REGISTERED NUMBER: 12495150 (England and Wales) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 |
FOR |
FLAT ROCK HOLDINGS LIMITED |
REGISTERED NUMBER: 12495150 (England and Wales) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2024 |
FOR |
FLAT ROCK HOLDINGS LIMITED |
FLAT ROCK HOLDINGS LIMITED (REGISTERED NUMBER: 12495150) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2024 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 4 |
Report of the Independent Auditors | 6 |
Consolidated Income Statement | 10 |
Consolidated Other Comprehensive Income | 11 |
Consolidated Balance Sheet | 12 |
Company Balance Sheet | 13 |
Consolidated Statement of Changes in Equity | 14 |
Company Statement of Changes in Equity | 15 |
Consolidated Cash Flow Statement | 16 |
Notes to the Consolidated Cash Flow Statement | 17 |
Notes to the Consolidated Financial Statements | 19 |
FLAT ROCK HOLDINGS LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 30 JUNE 2024 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Llys Deri |
Parc Pensarn |
Carmarthen |
Carmarthenshire |
SA31 2NF |
FLAT ROCK HOLDINGS LIMITED (REGISTERED NUMBER: 12495150) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 30 JUNE 2024 |
The directors present their strategic report of the company and the group for the year ended 30 June 2024. |
REVIEW OF BUSINESS |
The hospitality sector trade remains difficult with many finding cashflow and staffing issues extremely challenging. The Cliff Hotel and Spa and The Harbourmaster Hotel continue to manage these challenges, as well as many others, very well and thus this has resulted in satisfactory trading activity from The Cliff's 76 rooms and holiday lets and the Harbourmaster's 11 rooms and 2 holiday let cottages with the ancillary bars, restaurants, function suite and spa remaining popular with guests and visitors. |
To this end, visitor numbers have grown by 3.2% this year compared to last in The Cliff with an uplift in food and beverage sales income of 12%. Accommodation sales income increased by 2.2% with an occupancy rate of 84.1% achieved on room rates ranging from £99 to £380 per night. The Harbourmaster has however had the added challenge of grandscale flood defence works being carried out to the harbour immediately in front of the site which has affected footfall and visitor numbers. It has however achieved a respectable 72% occupancy compared to 76% last year on accommodation. |
Capital expenditure and development plans have been minimised while ongoing maintenance and renewal of work done to date is carried out. The Harbourmaster carried out improvements to its disabled access to ensure the establishment could be enjoyed by all. All works done have been carried out by a group company Jonsel Construction Ltd, which has invoiced a market rate mark up of 20% on cost. |
The group of companies continue to value supplier relationships with bulk buying economies of scale achieved and minimal changes of main suppliers needed to support the trade. Prices are continually monitored and retro payment schemes are agreed should there be no room for movement in cost prices. |
Staffing challenges continue across the whole sector. The pressures do not seem to have improved materially since pre COVID with a general shortage in proactive and productive staff willing to work. There does not seem to be any end in sight with this issue as the payroll costs continually increase and have a material impact on ongoing profitability. |
FLAT ROCK HOLDINGS LIMITED (REGISTERED NUMBER: 12495150) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 30 JUNE 2024 |
PRINCIPAL RISKS AND UNCERTAINTIES |
The main uncertainty facing all companies is the ongoing political climate having an adverse effect on the security of people's disposable income and the economy in general. Continual tax changes, global concerns over war, interest rate changes and inflation together with a number of other factors are having an impact on people's ability to plan ahead and priorotise personal goals and this will in turn affect the economy as a whole. As the hospitality sector relies in the main on people's remaining disposable income after costs of living are settled, it is of great concern that a possible downturn in economy will adversely affect the business. |
The company's activities expose it to a number of financial risks including price risk, credit risk, cash flow risk and liquidity risk. The company's principal financial instruments compromise bank balances, stocking loans, trade creditors and loans to the company. The company does not use derivative financial instruments for speculative purposes. |
CASH FLOW RISK |
Cash flow risk is managed by monitoring the overdraft facility and making effective use of stocking loan facilities. |
CREDIT RISK |
Trade debtors are managed in respect of credit and cash flow risk by the company policy concerning credit offered. |
LIQUIDITY RISK |
The company manages the liquidity risk by monitoring working capital and ensuring that there are sufficient funds to meet payments. In addition there are hire purchase loans secured on the relevant assets which carry varying rates of interest and loans from the directors which are interest free and have no fixed date for repayment. |
PRICE RISK |
Due to the nature of the financial instruments held by the company there is no exposure to price risk. |
ON BEHALF OF THE BOARD: |
FLAT ROCK HOLDINGS LIMITED (REGISTERED NUMBER: 12495150) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 JUNE 2024 |
The directors present their report with the financial statements of the company and the group for the year ended 30 June 2024. |
DIVIDENDS |
Interim dividends per share were paid as follows: |
Ordinary £1 A share |
£32,500 - 1 October 2023 |
£17,500 - 31 December 2023 |
£32,500 - 9 April 2024 |
Ordinary £1 B share |
£32,500 - 1 October 2023 |
£17,500 - 31 December 2023 |
£32,500 - 9 April 2024 |
The directors recommend that no final dividend be paid on these shares. |
No interim nor final dividend was paid on the £1 ordinary shares. |
The total distribution of dividends for the year ended 30 June 2024 was £165,000. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 July 2023 to the date of this report. |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
FLAT ROCK HOLDINGS LIMITED (REGISTERED NUMBER: 12495150) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 JUNE 2024 |
AUDITORS |
The auditors, LHP Auditors, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
FLAT ROCK HOLDINGS LIMITED |
Opinion |
We have audited the financial statements of Flat Rock Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2024 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, 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 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: |
- | give a true and fair view of the state of the group's and of the parent company affairs as at 30 June 2024 and of the group's profit for the year then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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. |
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. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
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 directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
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 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 the audit: |
- | the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
FLAT ROCK HOLDINGS LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the parent company 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 directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page four, 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 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 group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
FLAT ROCK HOLDINGS LIMITED |
Auditors' 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 a Report of the Auditors 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: |
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council's website, to detect material misstatements in respect of irregularities, including fraud. |
We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework. Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud. |
In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included: |
- Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud; |
- Reviewing minutes of meetings of those charged with governance; |
- Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the entity through enquiry and inspection; |
- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations; |
- Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course course of business and reviewing accounting estimates for indicators of potential bias. |
Because of 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 or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
FLAT ROCK HOLDINGS LIMITED |
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 a Report of the Auditors 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. |
for and on behalf of |
Llys Deri |
Parc Pensarn |
Carmarthen |
Carmarthenshire |
SA31 2NF |
FLAT ROCK HOLDINGS LIMITED (REGISTERED NUMBER: 12495150) |
CONSOLIDATED INCOME STATEMENT |
FOR THE YEAR ENDED 30 JUNE 2024 |
30.6.24 | 30.6.23 |
Notes | £ | £ |
TURNOVER | 3 | 9,062,745 | 8,061,457 |
Cost of sales | 2,017,024 | 1,575,129 |
GROSS PROFIT | 7,045,721 | 6,486,328 |
Administrative expenses | 5,428,101 | 4,887,680 |
1,617,620 | 1,598,648 |
Other operating income | 4 | 61,626 | 55,732 |
OPERATING PROFIT | 6 | 1,679,246 | 1,654,380 |
Interest payable and similar expenses | 7 | 271,366 | 210,420 |
PROFIT BEFORE TAXATION | 1,407,880 | 1,443,960 |
Tax on profit | 8 | 153,729 | 287,071 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 1,254,151 | 1,156,889 |
FLAT ROCK HOLDINGS LIMITED (REGISTERED NUMBER: 12495150) |
CONSOLIDATED OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 30 JUNE 2024 |
30.6.24 | 30.6.23 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 1,254,151 | 1,156,889 |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
1,254,151 |
1,156,889 |
Total comprehensive income attributable to: |
Owners of the parent | 1,254,151 | 1,156,889 |
FLAT ROCK HOLDINGS LIMITED (REGISTERED NUMBER: 12495150) |
CONSOLIDATED BALANCE SHEET |
30 JUNE 2024 |
30.6.24 | 30.6.23 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 11 | - | 10,000 |
Tangible assets | 12 | 8,872,145 | 8,991,380 |
Investments | 13 | - | - |
8,872,145 | 9,001,380 |
CURRENT ASSETS |
Stocks | 14 | 193,582 | 115,237 |
Debtors | 15 | 4,396,775 | 3,347,782 |
Cash in hand | 8,963 | (44,865 | ) |
4,599,320 | 3,418,154 |
CREDITORS |
Amounts falling due within one year | 16 | 3,776,157 | 3,196,822 |
NET CURRENT ASSETS | 823,163 | 221,332 |
TOTAL ASSETS LESS CURRENT LIABILITIES |
9,695,308 |
9,222,712 |
CREDITORS |
Amounts falling due after more than one year |
17 |
(3,053,736 |
) |
(3,453,954 |
) |
PROVISIONS FOR LIABILITIES | 20 | (128,501 | ) | (342,362 | ) |
ACCRUALS AND DEFERRED INCOME | 21 | (15,724 | ) | (18,200 | ) |
NET ASSETS | 6,497,347 | 5,408,196 |
CAPITAL AND RESERVES |
Called up share capital | 22 | 102 | 102 |
Retained earnings | 23 | 6,497,245 | 5,408,094 |
SHAREHOLDERS' FUNDS | 6,497,347 | 5,408,196 |
The financial statements were approved by the Board of Directors and authorised for issue on 24 February 2025 and were signed on its behalf by: |
L W Jones - Director |
FLAT ROCK HOLDINGS LIMITED (REGISTERED NUMBER: 12495150) |
COMPANY BALANCE SHEET |
30 JUNE 2024 |
30.6.24 | 30.6.23 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 11 |
Tangible assets | 12 |
Investments | 13 |
CURRENT ASSETS |
Debtors | 15 |
CREDITORS |
Amounts falling due within one year | 16 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CAPITAL AND RESERVES |
Called up share capital | 22 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 165,000 | 50,000 |
The financial statements were approved by the Board of Directors and authorised for issue on |
FLAT ROCK HOLDINGS LIMITED (REGISTERED NUMBER: 12495150) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30 JUNE 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 July 2022 | 102 | 4,301,205 | 4,301,307 |
Changes in equity |
Dividends | - | (50,000 | ) | (50,000 | ) |
Total comprehensive income | - | 1,156,889 | 1,156,889 |
Balance at 30 June 2023 | 102 | 5,408,094 | 5,408,196 |
Changes in equity |
Dividends | - | (165,000 | ) | (165,000 | ) |
Total comprehensive income | - | 1,254,151 | 1,254,151 |
Balance at 30 June 2024 | 102 | 6,497,245 | 6,497,347 |
FLAT ROCK HOLDINGS LIMITED (REGISTERED NUMBER: 12495150) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30 JUNE 2024 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 July 2022 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 30 June 2023 |
Changes in equity |
Dividends | - | ( |
) | ( |
) |
Total comprehensive income | - |
Balance at 30 June 2024 |
FLAT ROCK HOLDINGS LIMITED (REGISTERED NUMBER: 12495150) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 JUNE 2024 |
30.6.24 | 30.6.23 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 1,019,020 | 867,906 |
Interest paid | (271,366 | ) | (210,420 | ) |
Tax paid | (411,817 | ) | (181,131 | ) |
Net cash from operating activities | 335,837 | 476,355 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (146,066 | ) | (1,134,569 | ) |
Net cash from investing activities | (146,066 | ) | (1,134,569 | ) |
Cash flows from financing activities |
New loans in year | 2,691,760 | 650,000 |
Loan repayments in year | (2,780,163 | ) | (369,063 | ) |
Amount introduced by directors | 245,006 | 270,000 |
Amount withdrawn by directors | (256,001 | ) | (194,470 | ) |
Equity dividends paid | (165,000 | ) | (50,000 | ) |
Net cash from financing activities | (264,398 | ) | 306,467 |
Decrease in cash and cash equivalents | (74,627 | ) | (351,747 | ) |
Cash and cash equivalents at beginning of year |
2 |
(108,214 |
) |
243,533 |
Cash and cash equivalents at end of year | 2 | (182,841 | ) | (108,214 | ) |
FLAT ROCK HOLDINGS LIMITED (REGISTERED NUMBER: 12495150) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 JUNE 2024 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
30.6.24 | 30.6.23 |
£ | £ |
Profit before taxation | 1,407,880 | 1,443,960 |
Depreciation charges | 275,301 | 316,447 |
Loss on disposal of fixed assets | - | 2,630 |
Government grants | (2,475 | ) | (2,912 | ) |
Finance costs | 271,366 | 210,420 |
1,952,072 | 1,970,545 |
Increase in stocks | (78,345 | ) | (64,968 | ) |
Increase in trade and other debtors | (1,048,993 | ) | (1,220,275 | ) |
Increase in trade and other creditors | 194,286 | 182,604 |
Cash generated from operations | 1,019,020 | 867,906 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 30 June 2024 |
30.6.24 | 1.7.23 |
£ | £ |
Cash and cash equivalents | 8,963 | (44,865 | ) |
Bank overdrafts | (191,804 | ) | (63,349 | ) |
(182,841 | ) | (108,214 | ) |
Year ended 30 June 2023 |
30.6.23 | 1.7.22 |
£ | £ |
Cash and cash equivalents | (44,865 | ) | 243,533 |
Bank overdrafts | (63,349 | ) | - |
(108,214 | ) | 243,533 |
FLAT ROCK HOLDINGS LIMITED (REGISTERED NUMBER: 12495150) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 JUNE 2024 |
3. | ANALYSIS OF CHANGES IN NET DEBT |
At 1.7.23 | Cash flow | At 30.6.24 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | (44,865 | ) | 53,828 | 8,963 |
Bank overdrafts | (63,349 | ) | (128,455 | ) | (191,804 | ) |
(108,214 | ) | (74,627 | ) | (182,841 | ) |
Debt |
Debts falling due within 1 year | (367,344 | ) | (311,817 | ) | (679,161 | ) |
Debts falling due after 1 year | (3,453,954 | ) | 400,218 | (3,053,736 | ) |
(3,821,298 | ) | 88,401 | (3,732,897 | ) |
Total | (3,929,512 | ) | 13,774 | (3,915,738 | ) |
FLAT ROCK HOLDINGS LIMITED (REGISTERED NUMBER: 12495150) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2024 |
1. | STATUTORY INFORMATION |
Flat Rock Holdings Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
Basis of consolidation |
The group consolidated financial statements include the financial statements of the company and all of its subsidiary undertakings made up to 30 June 2024. |
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. |
Where a subsidiary has different accounting policies to the group, adjustments are made to those subsidiary financial statements to apply the group's accounting policies when preparing the consolidated financial statements. |
Any subsidiary undertaking or associates sold or acquired during the year are included up to, or from, the dates of change of control or change of significant influence respectively. |
All intra-group transactions, balances, income and expenses are eliminated on consolidation. Adjustments are made to eliminate the profit or loss arising on transactions with associates to the extent of the group's interest in the entity. |
Turnover |
Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. |
Goodwill |
Intangible assets |
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses. |
Tangible fixed assets |
Freehold property | - |
Plant and machinery | - |
Fixtures and fittings | - |
Motor vehicles | - |
Tangible assets are held at cost less depreciation, amortisation and impairment. |
FLAT ROCK HOLDINGS LIMITED (REGISTERED NUMBER: 12495150) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
2. | ACCOUNTING POLICIES - continued |
Government grants |
Government grants received on capital expenditure are initially recognised within deferred income on the Balance Sheet and are subsequently recognised in the profit or loss on a systematic basis over the useful life of the related capital expenditure. |
Grants for revenue expenditure are presented as part of the profit or loss in the periods in which the expenditure is recognised. |
Stocks |
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Costs are based on the method most appropriate to the type of item but usually on a First In First Out basis (FIFO). |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. |
Current or deferred taxation assets and liabilities are not discounted. |
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. |
Deferred tax |
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. |
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. |
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
Hire purchase and leasing commitments |
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
FLAT ROCK HOLDINGS LIMITED (REGISTERED NUMBER: 12495150) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
3. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by class of business is given below: |
30.6.24 | 30.6.23 |
£ | £ |
Accommodation | 2,863,320 | 2,816,095 |
Food and beverage | 4,864,970 | 4,534,557 |
Property development | 489,295 | - |
Spa sales | 513,457 | 465,022 |
Laundry services | 288,361 | 216,793 |
Other sales | 43,342 | 28,990 |
9,062,745 | 8,061,457 |
4. | OTHER OPERATING INCOME |
30.6.24 | 30.6.23 |
£ | £ |
Sundry receipts | 59,151 | 52,820 |
Government grants | 2,475 | 2,912 |
61,626 | 55,732 |
Government grants, as included in the above note, include capital expenditure grant release in relation to a project developing the bar and restaurant area in 2014. |
5. | EMPLOYEES AND DIRECTORS |
30.6.24 | 30.6.23 |
£ | £ |
Wages and salaries | 3,156,426 | 2,649,357 |
Social security costs | 238,097 | 193,857 |
Other pension costs | 111,190 | 56,209 |
3,505,713 | 2,899,423 |
The average number of employees during the year was as follows: |
30.6.24 | 30.6.23 |
Accounts and administration | 6 | 6 |
Management | 7 | 7 |
Hotel staff | 161 | 154 |
Maintenance and construction staff | 12 | - |
The average number of employees by undertakings that were proportionately consolidated during the year was 186 (2023 - 167 ) . |
FLAT ROCK HOLDINGS LIMITED (REGISTERED NUMBER: 12495150) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
5. | EMPLOYEES AND DIRECTORS - continued |
30.6.24 | 30.6.23 |
£ | £ |
Directors' remuneration | 41,450 | 38,750 |
Directors' pension contributions to money purchase schemes | 60,216 | 665 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | 2 | 2 |
6. | OPERATING PROFIT |
The operating profit is stated after charging: |
30.6.24 | 30.6.23 |
£ | £ |
Hire of plant and machinery | 26,356 | 41,383 |
Depreciation - owned assets | 265,301 | 301,447 |
Loss on disposal of fixed assets | - | 2,630 |
Goodwill amortisation | 10,000 | 15,000 |
Auditors' remuneration | 13,450 | 10,700 |
7. | INTEREST PAYABLE AND SIMILAR EXPENSES |
30.6.24 | 30.6.23 |
£ | £ |
Bank loan interest | 264,962 | 203,381 |
Other interest charged | 6,404 | 7,039 |
271,366 | 210,420 |
8. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
30.6.24 | 30.6.23 |
£ | £ |
Current tax: |
UK corporation tax | 367,590 | 283,531 |
Deferred tax | (213,861 | ) | 3,540 |
Tax on profit | 153,729 | 287,071 |
FLAT ROCK HOLDINGS LIMITED (REGISTERED NUMBER: 12495150) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
8. | TAXATION - continued |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
30.6.24 | 30.6.23 |
£ | £ |
Profit before tax | 1,407,880 | 1,443,960 |
Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 25 %) |
351,970 |
360,990 |
Effects of: |
Income not taxable for tax purposes | - | 659 |
Capital allowances in excess of depreciation | - | (14,539 | ) |
Depreciation in excess of capital allowances | 15,718 | - |
Accelerated capital allowances at 25% (2023 25%) | (213,861 | ) | 3,540 |
Marginal relief adjustment | (98 | ) | - |
Change in tax rates | - | (63,579 | ) |
Total tax charge | 153,729 | 287,071 |
9. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
10. | DIVIDENDS |
30.6.24 | 30.6.23 |
£ | £ |
Ordinary A share of £1 |
Interim | 82,500 | 25,000 |
Ordinary B share of £1 |
Interim | 82,500 | 25,000 |
165,000 | 50,000 |
FLAT ROCK HOLDINGS LIMITED (REGISTERED NUMBER: 12495150) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
11. | INTANGIBLE FIXED ASSETS |
Group |
Goodwill |
£ |
COST |
At 1 July 2023 |
and 30 June 2024 | 150,001 |
AMORTISATION |
At 1 July 2023 | 140,001 |
Amortisation for year | 10,000 |
At 30 June 2024 | 150,001 |
NET BOOK VALUE |
At 30 June 2024 | - |
At 30 June 2023 | 10,000 |
12. | TANGIBLE FIXED ASSETS |
Group |
Fixtures |
Freehold | Plant and | and | Motor |
property | machinery | fittings | vehicles | Totals |
£ | £ | £ | £ | £ |
COST |
At 1 July 2023 | 7,431,337 | 1,226,570 | 2,141,040 | 11,525 | 10,810,472 |
Additions | 63,347 | 69,813 | 12,906 | - | 146,066 |
At 30 June 2024 | 7,494,684 | 1,296,383 | 2,153,946 | 11,525 | 10,956,538 |
DEPRECIATION |
At 1 July 2023 | - | 667,347 | 1,145,864 | 5,881 | 1,819,092 |
Charge for year | - | 95,113 | 168,306 | 1,882 | 265,301 |
At 30 June 2024 | - | 762,460 | 1,314,170 | 7,763 | 2,084,393 |
NET BOOK VALUE |
At 30 June 2024 | 7,494,684 | 533,923 | 839,776 | 3,762 | 8,872,145 |
At 30 June 2023 | 7,431,337 | 559,223 | 995,176 | 5,644 | 8,991,380 |
FLAT ROCK HOLDINGS LIMITED (REGISTERED NUMBER: 12495150) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
13. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 July 2023 |
and 30 June 2024 |
NET BOOK VALUE |
At 30 June 2024 |
At 30 June 2023 |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiaries |
Jonsel Management Black Limited |
Registered office: The Gwbert Hotel, Gwbert On Sea, Cardigan SA43 1PP |
Nature of business: Hotel and restaurant |
% |
Class of shares: | holding |
Ordinary | 100.00 |
30.6.24 | 30.6.23 |
£ | £ |
Aggregate capital and reserves | 5,637,799 | 4,676,078 |
Profit for the year | 1,126,721 | 1,067,903 |
Jonsel Management Black Limited has claimed exemption from audit of its accounts for the year ended 30 June 2024 under section 479a of the Companies Act 2006. |
Jonsel (Aberaeron) Ltd |
Registered office: The Gwbert Hotel, Gwbert On Sea, Cardigan SA43 1PP |
Nature of business: Hotel and restaurant |
% |
Class of shares: | holding |
Ordinary | 100.00 |
30.6.24 | 30.6.23 |
£ | £ |
Aggregate capital and reserves | 235,949 | 132,218 |
Profit for the year | 101,824 | 132,611 |
Jonsel (Aberaeron) Limited has claimed exemption from audit of its accounts for the period ended 30 June 2024 under section 479a of the Companies Act 2006. |
FLAT ROCK HOLDINGS LIMITED (REGISTERED NUMBER: 12495150) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
13. | FIXED ASSET INVESTMENTS - continued |
Jonsel Construction Ltd |
Registered office: The Gwbert Hotel, Gwbert On Sea, Cardigan SA43 1PP |
Nature of business: building and construction |
% |
Class of shares: | holding |
Ordinary | 100.00 |
30.6.24 | 30.6.23 |
£ | £ |
Aggregate capital and reserves | 38,238 | 100 |
Profit for the year | 38,238 | - |
Jonsel Construction Limited has claimed exemption from audit of its accounts for the period ended 30 June 2024 under section 479a of the Companies Act 2006. |
14. | STOCKS |
Group |
30.6.24 | 30.6.23 |
£ | £ |
Raw materials | 107,449 | 107,906 |
Work-in-progress | 77,515 | - |
Finished goods | 8,618 | 7,331 |
193,582 | 115,237 |
15. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
30.6.24 | 30.6.23 | 30.6.24 | 30.6.23 |
£ | £ | £ | £ |
Trade debtors | 51,236 | 47,570 |
Other debtors | 379,476 | 223,637 |
Amount owed by related parties | 3,957,964 | 3,071,502 | - | - |
Called up share capital not paid | 102 | 102 |
Prepayments | 7,997 | 4,971 |
4,396,775 | 3,347,782 |
FLAT ROCK HOLDINGS LIMITED (REGISTERED NUMBER: 12495150) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
16. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
30.6.24 | 30.6.23 | 30.6.24 | 30.6.23 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 18) | 870,965 | 430,693 |
Trade creditors | 393,772 | 368,524 |
Tax | 367,590 | 411,817 |
Social security and other taxes | 69,505 | 45,861 |
VAT | 308,746 | 379,801 | - | - |
Other creditors | 1,269,859 | 1,223,886 |
Amount owed to related parties | 332,608 | 163,244 | - | - |
Directors' current accounts | 71,467 | 82,468 | - | - |
Accruals and deferred income | 3,163 | - |
Accrued expenses | 88,482 | 90,528 |
3,776,157 | 3,196,822 |
17. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group |
30.6.24 | 30.6.23 |
£ | £ |
Bank loans (see note 18) | 3,053,736 | 3,453,954 |
18. | LOANS |
An analysis of the maturity of loans is given below: |
Group |
30.6.24 | 30.6.23 |
£ | £ |
Amounts falling due within one year or on | demand: |
Bank overdrafts | 191,804 | 63,349 |
Bank loans | 679,161 | 367,344 |
870,965 | 430,693 |
Amounts falling due between one and two | years: |
Bank loans - 1-2 years | 452,494 | 367,344 |
Amounts falling due between two and five | years: |
Bank loans - 2-5 years | 822,733 | 820,282 |
Amounts falling due in more than five years: |
Repayable by instalments |
Bank loans more 5 yr by instal | 1,778,509 | 2,266,328 |
FLAT ROCK HOLDINGS LIMITED (REGISTERED NUMBER: 12495150) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
18. | LOANS - continued |
The Group have a pound sterling CBILS loan advanced by HSBC Bank PLC outstanding. This loan will be fully repaid in May 2026 and the interest rate is currently charged at 8.99%.The remaining balance as at the Balance Sheet date was £300,250. |
There are also four mortgages outstanding as at 30 June 2024 advanced by HSBC Bank PLC, with current interest rates of between 7.2% and 7.6% charged. These mortgage balances are as follows (in pound sterling), together with date of full repayment: |
- £926,971 fully repaid by October 2029 |
- £2,212,343 fully repaid by November 2038 |
19. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group |
30.6.24 | 30.6.23 |
£ | £ |
Bank overdraft | 191,804 | 63,349 |
Bank loans | 3,732,897 | 3,821,298 |
3,924,701 | 3,884,647 |
HSBC Bank PLC hold a charge over the property known as The Cliff Hotel dated 1 November 2019 together with a fixed and floating charge over the company's assets dated 23 October 2019. |
HSBC Bank PLC hold a fixed and floating charge over the assets of the company dated 19 October 2021 and also hold a fixed charge over The Harbourmaster Hotel, Aberaeron dated 1 November 2021 and over 4 Quay Parade, Aberaeron dated 16 November 2023. |
20. | PROVISIONS FOR LIABILITIES |
Group |
30.6.24 | 30.6.23 |
£ | £ |
Deferred tax | 128,501 | 342,362 |
Group |
Deferred |
tax |
£ |
Balance at 1 July 2023 | 342,362 |
Accelerated capital allowances | (213,861 | ) |
Balance at 30 June 2024 | 128,501 |
FLAT ROCK HOLDINGS LIMITED (REGISTERED NUMBER: 12495150) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
21. | ACCRUALS AND DEFERRED INCOME |
Group |
30.6.24 | 30.6.23 |
£ | £ |
Deferred government grants | 15,724 | 18,200 |
22. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 30.6.24 | 30.6.23 |
value: | £ | £ |
Ordinary | £1 | 100 | 100 |
Ordinary A | £1 | 1 | 1 |
Ordinary B | £1 | 1 | 1 |
102 | 102 |
There are 3 classes of ordinary shares. There are no restrictions on the distribution of dividends and the repayment of capital. |
23. | RESERVES |
Group |
Retained |
earnings |
£ |
At 1 July 2023 | 5,408,094 |
Profit for the year | 1,254,151 |
Dividends | (165,000 | ) |
At 30 June 2024 | 6,497,245 |
24. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to directors subsisted during the years ended 30 June 2024 and 30 June 2023: |
30.6.24 | 30.6.23 |
£ | £ |
L W Jones and Mrs L Jones |
Balance outstanding at start of year | - | - |
Amounts advanced | 165,000 | 50,000 |
Amounts repaid | (165,000 | ) | (50,000 | ) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | - | - |
No amounts were written off in the period relating to Directors' loan balances and no interest was charged for any outstanding balances. |
FLAT ROCK HOLDINGS LIMITED (REGISTERED NUMBER: 12495150) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2024 |
25. | RELATED PARTY TRANSACTIONS |
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group. |
Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements. |
Jonsel Ltd, The Anchor Hotel (Gwbert) Ltd and Jonsel Management Ltd are all related party entities due to their common control, as detailed below: |
30.6.24 | 30.6.23 |
£ | £ |
Sales | 544,705 | 36,998 |
Purchases | 58,547 | 58,072 |
Amounts due from related parties | 3,957,962 | 3,070,829 |
Amounts due to related parties | 332,606 | 163,243 |
During the year, a total directors' compensation of £41,450 (2023 £38,750) was paid. |
26. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party is L W Jones. |