Company Registration No. 03198626 (England and Wales)
THE SWAN HOTEL (NEWBY BRIDGE) LIMITED
FINANCIAL STATEMENTS
FOR THE PERIOD ENDED
30 JUNE 2024
6 Queen Street
Leeds
West Yorkshire
LS1 2TW
THE SWAN HOTEL (NEWBY BRIDGE) LIMITED
CONTENTS
Page
Company information
1
Strategic report
2 - 3
Directors' report
4 - 5
Directors' responsibilities statement
6
Independent auditor's report
7 - 10
Statement of income and retained earnings
11
Balance sheet
12
Notes to the financial statements
13 - 26
THE SWAN HOTEL (NEWBY BRIDGE) LIMITED
COMPANY INFORMATION
- 1 -
Directors
J Houlston
C Hadfield
(Appointed 17 July 2023)
Company number
03198626
Registered office
The Swan Hotel And Spa
Newby Bridge
Ulverston
LA12 8NB
Auditor
TC Group
6 Queen Street
Leeds
West Yorkshire
LS1 2TW
THE SWAN HOTEL (NEWBY BRIDGE) LIMITED
STRATEGIC REPORT
FOR THE PERIOD ENDED 30 JUNE 2024
- 2 -
The directors present the strategic report for the Period ended 30 June 2024.
Business review
After the Company's business activities were severely impacted throughout 2020 and 2021 by the coronavirus pandemic, 2022 saw its performance beginning to recover and 2023 showed significant increases in turnover, gross margin and profitability. The year to June 2024 saw the performance of the hotel continue to improve apace, with further growth in the key metrics:
Gross margin represents turnover, less direct food and liquor costs, and operational payroll (excluding all central administration costs and overheads).
The growth in bedroom occupancy continued, increasing from 73% to 81% which was achieved by a reduction in ADR (average daily rate) from £141 to £129. The Board are comfortable that the reduction in ADR was more than compensated by increases in both RevPar (revenue per available room) and TRevPar (total revenue per available room), the latter increasing by £17 (6%) as a result.
Crucially almost 5,000 more bedrooms were sold in the year (albeit at a reduced average rate), and this naturally resulted in increased guest numbers and the resulting increased revenue, combined with strong cost controls across the business, resulted in a spectacular £555k (80%) increase in EBITDA.
The Board are confident that increases in ADR can be achieved over the coming years without any impact on occupancy, with further potential to enhance the food and beverage side of the business.
THE SWAN HOTEL (NEWBY BRIDGE) LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2024
- 3 -
Principal risks and uncertainties
The Company’s activities may be impacted by a number of factors.
Flooding remains a significant risk, although we have introduced numerous flood protection measures and continue to push these plans forward.
Other risks include increases in key operating costs such as wages and direct food costs. The widely publicised increases in employers’ NI with reducing thresholds, and increases in the National Living Wage could all severely impact the Company’s profitability without proactive measures being put in place, such as improved costed wage rotas and training for all department heads. It is believed the Company is in a good position to at least part-mitigate these uncontrollable increases to its cost base without having to pass the majority of these costs on to its customers.
The Company was protected against any increases in electricity costs throughout the energy crisis of 2022 because of forward hedging their prices up to April 2025 back in 2020. It has since worked closely with an experienced energy partner to ensure all risks are mitigated beyond the expiry of the current contracts, whilst enabling the Company to feel some benefit of any further future falls in the market.
Being able to recruit and retain quality employees remains a risk, however the Company has done much to mitigate this and is a leading employer in the area and the sector.
J Houlston
Director
27 March 2025
THE SWAN HOTEL (NEWBY BRIDGE) LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 30 JUNE 2024
- 4 -
The directors present their annual report and financial statements for the Period ended 30 June 2024.
Principal activities
The principal activity of the Company during the year was that of operation of a hotel and spa.
Results and dividends
The results for the Period are set out on page 11.
Ordinary dividends were paid amounting to £4,500,000. The directors do not recommend payment of a further dividend.
Directors
The directors who held office during the Period and up to the date of signature of the financial statements were as follows:
J Houlston
C Hadfield
(Appointed 17 July 2023)
Financial instruments
Treasury operations
The Company operates a treasury function which is responsible for managing the liquidity and interest risks associated with the company's activities. The Company's principal financial instruments are bank loans, the main purpose of which is to maintain finance for the Company's operations. In addition, the Company has various other financial assets and liabilities such as trade debtors and trade creditors arising directly from its operations.
Price risk, credit risk and cashflow risk
Liquidity risk
The Company manages its cash and borrowing requirements in order to ensure it has sufficient liquid resources to meet the operating needs of the business.
Interest rate risk
The Company is exposed to fair value interest risk on its fixed rate borrowings.
Credit risk
Investment of any cash surplus and borrowings are made through banks which must fulfil credit rating criteria approved by the Board.
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.
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.
THE SWAN HOTEL (NEWBY BRIDGE) LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2024
- 5 -
On behalf of the board
J Houlston
Director
27 March 2025
THE SWAN HOTEL (NEWBY BRIDGE) LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE PERIOD ENDED 30 JUNE 2024
- 6 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
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 transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
THE SWAN HOTEL (NEWBY BRIDGE) LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF THE SWAN HOTEL (NEWBY BRIDGE) LIMITED
- 7 -
Opinion
We have audited the financial statements of The Swan Hotel (Newby Bridge) Limited (the 'company') for the Period ended 30 June 2024 which comprise the statement of income and retained earnings, the balance sheet 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:
give a true and fair view of the state of the company's affairs as at 30 June 2024 and of its profit for the Period 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.
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.
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 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.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
THE SWAN HOTEL (NEWBY BRIDGE) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF THE SWAN HOTEL (NEWBY BRIDGE) LIMITED
- 8 -
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 information given in the strategic report and the directors' report for the financial Period for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' 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 directors' report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
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 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 directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.
Auditor's responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
THE SWAN HOTEL (NEWBY BRIDGE) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF THE SWAN HOTEL (NEWBY BRIDGE) LIMITED
- 9 -
Extent to which the audit was capable of detecting irregularities, including fraud
The objectives of our audit, in respect of 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.
Our approach was as follows:
We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussion with the directors and other management (as required by auditing standards), and discussed with the directors and other management the policies and procedures regarding compliance with laws and regulations;
We considered the legal and regulatory frameworks directly applicable to the financial statements reporting framework (FRS 102 and the Companies Act 2006), and the relevant tax compliance regulations in the UK;
We considered the nature of the industry, the control environment and business performance, including key drivers for management's remuneration;
We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit;
We considered the procedures and controls that the company has established to address risks identified, or that otherwise prevent, deter and detect fraud; and how senior management monitors those programmes.
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 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 material 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 all non-compliance with laws and regulations.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
THE SWAN HOTEL (NEWBY BRIDGE) LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF THE SWAN HOTEL (NEWBY BRIDGE) LIMITED
- 10 -
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.
Mark Hunter FCA (Senior Statutory Auditor)
For and on behalf of TC Group
Statutory Auditor
27 March 2025
6 Queen Street
Leeds
West Yorkshire
LS1 2TW
THE SWAN HOTEL (NEWBY BRIDGE) LIMITED
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE PERIOD ENDED 30 JUNE 2024
- 11 -
Period
Year
ended
ended
30 June
27 June
2024
2023
Notes
£
£
Turnover
3
8,698,445
7,470,622
Cost of sales
(4,553,140)
(4,285,411)
Gross profit
4,145,305
3,185,211
Administrative expenses
(3,095,234)
(2,769,958)
Other operating income
130,406
178,376
Operating profit
5
1,180,477
593,629
Interest payable and similar expenses
8
(88,701)
(28,243)
Profit before taxation
1,091,776
565,386
Tax on profit
9
(25,581)
5,601
Profit for the financial Period
1,066,195
570,987
Retained earnings brought forward
5,046,447
4,475,460
Dividends
10
(4,500,000)
Retained earnings carried forward
1,612,642
5,046,447
The profit and loss account has been prepared on the basis that all operations are continuing operations.
THE SWAN HOTEL (NEWBY BRIDGE) LIMITED
BALANCE SHEET
- 12 -
30 June 2024
27 June 2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
311,026
330,360
Current assets
Stocks
12
33,559
36,445
Debtors
13
3,427,269
7,038,768
Cash at bank and in hand
303,507
466,120
3,764,335
7,541,333
Creditors: amounts falling due within one year
14
(2,462,717)
(2,793,132)
Net current assets
1,301,618
4,748,201
Total assets less current liabilities
1,612,644
5,078,561
Creditors: amounts falling due after more than one year
15
(32,112)
Net assets
1,612,644
5,046,449
Capital and reserves
Called up share capital
19
2
2
Profit and loss reserves
1,612,642
5,046,447
Total equity
1,612,644
5,046,449
The financial statements were approved by the board of directors and authorised for issue on 27 March 2025 and are signed on its behalf by:
J Houlston
Director
Company registration number 03198626 (England and Wales)
THE SWAN HOTEL (NEWBY BRIDGE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 30 JUNE 2024
- 13 -
1
Accounting policies
Company information
The Swan Hotel (Newby Bridge) Limited is a private company limited by shares incorporated in England and Wales. The registered office address is: The Swan Hotel And Spa, Newby Bridge, Ulverston, LA12 8NB.
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 £1.
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:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.
The financial statements of the company are consolidated in the financial statements of B H Hotels Ltd. These consolidated financial statements are available from Companies House.
1.2
Going concern
Atruet the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.
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. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
THE SWAN HOTEL (NEWBY BRIDGE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 14 -
Revenue from contracts for the provision of professional services is recognised by reference to the stage of completion when the stage of completion, costs incurred and costs to complete can be estimated reliably. The stage of completion is calculated by comparing costs incurred, mainly in relation to contractual hourly staff rates and materials, as a proportion of total costs. Where the outcome cannot be estimated reliably, revenue is recognised only to the extent of the expenses recognised that it is probable will be recovered.
1.4
Tangible fixed assets
Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold improvements
5 - 50 years straight line basis
Fixtures and fittings
3 - 15 years straight line basis
Computers
3 - 5 years straight line basis
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.5
Impairment of fixed assets
At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
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.
THE SWAN HOTEL (NEWBY BRIDGE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 15 -
1.6
Stocks
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.
At each balance 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 or loss.
1.7
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
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 SWAN HOTEL (NEWBY BRIDGE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 16 -
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 bank loans 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.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
THE SWAN HOTEL (NEWBY BRIDGE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 17 -
1.9
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.
1.10
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.
1.11
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 SWAN HOTEL (NEWBY BRIDGE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 18 -
1.12
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.13
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Depreciation of tangible fixed assets
The annual depreciation charge for tangible fixed assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. The carrying amount of tangible fixed assets is detailed in the notes to the financial statements. The depreciation rates applied are summarised in the accounting policies in note 1.
Recoverability of other debtors
The company makes an estimate of the recoverable value of other debtors. When assessing impairment of other debtors, management considers factors including the credit rating of debtors, the aging profile of debtors and historical experience. The carrying amount of debtors is detailed in the notes to the financial statements.
THE SWAN HOTEL (NEWBY BRIDGE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2024
- 19 -
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Acommodation
3,282,454
2,939,908
Food and beverages
3,980,483
3,625,559
Leisure
1,090,353
746,552
Marina
130,502
62,770
Other
214,653
95,833
8,698,445
7,470,622
All turnover arose within the United Kingdom.
4
Exceptional items
2024
2023
£
£
Income
Exceptional item - Other operating income
86,194
92,947
Expenditure
Exceptional item - Admin costs (incl in Admin range)
81,139
82,000
Exceptional income in the period ended 30 June 2024 relates to insurance claim receipts. Amounts are presented within other operating income in the statement of income and retained earnings.
Exceptional costs in the period ended 30 June 2024 relate to expenses in relation to exceptional bad debt. Amounts are presented within administrative expenses in the statement of income and retained earnings.
5
Operating profit
2024
2023
Operating profit for the period is stated after charging/(crediting):
£
£
Exchange losses
592
Fees payable to the company's auditor for the audit of the company's financial statements
25,000
24,800
Depreciation of owned tangible fixed assets
63,838
104,672
Profit on disposal of tangible fixed assets
-
(1,790)
Operating lease charges
602,670
193,715
THE SWAN HOTEL (NEWBY BRIDGE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2024
- 20 -
6
Employees
The average monthly number of persons (including directors) employed by the company during the Period was:
2024
2023
Number
Number
Management staff
3
4
Hotel staff
130
129
Total
133
133
Their aggregate remuneration comprised:
2024
2023
£
£
Wages and salaries
2,878,468
2,875,138
Social security costs
153,933
145,698
Pension costs
44,012
40,748
3,076,413
3,061,584
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
94,972
103,181
Company pension contributions to defined contribution schemes
1,501
4,744
96,473
107,925
8
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
88,626
8,642
Other interest on financial liabilities
75
19,601
88,701
28,243
THE SWAN HOTEL (NEWBY BRIDGE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2024
- 21 -
9
Taxation
2024
2023
£
£
Deferred tax
Origination and reversal of timing differences
14,190
(732)
Adjustment in respect of prior periods
11,391
(4,869)
Total deferred tax
25,581
(5,601)
The actual charge/(credit) for the Period can be reconciled to the expected charge for the Period based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Profit before taxation
1,091,776
565,386
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.50%)
272,944
115,904
Tax effect of expenses that are not deductible in determining taxable profit
697
3,667
Adjustments in respect of prior years
11,391
(4,869)
Group relief
(259,451)
(111,319)
Depreciation on assets not qualifying for tax allowances
1,377
Change in rate of deferred tax
(9,735)
Effect of super-deduction
(634)
Difference on SBA disposals - NBV vs WDV
8
Taxation charge/(credit) for the period
25,581
(5,601)
10
Dividends
2024
2023
£
£
Final paid
4,500,000
THE SWAN HOTEL (NEWBY BRIDGE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2024
- 22 -
11
Tangible fixed assets
Leasehold improvements
Fixtures and fittings
Computers
Total
£
£
£
£
Cost
At 28 June 2023
6,525
407,915
55,957
470,397
Additions
38,387
6,117
44,504
At 30 June 2024
6,525
446,302
62,074
514,901
Depreciation and impairment
At 28 June 2023
6,360
112,332
21,345
140,037
Depreciation charged in the Period
165
51,714
11,959
63,838
At 30 June 2024
6,525
164,046
33,304
203,875
Carrying amount
At 30 June 2024
282,256
28,770
311,026
At 27 June 2023
165
295,583
34,612
330,360
12
Stocks
2024
2023
£
£
Finished goods and goods for resale
33,559
36,445
13
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
91,700
61,956
Amounts owed by group undertakings
3,179,129
6,743,758
Other debtors
7,275
92,259
Prepayments and accrued income
120,837
86,886
3,398,941
6,984,859
THE SWAN HOTEL (NEWBY BRIDGE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2024
13
Debtors
(Continued)
- 23 -
2024
2023
Amounts falling due after more than one year:
£
£
Deferred tax asset (note 17)
28,328
53,909
Total debtors
3,427,269
7,038,768
14
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Bank loans
16
32,112
73,878
Other borrowings
16
173,135
Trade creditors
618,902
728,017
Taxation and social security
585,296
905,339
Other creditors
46,612
222,865
Accruals and deferred income
1,006,660
863,033
2,462,717
2,793,132
15
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans and overdrafts
16
32,112
16
Loans and overdrafts
2024
2023
£
£
Bank loans
32,112
105,990
Other loans
173,135
205,247
105,990
Payable within one year
205,247
73,878
Payable after one year
32,112
THE SWAN HOTEL (NEWBY BRIDGE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2024
16
Loans and overdrafts
(Continued)
- 24 -
Bank loans
The bank loan relates to a loan under the Coronavirus Business Interruption (CBILS). The loan is denominated in Pounds Sterling and interest is charged at 6% per annum. Interest for the first interest 12 months is paid by the UK Government. The loan is repayable in equal monthly instalments, with the final payment scheduled for December 2024.
The balance is secured by fixed and floating charges over the assets of the Company.
Other loans
Other loans include a loan provided by YouLend Limited, which is denominated in Pounds Sterling. The carrying value at the period end is £71,089 (2023 - £nil). Repayments are made to the loan provider at an agreed percentage of sales receipts received by the Company. The minimum repayments due on the loan require that the latest repayment date is October 2024.
The balance is secured by personal guarantee by director James Houlston.
Other loans include a loan provided by Premium Credit Limited, which is denominated in Pounds Sterling. The carrying value at the period end is £102,046 (2023 - £nil). The loan is repayable in equal monthly instalments, with the final payment scheduled for August 2024.
17
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Assets
Assets
2024
2023
Balances:
£
£
Accelerated capital allowances
28,239
52,704
Retirement benefit obligations
89
1,205
28,328
53,909
2024
Movements in the Period:
£
Asset at 28 June 2023
(53,909)
Charge to profit or loss
25,581
Asset at 30 June 2024
(28,328)
THE SWAN HOTEL (NEWBY BRIDGE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2024
17
Deferred taxation
(Continued)
- 25 -
The deferred tax asset set out above in respect of losses carried is expected to reverse within 12 months. The deferred tax asset in respect of capital allowances is expected to reverse over the useful economic lives of the associated fixed assets in line with the depreciation rates set out in note 1.
18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
44,012
40,748
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.
19
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
2
2
2
2
20
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
24,827
3,106
Between two and five years
17,280
641
In over five years
895
43,002
3,747
THE SWAN HOTEL (NEWBY BRIDGE) LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE PERIOD ENDED 30 JUNE 2024
- 26 -
21
Reserves
Profit and loss account
Share capital represents the number of shares issued at normal price.
The profit and loss account represents accumulated comprehensive income for the year and prior periods, after deduction of dividends paid.
22
Related party transactions
The Company has taken the exemption set out in FRS 102 from disclosing transactions with other members of the group.
Unique Boutique Hotels Ltd
Unique Boutique Hotels Ltd is a company under common control. During the year, the company made purchases of £78,116 (2023 - £73,182) from Unique Boutique Hotels Ltd. As at 30 June 2024, the company owed £36,935 (2023 - £67,272) to Unique Boutique Hotels Ltd.
23
Ultimate controlling party
The Company's immediate parent is The Swan Hotel (Newby Bridge) Holdings Limited, incorporated in the United Kingdom.
The ultimate parent B H Hotels Ltd incorporated in the United Kingdom.
The smallest and largest group preparing consolidated financial statements including the results of the Company is that headed by B H Hotels Ltd. These financial statements are available upon request from Companies House, Cardiff, CF14 3UZ.
2024-06-302023-06-28falsefalsefalseCCH SoftwareCCH Accounts Production 2024.310J HoulstonC Hadfield031986262023-06-282024-06-3003198626bus:Director12023-06-282024-06-3003198626bus:Director22023-06-282024-06-3003198626bus:RegisteredOffice2023-06-282024-06-30031986262024-06-30031986262022-06-282023-06-2703198626core:RetainedEarningsAccumulatedLosses2023-06-2703198626core:RetainedEarningsAccumulatedLosses2022-06-2703198626core:ShareCapital2024-06-3003198626core:ShareCapital2023-06-2703198626core:RetainedEarningsAccumulatedLosses2024-06-3003198626core:RetainedEarningsAccumulatedLosses2023-06-27031986262023-06-2703198626core:RetainedEarningsAccumulatedLosses2022-06-282023-06-2703198626core:LeaseholdImprovements2024-06-3003198626core:FurnitureFittings2024-06-3003198626core:ComputerEquipment2024-06-3003198626core:LeaseholdImprovements2023-06-2703198626core:FurnitureFittings2023-06-2703198626core:ComputerEquipment2023-06-2703198626core:CurrentFinancialInstrumentscore:WithinOneYear2024-06-3003198626core:CurrentFinancialInstrumentscore:WithinOneYear2023-06-2703198626core:Non-currentFinancialInstrumentscore:AfterOneYear2024-06-3003198626core:Non-currentFinancialInstrumentscore:AfterOneYear2023-06-2703198626core:CurrentFinancialInstruments2024-06-3003198626core:CurrentFinancialInstruments2023-06-2703198626core:LeaseholdImprovements2023-06-282024-06-3003198626core:FurnitureFittings2023-06-282024-06-3003198626core:ComputerEquipment2023-06-282024-06-300319862612023-06-282024-06-300319862612022-06-282023-06-2703198626core:UKTax2023-06-282024-06-3003198626core:UKTax2022-06-282023-06-270319862622023-06-282024-06-300319862622022-06-282023-06-270319862632023-06-282024-06-300319862632022-06-282023-06-270319862642023-06-282024-06-300319862642022-06-282023-06-2703198626core:LeaseholdImprovements2023-06-2703198626core:FurnitureFittings2023-06-2703198626core:ComputerEquipment2023-06-27031986262023-06-2703198626core:Non-currentFinancialInstruments2024-06-3003198626core:Non-currentFinancialInstruments2023-06-2703198626core:WithinOneYear2024-06-3003198626core:WithinOneYear2023-06-2703198626core:BetweenTwoFiveYears2024-06-3003198626core:BetweenTwoFiveYears2023-06-2703198626core:MoreThanFiveYears2024-06-3003198626core:MoreThanFiveYears2023-06-2703198626bus:PrivateLimitedCompanyLtd2023-06-282024-06-3003198626bus:FRS1022023-06-282024-06-3003198626bus:Audited2023-06-282024-06-3003198626bus:FullAccounts2023-06-282024-06-30xbrli:purexbrli:sharesiso4217:GBP