The directors present the strategic report for the year ended 30 June 2024.
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:
St Michael’s Falmouth Ltd – The group saw an increase in turnover in the year of 8.4%, however increased overheads, mainly relating to rent, resulted in a significant reduction in operating profit to £219k (2023: £628k).
Create Developments Blackpool Ltd – The company continued to operate against tough economic conditions and is focused on cost efficiencies and driving future growth.
The Swan Hotel and Spa – The period saw significant increases in turnover, gross margin and profitability, including a 5% increase in gross profit margin and 80% increase in EBITDA.
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.
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.
On behalf of the board
The directors present their annual report and financial statements for the year ended 30 June 2024.
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.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
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.
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.
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.
Investments of cash surpluses and borrowings are made through banks which must fulfil credit rating criteria approved by the board.
The auditor, TC Group, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
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).
Basis for 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.
Other information
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our audit:
the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
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:
We identified areas of laws and regulations that could reasonably be expected to have a material effect on the financial statements from our general commercial and sector experience, and through discussion with the directors and other management (as required by auditing standards), and discussed with the directors and other management the policies and procedures regarding compliance with laws and regulations;
We considered the legal and regulatory frameworks directly applicable to the financial statements reporting framework (FRS 102 and the Companies Act 2006), and the relevant tax compliance regulations in the UK;
We considered the nature of the industry, the control environment and business performance, including key drivers for management's remuneration;
We communicated identified laws and regulations throughout our team and remained alert to any indications of non-compliance throughout the audit;
We considered the procedures and controls that the company has established to address risks identified, or that otherwise prevent, deter and detect fraud; and how senior management monitors those programmes.
Based on this understanding we designed our audit procedures to identify non-compliance with such laws and regulations. Where the risk was considered to be higher, we performed audit procedures to address each identified risk. These procedures included: testing manual journals; reviewing the financial statement disclosures and testing to supporting documentation; performing analytical procedures; and enquiring of management, and were designed to provide reasonable assurance that the financial statements were free from material fraud or error.
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. We are not responsible for preventing non-compliance and cannot be expected to detect all non-compliance with laws and regulations.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
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.
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).
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.
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:
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;
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.
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.
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.
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.
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.
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.
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.
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.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
The 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, 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.
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.
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.
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, 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.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
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.
The tax expense represents the sum of the tax currently payable and deferred 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 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.
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.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
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.
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.
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.
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.
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.
All turnover arose within the United Kingdom.
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.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
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:
Details of the company's subsidiaries at 30 June 2024 are as follows:
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.
Details of associates at 30 June 2024 are as follows:
Details of joint ventures at 30 June 2024 are as follows:
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.
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%.
The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:
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.
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.
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.
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:
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.
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.