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REGISTERED NUMBER: 05371092 (England and Wales)















Audited Financial Statements

For The Year Ended 30 June 2024

for

Capital Hotels Limited

Capital Hotels Limited (Registered number: 05371092)






Contents of the Financial Statements
For The Year Ended 30 June 2024




Page

Company Information 1

Balance Sheet 2

Notes to the Financial Statements 3


Capital Hotels Limited

Company Information
For The Year Ended 30 June 2024







DIRECTORS: Mr A Merali
Mrs S Merali





SECRETARY: Mr S Damani





REGISTERED OFFICE: 7 Greenock Road
Acton
London
W3 8DU





REGISTERED NUMBER: 05371092 (England and Wales)





AUDITORS: RNS Business Solutions Limited
Chartered Accountants
Statutory Auditors
276 Preston Road
Harrow
Middlesex
HA3 0QA

Capital Hotels Limited (Registered number: 05371092)

Balance Sheet
30 June 2024

30/6/24 30/6/23
Notes £    £   
FIXED ASSETS
Intangible assets 5 - 132,575
Tangible assets 6 9,010,182 8,505,333
9,010,182 8,637,908

CURRENT ASSETS
Debtors 7 10,555,596 9,808,012
Cash at bank and in hand 235,497 372,916
10,791,093 10,180,928
CREDITORS
Amounts falling due within one year 8 (767,052 ) (524,474 )
NET CURRENT ASSETS 10,024,041 9,656,454
TOTAL ASSETS LESS CURRENT
LIABILITIES

19,034,223

18,294,362

CREDITORS
Amounts falling due after more than one year 9 (9,755,639 ) (9,759,924 )

PROVISIONS FOR LIABILITIES 12 (19,775 ) (33,959 )
NET ASSETS 9,258,809 8,500,479

CAPITAL AND RESERVES
Called up share capital 13 400 400
Profit and loss account 9,258,409 8,500,079
SHAREHOLDERS' FUNDS 9,258,809 8,500,479

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

In accordance with Section 444 of the Companies Act 2006, the Profit and Loss Account has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 27 March 2025 and were signed on its behalf by:





Mr A Merali - Director


Capital Hotels Limited (Registered number: 05371092)

Notes to the Financial Statements
For The Year Ended 30 June 2024

1. STATUTORY INFORMATION

Capital Hotels 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 applicable United Kingdom accounting standards, including Financial Reporting Standard 102 - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' ('FRS 102'), and with the Companies Act 2006. The financial statements have been prepared on the historical cost basis except for the modification to a fair value basis for certain financial instruments as specified in the accounting policies below.

The financial statements are presented in Sterling (£), which is the company's functional currency.

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 requirement of Section 7 Statement of Cash Flows;
- the requirement of Section 3 Financial Statement Presentation paragraph 3.17(d);
- the requirement of Section 33 Related Party Disclosure paragraph 33.7.

Under FRS 102, the Company has taken advantage of the above exemption on the basis that it is a qualifying entity and the parent company includes the results of this company in its published consolidated financial statements as stated in the Ultimate Parent Company note.

Significant judgements and estimates
The company makes certain judgements and estimates regarding the future. Judgements and estimates are continually evaluated based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. In the future, actual experience may differ from these judgements and estimates. The judgements and estimates that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

Judgements:
(i) Amortisation rate
The goodwill is expected to have more than 10 years of useful economic life. However it is not possible to calculate the useful economic life with certainty. Hence this is amortised over 10 years.

(ii) Depreciation rates
Annual rates applied in the depreciation policies are based on experience and past performance. Rates are continuously under assessment which may lead to revision in the future.

Capital Hotels Limited (Registered number: 05371092)

Notes to the Financial Statements - continued
For The Year Ended 30 June 2024

2. ACCOUNTING POLICIES - continued

Turnover
Turnover represents sales (excluding VAT) of services, net of discounts, provided in the normal course of its trading activity. The sales are recognised when services have been rendered. The turnover of the hotel is derived primarily from the room rental and sale of food and beverage. The turnover is recognised based on the date of arrival of the guest.

Goodwill
Externally purchased goodwill is stated at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised over its estimated useful life of ten years on a straight line basis from the transition date to FRS 102 (1 July 2014). As the useful economic life is difficult to be established reliably, the directors have chosen ten years as permitted by FRS 102.

Tangible fixed assets
Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.
Freehold property - nil rate
Long leasehold - nil rate
Fixtures and fittings - 15% on reducing balance
Computer equipment - 25% on cost

Tangible fixed assets are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using either a straight line or reducing balance method, as indicated above.

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Freehold property is not depreciated on the grounds that the carrying value is maintained in excess of the historical costs.This departs from the requirements of S.17 FRS 102 in order to present a true and fair view.

Taxation
Current tax is recognised for the amount of income tax payable in respect of the taxable profit for the current or past reporting periods using the tax rates and laws that that have been enacted or substantively enacted by the reporting date.

Deferred tax is provided in full on timing differences which result in an obligation at the balance sheet date to
pay more tax, or a right to pay less tax, at a future date, at rates expected to apply when they crystallise, based on current tax rates and law. Timing differences arise from the inclusion of items of income and expenditure in taxation computations in periods different from those in which they are included in the financial statements. Deferred tax assets are recognised to the extent that it is regarded as more likely than not that they will be recovered. Deferred tax assets and liabilities are not discounted.

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.

Capital Hotels Limited (Registered number: 05371092)

Notes to the Financial Statements - continued
For The Year Ended 30 June 2024

2. ACCOUNTING POLICIES - continued

Financial instruments
The Company has chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments.

(i) Financial assets
Basic financial assets (including trade and other receivables, cash and bank balances) are initially recognised at transaction price, 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. Such assets are subsequently carried at amortised cost using the effective interest method.

At the end of each reporting period, financial assets measured at amortised cost are assessed for objective evidence of impairment. The impairment loss is recognised in the Statement of Comprehensive Income.

(ii) Financial liabilities
Basis financial liabilities (including trade and other payables, bank loans, 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 receipts discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Debtors
Short term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value (net of transaction costs) and are measured subsequently at amortised cost using the effective interest method, less any impairment.

Creditors
Short term trade creditors are measured at the transaction price. Other financial liabilities (including bank loans) are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Cash and cash equivalents
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short-term highly liquid investments with original maturities of three months or less and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

Going concern
The directors have reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future, which is a period of at least 12 months from the date of signing these financial statements. The company also has support from group companies and has secured finance with the company's banks. Therefore, the financial statements have been prepared on a going concern basis.

3. EMPLOYEES AND DIRECTORS

The average number of employees during the year was 12 (2023 - 13 ) .

4. AUDITORS' REMUNERATION
30/6/24 30/6/23
£    £   
Fees payable to the company's auditors for the audit of the company's
financial statements

7,500

7,000

Capital Hotels Limited (Registered number: 05371092)

Notes to the Financial Statements - continued
For The Year Ended 30 June 2024

5. INTANGIBLE FIXED ASSETS
Goodwill
£   
COST
At 1 July 2023
and 30 June 2024 2,046,000
AMORTISATION
At 1 July 2023 1,913,425
Charge for year 132,575
At 30 June 2024 2,046,000
NET BOOK VALUE
At 30 June 2024 -
At 30 June 2023 132,575

6. TANGIBLE FIXED ASSETS
Fixtures
Freehold Long and Computer
property leasehold fittings equipment Totals
£    £    £    £    £   
COST
At 1 July 2023 6,253,396 2,098,237 846,296 53,971 9,251,900
Additions - 564,800 4,214 3,000 572,014
Disposals - - (579,281 ) (6,581 ) (585,862 )
At 30 June 2024 6,253,396 2,663,037 271,229 50,390 9,238,052
DEPRECIATION
At 1 July 2023 - - 704,824 41,743 746,567
Charge for year - - 14,784 5,240 20,024
Eliminated on disposal - - (532,140 ) (6,581 ) (538,721 )
At 30 June 2024 - - 187,468 40,402 227,870
NET BOOK VALUE
At 30 June 2024 6,253,396 2,663,037 83,761 9,988 9,010,182
At 30 June 2023 6,253,396 2,098,237 141,472 12,228 8,505,333

7. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
30/6/24 30/6/23
£    £   
Trade debtors 38,037 40,583
Amounts owed by group undertakings 10,425,496 9,577,193
Other debtors 92,063 190,236
10,555,596 9,808,012

Capital Hotels Limited (Registered number: 05371092)

Notes to the Financial Statements - continued
For The Year Ended 30 June 2024

7. DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR - continued

The amounts owed by group undertakings are non interest bearing loans and receivable on demand.

8. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
30/6/24 30/6/23
£    £   
Trade creditors 40,749 87,014
Amounts owed to group undertakings - 1,757
Taxation and social security 464,473 183,874
Other creditors 261,830 251,829
767,052 524,474

The amounts owed to group undertakings are non interest bearing loans and repayable on demand.

9. CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR
30/6/24 30/6/23
£    £   
Bank loans (see note 10) 9,755,639 9,759,924

Amounts falling due in more than five years:

Repayable otherwise than by instalments
Bank loans more 5 yrs non-inst 7,298,750 7,303,967

Repayable by instalments
Bank loans more 5 yr by instal 2,456,889 2,455,957

10. LOANS

An analysis of the maturity of loans is given below:

30/6/24 30/6/23
£    £   
Amounts falling due in more than five years:
Repayable otherwise than by instalments
Bank loans more 5 yrs non-inst 7,298,750 7,303,967

Repayable by instalments
Bank loans more 5 yr by instal 2,456,889 2,455,957

Interest payable on bank loans are calculated at 2% per annum over Base Rate plus mandatory costs. There are financial covenants attached to this loan such as minimum EBITDA and maximum Dividends and gross leverage.

Capital Hotels Limited (Registered number: 05371092)

Notes to the Financial Statements - continued
For The Year Ended 30 June 2024

11. SECURED DEBTS

The following secured debts are included within creditors:

30/6/24 30/6/23
£    £   
Bank loans 9,755,639 9,759,924

The bank loans are secured by a fixed and floating charge over the assets and related undertakings of the company and inter company guarantees.

12. PROVISIONS FOR LIABILITIES
30/6/24 30/6/23
£    £   
Deferred tax
Accelerated capital allowances 19,775 33,959

Deferred
tax
£   
Balance at 1 July 2023 33,959
Accelerated capital allowances (14,184 )
Tax on fair value movement
Balance at 30 June 2024 19,775

13. CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:
Number: Class: Nominal 30/6/24 30/6/23
value: £    £   
400 Ordinary £1 400 400

14. DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Auditors' Report was unqualified.

Rakesh Sangani BA FCA (Senior Statutory Auditor)
for and on behalf of RNS Business Solutions Limited

15. RELATED PARTY DISCLOSURES

The company has taken advantage of the 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.

Capital Hotels Limited (Registered number: 05371092)

Notes to the Financial Statements - continued
For The Year Ended 30 June 2024

16. ULTIMATE CONTROLLING PARTY

For the year ended 30 June 2024 and 30 June 2023:

The ultimate controlling party is Mr A Merali.

17. ULTIMATE PARENT COMPANY

For the year ended 30 June 2024 and 30 June 2023:

In the opinion of the directors, the ultimate parent company is Treats Holdings Limited, a company incorporated in England and Wales. The smallest and largest group of which the company is a member and for which group consolidated financial statements are prepared is Treats Holdings Limited. The group financial statements are available at the company's registered office address, 7 Greenock Road, Acton, London W3 8DU.