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Company registration number: 00296213

Knoll House Hotel Limited

Filleted Annual Report and Financial Statements

for the Year Ended 28 December 2023

 

Knoll House Hotel Limited

Contents

Balance Sheet

1

Notes to the Financial Statements

2 to 11

 

Knoll House Hotel Limited

(Registration number: 00296213)
Balance Sheet as at 28 December 2023

Note

2023
£

2022
£

Fixed assets

 

Tangible assets

4

2,495,585

2,236,505

Current assets

 

Stocks

5

17,423

24,132

Debtors

6

1,390,585

823,160

Cash at bank and in hand

 

20,145

53,442

 

1,428,153

900,734

Creditors: Amounts falling due within one year

7

(1,010,620)

(923,724)

Net current assets/(liabilities)

 

417,533

(22,990)

Total assets less current liabilities

 

2,913,118

2,213,515

Creditors: Amounts falling due after more than one year

7

(539,831)

(322,500)

Net assets

 

2,373,287

1,891,015

Capital and reserves

 

Called up share capital

30,000

30,000

Capital redemption reserve

33,991

33,991

Profit and loss account

2,309,296

1,827,024

Total equity

 

2,373,287

1,891,015

These financial statements have been prepared and delivered in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006. The option not to file the profit and loss account and directors’ report has been taken.

Approved and authorised by the Board on 1 April 2025 and signed on its behalf by:
 


A J B Nares
Director

   
 

Knoll House Hotel Limited

Notes to the Financial Statements
for the Year Ended 28 December 2023

1

General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
4th Floor
95 Chancery Lane
LONDON
WC2A 1DT
United Kingdom

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

These financial statements are presented in Sterling (£).

 

Knoll House Hotel Limited

Notes to the Financial Statements
for the Year Ended 28 December 2023

Going concern

The company operates the Knoll House Hotel Ltd, a unique property in Studland in Dorset, and alongside its parent company, Kingfisher Resorts Studland Ltd, is seeking to obtain planning permission to develop the hotel. The hotel continues to be profitable with results in 2024 in line with those in 2023. The directors expect this level of profitability to be at least maintained in 2025.

The company has invested significant sums in the planning process to date (which are included within Assets under Construction) and on 18 March 2025, the latest step in the process of a Planning Appeal was dismissed by the Inspector. The company intends to submit alternative plans and is hopeful of success but there is no certainty that any future planning application will be successful. The Directors remain positive,and note that they have received support from various interested parties.

The company has a balance due from its parent company at the year end of £1,207k and this has reduced to £837k at 31 March 2025. The parent company is not in a position to settle this balance in cash.

The directors are in advanced discussions with a lender for additional borrowing which would provide additional funding for this company and the parent company to enable both companies to meet their liabilities but this has not yet been finalised.

The directors have prepared forecasts indicating that the hotel will continue to trade profitably and generate cash. The company will incur additional costs to amend and submit a new planning application and the timescale of any future planning decision is unknown. The delay in obtaining planning permission has meant that the group is less able to obtain additional financing and taking into account the capital repayment and interest payments that the group could be called on to make within the next twelve months, there is a requirement for additional financing to ensure the company can continue to trade. Whilst the directors expect this additional finance be forthcoming on the basis of negotiations with a lender taking place currently, this is not yet certain.

The directors consider that the likely outcome is that the Company will have adequate resources to continue in operational existence for a period of at least 12 months from the approval of these accounts and therefore they continue to adopt the going concern basis of accounting in preparing these financial statements. However, the outcome of the planning situation is not certain and the availability of additional finance needed for the group to meets its liabilities is not certain. There is therefore a material uncertainty over whether sufficient working capital will be available to this company to continue as a going concern for a period of at least 12 months.

Turnover recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

Room sales are recognised at the point that the room is used by the customer. Food and drink sales are recognised at the point of sale.

 

Knoll House Hotel Limited

Notes to the Financial Statements
for the Year Ended 28 December 2023

Tangible assets

Tangible assets are stated at cost, less accumulated depreciation and accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation of tangible assets

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class

Depreciation method and rate

Fixtures, fittings and equipment

5%-25% straight line

Buildings - assets under construction

Not depreciated until work complete

Buildings

2% straight line

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

 

Knoll House Hotel Limited

Notes to the Financial Statements
for the Year Ended 28 December 2023

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Reserves

Called up share capital represents the nominal value of shares that have been issued.

Profit and loss account includes all current and prior period profits and losses.

Capital redemption reserve records the nominal value of shares repurchased by the company.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Defined contribution pension obligation

The company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payments obligations.

The contributions are recognised as an expense in the profit and loss account when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.

 

Knoll House Hotel Limited

Notes to the Financial Statements
for the Year Ended 28 December 2023

Critical accounting judgments and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of revision and future period where the revision affects both current and future periods.

Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Assets under construction
Expenditure that relates to the assets under construction of the company is judged by management as that which is incurred in the development of the property assets, will enhance those property assets and which will in future provide returns over a reasonable economic life. As at 28 December 2023, the Assets under Construction in these financial statements include solely planning costs associated with the development of the hotel of £1,814,339.

The directors have made an assessment that no impairment of the assets under construction is required. The company has applied for planning permission to further develop the hotel site owned by the company and continues to incur costs to obtain that planning permission as well as to develop the existing hotel. The directors have assumed that planning permission will be obtained when making their assessment as this is their expectation. Should planning permission for development not be obtained, the level of future returns from the property will need re-evaluating. This could result in an impairment being required although the directors consider this unlikely.
 

3

Staff numbers

The average number of persons employed by the company (including directors) during the year was 52 (2022 - 61).

 

Knoll House Hotel Limited

Notes to the Financial Statements
for the Year Ended 28 December 2023

4

Tangible assets

Land and buildings
£

Furniture, fittings and equipment
 £

Assets under construction
 £

Total
£

Cost or valuation

At 29 December 2022

737,349

701,805

1,522,108

2,961,262

Additions

-

38,001

292,231

330,232

At 28 December 2023

737,349

739,806

1,814,339

3,291,494

Depreciation

At 29 December 2022

130,204

594,553

-

724,757

Charge for the year

14,747

56,405

-

71,152

At 28 December 2023

144,951

650,958

-

795,909

Carrying amount

At 28 December 2023

592,398

88,848

1,814,339

2,495,585

At 28 December 2022

607,145

107,252

1,522,108

2,236,505

Included within the net book value of land and buildings above is £592,398 (2022 - £607,145) in respect of freehold land and buildings.
 

 

Knoll House Hotel Limited

Notes to the Financial Statements
for the Year Ended 28 December 2023

5

Stocks

2023
£

2022
£

Finished goods and goods for resale

17,423

24,132

6

Debtors

Current

2023
£

2022
£

Trade debtors

6,908

4,907

Amounts owed by group undertakings and undertakings in which the company has a participating interest

1,207,256

662,902

Prepayments

92,399

99,963

Other debtors

84,022

55,388

 

1,390,585

823,160

 

Knoll House Hotel Limited

Notes to the Financial Statements
for the Year Ended 28 December 2023

7

Creditors

Note

2023
£

2022
£

Due within one year

 

Loans and borrowings

8

270,068

30,000

Trade creditors

 

172,577

287,908

Taxation and social security

 

226,222

238,473

Accruals and deferred income

 

92,129

89,619

Other creditors

 

249,624

277,724

 

1,010,620

923,724

8

Loans and borrowings

Current loans and borrowings

2023
£

2022
£

Bank borrowings

113,555

30,000

Other borrowings

156,513

-

270,068

30,000

Non-current loans and borrowings

2023
£

2022
£

Bank borrowings

462,509

322,500

Other borrowings

77,322

-

539,831

322,500

 

Knoll House Hotel Limited

Notes to the Financial Statements
for the Year Ended 28 December 2023

Bank borrowings

The bank borrowings are secured on all assets of the Company.

Other borrowings

Other borrowings are secured against specific fixed assets held by the Company.

9

Obligations under leases and hire purchase contracts

Operating leases

The total of future minimum lease payments is as follows:

2023
£

2022
£

Not later than one year

14,825

34,893

Later than one year and not later than five years

16,551

23,907

31,376

58,800

The amount of non-cancellable operating lease payments recognised as an expense during the year was £53,995 (2022 - £43,708).

10

Related party transactions

Summary of transactions with entities with joint control or significant interest

The company has taken advantage of paragraph 33.1A of FRS 102 and has not disclosed transactions with other wholly owned companies within the group.
 

11

Relationship between entity and parents

The parent of the smallest group in which these financial statements are consolidated is Kingfisher Resorts Studland Limited, incorporated in England and Wales.

The address of Kingfisher Resorts Studland Limited is:
4th Floor
95 Chancery Lane
London
WC2A 1DT

 

Knoll House Hotel Limited

Notes to the Financial Statements
for the Year Ended 28 December 2023

12

Audit Report

The Independent Auditor's Report was unqualified. The name of the Senior Statutory Auditor who signed the audit report on 1 April 2025 was Joseph Doggrell BSc (Hons) FCA, who signed for and on behalf of Albert Goodman LLP.

Material uncertainty related to going concern

We draw attention to note 2 in the financial statements, which indicates that the company has balances due from its parent company and that to continue to meet its liabilities the group requires additional finance which is not yet certain. As stated note 2, these events or conditions, along with other matters as set forth in note 2, indicate that a material uncertainty exists that may cast significant doubt on the company’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.

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.

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