group that prepares publicly available consolidated accounts that give a true and fair view. See note 22.
Going concern
The financial statements have been prepared on a going concern basis. In doing so, the director has prepared budget projections for the foreseeable future, considering the uncertain trading environment. Furthermore, the company is party to a multi-lateral cross guarantee between itself, Brook Hotels Group Ltd and fellow subsidiary Kingston Lodge Hotel Ltd. As such, there is a contingent liability to the extent of the indebtedness to a third-party creditor. As at the year end, the contingent liability was £4,800,000. In addition, the company is reliant on its shareholders as well as other related parties for funds to support its working capital. These parties have pledged continued support for the company for at least 12 months from the date of the approval of these financial statements and in particular will not seek repayment of the amounts currently made available. This should enable the company to continue in operational existence for the foreseeable future by meeting its liabilities as they fall due for payments. As with any company placing reliance on other related parties for financial support, the director acknowledges that there are no certainty that this support will continue although at the date of approval of these financial statements, he has no reason to believe that they will not do so. On this basis, the director believes that it remains appropriate to prepare the financial statements on a going concern basis.
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.
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.
Judgements and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. 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.
Revenue recognition
Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. Turnover is accrued throughout the guests' stay and room charges are recognised in the statement of Income and Retained earnings prior to checking out of the hotel. All other income generated from restaurants that is not charged to the guests' room is recognised at the point of sale.
Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
|
Land and buildings freehold |
- |
|
|
Land and buildings leasehold |
- |
Over the life of the lease |
|
Fixtures, fittings and equipment |
- |
5% straight line |
|
Motor vehicles |
- |
25% straight line |
|
|
|
|
Impairment of fixed assets
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.
Stocks
Stocks consist of food and drink stated at the lower of cost and estimated selling price less cots to complete and sell. At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit and loss.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
Financial instruments
A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.
4.
Turnover
Turnover arises from:
|
2024 |
2023 |
|
£ |
£ |
Accommodation, food and beverage |
3,515,537 |
3,144,551 |
|
------------ |
------------ |
|
|
|
The whole turnover is attributable to hotel ownership and management.
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
5.
Operating profit
Operating profit or loss is stated after charging:
|
2024 |
2023 |
|
£ |
£ |
Depreciation of tangible assets |
133,152 |
124,573 |
Impairment of trade debtors |
7,344 |
2,663 |
|
--------- |
--------- |
|
|
|
6.
Auditor's remuneration
|
2024 |
2023 |
|
£ |
£ |
Fees payable for the audit of the annual report and financial statements |
16,000 |
16,000 |
|
-------- |
-------- |
|
|
|
The company has taken advantage of the exemption not to disclose amount paid for non audit services as these are disclosed in the group accounts of the parent company.
7.
Staff costs
The average number of persons employed by the company during the year, including the director, amounted to:
|
2024 |
2023 |
|
No. |
No. |
Administrative staff |
4 |
6 |
Hospitality staff |
65 |
59 |
|
---- |
---- |
|
69 |
65 |
|
---- |
---- |
|
|
|
The aggregate payroll costs incurred during the year, relating to the above, were:
|
2024 |
2023 |
|
£ |
£ |
Wages and salaries |
1,143,803 |
1,259,573 |
Other pension costs |
10,951 |
12,755 |
|
------------ |
------------ |
|
1,154,754 |
1,272,328 |
|
------------ |
------------ |
|
|
|
Directors emoluments totalled £113,865 (2023 : £113,208). The director was the only key management personnel. During the year retirement benefits of £1,321 were accruing to the director in respect of money purchase pension schemes.
8.
Exceptional items
|
2024 |
2023 |
|
£ |
£ |
Gain/(loss) on disposal of other fixed asset |
– |
199,791 |
|
---- |
--------- |
|
|
|
In the year ended 25 March 2023, the company disposed of its entire operation relating to one of its hotels. The profit on disposal of these assets has been recognised as an exceptional item.
9.
Interest payable and similar expenses
|
2024 |
2023 |
|
£ |
£ |
Interest on banks loans and overdrafts |
260,579 |
183,592 |
|
--------- |
--------- |
|
|
|
10.
Tax on profit
Major components of tax expense
Current tax:
UK current tax expense |
44,573 |
– |
Deferred tax |
3,783 |
41,945 |
|
-------- |
-------- |
Total current tax |
48,356 |
41,945 |
|
-------- |
-------- |
|
-------- |
-------- |
Tax on profit |
48,356 |
41,945 |
|
-------- |
-------- |
|
|
|
Reconciliation of tax expense
The tax assessed on the profit on ordinary activities for the year is lower than (2023: lower than) the
standard rate of corporation tax in the UK
of
25
% (2023:
19
%).
|
2024 |
2023 |
|
£ |
£ |
Profit on ordinary activities before taxation |
373,470 |
235,251 |
|
--------- |
--------- |
Profit on ordinary activities by rate of tax |
93,368 |
44,698 |
Effect of capital allowances and depreciation |
8,653 |
(
44,698) |
Effect of different UK tax rates on some earnings |
(180) |
– |
Utilisation of tax losses |
(
21,754) |
– |
Deferred tax provision |
|
|
Marginal relief |
|
– |
Group loss relief |
|
– |
|
--------- |
--------- |
Tax on profit |
48,356 |
41,945 |
|
--------- |
--------- |
|
|
|
There are no factors which may affect future tax charges.
11.
Tangible assets
|
Land and buildings Freehold |
Land and buildings Leasehold |
Fixtures, fittings & equipment |
Motor vehicles |
Total |
|
£ |
£ |
£ |
£ |
£ |
Cost |
|
|
|
|
|
At 26 March 2023 |
10,347,810 |
468,662 |
3,860,779 |
132,658 |
14,809,909 |
Additions |
– |
– |
83,611 |
– |
83,611 |
Disposals relating to discontinued operations |
(
611,535) |
– |
– |
– |
(
611,535) |
|
------------- |
--------- |
------------ |
--------- |
------------- |
At 25 March 2024 |
9,736,275 |
468,662 |
3,944,390 |
132,658 |
14,281,985 |
|
------------- |
--------- |
------------ |
--------- |
------------- |
Depreciation |
|
|
|
|
|
At 26 March 2023 |
3,475,964 |
87,827 |
2,540,953 |
132,658 |
6,237,402 |
Charge for the year |
– |
8,749 |
124,403 |
– |
133,152 |
Disposals relating to discontinued operations |
(
611,535) |
– |
– |
– |
(
611,535) |
|
------------- |
--------- |
------------ |
--------- |
------------- |
At 25 March 2024 |
2,864,429 |
96,576 |
2,665,356 |
132,658 |
5,759,019 |
|
------------- |
--------- |
------------ |
--------- |
------------- |
Carrying amount |
|
|
|
|
|
At 25 March 2024 |
6,871,846 |
372,086 |
1,279,034 |
– |
8,522,966 |
|
------------- |
--------- |
------------ |
--------- |
------------- |
At 25 March 2023 |
6,871,846 |
380,835 |
1,319,826 |
– |
8,572,507 |
|
------------- |
--------- |
------------ |
--------- |
------------- |
|
|
|
|
|
|
Included in land and building is freehold land of £3,013,200 which is not depreciated. Nil depreciation on buildings due to residual value. All of the assets of the company are pledged as security for the bank borrowings
12.
Stocks
|
2024 |
2023 |
|
£ |
£ |
Raw materials and consumables |
17,703 |
49,703 |
|
-------- |
-------- |
|
|
|
13.
Debtors
|
2024 |
2023 |
|
£ |
£ |
Trade debtors |
116,183 |
37,974 |
Amounts owed by group undertakings |
1,653,727 |
– |
Prepayments and accrued income |
59,973 |
60,639 |
Other debtors |
10,838 |
– |
|
------------ |
-------- |
|
1,840,721 |
98,613 |
|
------------ |
-------- |
|
|
|
14.
Creditors:
amounts falling due within one year
|
2024 |
2023 |
|
£ |
£ |
Bank loans and overdrafts |
676,941 |
723,111 |
Trade creditors |
281,344 |
250,170 |
Accruals and deferred income |
205,868 |
252,552 |
Corporation tax |
44,573 |
– |
Social security and other taxes |
164,094 |
194,573 |
Other creditors |
486,910 |
529,009 |
|
------------ |
------------ |
|
1,859,730 |
1,949,415 |
|
------------ |
------------ |
|
|
|
15.
Creditors:
amounts falling due after more than one year
|
2024 |
2023 |
|
£ |
£ |
Bank loans and overdrafts |
1,310,011 |
1,389,639 |
Amounts owed to group undertakings |
6,265,764 |
4,750,603 |
|
------------ |
------------ |
|
7,575,775 |
6,140,242 |
|
------------ |
------------ |
|
|
|
Bank loans and overdrafts are secured over the freehold and leasehold land and buildings to which they relate.
16.
Provisions
|
Deferred tax (note 17) |
|
£ |
At 26 March 2023 |
292,281 |
Additions |
3,783 |
|
--------- |
At 25 March 2024 |
296,064 |
|
--------- |
|
|
17.
Deferred tax
The deferred tax included in the statement of financial position is as follows:
|
2024 |
2023 |
|
£ |
£ |
Included in provisions (note 16) |
296,064 |
292,281 |
|
--------- |
--------- |
|
|
|
The deferred tax account consists of the tax effect of timing differences in respect of:
|
2024 |
2023 |
|
£ |
£ |
Accelerated capital allowances |
296,064 |
292,281 |
|
--------- |
--------- |
|
|
|
18.
Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £
10,951
(2023: £
12,755
).
The Company operates a defined contributions pension scheme. These assets are held separately from those of the company in an independently administered fund. Contributions totalling £1,452 (2023: £2,733) were payable to the funds at the balance sheet date and are included in creditors.
19.
Called up share capital
Issued, called up and fully paid
|
2024 |
2023 |
|
No. |
£ |
No. |
£ |
Ordinary shares of £ 1 each |
1 |
1 |
1 |
1 |
|
---- |
---- |
---- |
---- |
|
|
|
|
|
20.
Financial commitments, guarantees and contingent liabilities
There is a cross guarantee in place in respect of amounts owed to group company Kingston Lodge Hotel Limited arising from a litigation settlement. Within the financial statements of Kingston Lodge Hotels Limited a liability amounting to £4,800,000 has been recognised as a creditor due within one year, which was due for payment by June 2024.
Following the Director's meetings with the creditor, the director is of the opinion that the final amount payable is not expected to exceed £4,050,000.
A fixed charge on the Company's freehold and leasehold land and building, and a floating charge over all the assets of the company are pledged as security for bank loans.
21.
Related party transactions
The company has taken advantage of section 33.1A of FRS102 in not disclosing transactions between wholly owned members of a group. Included under other creditors is an amount of £391,832 (2023: £403,223) due to the director. No interest is charged and there are no fixed terms of repayment. The director has no intention to request these funds until the company's finances are in a position to enable the repayment to be done without impacting on the business ability to continue trading in the foreseeable future.
22.
Immediate and ultimate parent undertaking
As at the year end, the Company was a subsidiary undertaking of Brook Hotels Group Limited, a company incorporated in England and Wales. The smallest and largest group in which the results of the company are consolidated is that headed by Brook Hotels Group Limited, the consolidated accounts of which may be obtained from: Marston Farm Hotel Dog Lane, Bodymoor Heath, Sutton Coldfield, England, B76 9JD.
23.
Ultimate controlling party
The company's ultimate parent company is Brook Hotels Group Limited, a company registered in England and Wales. Brook Hotels Group Limited is controlled by U Ummat by virtue of his majority shareholding.
24.
Post balance sheet event
Subsequent to the yearend, the company disposed of one of its hotels. The bulk of the proceed was used to reduce the bank loans.
In addition, the company underwent refinancing post yearend to amend the existing loan agreement.