Company Registration No. 01461396 (England and Wales)
DUKES HOTEL LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
DUKES HOTEL LIMITED
COMPANY INFORMATION
Directors
Ahmed Sultan Ahmed Bin Sulayem
Abdulla Sultan Ahmad Sultan Bin Sulayem
Sultan Ahmad Sultan Bin Sulayem
Company number
01461396
Registered office
35 36 37 & 38 St. James's Place
London
SW1A 1NY
England
Auditor
HW Fisher Audit
Acre House
11-15 William Road
London
NW1 3ER
United Kingdom
DUKES HOTEL LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 20
DUKES HOTEL LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

The directors present the strategic report for the year ended 31 March 2024.

Fair review of the business

The financial results for the year ended 31 March 2024 are contained in the statement of comprehensive income of these accounts.

The turnover for the year ended 31 March 2024 showed a significant increase to £11,617,410 from £9,379,065 in 2023. This growth was largely driven by an increase in rooms revenue made up of a 9.2% increase in occupancy and 5.9% increase on room rate. The London luxury market stabilised after the influx of new inventory, with an average growth in occupancy of 4.9% and rate growth of 3.9% across the London luxury market. Leisure was the primary market segment for the hotel at 79% of rooms revenue, primarily driven by U.S. travellers. The Corporate segment grew by 16% through a 10% increase in rate and 6% increase in occupancy.

 

In addition to growth in room revenue, food and beverage revenues increased by 26% through a 7% increase in covers and a 17% increase in spend per person.

Principal risks and uncertainties

The directors consider the following to be the principal risks and uncertainties facing the hotel.

Competitors

Some of the hotel’s direct competitors are continuing their strategy of attempting to drive occupancy through reductions in their room rates. This could result in ongoing downward pressure on room rates for the hotel.

 

October 2024 budget

The measures announced in the October 2024 UK Government budget will impact the hotel’s operating costs, particularly payroll. It is possible that the government budget may have a wider economic impact.

 

Hotel refurbishment

The Hotel temporarily closed for refurbishment in January 2025. The Dukes Bar will continue to trade throughout the refurbishment. There is a phased approach to reopening with some food and beverage outlets reopening in April 2025 and 55% of bedrooms from September 2025, in addition to all remaining food and beverage operations. The remaining 45% of bedroom stock will reopen in December 2025.

 

During the refurbishment robust cashflow management will be in place to mitigate any risks relating to the servicing of hotel liabilities. Due to the hotel closure operational positions will be made redundant, and a phased approach to recruitment will ensure that payroll costs are only incurred in line with the reopening schedules.

 

The loan facility in the parent company is repayable in November 2025, however management are working on closing and refinancing the facility with a new lender by no later than Q2 of 2025. Along with the refinancing of the existing loan, management are seeking additional financing to fund the refurbishment works.

 

Future developments

Other than the refurbishment plans specified above, no other developments are currently planned.

DUKES HOTEL LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -

Financial risk management

The company cash flow is reviewed on a weekly basis by senior management and its parent company to ensure that all business commitments are achieved on a timely basis.

 

Environmental

The business has created a Sustainability Strategy with an associated action plan. Implementation is ongoing using an ESG framework to achieve the applicable deliverables. Silver accreditation has been achieved and independently audited by EarthCheck. Initiatives will continue to be implemented to ensure that the business will remain compliant with best practice environmental guidelines. The refurbishment scope of works includes measures designed to increase the EPC rating from E to B.

 

Personnel

The closure of the hotel for an extended period of time for refurbishment will necessitate making the majority of operational roles redundant. The company will seek to do the very best possible for the team members whilst remaining aligned with legal requirements. The company will take legal advice at every stage of the process and will balance legal compliance with the objective of being fair, transparent and empathetic as much as possible for the team members. A core team will be retained to continue the operation of Dukes Bar throughout the refurbishment in addition to team members being retained to undertake commercial, financial and HR functions and prepare the hotel for its re-launch.

 

The acquisition and retention of high performing employees remains a focus in all areas of the business. Employee wellbeing remains a priority. During the post-refurbishment reopening, the company will continue to implement measures to attract talented team members and maintain high levels of employee engagement. Proactive recruitment will bring a diverse range of new employees into the business and training programmes will be introduced to develop the skills and abilities of the team.

 

Employees with disabilities

The company gives full consideration to applications for employment from persons with disabilities. Where existing employees become disabled, it is the group's policy wherever practicable to provide continuing employment under normal terms and conditions to provide training, career development and promotion opportunities to employees with disabilities where appropriate.

On behalf of the board

Abdulla Sultan Ahmad Sultan Bin Sulayem
Director
28 March 2025
DUKES HOTEL LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -

The directors present their annual report and financial statements for the year ended 31 March 2024.

Principal activities

The principal activity of the company continued to be that of ownership and operation of Dukes Hotel in London.

Results and dividends

The results for the year are set out on page 8.

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

Directors

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

Ahmed Sultan Ahmed Bin Sulayem
Abdulla Sultan Ahmad Sultan Bin Sulayem
Sultan Ahmad Sultan Bin Sulayem
Strategic report

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

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

On behalf of the board
Abdulla Sultan Ahmad Sultan Bin Sulayem
Director
28 March 2025
DUKES HOTEL LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -

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:

 

 

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.

DUKES HOTEL LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF DUKES HOTEL LIMITED
- 5 -
Opinion

We have audited the financial statements of Dukes Hotel Limited (the 'company') for the year ended 31 March 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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 company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The 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:

DUKES HOTEL LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DUKES HOTEL LIMITED
- 6 -
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 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 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. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

As part of our planning process:

The key procedures we undertook to detect irregularities including fraud during the course of the audit included:

DUKES HOTEL LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF DUKES HOTEL LIMITED
- 7 -

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 property planned and performed our audit in accordance with auditing standards. The primary responsibility for the prevention and detection of irregularities and fraud rests with the directors of the company.

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.

Use of our report

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

Russell Nathan (Senior Statutory Auditor)
For and on behalf of HW Fisher Audit
Chartered Accountants
Statutory Auditor
Acre House
11-15 William Road
London
NW1 3ER
United Kingdom
28 March 2025
DUKES HOTEL LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
11,617,410
9,379,065
Cost of sales
(5,705,053)
(4,550,176)
Gross profit
5,912,357
4,828,889
Administrative expenses
(2,992,636)
(3,471,127)
Other operating income
91,023
109,417
Operating profit
4
3,010,744
1,467,179
Interest payable and similar expenses
7
(1,111,103)
(1,108,067)
Profit before taxation
1,899,641
359,112
Tax on profit
8
(118,194)
(16,986)
Profit for the financial year
1,781,447
342,126

The profit and loss account has been prepared on the basis that all operations are continuing operations.

DUKES HOTEL LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 9 -
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
9
29,612,751
16,788,252
Current assets
Stocks
10
106,013
57,077
Debtors
11
2,876,098
654,885
Cash at bank and in hand
1,114,845
504,382
4,096,956
1,216,344
Creditors: amounts falling due within one year
12
(32,090,756)
(18,223,455)
Net current liabilities
(27,993,800)
(17,007,111)
Total assets less current liabilities
1,618,951
(218,859)
Provisions for liabilities
Deferred tax liability
13
120,843
64,480
(120,843)
(64,480)
Net assets/(liabilities)
1,498,108
(283,339)
Capital and reserves
Called up share capital
15
2,100,100
2,100,100
Profit and loss reserves
(601,992)
(2,383,439)
Total equity
1,498,108
(283,339)
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:
Abdulla Sultan Ahmad Sultan Bin Sulayem
Director
Company Registration No. 01461396
DUKES HOTEL LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
Share capital
Profit and loss reserves
Total
£
£
£
As restated for the period ended 31 March 2023:
Balance at 1 April 2022
2,100,100
(2,725,565)
(625,465)
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
342,126
342,126
Balance at 31 March 2023
2,100,100
(2,383,439)
(283,339)
Year ended 31 March 2024:
Profit and total comprehensive income for the year
-
1,781,447
1,781,447
Balance at 31 March 2024
2,100,100
(601,992)
1,498,108
DUKES HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
1
Accounting policies
Company information

Dukes Hotel Limited is a private company limited by shares incorporated in England and Wales. The registered office is 35 36 37 & 38 St. James's Place, London, England, SW1A 1NY.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

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

 

 

The financial statements of the company are consolidated in the financial statements of Seven Tides UK Holding Limited. These consolidated financial statements are available from its registered office, 35-38 St. James' Place, London, SW1A 1NY, England.

1.2
Going concern

The company has seen improvement in its operations in the year to 31 March 2024 being the second year the business has been fully operational since the COVID-19 pandemic began. Occupancy is close to pre-pandemic levels, as well as boost in average room rate has seen the company make a profit in the year of £1,781,366 (2023: £342,126). The company is now in a net asset position of £1,498,027 (2023: net liability £283,339) however, the company is still in a net current liability position of £28,006,117 (2023: £17,007,111) as at 31 March 2024. true

From January 2025, the hotel has temporarily closed to allow for an extensive refurbishment project, with anticipated re-opening date for Autumn 2025. The shareholders are providing support to the company for the refurbishment works.

The company's parent company has bank loans due for repayment in November 2025, which management are in the process of refinancing the existing bank loan, and obtaining an additional facility in order to fund the refurbishment.

Having obtained satisfactory assurances from the ultimate shareholder of their ongoing support, the directors have a reasonable expectation that the company has adequate available resources to continue in operation 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 derived from hotel operations, and arose wholly in the United Kingdom. Turnover is recognised when services have been rendered. The turnover of the hotel is derived primarily from the rental of rooms and food and beverage sales. Turnover is all rendering of goods and services.

 

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.

DUKES HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 12 -
1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Leasehold land and buildings
Over the life of the lease
Leasehold improvements
15 years
Plant and equipment
3 to 15 years
Fixtures and fittings
3 to 6 years
Arts and antiques
Nil

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.

1.6
Stocks

Stocks are stated at the lower of cost and estimated selling price. The cost of stock includes the purchase of food and beverages.

1.7
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.

DUKES HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 13 -
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 company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors and loans 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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

1.8
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.

DUKES HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 14 -
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.

1.9
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.

1.10
Retirement benefits

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

1.11
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.

DUKES HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
- 15 -
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.

Tangible fixed assets

Tangible fixed assets are depreciated over their useful economic lives, taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

 

Arts and antiques are owned by the hotel to provide ambience and improve the guest experience. During the year to 31 March 2021, a formal valuation was completed on these assets estimating a residual value in excess of the cost and as such the impairment was reversed. Management's best estimate as at 31 March 2024 considers the valuation report to be materially correct, and therefore no impairment has been recognised against this balance.

Accrued costs for improvement works

There is planned future expenditure for compliance work like Fire Safety and Maintenance. The expected costs for planned works were estimated at £293,000 and have been accrued in the accounts for the year ended 31 March 2024. The basis for these costs are on past refurbishment works for similar areas within the hotel and the quotes received from service providers.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Hotel revenue
8,809,296
7,119,404
Food and drink revenue
2,669,283
2,131,353
Other revenue
138,831
128,308
11,617,410
9,379,065
4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Depreciation of owned tangible fixed assets
230,643
323,198
Operating lease charges
610,656
725,000
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
56,598
56,383
DUKES HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 16 -
6
Employees

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

2024
2023
Number
Number
Administrative staff
12
11
Hotel staff
90
77
Total
102
88

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
3,401,646
2,907,463
Social security costs
274,307
233,197
Pension costs
50,563
38,618
3,726,516
3,179,278
7
Interest payable and similar expenses
2024
2023
£
£
Interest payable to group undertakings
1,111,103
1,108,067
8
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
61,831
-
0
Deferred tax
Origination and reversal of timing differences
56,363
16,986
Total tax charge
118,194
16,986
DUKES HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
8
Taxation
(Continued)
- 17 -

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

2024
2023
£
£
Profit before taxation
1,899,641
359,112
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
474,910
68,231
Tax effect of expenses that are not deductible in determining taxable profit
20,559
33,632
Group relief
(429,469)
(79,018)
Permanent capital allowances in excess of depreciation
-
0
(58,462)
Depreciation on assets not qualifying for tax allowances
52,194
50,135
Movement in deferred tax not recognised
-
0
(28,731)
Other movement
-
0
3,131
Remeasurement of deferred tax for changes in tax rates
-
0
11,082
Deferred tax
-
0
16,986
Taxation charge for the year
118,194
16,986
9
Tangible fixed assets
Leasehold land and buildings
Leasehold improvements
Plant and equipment
Fixtures and fittings
Arts and antiques
Total
£
£
£
£
£
£
Cost
At 1 April 2023
15,569,847
821,743
4,772,580
5,921,968
180,904
27,267,042
Additions
12,719,662
64,146
206,317
65,017
-
0
13,055,142
Disposals
-
0
(7,750)
(440,016)
(764,378)
-
0
(1,212,144)
At 31 March 2024
28,289,509
878,139
4,538,881
5,222,607
180,904
39,110,040
Depreciation and impairment
At 1 April 2023
-
0
250,659
4,488,168
5,739,963
-
0
10,478,790
Depreciation charged in the year
-
0
77,413
63,645
89,585
-
0
230,643
Eliminated in respect of disposals
-
0
(7,750)
(440,016)
(764,378)
-
0
(1,212,144)
At 31 March 2024
-
0
320,322
4,111,797
5,065,170
-
0
9,497,289
Carrying amount
At 31 March 2024
28,289,509
557,817
427,084
157,437
180,904
29,612,751
At 31 March 2023
15,569,847
571,084
284,412
182,005
180,904
16,788,252
DUKES HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 18 -
10
Stocks
2024
2023
£
£
Food, beverages and other consumables
106,013
57,077
11
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
291,532
240,464
Amounts owed by group undertakings
55,614
62,576
Other debtors
2,078,896
140,242
Prepayments and accrued income
450,056
211,603
2,876,098
654,885
12
Creditors: amounts falling due within one year
2024
2023
as restated
£
£
Trade creditors
791,603
570,643
Amounts owed to group undertakings
28,828,851
14,842,113
Corporation tax
73,403
11,572
Other taxation and social security
73,659
285,651
Other creditors
1,442,276
1,519,629
Accruals and deferred income
880,964
993,847
32,090,756
18,223,455

All amounts owed to group undertakings are unsecured, and bear interest at a fixed rate of 6.25%.

13
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
556,836
502,065
Short term timing differences
(435,993)
(437,585)
120,843
64,480
DUKES HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
13
Deferred taxation
(Continued)
- 19 -
2024
Movements in the year:
£
Liability at 1 April 2023
64,480
Charge to profit or loss
56,363
Liability at 31 March 2024
120,843
14
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
50,563
38,618

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

15
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
2,100,100
2,100,100
2,100,100
2,100,100
16
Financial commitments, guarantees and contingent liabilities

A bank loan by Oaknorth Bank PLC to the parent company, Seven Tides UK Holding Limited, is secured by a fixed and floating charge over the assets of the company. The loan is due for repayment in November 2025. As at 31 March 2024 the total loan of £23,500,000 (2023 - £23,500,000) was outstanding.

17
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
700,456
602,040
Between two and five years
2,800,055
2,400,968
In over five years
83,982,740
27,478,356
87,483,251
30,481,364
DUKES HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 20 -
18
Related party transactions
Transactions with related parties

At the balance sheet date the company was owed £55,614 (2023 - £55,614) from Seven Tides Limited, a company under common control. There were no transactions in the year.

 

At the balance sheet date the company owed £1,170,000 (2023 - £1,170,000) to its ultimate parent entity, Seven Tides International LLC. There were no transactions in the year.

 

At the balance sheet date, included within other creditors are amounts of £1,120,000 (2023 - £1,120,000) which were due to the directors. There were no transactions in the year.

19
Controlling party

The immediate parent company is Seven Tides UK Holding Limited, a company incorporated in the United Kingdom. Seven Tides UK Holding Limited is both the largest and smallest set of consolidated financial statements that include the results of this company. These consolidated group financial statements can be obtained from 35-38 St James Place, London, SW1A 1NY.

 

The ultimate controlling entity is Seven Tides International LLC, a company incorporated in United Arab Emirates.

 

The ultimate controlling party is Sultan Ahmad Bin Sulayem.

 

20
Prior period adjustment
Changes to the balance sheet
As previously reported
Adjustment
As restated at 31 Mar 2023
£
£
£
Creditors due within one year
Other creditors
(4,254,119)
(13,672,113)
(17,926,232)
Creditors due after one year
Other creditors
(13,672,113)
13,672,113
-
Net assets
(283,339)
-
(283,339)
Capital and reserves
Total equity
(283,339)
-
(283,339)

In the prior period, amounts owed to group undertakings of £13,672,113 were recognised within creditors due in greater than one year. However, the loan agreement term ended in 2019 and therefore have been restated to be recognised within creditors due in less than one year.

Changes to the profit and loss account
As previously reported
Adjustment
As restated
Period ended 31 March 2023
£
£
£
Profit for the financial period
342,126
-
342,126
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