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3-31

















STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2024

FOR

SANDBANKS HOTEL LIMITED

SANDBANKS HOTEL LIMITED (REGISTERED NUMBER: 00556842)






CONTENTS OF THE FINANCIAL STATEMENTS
For The Year Ended 31 March 2024




Page

Company Information 1

Strategic Report 2

Report of the Directors 4

Report of the Independent Auditors 5

Statement of Comprehensive Income 8

Balance Sheet 9

Statement of Changes in Equity 10

Notes to the Financial Statements 11


SANDBANKS HOTEL LIMITED

COMPANY INFORMATION
For The Year Ended 31 March 2024







DIRECTORS: J G J Butterworth
J W E Barcellos
E J Adlem





SECRETARY: J W E Barcellos





REGISTERED OFFICE: Unit 1, St Stephens Court
15 - 17 St Stephens Road
Bournemouth
Dorset
BH2 6LA





REGISTERED NUMBER: 00556842 (England and Wales)





AUDITORS: Schofields
Chartered Accountants and Statutory Auditors
Unit 1, St Stephens Court
15-17 St Stephens Road
Bournemouth
Dorset
BH2 6LA

SANDBANKS HOTEL LIMITED (REGISTERED NUMBER: 00556842)

STRATEGIC REPORT
For The Year Ended 31 March 2024

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

REVIEW OF BUSINESS
The company is managed on a unified basis with Arnewood Estates Limited trading as FJB Hotels, together owning and operating three very unique and different award winning hotels located in Sandbanks, Poole.

The two companies have arrangements to provide intra group finance facilities to benefit the trading operation.

The results for the company are as follows:

2024 2023 2022
£'000 £'000 £'000

Turnover 7,638 10,464 12,746

Gross profit 2,895 4,264 6,600

Gross profit margin 37.9% 40.7% 51.8%

Gross profit margin (net of furlough claims) 37.9% 40.7% 53.9%

While the business showed signs of recovery post-pandemic, occupancy rates have since suffered due to the rising costs of living and lack of consumer confidence, impacting consumer spending and travel budgets. Although the company took proactive steps to manage its costs, the impact of rising energy costs, staff wages, and cost inflation remained significant. The hotel's profit margins were squeezed as a result, and while cost-control measures were implemented, they were not enough to fully offset the revenue shortfalls.

In measuring the performance of the hotels, the directors undertake a thorough and regular review of the following key performance indicators and comparisons to industry norms:

- RevPAR (Revenue achieved per available room);
- Accommodation, food and beverage sales and gross profit achieved;
- Staff and other costs compared to total turnover.

Despite challenging market conditions, the highly experienced board have continued to invest in both the hotel facilities and their staff. The company remains committed in providing an outstanding guest experience, and the dedication to all patrons continues to be a major asset.

PRINCIPAL RISKS AND UNCERTAINTIES
The Board consider risk assessment, identification of mitigating actions and internal control to be fundamental to the operation of the company. These are summarised as follows:

Reputational risk - The company prides itself on providing a first class customer service by delivering exceptional service and quality of surroundings. The company continuously monitors and responds to guest feedback on online platforms such as Trip Advisor.

Staffing risk - The company must both attract and retain high quality staff to deliver excellent customer service.

Property deterioration - The hotels are constantly being maintained and refreshed to a high standard to provide excellent guest facilities and service. Changes and adaptations to the building and rooms are made in response to market/guest feedback.

Health and Safety, Fire and Environmental Health - The company has a separate Health and Safety officer and engages external consultants to ensure that its premises and practices comply with its statutory obligations and provides a safe environment for both guests and staff.

UK economic conditions - The level of guest demand is dictated by business sector confidence and consumer spending power. Operations and pricing are adjusted accordingly.

Financial risks - These principally reflect liquidity, credit and interest rate risks.

Liquidity risk- The company manages and monitors cashflow on a day to day basis against a rolling twelve month cashflow forecast to ensure that debts and obligations are met as they fall due.

Credit risk - Credit risk on cash balances are minimised by the Board adopting a policy of depositing funds with regulated institutions. Trade debtors are monitored closely and strict credit control procedures adopted to reduce the risk of bad debts arising.


SANDBANKS HOTEL LIMITED (REGISTERED NUMBER: 00556842)

STRATEGIC REPORT
For The Year Ended 31 March 2024

FIXED ASSETS
The changes are reported in notes 9 to 11.

The directors consider that the market value of the company's land and buildings is greater than the net book value, but in the absence of a professional valuation the directors are unable to report upon this further.

ON BEHALF OF THE BOARD:





J G J Butterworth - Director


25 March 2025

SANDBANKS HOTEL LIMITED (REGISTERED NUMBER: 00556842)

REPORT OF THE DIRECTORS
For The Year Ended 31 March 2024

The directors present their report with the financial statements of the company for the year ended 31 March 2024.

PRINCIPAL ACTIVITY
The principal activity of the company in the year under review was that of hoteliers.

DIVIDENDS
No dividends will be distributed for the year ended 31 March 2024.

FUTURE DEVELOPMENTS
The directors will continue to maintain and develop the guest offerings, which are at the top end of the market, in unique locations, therefore operations are less affected than other hospitality businesses.

DIRECTORS
The directors shown below have held office during the whole of the period from 1 April 2023 to the date of this report.

J G J Butterworth
J W E Barcellos
E J Adlem

STATEMENT OF DIRECTORS' RESPONSIBILITIES
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-select suitable accounting policies and then apply them consistently;
-make judgements and accounting estimates that are reasonable and prudent;
-prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS
The auditors, Schofields, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:



J W E Barcellos - Secretary


25 March 2025

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
SANDBANKS HOTEL LIMITED

Opinion
We have audited the financial statements of Sandbanks Hotel Limited (the 'company') for the year ended 31 March 2024 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:
-give a true and fair view of the state of the company's affairs as at 31 March 2024 and of its loss for the year then ended;
-have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
-have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the 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 directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
- the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and
- the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:
- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
- the financial statements are not in agreement with the accounting records and returns; or
- certain disclosures of directors' remuneration specified by law are not made; or
- we have not received all the information and explanations we require for our audit.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
SANDBANKS HOTEL LIMITED


Responsibilities of directors
As explained more fully in the Statement of Directors' Responsibilities set out on page four, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the 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.

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

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

An understanding of the legal and regulatory framework the company operates in was obtained through discussions with directors and other management in addition to our general industry and sector experience. The most significant laws and regulations identified, being those that have a direct effect on material amounts and disclosures in the financial statements, are FRS 102, Companies Act 2006 and HM Revenue & Customs (HMRC) Tax Legislation.

We also considered other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate, or to avoid material penalty. These included but were not limited the requirements of the various health and safety regulations, licensing and food hygiene regulations, employment law and money laundering.

Audit procedures were performed to obtain sufficient evidence regarding compliance. These procedures include making enquiries to directors and other management in addition to the inspection of applicable regulatory and legal correspondence. Financial statement disclosures were reviewed and tested to supporting documentation.

Enquiries were also made to the directors and other management to assess the company's internal control environment and their policies and procedures on fraud risk. The company's systems and controls were documented, and audit procedures were designed to test these controls. Further, the risk of management override of controls was addressed through testing journal entries and other adjustments for appropriateness. The judgements made in making accounting estimates were assessed for any indication of potential bias, and the business rationale of significant transactions outside the normal course of the business was evaluated.

We have properly planned and performed the audit in accordance with auditing standards and all members of the engagement team have the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. However, the inherent nature of the audit, and the limited procedures performed, means there is an unavoidable risk that some irregularities may have gone undetected. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF
SANDBANKS HOTEL LIMITED


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




Mr I M Legg FCCA ACA (Senior Statutory Auditor)
for and on behalf of Schofields
Chartered Accountants and Statutory Auditors
Unit 1, St Stephens Court
15-17 St Stephens Road
Bournemouth
Dorset
BH2 6LA

25 March 2025

SANDBANKS HOTEL LIMITED (REGISTERED NUMBER: 00556842)

STATEMENT OF COMPREHENSIVE INCOME
For The Year Ended 31 March 2024

2024 2023
Notes £    £   

TURNOVER 4 7,637,588 10,464,174

Cost of sales 4,742,589 6,200,063
GROSS PROFIT 2,894,999 4,264,111

Administrative expenses 3,512,201 4,635,890
(617,202 ) (371,779 )

Other operating income 28,875 206,561
OPERATING LOSS 6 (588,327 ) (165,218 )

Income from fixed asset investments 22 22
(588,305 ) (165,196 )
Gain on revaluation of listed investments 2,252 2,718
(586,053 ) (162,478 )

Interest payable and similar expenses 7 12,300 12,891
LOSS BEFORE TAXATION (598,353 ) (175,369 )

Tax on loss 8 (149,220 ) 90,175
LOSS FOR THE FINANCIAL YEAR (449,133 ) (265,544 )

SANDBANKS HOTEL LIMITED (REGISTERED NUMBER: 00556842)

BALANCE SHEET
31 March 2024

2024 2023
Notes £    £    £    £   
FIXED ASSETS
Intangible assets 9 10,100 10,100
Tangible assets 10 38,277,129 38,070,346
Investments 11 42,899 40,647
38,330,128 38,121,093

CURRENT ASSETS
Stocks 12 164,658 184,003
Debtors 13 2,455,860 2,932,147
Cash at bank and in hand 184,705 164,586
2,805,223 3,280,736
CREDITORS
Amounts falling due within one year 14 1,431,209 2,143,293
NET CURRENT ASSETS 1,374,014 1,137,443
TOTAL ASSETS LESS CURRENT
LIABILITIES

39,704,142

39,258,536

CREDITORS
Amounts falling due after more than one year 15 (11,739,987 ) (10,847,206 )

PROVISIONS FOR LIABILITIES 17 (504,323 ) (502,365 )
NET ASSETS 27,459,832 27,908,965

CAPITAL AND RESERVES
Called up share capital 18 200 200
Revaluation reserve 19 9,936,545 9,936,545
Retained earnings 19 17,523,087 17,972,220
SHAREHOLDERS' FUNDS 27,459,832 27,908,965

The financial statements were approved by the Board of Directors and authorised for issue on 25 March 2025 and were signed on its behalf by:




J G J Butterworth - Director



J W E Barcellos - Director


SANDBANKS HOTEL LIMITED (REGISTERED NUMBER: 00556842)

STATEMENT OF CHANGES IN EQUITY
For The Year Ended 31 March 2024

Called up
share Retained Revaluation Total
capital earnings reserve equity
£    £    £    £   
Balance at 1 April 2022 200 18,237,764 9,936,545 28,174,509

Changes in equity
Deficit for the year - (265,544 ) - (265,544 )
Total comprehensive income - (265,544 ) - (265,544 )
Balance at 31 March 2023 200 17,972,220 9,936,545 27,908,965

Changes in equity
Deficit for the year - (449,133 ) - (449,133 )
Total comprehensive income - (449,133 ) - (449,133 )
Balance at 31 March 2024 200 17,523,087 9,936,545 27,459,832

SANDBANKS HOTEL LIMITED (REGISTERED NUMBER: 00556842)

NOTES TO THE FINANCIAL STATEMENTS
For The Year Ended 31 March 2024

1. STATUTORY INFORMATION

Sandbanks Hotel Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2. ACCOUNTING POLICIES

Basis of preparing the financial statements
These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Financial Reporting Standard 102 - reduced disclosure exemptions
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

the requirements of Section 7 Statement of Cash Flows;
the requirement of paragraph 3.17(d);
the requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirement of paragraph 33.7.

Preparation of consolidated financial statements
The financial statements contain information about Sandbanks Hotel Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, FJB Hotels Limited, Unit 1 St Stephens Court, 15-17 St Stephens Road, Bournemouth, BH2 6LA.

Related party exemption
The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Turnover
Turnover represents the provision of hotel and related services, including rental income. It is recognised when economic benefits flow to the company and the turnover can be reliably measured. It is measured as the fair value of the consideration received or receivable, excluding value added tax and other sales taxes.

Intangible assets
Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.
Fixtures and fittings - at variable rates on reducing balance
Motor vehicles - 25% on reducing balance

The carrying values of tangible fixed assets are reviewed for impairment if events or changes in circumstances indicate the carrying value may not be recoverable. Any impairment in the value will be charged to profit and loss account.

Freehold land and buildings are carried at historical cost and are not depreciated. The directors are of the opinion that the useful lives of these assets are sufficiently long and residual value so high that their value is not diminished by time and that the aggregate residual value is greater than their respective book values.

Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and condition. Cost is calculated using the first-in, first-out formula. Provision is made for damaged, obsolete and slow-moving stock where appropriate.

SANDBANKS HOTEL LIMITED (REGISTERED NUMBER: 00556842)

NOTES TO THE FINANCIAL STATEMENTS - continued
For The Year Ended 31 March 2024

2. ACCOUNTING POLICIES - continued

Financial instruments
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account.

Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured as amortised cost using the effective interest rate method, less impairment.

Taxation
Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to profit or loss over the relevant period. The capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits
The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Investments
Investments are recognised initially at fair value which is normally the transaction price excluding transaction costs. Subsequently, they are measured at fair value through profit or loss if the shares are publicly traded or their fair value can otherwise be measured reliably. Other investments are measured at cost less impairment.

Going concern
At the time of approving the financial statements, the directors have not identified material uncertainties related to events or conditions that may cast significant doubt about the ability of the company to continue as a going concern.

The directors in performing their assessment of going concern have considered the availability of intra-group loan and support arrangements for access to cash flows necessary for the day to day running of the company's operations.

Having assessed the principal risks the directors consider it appropriate for the accounts to be prepared on a going concern basis.

Change in presentation of comparatives
Balances due to group undertakings totalling £351,421, previously net off balances due from group undertakings within debtors, have been presented within creditors. This provides a more true and fair representation of these respective balances.

SANDBANKS HOTEL LIMITED (REGISTERED NUMBER: 00556842)

NOTES TO THE FINANCIAL STATEMENTS - continued
For The Year Ended 31 March 2024

3. CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, not always equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.

Useful economic lives of tangible assets
The annual depreciation charge for tangible 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 advancements, future investments, economic utilisation and the physical condition of the assets.

Carrying value of tangible assets
Tangible assets are assessed at each reporting date to determine whether there is any indication of impairment by reference to the fair values of assets held. Where there is an indication that an asset may be impaired, the carrying value is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying value exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs to sell and its value in use.

Freehold property
Freehold land and buildings are carried at historical cost and are not depreciated. The nature of the hotel trade and the company's policy of a high level of maintenance, refurbishment and upgrading ensures the premises are maintained to a very high standard of repair to protect the trade. The directors are of the opinion that the useful lives of these assets are sufficiently long and residual value so high that their value is not diminished by time and that the aggregate residual value is greater than their respective book values.

4. TURNOVER

The turnover and loss before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

2024 2023
£    £   
Hotel and related services 7,637,588 10,464,174
7,637,588 10,464,174

5. EMPLOYEES AND DIRECTORS
2024 2023
£    £   
Wages and salaries 3,458,852 4,526,449
Social security costs 273,321 337,344
Other pension costs 55,779 66,842
3,787,952 4,930,635

The average number of employees during the year was as follows:
2024 2023

Hotels 153 221
Management and marketing 27 26
180 247

2024 2023
£    £   
Directors' remuneration 130,431 123,830
Directors' pension contributions to money purchase schemes 866 1,407

SANDBANKS HOTEL LIMITED (REGISTERED NUMBER: 00556842)

NOTES TO THE FINANCIAL STATEMENTS - continued
For The Year Ended 31 March 2024

5. EMPLOYEES AND DIRECTORS - continued

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes 1 1

6. OPERATING LOSS

The operating loss is stated after charging:

2024 2023
£    £   
Hire of plant and machinery 25,451 34,241
Depreciation - owned assets 30,967 42,447
Depreciation - assets on hire purchase contracts 16,409 19,305
Loss on disposal of fixed assets 17,900 -
Auditors' remuneration 17,250 18,100
Local government grants - 6,000

Disclosure of remuneration receivable by auditors for other services has been disclosed in the group accounts of the parent company.

7. INTEREST PAYABLE AND SIMILAR EXPENSES
2024 2023
£    £   
Corporation tax interest 3,401 -
Hire purchase 8,899 12,891
12,300 12,891

8. TAXATION

Analysis of the tax (credit)/charge
The tax (credit)/charge on the loss for the year was as follows:
2024 2023
£    £   
Current tax:
UK corporation tax losses surrendered to group (151,178 ) (43,586 )

Deferred tax 1,958 133,761
Tax on loss (149,220 ) 90,175

UK corporation tax has been charged at 25% .

SANDBANKS HOTEL LIMITED (REGISTERED NUMBER: 00556842)

NOTES TO THE FINANCIAL STATEMENTS - continued
For The Year Ended 31 March 2024

8. TAXATION - continued

Reconciliation of total tax (credit)/charge included in profit and loss
The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2024 2023
£    £   
Loss before tax (598,353 ) (175,369 )
Loss multiplied by the standard rate of corporation tax in the UK of 25% (2023 -
19%)

(149,588

)

(33,320

)

Effects of:
Expenses not deductible for tax purposes 142 445
Income not taxable for tax purposes (6 ) (4 )
Capital allowances in excess of depreciation - (1,152 )
Adjustments to tax charge in respect of previous periods - 3,638
Change in deferred tax rate - 120,568
Losses surrendered to group at differing tax rates 232 -
Total tax (credit)/charge (149,220 ) 90,175

UK corporation tax has been charged at 25% (2023 - 19%). Deferred tax has been charged at 25% (2023 - 25%).

9. INTANGIBLE FIXED ASSETS
Goodwill
£   
COST
At 1 April 2023
and 31 March 2024 10,100
NET BOOK VALUE
At 31 March 2024 10,100
At 31 March 2023 10,100

Goodwill is not amortised because the Directors feel that its fixed goodwill attaching to the freehold property.

10. TANGIBLE FIXED ASSETS
Fixtures
Freehold and Motor
property fittings vehicles Totals
£    £    £    £   
COST
At 1 April 2023 37,646,358 4,201,862 42,400 41,890,620
Additions 151,649 144,910 - 296,559
Disposals - - (42,400 ) (42,400 )
At 31 March 2024 37,798,007 4,346,772 - 42,144,779
DEPRECIATION
At 1 April 2023 - 3,820,274 - 3,820,274
Charge for year - 47,376 - 47,376
At 31 March 2024 - 3,867,650 - 3,867,650
NET BOOK VALUE
At 31 March 2024 37,798,007 479,122 - 38,277,129
At 31 March 2023 37,646,358 381,588 42,400 38,070,346

The net book value of tangible fixed assets includes £ 92,986 (2023 - £ 151,795 ) in respect of assets held under hire purchase contracts.

SANDBANKS HOTEL LIMITED (REGISTERED NUMBER: 00556842)

NOTES TO THE FINANCIAL STATEMENTS - continued
For The Year Ended 31 March 2024

11. FIXED ASSET INVESTMENTS
Shares in
group Listed
undertakings investments Totals
£    £    £   
COST OR VALUATION
At 1 April 2023 4,698 35,949 40,647
Revaluations - 2,252 2,252
At 31 March 2024 4,698 38,201 42,899
NET BOOK VALUE
At 31 March 2024 4,698 38,201 42,899
At 31 March 2023 4,698 35,949 40,647

Cost or valuation at 31 March 2024 is represented by:

Shares in
group Listed
undertakings investments Totals
£    £    £   
Valuation in 2024 - 38,201 38,201
Cost 4,698 - 4,698
4,698 38,201 42,899

The total of £4,698 represents shares in subsidiary companies at cost.

The company's investments at the balance sheet date in the share capital of companies include the following:


Subsidiary
Nature of
business

Class of shares

% holding


Grosvenor Marine Services Limited
Sailing and
Watersports

Ordinary

100.00
FJB Hotels (Majorca) Limited Dormant Ordinary 100.00
Kilburn Varieties Limited Dormant Ordinary 98.00
Norfolk Hotel (Richmond Hill) Limited Dormant Ordinary 89.90

The registered office of the above subsidiary companies is Unit 1 St Stephens Court, 15-17 St Stephens Road, Bournemouth, BH2 6LA.

12. STOCKS
2024 2023
£    £   
Food and beverages 164,658 184,003

13. DEBTORS
2024 2023
£    £   
Amounts falling due within one year:
Trade debtors 24,659 60,604
Prepayments and accrued income 245,046 235,834
269,705 296,438

SANDBANKS HOTEL LIMITED (REGISTERED NUMBER: 00556842)

NOTES TO THE FINANCIAL STATEMENTS - continued
For The Year Ended 31 March 2024

13. DEBTORS - continued
2024 2023
£    £   
Amounts falling due after more than one year:
Amounts owed by group undertakings 2,186,155 2,635,709

Aggregate amounts 2,455,860 2,932,147

14. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
2024 2023
£    £   
Hire purchase contracts (see note 16) 28,683 39,873
Trade creditors 133,882 164,430
Amounts owed to group undertakings 333,135 349,629
Corporation tax - 90,519
Social security and other taxes 128,730 116,346
Other creditors 371,168 534,813
Accruals and deferred income 435,611 847,683
1,431,209 2,143,293

15. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR
2024 2023
£    £   
Hire purchase contracts (see note 16) 31,626 75,413
Amounts owed to group undertakings 11,708,361 10,771,793
11,739,987 10,847,206

16. LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Hire purchase contracts
2024 2023
£    £   
Net obligations repayable:
Within one year 28,683 39,873
Between one and five years 31,626 75,413
60,309 115,286

Non-cancellable operating leases
2024 2023
£    £   
Within one year 25,451 34,241

17. PROVISIONS FOR LIABILITIES
2024 2023
£    £   
Deferred tax 504,323 502,365

SANDBANKS HOTEL LIMITED (REGISTERED NUMBER: 00556842)

NOTES TO THE FINANCIAL STATEMENTS - continued
For The Year Ended 31 March 2024

17. PROVISIONS FOR LIABILITIES - continued

Deferred
tax
£   
Balance at 1 April 2023 502,365
Provided during year 1,958
Balance at 31 March 2024 504,323

The deferred tax provision is analysed as follows:

20242023

Accelerated capital allowances498,294496,899
Revaluation of listed investments6,0295,466
504,323502,365


18. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 2024 2023
value: £    £   
200 Ordinary £1 200 200

19. RESERVES
Retained Revaluation
earnings reserve Totals
£    £    £   

At 1 April 2023 17,972,220 9,936,545 27,908,765
Deficit for the year (449,133 ) (449,133 )
At 31 March 2024 17,523,087 9,936,545 27,459,632

Retained earnings
Retained earnings represents cumulative profits and losses net of dividends and other adjustments.

Revaluation reserve
The non-distributable revaluation reserve represents the cumulate effect of revaluations of freehold properties to their fair value.

20. PENSION COMMITMENTS

The company operates a defined contribution pension plan for its employees. The amount recognised as an expense in the period was £55,779 (2023 - £66,842).

21. CONTINGENT LIABILITIES

The company has provided a guarantee in respect of bank loans held in parent company FJB Hotels Limited and fellow subsidiary company Arnewood Estates Limited. As at 31 March 2024 the outstanding bank loan balances in these companies amounted to £5,947,203 (2023 - £6,000,000).

22. RELATED PARTY DISCLOSURES

Entities over which the entity has control, joint control or significant influence
2024 2023
£    £   
Amount due to related parties 114,158 114,158

SANDBANKS HOTEL LIMITED (REGISTERED NUMBER: 00556842)

NOTES TO THE FINANCIAL STATEMENTS - continued
For The Year Ended 31 March 2024

22. RELATED PARTY DISCLOSURES - continued

Other related parties
2024 2023
£    £   
Purchases - 45,500
Amount due to related party 22,463 22,463

23. ULTIMATE PARENT COMPANY

The ultimate parent company is FJB Hotels Limited whose registered office is Unit 1 St Stephens Court, 15-17 St Stephens Road, Bournemouth, BH2 6LA.

24. GOVERNMENT GRANTS

In the previous year, the company benefited from local government grants totalling £6,000 to support the company through the Covid-19 pandemic