Company Registration No. 10476267 (England and Wales)
B H HOTELS LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
B H HOTELS LTD
COMPANY INFORMATION
Directors
J Houlston
C Eddlestone
Company number
10476267
Registered office
Ground Floor
6 Queen Street
Leeds
West Yorkshire
United Kingdom
LS1 2TW
Auditor
TC Group
6 Queen Street
Leeds
West Yorkshire
LS1 2TW
B H HOTELS LTD
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 9
Group statement of comprehensive income
10
Group balance sheet
11 - 12
Company balance sheet
13
Group statement of changes in equity
14 - 15
Company statement of changes in equity
16
Group statement of cash flows
17
Notes to the financial statements
18 - 41
B H HOTELS LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -

The directors present the strategic report for the year ended 30 June 2024.

Fair review of the business

The principal activity of the group during the period continued to be that of the operation of a hotel and spa.

 

BH Hotels is the group company which owns significant shareholdings in companies which own and operate hotels, namely St Michael’s Falmouth Ltd (50% - St Michael’s Resort), Create Developments Blackpool Ltd (40% - Hampton by Hilton, Blackpool) and BH Hotels 4 Ltd (60% - The Swan Hotel and Spa, Newby Bridge). In October 2024, B H Hotels disposed of its entire shareholding in St Michael’s Falmouth Ltd.

 

As in the previous year, the year ending 30th June 2024 saw significant operating cost inflation at each hotel, however the continued drive in future growth saw substantial increases in revenue across the group:

 

 

Future plans

The Group's focus is to continue to drive each hotel to stabilisation, significantly growing profitability through revenue growth and cost efficiency. The Group is well placed to take advantage of the growing UK Staycation market.

Principal risks and uncertainties

The group’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 Group’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 Group 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 Swan Hotel and Spa 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 Group 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 Group has done much to mitigate this and is a leading employer in the area and the sector.

B H HOTELS LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -

On behalf of the board

J Houlston
Director
28 March 2025
B H HOTELS LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -

The directors present their annual report and financial statements for the year ended 30 June 2024.

Principal activities

The principal activity of the company is that of a holding company, whilst the principal activity of the group is that of the operation of a hotel and spa.

Results and dividends

The results for the year are set out on page 10.

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

Directors

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

J Houlston
C Eddlestone
Financial instruments
Treasury operations and financial instruments

The group operates a treasury function which is responsible for managing liquidity, interest and foreign currency risks associated with the group's activities.

 

The group's principal financial instruments include bank overdrafts and loans, the main purpose of which is to raise finance for the group's operations. In addition, the group has various other financial assets and liabilities such as trade debtors and trade creditors arising directly from its operations.

Liquidity risk

The group manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the group has sufficient liquid resources to meet the operating needs of the business.

Interest rate risk

The group is exposed to fair value interest rate risk on its fixed rate borrowings and cash flow interest rate risk on floating rate deposits, bank overdrafts and loans.

Credit risk

Investments of cash surpluses and borrowings are made through banks which must fulfil credit rating criteria approved by the board.

Auditor

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

B H HOTELS LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 4 -
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 auditor of the company 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 auditor of the company is aware of that information.

On behalf of the board
J Houlston
Director
28 March 2025
B H HOTELS LTD
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 2024
- 5 -

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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

B H HOTELS LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF B H HOTELS LTD
- 6 -
Opinion

We have audited the financial statements of B H Hotels Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2024 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

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

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 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.

B H HOTELS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF B H HOTELS LTD
- 7 -

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

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 strategic report and the directors' report.

 

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:

 

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 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 company or to cease operations, or have no realistic alternative but to do so.

B H HOTELS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF B H HOTELS LTD
- 8 -
Auditor's responsibilities for the audit of the financial statements

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

 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Extent to which the audit was 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:

 

B H HOTELS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF B H HOTELS LTD
- 9 -

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.

Our report

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

Mark Hunter FCA (Senior Statutory Auditor)
For and on behalf of TC Group
28 March 2025
Statutory Auditor
6 Queen Street
Leeds
West Yorkshire
LS1 2TW
B H HOTELS LTD
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
- 10 -
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
(3,757,437)
(3,457,482)
Other operating income
733,076
469,470
Operating profit
5
1,120,944
197,199
Share of results of associates and joint ventures
(574,516)
(158,288)
Interest payable and similar expenses
8
(1,464,406)
(1,213,527)
Loss before taxation
(917,978)
(1,174,616)
Tax on loss
9
(25,581)
5,601
Loss for the financial year
25
(943,559)
(1,169,015)
Other comprehensive income
Other comprehensive income of associates and jointly controlled entities accounted for using the equity method
(206,572)
(348,999)
Total comprehensive income for the year
(1,150,131)
(1,518,014)
Loss for the financial year is attributable to:
- Owners of the parent company
(969,614)
(938,397)
- Non-controlling interests
26,055
(230,618)
(943,559)
(1,169,015)
Total comprehensive income for the year is attributable to:
- Owners of the parent company
(1,176,186)
(1,287,396)
- Non-controlling interests
26,055
(230,618)
(1,150,131)
(1,518,014)
B H HOTELS LTD
GROUP BALANCE SHEET
AS AT 30 JUNE 2024
30 June 2024
- 11 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
10
6,771,190
7,205,371
Tangible assets
11
17,992,673
18,001,356
Investments
12
2,785,810
3,566,898
27,549,673
28,773,625
Current assets
Stocks
16
33,559
36,445
Debtors
17
509,212
524,141
Cash at bank and in hand
303,607
487,278
846,378
1,047,864
Creditors: amounts falling due within one year
18
(10,657,969)
(7,756,907)
Net current liabilities
(9,811,591)
(6,709,043)
Total assets less current liabilities
17,738,082
22,064,582
Creditors: amounts falling due after more than one year
19
(17,530,680)
(20,707,049)
Net assets
207,402
1,357,533
Capital and reserves
Called up share capital
24
100
100
Revaluation reserve
25
5,380,751
5,587,323
Profit and loss reserves
25
(6,074,332)
(5,104,718)
Equity attributable to owners of the parent company
(693,481)
482,705
Non-controlling interests
900,883
874,828
207,402
1,357,533
B H HOTELS LTD
GROUP BALANCE SHEET (CONTINUED)
AS AT 30 JUNE 2024
30 June 2024
- 12 -
The financial statements were approved by the board of directors and authorised for issue on 28 March 2025 and are signed on its behalf by:
28 March 2025
J Houlston
Director
B H HOTELS LTD
COMPANY BALANCE SHEET
AS AT 30 JUNE 2024
30 June 2024
- 13 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
12
370
370
Current assets
Cash at bank and in hand
100
100
Creditors: amounts falling due within one year
18
(370)
(370)
Net current liabilities
(270)
(270)
Net assets
100
100
Capital and reserves
Called up share capital
24
100
100

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £0 (2023 - £0 profit).

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 28 March 2025 and are signed on its behalf by:
28 March 2025
J Houlston
Director
Company Registration No. 10476267
B H HOTELS LTD
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 14 -
Share capital
Revaluation reserve
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
£
£
£
£
£
£
Balance at 30 June 2022
100
5,794,950
(4,184,545)
1,610,505
1,105,446
2,715,951
Year ended 29 June 2023:
Loss for the year
-
-
(938,397)
(938,397)
(230,618)
(1,169,015)
Other comprehensive income:
Other comprehensive income of associates and jointly controlled entities accounted for using the equity method
-
(348,999)
-
(348,999)
-
(348,999)
Total comprehensive income for the year
-
(348,999)
(938,397)
(1,287,396)
(230,618)
(1,518,014)
Other movements
-
141,372
18,224
159,596
-
159,596
Balance at 29 June 2023
100
5,587,323
(5,104,718)
482,705
874,828
1,357,533
B H HOTELS LTD
GROUP STATEMENT OF CHANGES IN EQUITY (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
Share capital
Revaluation reserve
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
£
£
£
£
£
£
- 15 -
Year ended 30 June 2024:
Loss for the year
-
-
(969,614)
(969,614)
26,055
(943,559)
Other comprehensive income:
Other comprehensive income of associates and jointly controlled entities accounted for using the equity method
-
(206,572)
-
(206,572)
-
(206,572)
Total comprehensive income for the year
-
(206,572)
(969,614)
(1,176,186)
26,055
(1,150,131)
Balance at 30 June 2024
100
5,380,751
(6,074,332)
(693,481)
900,883
207,402
B H HOTELS LTD
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 16 -
Share capital
£
Balance at 30 June 2022
100
Year ended 29 June 2023:
Profit and total comprehensive income for the year
-
Balance at 29 June 2023
100
Year ended 30 June 2024:
Profit and total comprehensive income for the year
-
Balance at 30 June 2024
100
B H HOTELS LTD
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
- 17 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
30
1,279,340
1,304,263
Interest paid
(805,012)
(681,170)
Income taxes (paid)/refunded
-
77,422
Net cash inflow from operating activities
474,328
700,515
Investing activities
Purchase of tangible fixed assets
(176,108)
(140,627)
Proceeds on disposal of tangible fixed assets
-
43,673
Net cash used in investing activities
(176,108)
(96,954)
Financing activities
Repayment of borrowings
173,135
-
Repayment of bank loans
(73,878)
(75,198)
Payment of finance leases obligations
(581,148)
(191,323)
Net cash used in financing activities
(481,891)
(266,521)
Net (decrease)/increase in cash and cash equivalents
(183,671)
337,040
Cash and cash equivalents at beginning of year
487,278
150,238
Cash and cash equivalents at end of year
303,607
487,278
B H HOTELS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 18 -
1
Accounting policies
Company information

B H Hotels Ltd (“the company”) is a private company limited by shares domiciled and incorporated in England and Wales. The registered office is Ground Floor, 6 Queen Street, Leeds, West Yorkshire, United Kingdom, LS1 2TW.

 

The group consists of B H Hotels Ltd and all of its subsidiaries.

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.

The 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 for parent company information presented within the consolidated financial statements:

 

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

B H HOTELS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 19 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company B H Hotels Ltd together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 30 June 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.

1.5
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.

B H HOTELS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 20 -

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.

1.6
Intangible fixed assets - goodwill

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 20 years.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.7
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 land and buildings
Over the period of the lease
Leasehold improvements
5 - 50 years
Fixtures and fittings
3 - 15 years
Computers
3 - 5 years

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 recognised in the profit and loss account.

1.8
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

B H HOTELS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 21 -

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.9
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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.

B H HOTELS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 22 -

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.10
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.

1.11
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.

1.12
Financial instruments

The group 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 group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and 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.

B H HOTELS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 23 -
Impairment of financial assets

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

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

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

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group 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 group after deducting all of its liabilities.

Basic financial liabilities

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

 

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

 

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

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

B H HOTELS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 24 -
1.13
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.14
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 group’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 if, and only if, there is 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.

1.15
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.16
Retirement benefits

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

B H HOTELS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 25 -
1.17
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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 leased asset are consumed.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

B H HOTELS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 26 -
2
Judgements and key sources of estimation uncertainty
Carrying value and useful economic life of goodwill

The carrying value of goodwill is reviewed annually to ensure there are no indications of impairment. The directors have considered whether any impairment indicators exist at the reporting date and have determined that no impairment review is required.

 

The annual amortisation charge for consolidated goodwill is sensitive to changes in the estimated useful economic life and residual value of the underlying business. The useful economic life and residual value is re-assessed annually. They are amended when necessary to reflect current estimates, based on the underlying performance of the business. The carrying amount of goodwill on consolidation is detailed in note 10 and the amortisation rate is detailed in note 1.6.

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 note 11 and the depreciation rates applied are summarised in note 1.7.

Recoverability of trade and other debtors

The Group makes an estimate of the recoverable value of other debtors. When assessing impairment of trade and other debtors, management considers factors including the credit rating of debtors, the ageing profile of debtors and historical experience. The carrying amount of debtors is detailed in note 17.

Lease accounting

Determination of whether leases entered into by the Group as a lessee are either operating leases or finance leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor on a lease-by-lease basis. The directors have considered the terms of the Group's lease over its primary operating premises and have concluded that the lease represents a finance lease. Further details of the Group's finance lease are provided in note 21.

B H HOTELS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 27 -
3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Accommodation
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 item
2024
2023
£
£
Income
Exceptional item - Other operating income
86,194
92,947
Expenditure
Exceptional item - Admin costs (incl in Admin range)
178,716
132,867
178,716
132,867

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 year is stated after charging:
Exchange differences apart from those arising on financial instruments measured at fair value through profit or loss
592
-
Depreciation of owned tangible fixed assets
184,791
225,006
(Profit)/loss on disposal of tangible fixed assets
-
42,762
Amortisation of intangible assets
434,181
434,181
Operating lease charges
602,670
193,715
B H HOTELS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 28 -
6
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
25,000
24,800
For other services
All other non-audit services
3,000
14,602
7
Employees

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

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Management
8
9
-
-
Hotel staff
130
129
-
-
Total
138
138
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
2,878,468
2,875,138
-
0
-
0
Social security costs
153,933
145,698
-
-
Pension costs
44,012
40,748
-
0
-
0
3,076,413
3,061,584
-
0
-
0
B H HOTELS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 29 -
8
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
88,626
8,642
Other interest on financial liabilities
773,620
633,710
Interest on finance leases and hire purchase contracts
602,160
571,175
Total finance costs
1,464,406
1,213,527
B H HOTELS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 30 -
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 year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Loss before taxation
(917,978)
(1,174,616)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.50%)
(229,495)
(240,796)
Tax effect of expenses that are not deductible in determining taxable profit
(33,243)
18,950
Tax effect of income not taxable in determining taxable profit
143,629
32,449
Adjustments in respect of prior years
11,391
(4,869)
Group relief
(2,255)
23
Permanent capital allowances in excess of depreciation
28,490
24,464
Depreciation on assets not qualifying for tax allowances
-
1,377
Amortisation on assets not qualifying for tax allowances
108,546
89,007
Change in rate of deferred tax
(1,482)
(28,208)
Effect of super-deduction
-
0
(634)
Difference on SBA disposals - NBV vs WDV
-
0
8
Movement in deferred tax not recognised
-
0
102,628
Taxation charge/(credit)
25,581
(5,601)
B H HOTELS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 31 -
10
Intangible fixed assets
Group
Goodwill
£
Cost
At 30 June 2023 and 30 June 2024
8,683,614
Amortisation and impairment
At 30 June 2023
1,478,243
Amortisation charged for the year
434,181
At 30 June 2024
1,912,424
Carrying amount
At 30 June 2024
6,771,190
At 29 June 2023
7,205,371
The company had no intangible fixed assets at 30 June 2024 or 29 June 2023.
11
Tangible fixed assets
Group
Leasehold land and buildings
Leasehold improvements
Fixtures and fittings
Computers
Total
£
£
£
£
£
Cost
At 30 June 2023
15,344,040
2,624,741
407,915
55,957
18,432,653
Additions
-
0
131,604
38,387
6,117
176,108
At 30 June 2024
15,344,040
2,756,345
446,302
62,074
18,608,761
Depreciation and impairment
At 30 June 2023
270,616
27,004
112,332
21,345
431,297
Depreciation charged in the year
102,738
18,380
51,714
11,959
184,791
At 30 June 2024
373,354
45,384
164,046
33,304
616,088
Carrying amount
At 30 June 2024
14,970,686
2,710,961
282,256
28,770
17,992,673
At 29 June 2023
15,073,424
2,597,737
295,583
34,612
18,001,356
The company had no tangible fixed assets at 30 June 2024 or 29 June 2023.
B H HOTELS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 32 -
12
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
13
-
0
-
0
200
200
Investments in associates
14
864,779
1,127,775
70
70
Investments in joint ventures
15
1,921,031
2,439,123
100
100
2,785,810
3,566,898
370
370
Movements in fixed asset investments
Group
Shares in associates and joint ventures
£
Cost or valuation
At 30 June 2023
3,566,898
Share of profits
(574,516)
Share of other comprehensive income
(206,572)
At 30 June 2024
2,785,810
Carrying amount
At 30 June 2024
2,785,810
At 29 June 2023
3,566,898
Movements in fixed asset investments
Company
Shares in subsidiaries, associates and joint ventures
£
Cost or valuation
At 30 June 2023 and 30 June 2024
370
Carrying amount
At 30 June 2024
370
At 29 June 2023
370
B H HOTELS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 33 -
13
Subsidiaries

Details of the company's subsidiaries at 30 June 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
B H Hotels 3 Ltd
6 Queen Street, Leeds, LS1 2TW
Ordinary
100
-
B H Hotels 4 Limited
The Swan Hotel And Spa, Newby Bridge, Ulverston, LA12 8NB
Ordinary
-
60.00
The Swan Hotel (Newby Bridge) Holdings Limited
As above
Ordinary
-
60.00
The Swan Hotel (Newby Bridge) Limited
As above
Ordinary
-
60.00

The investment in B H Hotels 3 Ltd is held directly by the Company. The other subsidiary undertakings are held indirectly, through B H Hotels 3 Ltd.

14
Associates

Details of associates at 30 June 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Create Developments (Blackpool) Limited
1 Neptune Court, Hallam Way, Blackpool, FY4 5LZ
Ordinary
40
15
Joint ventures

Details of joint ventures at 30 June 2024 are as follows:

Name of undertaking
Registered office
% Held
Direct
St Michael's Falmouth Limited
St Michael's Hotel & Spa, Gyllyngvase Beach, Falmouth, Cornwall, TR11 4NB
50
16
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Finished goods and goods for resale
33,559
36,445
-
0
-
0
B H HOTELS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 34 -
17
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
197,672
170,796
-
0
-
0
Other debtors
112,153
192,259
-
0
-
0
Prepayments and accrued income
171,059
107,177
-
0
-
0
480,884
470,232
-
-
Amounts falling due after more than one year:
Deferred tax asset (note 22)
28,328
53,909
-
0
-
0
Total debtors
509,212
524,141
-
-
18
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans
20
32,112
73,878
-
0
-
0
Obligations under finance leases
21
647,608
654,677
-
0
-
0
Other borrowings
20
7,281,773
4,067,388
-
0
-
0
Trade creditors
695,369
770,154
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
200
200
Other taxation and social security
585,296
923,971
-
-
Other creditors
146,782
335,035
170
170
Accruals and deferred income
1,269,029
931,804
-
0
-
0
10,657,969
7,756,907
370
370
B H HOTELS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 35 -
19
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
20
-
0
32,112
-
0
-
0
Obligations under finance leases
21
15,830,680
15,833,687
-
0
-
0
Other borrowings
20
-
0
3,041,250
-
0
-
0
Other creditors
1,700,000
1,800,000
-
0
-
0
17,530,680
20,707,049
-
-
20
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
32,112
105,990
-
0
-
0
Other loans
7,281,773
7,108,638
-
0
-
0
7,313,885
7,214,628
-
-
Payable within one year
7,313,885
4,141,266
-
0
-
0
Payable after one year
-
0
3,073,362
-
0
-
0
B H HOTELS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
20
Loans and overdrafts
(Continued)
- 36 -

Bank loans

The bank loan relates to a loan under the Coronavirus Business Interruption Scheme (CBILS). The loan is denominated in Pounds Sterling and interest is charged at 6% per annum. Interest for the first 12 months is paid by the UK Government. The loan is repayable in equal monthly instalments, commencing six months after drawdown, and the final payment is scheduled for December 2024.

 

The bank loan is secured by fixed and floating charges over the assets of the Group.

 

Other loans

Other loans include a loan provided by Octopus Administrative Services Financial Limited, which is denominated in Pounds Sterling with a nominal interest rate of 5.5%. The carrying value at the period end is £3,041,250 (2023 - £3,041,250). The loan was due for repayment or renewal in January 2025 and is therefore classified as due within one year as at the reporting date.

 

The loan is secured by way of a fixed and floating charge over the leasehold property known as The Swan Hotel and land at Newby Bridge as well as the leasehold property known as part of Lake Windermere adjoining The Swan Hotel, Newby Bridge.

 

There is also a loan due to Fern Trading Limited, which is denominated in Pounds Sterling with a nominal interest of 9.5%. The carrying amount at the period end is £4,067,388 (2023 - £4,067,388). The loan was due for repayment or renewal in January 2023 and is therefore classified as due within one year as at the reporting date.

 

The loan is secured by way of a fixed and floating charge over the leasehold property known as The Swan Hotel and land at Newby Bridge as well as the leasehold property known as part of Lake Windermere adjoining The Swan Hotel, Newby Bridge.

 

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 Group. 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.

 

B H HOTELS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 37 -
21
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
1,218,572
1,225,748
-
0
-
0
In two to five years
2,295,888
2,295,888
-
0
-
0
In over five years
80,690,900
81,264,871
-
0
-
0
84,205,360
84,786,507
-
-
Less: future finance charges
(67,727,072)
(68,298,143)
-
0
-
0
16,478,288
16,488,364
-
0
-
0

The finance lease liabilities relate to amounts payable under a lease on the Group's long leasehold property. The amounts disclosed above represent the total minimum lease instalments that will be paid in each of the relevant periods.

 

The lease commenced on 6 February 2020 and has a term of 150 years. The lease is being paid quarterly, commencing on 1 April 2021 and total minimum future payments outstanding under this lease at 30 June 2024 amounted to £84,205,360 (2023 - £84,786,507). The effective rate of interest on the lease is 3.69%.

22
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Assets
Assets
2024
2023
Group
£
£
At beginning of year
28,239
52,704
Charged to profit and loss
-
-
Retirement benefit obligations
89
1,205
28,328
53,909
B H HOTELS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
22
Deferred taxation
(Continued)
- 38 -
Group
Company
2024
2024
Movements in the year:
£
£
Asset at 30 June 2023
(53,909)
-
Charge to profit or loss
25,581
-
Asset at 30 June 2024
(28,328)
-

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.

23
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
44,012
40,748

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

24
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 10p each
1,000
1,000
100
100
25
Reserves

Revaluation reserve

 

The balance on the consolidated revaluation reserve represents the group's share of unrealised revaluation surpluses on tangible fixed assets held by associates and joint ventures.

 

Profit and loss account

 

The profit and loss account represents accumulated comprehensive income for the year and prior periods, after deduction of dividends paid.

B H HOTELS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 39 -
26
Operating lease commitments
Lessee

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

Group
Company
2024
2023
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
-
-
27
Events after the reporting date

Disposal of investment in joint venture - St Michael's Falmouth

On 24 October 2024, B H Hotels Limited disposed of its entire holding in joint venture St Michael's Falmouth Limited, for consideration of £2,000,000.

 

Repayment of vendor deferred consideration

In November 2024, the vendor deferred consideration owed to certain shareholders of B H Hotels 4 Limited was repaid in full.

 

 

Refinancing of loans provided by Octopus Administrative Services Financial Limited and Fern Trading Limited

On 24 October 2024, the Group was released and discharged from all covenants, liabilities, obligations, charges and securities from the funders Octopus Administrative Services Financial Limited and Fern Trading Limited.

 

The loans were refinanced on the same date with Triodos Bank UK Limited, with a maximum facility value of £7,400,000. The facility is denominated in Pounds Sterling with a nominal interest rate of the base rate plus 2.75% and is due for repayment in monthly instalments within 20 years from the date of drawdown.

B H HOTELS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 40 -
28
Related party transactions

Key management personnel

The key management personnel of the Group are considered to be the Group's directors, together with the directors of the main trading entity in the Group. The remuneration paid to key management personnel in the period amounted to £94,972 (2023 - £101,828). In addition, pension contributions of £1,501 (2023 - £4,744) were paid by the Group to key management personnel.

 

Other transactions

Included in other creditors is an amount of £1,700,000 in respect of vendor deferred consideration owed to certain non-controlling interests within the Group. Interest is charged at a rate of 5% per annum.

 

The Group has taken the exemption set out in the FRS 102 from disclosing transactions with wholly owned group companies.

 

Unique Boutique Hotels Ltd

Unique Boutique Hotels Ltd is a company under common control. During the year, the Group made purchases of £78,116 (2023 - £73,182) from Unique Boutique Hotels Ltd. As at 30 June 2024, the Group owed £36,935 (2023 - £67,272) to Unique Boutique Hotels Ltd.

29
Controlling party

The ultimate controlling party is J Houlston.

30
Cash generated from group operations
2024
2023
£
£
Loss for the year after tax
(943,559)
(1,169,015)
Adjustments for:
Share of results of associates and joint ventures
574,516
158,288
Taxation charged/(credited)
25,581
(5,601)
Finance costs
1,464,406
1,213,527
(Gain)/loss on disposal of tangible fixed assets
-
42,762
Amortisation and impairment of intangible assets
434,181
434,181
Depreciation and impairment of tangible fixed assets
184,791
225,006
Movements in working capital:
Decrease in stocks
2,886
18,724
(Increase)/decrease in debtors
(10,652)
175,530
(Decrease)/increase in creditors
(452,810)
210,861
Cash generated from operations
1,279,340
1,304,263
B H HOTELS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 41 -
31
Analysis of changes in net debt - group
30 June 2023
Cash flows
Other non-cash changes
30 June 2024
£
£
£
£
Cash at bank and in hand
487,278
(183,671)
-
303,607
Borrowings excluding overdrafts
(7,214,628)
(99,257)
-
(7,313,885)
Obligations under finance leases
(16,488,364)
581,148
(571,072)
(16,478,288)
(23,215,714)
298,220
(571,072)
(23,488,566)
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