STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 MARCH 2024 |
FOR |
SANDBANKS HOTEL LIMITED |
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: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
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: |
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. |
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: |
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. |
for and on behalf of |
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) |
STATEMENT OF COMPREHENSIVE INCOME |
For The Year Ended 31 March 2024 |
2024 | 2023 |
Notes | £ | £ |
TURNOVER | 4 |
Cost of sales |
GROSS PROFIT |
Administrative expenses |
(617,202 | ) | (371,779 | ) |
Other operating income |
OPERATING LOSS | 6 | ( |
) | ( |
) |
Income from fixed asset investments |
(588,305 | ) | (165,196 | ) |
Gain on revaluation of listed investments | 2,252 | 2,718 |
(586,053 | ) | (162,478 | ) |
Interest payable and similar expenses | 7 |
LOSS BEFORE TAXATION | ( |
) | ( |
) |
Tax on loss | 8 | ( |
) |
LOSS FOR THE FINANCIAL YEAR | ( |
) | ( |
) |
SANDBANKS HOTEL LIMITED (REGISTERED NUMBER: 00556842) |
BALANCE SHEET |
31 March 2024 |
2024 | 2023 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 9 |
Tangible assets | 10 |
Investments | 11 |
CURRENT ASSETS |
Stocks | 12 |
Debtors | 13 |
Cash at bank and in hand |
CREDITORS |
Amounts falling due within one year | 14 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year | 15 | ( |
) | ( |
) |
PROVISIONS FOR LIABILITIES | 17 | ( |
) | ( |
) |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 18 |
Revaluation reserve | 19 |
Retained earnings | 19 |
SHAREHOLDERS' FUNDS |
The financial statements were approved by the Board of Directors and authorised for issue on |
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 |
Changes in equity |
Deficit for the year | - | (265,544 | ) | - | (265,544 | ) |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 31 March 2023 |
Changes in equity |
Deficit for the year | - | (449,133 | ) | - | (449,133 | ) |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 31 March 2024 |
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 |
2. | ACCOUNTING POLICIES |
Basis of preparing the financial statements |
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 |
Fixtures and fittings | - |
Motor vehicles | - |
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 |
£ | £ |
5. | EMPLOYEES AND DIRECTORS |
2024 | 2023 |
£ | £ |
Wages and salaries |
Social security costs |
Other pension costs |
The average number of employees during the year was as follows: |
2024 | 2023 |
Hotels | 153 | 221 |
Management and marketing | 27 | 26 |
2024 | 2023 |
£ | £ |
Directors' remuneration |
Directors' pension contributions to money purchase schemes |
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 |
6. | OPERATING LOSS |
The operating loss is stated after charging: |
2024 | 2023 |
£ | £ |
Hire of plant and machinery |
Depreciation - owned assets |
Depreciation - assets on hire purchase contracts |
Loss on disposal of fixed assets |
Auditors' remuneration |
Local government grants |
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 |
Hire purchase |
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 |
Tax on loss | ( |
) |
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 | ( |
) | ( |
) |
Loss multiplied by the standard rate of corporation tax in the UK of |
( |
) |
( |
) |
Effects of: |
Expenses not deductible for tax purposes |
Income not taxable for tax purposes | ( |
) | ( |
) |
Capital allowances in excess of depreciation | - | ( |
) |
Adjustments to tax charge in respect of previous periods |
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 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 March 2023 |
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 |
Additions |
Disposals | ( |
) | ( |
) |
At 31 March 2024 |
DEPRECIATION |
At 1 April 2023 |
Charge for year |
At 31 March 2024 |
NET BOOK VALUE |
At 31 March 2024 |
At 31 March 2023 |
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 | 40,647 |
Revaluations | 2,252 |
At 31 March 2024 | 42,899 |
NET BOOK VALUE |
At 31 March 2024 | 42,899 |
At 31 March 2023 | 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 |
13. | DEBTORS |
2024 | 2023 |
£ | £ |
Amounts falling due within one year: |
Trade debtors |
Prepayments and accrued income |
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 |
Aggregate amounts |
14. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2024 | 2023 |
£ | £ |
Hire purchase contracts (see note 16) |
Trade creditors |
Amounts owed to group undertakings |
Corporation tax |
Social security and other taxes |
Other creditors |
Accruals and deferred income |
15. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
2024 | 2023 |
£ | £ |
Hire purchase contracts (see note 16) |
Amounts owed to group undertakings |
16. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Hire purchase contracts |
2024 | 2023 |
£ | £ |
Net obligations repayable: |
Within one year |
Between one and five years |
Non-cancellable operating | leases |
2024 | 2023 |
£ | £ |
Within one year |
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 |
Provided during year |
Balance at 31 March 2024 |
The deferred tax provision is analysed as follows: |
2024 | 2023 |
Accelerated capital allowances | 498,294 | 496,899 |
Revaluation of listed investments | 6,029 | 5,466 |
504,323 | 502,365 |
18. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2024 | 2023 |
value: | £ | £ |
Ordinary | £1 | 200 | 200 |
19. | RESERVES |
Retained | Revaluation |
earnings | reserve | Totals |
£ | £ | £ |
At 1 April 2023 | 27,908,765 |
Deficit for the year | ( |
) | ( |
) |
At 31 March 2024 | 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 |
2024 | 2023 |
£ | £ |
Amount due to related parties |
SANDBANKS HOTEL LIMITED (REGISTERED NUMBER: 00556842) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
For The Year Ended 31 March 2024 |
22. | RELATED PARTY DISCLOSURES - continued |
2024 | 2023 |
£ | £ |
Purchases |
Amount due to related party |
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 |