Company Registration No. SC452799 (Scotland)
CSG HOTELS AND APARTMENTS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
CSG HOTELS AND APARTMENTS LIMITED
COMPANY INFORMATION
Directors
C J Stewart
A J Aiton
T M G Allen
Secretary
Davidson Chalmers Stewart (Secretarial Services) Limited
Company number
SC452799
Registered office
12 Hope Street
EDINBURGH
EH2 4DB
Auditor
Johnston Carmichael LLP
227 West George Street
Glasgow
G2 2ND
CSG HOTELS AND APARTMENTS LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3 - 4
Directors' responsibilities statement
5
Independent auditor's report
6 - 9
Group profit and loss account
10
Group statement of comprehensive income
11
Group balance sheet
12
Company balance sheet
13
Group statement of changes in equity
14
Company statement of changes in equity
15
Group statement of cash flows
16
Notes to the financial statements
17 - 35
CSG HOTELS AND APARTMENTS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 1 -

The directors present the strategic report for the year ended 30 June 2024.

Fair review of the business

Revenue from continuing operations continues to improve with group revenue increasing by 65% to £16.5m (2023: £10.0m). This is largely due to both Edinburgh hotels have a full year of trading in the figures to 30 June 2024. The group’s operating profit from continuing operations increased by 90% to £5.5m (2023: £2.9m).

Cheval Collection Limited continued to manage Old Town Chambers and The Edinburgh Grand under the Cheval brand.

In January 2024 the restaurant at Roxburgh Court closed and the space converted into further apartments to add to the Old Town Chambers offering. The works completed in August 2024, taking the total number of apartments to 91 (including the accommodation at Abbey Strand).

Also post year-end, in December 2024, CSG Hotels and Apartments Limited took ownership of CSG Glasgow Limited bringing a third hotel, AC Marriott in Glasgow, into the group.

Financing

As part of the Roxburgh Court development, the RBS loan facility was amended to document the conversion of restaurant to apartments. The facility continues to offer flexibility to pay down and redraw debt to enable the group to minimise interest costs and manage cash efficiently.

Principal risks and uncertainties

The principal risks and uncertainties affecting the group include the following:

Development and performance

Key areas of strategic development and performance of the group include:

CSG HOTELS AND APARTMENTS LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 2 -
Key performance indicators

The group monitors key financial performance indicators across all sites in order to maximise performance, room rate and occupancy. The group’s performance is benchmarked regularly against hotels of a similar standard in the city.

The group also monitors key non-financial indicators such as feedback from guests, ratings on guest online surveys and third-party internet feedback sites such as Google, TripAdvisor and Booking.com.

 

2024

2023

Rooms sold

38,126

23,505

Average room rate

£327.53

£306.04

Occupancy

78.3%

75.8%

RevPar (Revenue per available room)

£256.53

£231.98

Food and Beverage

The group uses a range of financial and non-financial key performance indicators to monitor and manage the business. These include:

Sales: daily, weekly and period sales measured against budget and prior period. The conversion of sales to EBITDA ratios for each unit and Cost of Sale % and Wage %.

Management accounts: these are produced monthly for each operating unit with variances to budget and prior period analysed.

Customer feedback: a variety of measures are used to capture feedback and learn from suggestions for improvement, both at point of sale and via internet and social media sites online.

Employee Turnover and Engagement: this is reviewed monthly, and training and engagement modules are completed online and reviewed regularly by management.

On behalf of the board

C J Stewart
Director
1 April 2025
CSG HOTELS AND APARTMENTS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2024
- 3 -

The directors present their annual report and financial statements for the year ended 30 June 2024.

 

The company's accounting reference date is 24 June 2024 however the company has taken advantage of the option available under s390(3) of the Companies Act 2006 to prepare its group financial statements for the period to 30 June 2024.

Principal activities

The principal activity of the company is that of a holding company.

 

The principal activities of the group during the year were the operation of hotels and short stay serviced apartments, the commercial letting of retail premises and the operation of a licensed restaurant.

Results and dividends

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.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

C J Stewart
A J Aiton
T M G Allen
Qualifying third party indemnity provisions

The company has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.

Financial instruments

The group does not use derivatives for either financial risk management or for speculative purposes. The group's financial risk management objectives, policies and exposure to financial risks are not considered material for the assessment of the group's assets, liabilities, financial position or result for the year and as such, no further disclosure is considered necessary.

Post reporting date events

On 1 July 2024, the group acquired the trade and assets of Lady Libertine Ltd, an entity under common control, for £1.1m.

 

On 18 December 2024, the entire Ordinary share capital of CSG Glasgow Limited and Love Loan Limited were transferred from CSG Commercial Limited, an entity under common control, to the company for a total consideration of £3.1m.

 

Also on 18 December 2024, certain of the company's subsidiaries together certain related party undertakings entered into a revised group facility agreement with RBS which provided available facilities of £84.55m. The facility is available to June 2028.

Future developments

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of future developments (where applicable).

CSG HOTELS AND APARTMENTS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 4 -
Auditor

The auditor, Johnston Carmichael LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

Going Concern

The financial statements have been prepared on the going concern basis, notwithstanding the net current liabilities of £685,925 (2023: £967,365 ) which the Directors believe to be appropriate for the following reasons. The company and group are under the control of Christopher Stewart, along with two other groups, CSG Commercial Limited and CSG Investments Limited. These groups which are involved in real estate development and investment and hotel operation manage their day to day, medium and long-term capital requirements through a combination of cash balances and inter and intra-group borrowings and external borrowings. In considering the going concern assessment of each company, the Directors prepare forecasts which consider all the companies within their respective group due to the common financing arrangements.

The Directors have prepared these forecasts for a period in excess of 12 months from the date of signing the financial statements. They are based on management’s latest assumptions including occupancy rates, average daily rate, and staff costs. The forecasts have been prepared with reference to latest actual trading results as well as seeking to model the impact of severe but plausible downside risks.

The net current liability position in the Group has arisen as a result of external borrowings that are due for repayment within the next 12 months. Based on the Group and Company’s forecast and projections, the Directors have a reasonable expectation that the Group and Company will have adequate resources to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements. Thus, they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

As indicated in note 26 subsequent to year-end the company together with certain group and related party undertakings entered into a revised group facility agreement with RBS. The group facility provides access to £84.55m of term loan and revolving credit facilities alongside other facility participants. Financial covenants on the financing facility are cashflow cover, leverage, loan to value and loan to cost.

 

On behalf of the board
C J Stewart
Director
1 April 2025
CSG HOTELS AND APARTMENTS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 2024
- 5 -

The directors are responsible for preparing the Annual Report 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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

CSG HOTELS AND APARTMENTS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF CSG HOTELS AND APARTMENTS LIMITED
- 6 -
Opinion

We have audited the financial statements of CSG Hotels and Apartments Limited ('the parent company') and its subsidiaries (the 'group') for the year ended 30 June 2024 which comprise the Consolidated Statement of Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated 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 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:

 

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 Auditor responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 group or 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

The other information comprises the information included in the Annual Report other than the financial statements and our auditor’s report thereon. The Directors are responsible for the other information contained within the Annual Report. 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. 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 course of 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.

CSG HOTELS AND APARTMENTS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CSG HOTELS AND APARTMENTS LIMITED
- 7 -

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

 

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Directors’ Report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

 

Responsibilities of Directors

As explained more fully in the Directors’ responsibilities statement set out on page 5, 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 is 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 group’s and parent 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 group or parent company or to cease operations, or have no realistic alternative but to do so.

Auditor 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 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.

 

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.

We assessed whether the engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations by considering their experience, past performance and support available.

All engagement team members were briefed on relevant identified laws and regulations and potential fraud risks at the planning stage of the audit. Engagement team members were reminded to remain alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

 

CSG HOTELS AND APARTMENTS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CSG HOTELS AND APARTMENTS LIMITED
- 8 -

Extent to which the audit was considered capable of detecting irregularities, including fraud (continued)

We obtained an understanding of the legal and regulatory frameworks that are applicable to the group and the parent company and the sector in which they operate, focusing on those provisions that had a direct effect on the determination of material amounts and disclosures in the financial statements. The most relevant frameworks we identified include:

 

We gained an understanding of how the group and the parent company are complying with these laws and regulations by making enquiries of management and those charged with governance. We corroborated these enquiries through our review of submitted returns, external inspections, relevant correspondence with regulatory bodies and board meeting minutes.

We assessed the susceptibility of the group’s and parent company’s financial statements to material misstatement, including how fraud might occur, by meeting with management and those charged with governance to understand where it was considered there was susceptibility to fraud. This evaluation also considered how management and those charged with governance were remunerated and whether this provided an incentive for fraudulent activity. We considered the overall control environment and how management and those charged with governance oversee the implementation and operation of controls. In areas of the financial statements where the risks were considered to be higher, we performed procedures to address each identified risk. We identified a heightened fraud risk in relation to:

 

In addition to the above, the following procedures were performed to provide reasonable assurance that the financial statements were free of material fraud or error:

 

Our audit procedures were designed to respond to the risk of material misstatements in the financial statements, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve intentional concealment, forgery, collusion, omission or misrepresentation. There are inherent limitations in the audit procedures performed and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.

 

 

 

CSG HOTELS AND APARTMENTS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF CSG HOTELS AND APARTMENTS LIMITED
- 9 -

Use of our report

This report is made solely to the parent 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 parent 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 parent company and the parent company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

James Hamilton (Senior Statutory Auditor)
For and on behalf of Johnston Carmichael LLP
2 April 2025
Chartered Accountants
Statutory Auditor
227 West George Street
Glasgow
G2 2ND
CSG HOTELS AND APARTMENTS LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 30 JUNE 2024
- 10 -
2024
2023
Notes
£
£
Turnover
3
16,465,659
10,030,791
Cost of sales
(5,518,155)
(4,125,337)
Gross profit
10,947,504
5,905,454
Administrative expenses
(5,419,386)
(3,022,892)
Operating profit
4
5,528,118
2,882,562
Interest receivable and similar income
8
3,952
-
0
Interest payable and similar expenses
9
(4,541,362)
(2,699,654)
Fair value gain on investment property
-
125,000
Profit before taxation
990,708
307,908
Tax on profit
10
(1,132,780)
(22,882)
(Loss)/profit for the financial year
24
(142,072)
285,026
(Loss)/profit for the financial year is all attributable to the owners of the parent company.

The notes on pages 17 to 35 form an integral part of the financial statements.

CSG HOTELS AND APARTMENTS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2024
- 11 -
2024
2023
£
£
(Loss)/profit for the year
(142,072)
285,026
Other comprehensive income
Revaluation of tangible fixed assets
3,946
393,319
Tax relating to other comprehensive income
(987)
(73,093)
Other comprehensive income for the year
2,959
320,226
Total comprehensive (expenditure)/income for the year
(139,113)
605,252
Total comprehensive (expenditure)/income for the year is all attributable to the owners of the parent company.
CSG HOTELS AND APARTMENTS LIMITED
GROUP BALANCE SHEET
AS AT 30 JUNE 2024
30 June 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
11
97,081,184
94,450,000
Investment properties
12
9,000,000
10,908,570
106,081,184
105,358,570
Current assets
Stocks
15
67,414
81,087
Debtors
16
8,843,694
8,285,950
Cash at bank and in hand
267,645
502,768
9,178,753
8,869,805
Creditors: amounts falling due within one year
17
(9,864,678)
(9,837,170)
Net current liabilities
(685,925)
(967,365)
Total assets less current liabilities
105,395,259
104,391,205
Creditors: amounts falling due after more than one year
18
(50,709,400)
(50,700,000)
Provisions for liabilities
Deferred tax liability
21
12,435,509
11,301,742
(12,435,509)
(11,301,742)
Net assets
42,250,350
42,389,463
Capital and reserves
Called up share capital
23
502
502
Revaluation reserve
24
10,252,689
10,249,730
Capital redemption reserve
24
499
499
Profit and loss reserves
24
31,996,660
32,138,732
Total equity
42,250,350
42,389,463
The financial statements were approved by the board of directors and authorised for issue on 1 April 2025 and are signed on its behalf by:
01 April 2025
C J Stewart
Director
CSG HOTELS AND APARTMENTS LIMITED
COMPANY BALANCE SHEET
AS AT 30 JUNE 2024
30 June 2024
- 13 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
13
6
6
Current assets
Debtors
16
25,149,824
23,132,767
Creditors: amounts falling due within one year
17
(3,534,323)
(1,205,335)
Net current assets
21,615,501
21,927,432
Net assets
21,615,507
21,927,438
Capital and reserves
Called up share capital
23
502
502
Capital redemption reserve
24
499
499
Profit and loss reserves
24
21,614,506
21,926,437
Total equity
21,615,507
21,927,438

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £311,931 (2023: £21,000,220 profit).

The financial statements were approved by the board of directors and authorised for issue on 1 April 2025 and are signed on its behalf by:
01 April 2025
C J Stewart
Director
Company Registration No. SC452799
CSG HOTELS AND APARTMENTS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 14 -
Share capital
Revaluation reserve
Capital redemption reserve
Profit and loss reserves
Total
£
£
£
£
£
Balance at 1 July 2022
502
9,835,754
499
31,947,456
41,784,211
Year ended 30 June 2023:
Profit for the year
-
-
-
285,026
285,026
Other comprehensive income:
Revaluation of tangible fixed assets
-
393,319
-
-
393,319
Tax relating to other comprehensive income
-
(73,093)
-
-
0
(73,093)
Total comprehensive income for the year
-
320,226
-
285,026
605,252
Transfer between reserves
-
93,750
-
(93,750)
-
Balance at 30 June 2023
502
10,249,730
499
32,138,732
42,389,463
Year ended 30 June 2024:
Loss for the year
-
-
-
(142,072)
(142,072)
Other comprehensive income:
Revaluation of tangible fixed assets
-
3,946
-
-
3,946
Tax relating to other comprehensive income
-
(987)
-
-
0
(987)
Total comprehensive expenditure for the year
-
2,959
-
(142,072)
(139,113)
Balance at 30 June 2024
502
10,252,689
499
31,996,660
42,250,350
CSG HOTELS AND APARTMENTS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
- 15 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 July 2022
502
499
926,217
927,218
Year ended 30 June 2023:
Profit and total comprehensive income for the year
-
-
21,000,220
21,000,220
Balance at 30 June 2023
502
499
21,926,437
21,927,438
Year ended 30 June 2024:
Loss and total comprehensive expenditure for the year
-
-
(311,931)
(311,931)
Balance at 30 June 2024
502
499
21,614,506
21,615,507
CSG HOTELS AND APARTMENTS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2024
- 16 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
28
6,451,679
2,487,795
Interest paid
(4,229,432)
(2,699,654)
Income taxes refunded
-
63,573
Net cash inflow/(outflow) from operating activities
2,222,247
(148,286)
Investing activities
Purchase of subsidiary undertakings (net of cash acquired)
-
69,536
Purchase of tangible fixed assets
(1,005,694)
(23,106)
Purchase of investment property
-
(8,570)
Interest received
3,952
-
0
Net cash (used in)/generated from investing activities
(1,001,742)
37,860
Financing activities
Repayment of other borrowings
-
(48,260,081)
Funding repaid to related parties
(3,573,004)
(4,812,249)
Proceeds of new bank loans
3,822,390
52,000,000
Repayment of bank borrowings
(800,000)
-
Net cash used in financing activities
(550,614)
(1,072,330)
Net increase/(decrease) in cash and cash equivalents
669,891
(1,182,756)
Cash and cash equivalents at beginning of year
(490,647)
692,109
Cash and cash equivalents at end of year
179,244
(490,647)
Relating to:
Cash at bank and in hand
267,645
502,768
Bank overdrafts included in creditors payable within one year
(88,401)
(993,415)
CSG HOTELS AND APARTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
- 17 -
1
Accounting policies
Company information

CSG Hotels and Apartments Limited ("the company") is a limited company domiciled and incorporated in Scotland. The registered office is 12 Hope Street, EDINBURGH, EH2 4DB.

 

The group consists of CSG Hotels and Apartments Limited and all of its subsidiaries.

1.1
Accounting convention

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 £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold land and buildings as well as investment property carried at fair value. 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 where these are applicable:

 

1.2
Basis of consolidation

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

CSG HOTELS AND APARTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 18 -

The consolidated financial statements incorporate those of CSG Hotels and Apartments Limited and all of its subsidiaries (i.e. entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits).

 

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.

1.3
Going concern

The financial statements have been prepared on the going concern basis, notwithstanding the net current liabilities of £685,925 (2023: £967,365 ) which the Directors believe to be appropriate for the following reasons. The company and group are under the control of Christopher Stewart, along with two other groups, CSG Commercial Limited and CSG Investments Limited. These groups which are involved in real estate development and investment and hotel operation manage their day to day, medium and long-term capital requirements through a combination of cash balances and inter and intra-group borrowings and external borrowings. In considering the going concern assessment of each company, the Directors prepare forecasts which consider all the companies within their respective group due to the common financing arrangements.

The Directors have prepared these forecasts for a period in excess of 12 months from the date of signing the financial statements. They are based on management’s latest assumptions including occupancy rates, average daily rate, and staff costs. The forecasts have been prepared with reference to latest actual trading results as well as seeking to model the impact of severe but plausible downside risks.

The net current liability position in the Group has arisen as a result of external borrowings that are due for repayment within the next 12 months. Based on the Group and Company’s forecast and projections, the Directors have a reasonable expectation that the Group and Company will have adequate resources to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements. Thus, they continue to adopt the going concern basis of accounting in preparing the annual financial statements.

As indicated in note 26 subsequent to year-end the company together with certain group and related party undertakings entered into a revised group facility agreement with RBS. The group facility provides access to £84.55m of term loan and revolving credit facilities alongside other facility participants. Financial covenants on the financing facility are cashflow cover, leverage, loan to value and loan to cost.

1.4
Turnover

Turnover represents the total invoice value of sales made during the year and is shown net of VAT and other sales related taxes.

Turnover comprises the following streams:

- Sale of goods: Turnover from the sale of food and beverages is recognised at the point of sale.

- Rendering of services: Revenue from room sales and other guest services is recognised when rooms are occupied and as services are provided.

- Rental income and service charges: Turnover from rental income and service charges receivable is recognised on a straight line basis.

1.5
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

CSG HOTELS AND APARTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 19 -

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values. No depreciation has been applied to the group's freehold land and buildings. The directors believe that, given the nature of these properties, the residual value is at least equal to the properties' carrying value.

 

For other assets, depreciation is recognised so as to write off the cost or valuation less their residual values over their useful lives on the following bases:

Freehold land and buildings
Not depreciated but subject to an annual revaluation exercise
Fixtures and fittings
20% to 33% straight line
Computer equipment
33% straight line
Land
Not depreciated

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.

Properties whose fair value can be measured reliably are held under the revaluation model and are carried at a revalued amount, being their fair value at the date of valuation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The fair value of the land and buildings is usually considered to be their market value.

 

Revaluation gains and losses are recognised in other comprehensive income and accumulated in equity, except to the extent that a revaluation gain reverses a revaluation loss previously recognised in the profit and loss account or a revaluation loss exceeds the accumulated revaluation gains recognised in equity; such gains and loss are recognised in the profit and loss account.

1.6
Investment properties

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in the profit and loss account.

1.7
Fixed asset investments

In the parent company financial statements, investments in subsidiaries 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.

1.8
Borrowing costs related to fixed assets

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.

All other borrowing costs are recognised in the profit and loss account in the period in which they are incurred.

1.9
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible 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.

CSG HOTELS AND APARTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 20 -

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 the profit and loss account, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity, in respect of that asset. Any excess is recognised in the profit and loss account.

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 the profit and loss account, 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.

1.10
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct costs that have been incurred in bringing the stocks to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in the profit and loss account. Reversals of impairment losses are also recognised in the profit and loss account.

1.11
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks and bank overdrafts. Bank overdrafts are shown as current liabilities.

1.12
Financial instruments

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

Basic financial assets, which include certain 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.

CSG HOTELS AND APARTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 21 -
Impairment of financial assets

Financial assets 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 the profit and loss account.

 

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 the profit and loss account.

Derecognition of financial assets

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.

Classification of financial liabilities

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

Basic financial liabilities, including certain creditors, bank and other loans and amounts owed to fellow group companies and related parties, 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. 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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.13
Equity instruments

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.

1.14
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

CSG HOTELS AND APARTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
1
Accounting policies
(Continued)
- 22 -
Current 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

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.

1.15
Employee benefits

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.

1.16
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.17
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to the profit and loss account 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.

2
Judgements and key sources of estimation uncertainty

In the application of the group’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 the revision and future periods where the revision affects both current and future periods.

CSG HOTELS AND APARTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
- 23 -
Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Carrying value of fixed assets

The group’s freehold land and buildings and investment property are carried at valuation. The directors are therefore required to consider the valuations each year to ensure that this remains appropriately stated. In performing this review, the directors consider a number of factors including recent valuations of the land and buildings performed by Chartered Surveyors in accordance with RICS appraisal and valuation standards.

 

The carrying value of fixed assets at the reporting date is outlined at notes 11 and 12.

3
Turnover and other revenue

An analysis of the group's turnover is as follows:

2024
2023
£
£
Turnover analysed by class of business
Room sales and guest services
12,629,503
7,529,090
Food and beverage sales
3,067,071
2,194,595
Commercial rent
649,816
273,251
Other
119,269
33,855
16,465,659
10,030,791
2024
2023
£
£
Other significant revenue
Interest income
3,952
-
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging:
Depreciation of owned tangible fixed assets
287,027
409,077
Operating lease charges
90,870
94,449
CSG HOTELS AND APARTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 24 -
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
5,250
5,000
Audit of the financial statements of the company's subsidiaries
28,350
27,000
33,600
32,000
Fees payable to the group's auditor for audit services provided to the group and company are borne by Lateral City Limited, a subsidiary undertaking.
6
Employees

The average monthly number of persons employed by the group and company during the year was:

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Management and administration
5
6
-
-
Hotel operations
56
57
-
-
Food and beverage
70
72
-
-
Total
131
135
-
0
-
0

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
3,112,132
2,112,942
-
0
-
0
Social security costs
211,421
143,725
-
-
Pension costs
42,897
32,006
-
0
-
0
3,366,450
2,288,673
-
0
-
0
7
Directors' remuneration

No remuneration was paid to the directors of the company by the group in the current or prior year, due to remuneration being paid to directors by other related entities within the wider group and not being recharged.

CSG HOTELS AND APARTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 25 -
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
3,952
-
0
9
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts, bank loans and other loans
4,541,362
2,699,654
10
Taxation
2024
2023
£
£
CSG HOTELS AND APARTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
10
Taxation
2024
2023
£
£
(Continued)
- 26 -
Deferred tax
Origination and reversal of timing differences
1,068,701
17,036
Adjustment in respect of prior periods
64,079
5,846
Total deferred tax
1,132,780
22,882

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
990,708
307,908
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 20.50%)
247,677
63,121
Tax effect of expenses that are not deductible in determining taxable profit
742,830
264,045
Tax effect of income not taxable in determining taxable profit
-
0
(25,620)
Change in unrecognised deferred tax assets
77,982
-
0
Effect of change in corporation tax rate
-
49,261
Deferred tax adjustments in respect of prior years
64,079
5,846
Fixed asset differences
192
(354)
Other differences
20
(189,835)
Other tax adjustments and transfers
-
0
(143,582)
Taxation charge
1,132,780
22,882

In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:

2024
2023
£
£
Deferred tax arising on:
Revaluation of property
987
73,093

A change in the UK Corporation tax rate to 25% took effect from 1 April 2023. This change has had a consequential effect on the group's tax charge in the prior year with the standard rate of tax in that year reflective of a marginal tax rate arising from the company's period straddling the 19% and 25% tax rates. Deferred tax has been calculated at 25%.

CSG HOTELS AND APARTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 27 -
11
Tangible fixed assets
Group
Freehold land and buildings
Fixtures and fittings
Computer equipment
Total
£
£
£
£
Cost or valuation
At 1 July 2023
93,894,743
1,269,766
273,966
95,438,475
Additions
886,711
118,509
475
1,005,695
Revaluation
3,946
-
0
-
0
3,946
Transfers from investment property
1,908,570
-
0
-
0
1,908,570
At 30 June 2024
96,693,970
1,388,275
274,441
98,356,686
Depreciation and impairment
At 1 July 2023
-
0
766,386
222,089
988,475
Depreciation charged in the year
-
0
262,248
24,779
287,027
At 30 June 2024
-
0
1,028,634
246,868
1,275,502
Carrying amount
At 30 June 2024
96,693,970
359,641
27,573
97,081,184
At 30 June 2023
93,894,743
503,380
51,877
94,450,000
The company had no tangible fixed assets assets at 30 June 2024 or 30 June 2023.

Freehold land and buildings were independently valued in April 2023 by Savills, independent property agents not connected with the group, on the basis of market value. The valuation conforms to International Valuation Standards and was based on recent market transactions on arm's length terms for similar properties. The directors have considered this valuation in making their assessment that the carrying value at the reporting date is an accurate reflection of the fair value of the group's freehold land and buildings at this time.

 

The transfer from investment property relates to certain property which no longer meet the definition of investment property. In accordance with FRS 102 Section 16.9A, the transfer has been reflected at the fair value of the property at the date of change in use.

If assets carried at valuation were measured using the historic cost model, the carrying amounts would be as follows:

Group
Company
2024
2023
2024
2023
£
£
£
£
Cost
49,488,330
47,737,444
-
-
Carrying value
49,488,330
47,737,444
-
-

Included within land and buildings at the reporting date is borrowing costs of £3,690,144 (2023: £3,690,144) directly attributable to the acquisition and development of the assets.

CSG HOTELS AND APARTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 28 -
12
Investment property
Group
Company
2024
2024
£
£
Fair value
At 1 July 2023
10,908,570
-
Transfers to owner-occupied property
(1,908,570)
-
At 30 June 2024
9,000,000
-

The fair value of the investment property has been arrived at on the basis of a valuation carried out by the directors at the balance sheet date and informed by a valuation conducted in April 2023 by Savills, independent property agents, who are not connected with the company.

 

If investment properties were measured using the historic cost model, the carrying amount would be £5,062,183 (2023: £5,926,357).

13
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
14
-
0
-
0
6
6

Investments are valued at historic cost less impairment.

Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 July 2023 and 30 June 2024
6
Carrying amount
At 30 June 2024
6
At 30 June 2023
6
CSG HOTELS AND APARTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 29 -
14
Subsidiaries

Details of the company's subsidiaries at 30 June 2024 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Indirect
CSG Baxter's Place Holdings Limited
See below
Investment holding
Ordinary
100.00
-
Lateral City Limited
See below
Serviced apartments
Ordinary
100.00
-
St Andrew Square (Property) Limited
See below
Operation of a hotel and commercial letting
Ordinary
100.00
-
Urbanite Investments Limited
See below
Non-trading
Ordinary
-
100.00

The registered office of CSG Baxter's Place Holdings Limited is The Tower, 7 Advocate's Close, Edinburgh, EH1 1ND.

 

The registered office of Lateral City Limited, Urbanite Investments Limited and St Andrew Square (Property) Limited is 12 Hope Street, Edinburgh, EH2 4DB.

15
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Food and beverage stocks
24,581
33,535
-
-
Finished goods and goods for resale
42,833
47,552
-
0
-
0
67,414
81,087
-
-
16
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
524,654
236,966
-
0
-
0
Amounts owed by group undertakings
-
-
22,490,910
20,512,222
Amounts owed by related parties
5,673,728
4,368,071
2,658,914
2,620,545
Other debtors
1,543,464
2,604,037
-
-
Prepayments and accrued income
1,101,848
1,076,876
-
0
-
0
8,843,694
8,285,950
25,149,824
23,132,767

Other debtors includes £851,620 (2023: £1,999,992) due in respect of the group's disposal of its investment in BPH Baxter's Place Limited.

CSG HOTELS AND APARTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 30 -
17
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
19
4,713,322
2,293,415
3,534,321
-
0
Trade creditors
787,470
923,415
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
-
0
1,205,333
Amounts owed to related parties
958,053
3,225,400
2
2
Other taxation and social security
681,467
942,179
-
-
Other creditors
1,189,314
1,077,453
-
-
Accruals and deferred income
1,535,052
1,375,308
-
0
-
0
9,864,678
9,837,170
3,534,323
1,205,335
18
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans
19
50,709,400
50,700,000
-
0
-
0
19
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
55,334,321
52,000,000
3,534,321
-
0
Bank overdrafts
88,401
993,415
-
0
-
0
55,422,722
52,993,415
3,534,321
-
Payable within one year
4,713,322
2,293,415
3,534,321
-
0
Payable after one year
50,709,400
50,700,000
-
0
-
0

Bank loans are subject to interest and capital repayments. Bank loans are secured by standard securities, assignation of rents and a floating charge over the assets of the group.

20
Provisions for liabilities
Group
Company
2024
2023
2024
2023
£
£
£
£
Deferred tax liabilities
21
12,435,509
11,301,742
-
0
-
0
CSG HOTELS AND APARTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 31 -
21
Deferred taxation

Deferred tax assets and liabilities are offset where the group or company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
3,623,431
3,419,714
Tax losses
(1,325,890)
(2,256,101)
Revaluations
10,140,255
10,139,268
Other short term timing differences
(2,287)
(1,139)
12,435,509
11,301,742
The company has no deferred tax assets or liabilities.
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 July 2023
11,301,742
-
Charge to profit and loss account
1,132,780
-
Charge to other comprehensive income
987
-
Liability at 30 June 2024
12,435,509
-

The group had estimated tax losses of £6.1m (2023: £9.0m) available for offset against future trading profits.

22
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
42,897
32,006

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.

 

Contributions totalling £9,146 (2023: £8,485) were payable to the fund at the year end and are included within other creditors.

CSG HOTELS AND APARTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 32 -
23
Share capital
Group and company
2024
2023
Ordinary share capital
£
£
Issued and fully paid
501 A Ordinary shares of £1 each
501
501
1 C Ordinary shares of £1 each
1
1
502
502

The rights of each class of share are detailed in the Articles of Association of the company which are available from Companies House.

24
Reserves
Revaluation reserve

Revaluation reserves represent the difference between the fair value and the carrying value on an historic cost basis of assets held at valuation.

Capital redemption reserve

Capital redemption reserve represents the amount by which the company's issued share capital has been diminished on the cancellation of repurchased shares.

Profit and loss reserves

Profit and loss reserves represent the total comprehensive income for the year and prior periods plus reserve transfers where appropriate and less dividends paid.

25
Operating lease commitments
Lessor

At the reporting end date the group had contracted with tenants for the following minimum lease payments:

 

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
370,569
735,777
-
-
Between two and five years
1,334,857
2,600,000
-
-
In over five years
2,640,000
5,571,781
-
-
4,345,426
8,907,558
-
-

The reduction in the group's operating lease commitments follows an operational decision taken on 21 January 2024 to terminate the lease of the unit at 1 Roxburgh Court.

CSG HOTELS AND APARTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 33 -
26
Events after the reporting date

On 1 July 2024, the group acquired the trade and assets of Lady Libertine Ltd, an entity under common control, for £1.1m.

 

On 18 December 2024, the entire Ordinary share capital of CSG Glasgow Limited and Love Loan Limited were transferred from CSG Commercial Limited, an entity under common control, to the company for a total consideration of £3.1m.

 

Also on 18 December 2024, certain of the company's subsidiaries together certain related party undertakings entered into a revised group facility agreement with RBS which provided available facilities of £84.55m. The facility is available to June 2028.

CSG HOTELS AND APARTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 34 -
27
Related party transactions
Transactions with related parties

Group

The ultimate controlling party is Christopher Stewart.

During the year, services of £40,928 (2023: £Nil) were provided by CSG Projects Limited to Lateral City Limited. Amounts totalling £613,617 (2023: £1,450,298 repaid to) were received from CSG Projects Limited. At 30 June 2024 an amount of £600,424 (2023: £13,193 due from) was due to CSG Projects Limited from Lateral City Limited.

 

During the year, a charge of £507,183 (2023: £259,455) was made to Lateral City Limited by FMLY Limited in respect of facilities management services. As at 30 June 2024 £139,662 (2023: £15,931) remained outstanding.

 

During the year goods of £93,300 (2023: £109,313) were purchased by Lateral City Limited from Bacchus & Liber Limited. As at 30 June 2024 £4,213 (2023: £11,715) remained outstanding.

 

At 30 June 2024 an amount of £1,045,458 (2023: £1,045,458) was due to Lateral City Limited from CSG Hamilton Place Limited.

 

Devil’s Advocate recharged costs of £30,845 (2023: £95,051) and was recharged £179,400 (2023: £2,124) by Lateral City Limited. As at 30 June 2024 £55,248 (2023: £27,726) remained outstanding from Devil’s Advocate and £1,547 (2023: £Nil) was due to Devil’s Advocate in relation to wages recharges.

 

During the year Lateral City Limited charged rent to Crisp Investment Limited of £59,794 (2023: £Nil). As at 30 June 2024 £26,753 (2023: £Nil) was due from Crisp Investment Limited.

 

At 30 June 2024, £Nil (2023: £3,184,021) was due to CSG Investments Limited from CSG Baxter’s Place Holdings Limited.

 

At 30 June 2024, £1,101,131 (2023: £1,101,131) was due to CSG Hotels and Apartments Limited from CSG Projects Limited.

 

At 30 June 2024, £1,519,414 (2023: £1,519,414) was due to CSG Hotels and Apartments Limited from CSG Projects Limited.

 

During the year, CSG Projects Limited recharged £40,847 (2023: £29,223) to St Andrew Square (Property) Limited for various services and advanced £148,206 to St Andrew Square (Property) Limited. As at 30 June 2024 £110,526 (2023: £206 due to) was due from CSG Projects Limited.

 

During the year, FMLY Limited recharged £185,252 (2023: £231,180) to St Andrew Square (Property) Limited for Facilities Management services. As at 30 June 2024 £17,726 (2023: £12,309) remained outstanding.

 

During the year, St Andrew Square (Property) Limited invoiced £200,000 (2023: £200,000) to Devil’s Advocate Limited for the rental of commercial space. As at 30 June 2024 £142,570 (2023: £120,085) remained outstanding from Devil’s Advocate Limited.

Company

 

The company has taken advantage of the exemption available in FRS 102 Section 33 whereby it has not disclosed transactions with any wholly owned subsidiary undertaking of the group.

CSG HOTELS AND APARTMENTS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2024
- 35 -
28
Cash generated from group operations
2024
2023
£
£
(Loss)/profit for the year after tax
(142,072)
285,026
Adjustments for:
Taxation charged
1,132,780
22,882
Finance costs
4,541,362
2,699,654
Investment income
(3,952)
-
0
Depreciation and impairment of tangible fixed assets
287,027
409,077
Amortisation of loan arrangement fee
155,149
64,542
Fair value gain on investment property
-
(125,000)
Movements in working capital:
Decrease/(increase) in stocks
13,673
(27,474)
Decrease/(increase) in debtors
592,764
(908,771)
(Decrease)/increase in creditors
(125,052)
67,859
Cash generated from operations
6,451,679
2,487,795
29
Analysis of changes in net debt - group
1 July 2023
Cash flows
Other non-cash changes
30 June 2024
£
£
£
£
Cash at bank and in hand
502,768
(235,123)
-
267,645
Bank overdrafts
(993,415)
905,014
-
(88,401)
(490,647)
669,891
-
179,244
Borrowings excluding overdrafts
(52,000,000)
(3,022,390)
(311,931)
(55,334,321)
(52,490,647)
(2,352,499)
(311,931)
(55,155,077)
2024-06-302023-07-01falsefalseCCH SoftwareCCH Accounts Production 2024.300C J StewartA J AitonT M G AllenDavidson Chalmers Stewart (Secretarial Services) LimitedfalseSC4527992023-07-012024-06-30SC452799bus:Director12023-07-012024-06-30SC452799bus:Director22023-07-012024-06-30SC452799bus:Director32023-07-012024-06-30SC452799bus:CompanySecretary12023-07-012024-06-30SC452799bus:RegisteredOffice2023-07-012024-06-30SC452799bus:Consolidated2024-06-30SC4527992024-06-30SC452799bus:Consolidated2023-07-012024-06-30SC452799bus:Consolidated2022-07-012023-06-30SC4527992022-07-012023-06-30SC452799core:RevaluationReservebus:Consolidated2022-07-012023-06-30SC452799core:RevenueReservesInvestmentFundsOnlybus:Consolidated2022-07-012023-06-30SC452799core:RevaluationReservebus:Consolidated2023-07-012024-06-30SC452799core:RetainedEarningsAccumulatedLossesbus:Consolidated2023-07-012024-06-30SC452799bus:Consolidated2023-06-30SC452799core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2024-06-30SC452799core:FurnitureFittingsbus:Consolidated2024-06-30SC452799core:ComputerEquipmentbus:Consolidated2024-06-30SC452799core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2023-06-30SC452799core:FurnitureFittingsbus:Consolidated2023-06-30SC452799core:ComputerEquipmentbus:Consolidated2023-06-30SC4527992023-06-30SC452799core:ShareCapitalbus:Consolidated2024-06-30SC452799core:ShareCapitalbus:Consolidated2023-06-30SC452799core:RevaluationReservebus:Consolidated2024-06-30SC452799core:RevaluationReservebus:Consolidated2023-06-30SC452799core:CapitalRedemptionReservebus:Consolidated2024-06-30SC452799core:CapitalRedemptionReservebus:Consolidated2023-06-30SC452799core:ShareCapital2024-06-30SC452799core:ShareCapital2023-06-30SC452799core:CapitalRedemptionReserve2024-06-30SC452799core:CapitalRedemptionReserve2023-06-30SC452799core:RetainedEarningsAccumulatedLosses2024-06-30SC452799core:ShareCapitalbus:Consolidated2022-06-30SC452799core:SharePremiumbus:Consolidated2022-06-30SC452799core:CapitalRedemptionReservebus:Consolidated2022-06-30SC452799core:RetainedEarningsAccumulatedLossesbus:Consolidated2022-06-30SC452799core:RetainedEarningsAccumulatedLossesbus:Consolidated2023-06-30SC452799core:RetainedEarningsAccumulatedLossesbus:Consolidated2024-06-30SC452799core:ShareCapital2022-06-30SC452799core:CapitalRedemptionReserve2022-06-30SC452799core:RetainedEarningsAccumulatedLosses2022-06-30SC452799core:RetainedEarningsAccumulatedLosses2023-06-30SC452799bus:Consolidated2022-06-30SC452799core:LandBuildingscore:OwnedOrFreeholdAssets2023-07-012024-06-30SC452799core:FurnitureFittings2023-07-012024-06-30SC452799core:ComputerEquipment2023-07-012024-06-30SC452799core:Non-standardPPEClass2ComponentTotalPropertyPlantEquipment2023-07-012024-06-30SC452799bus:Consolidated12023-07-012024-06-30SC452799bus:Consolidated12022-07-012023-06-30SC452799bus:Consolidated22023-07-012024-06-30SC452799bus:Consolidated22022-07-012023-06-30SC452799bus:Consolidated32023-07-012024-06-30SC452799bus:Consolidated32022-07-012023-06-30SC452799core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2023-06-30SC452799core:FurnitureFittingsbus:Consolidated2023-06-30SC452799core:ComputerEquipmentbus:Consolidated2023-06-30SC452799bus:Consolidated2023-06-30SC452799core:LandBuildingscore:OwnedOrFreeholdAssetsbus:Consolidated2023-07-012024-06-30SC452799core:FurnitureFittingsbus:Consolidated2023-07-012024-06-30SC452799core:ComputerEquipmentbus:Consolidated2023-07-012024-06-30SC452799core:Subsidiary12023-07-012024-06-30SC452799core:Subsidiary22023-07-012024-06-30SC452799core:Subsidiary32023-07-012024-06-30SC452799core:Subsidiary42023-07-012024-06-30SC452799core:Subsidiary112023-07-012024-06-30SC452799core:Subsidiary212023-07-012024-06-30SC452799core:Subsidiary312023-07-012024-06-30SC452799core:Subsidiary412023-07-012024-06-30SC452799core:CurrentFinancialInstrumentsbus:Consolidated2024-06-30SC452799core:CurrentFinancialInstrumentsbus:Consolidated2023-06-30SC452799core:CurrentFinancialInstruments2024-06-30SC452799core:CurrentFinancialInstruments2023-06-30SC452799core:WithinOneYearbus:Consolidated2024-06-30SC452799core:WithinOneYearbus:Consolidated2023-06-30SC452799core:CurrentFinancialInstrumentscore:WithinOneYear2024-06-30SC452799core:CurrentFinancialInstrumentscore:WithinOneYear2023-06-30SC452799core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated2024-06-30SC452799core:Non-currentFinancialInstrumentscore:AfterOneYearbus:Consolidated2023-06-30SC452799core:Non-currentFinancialInstrumentscore:AfterOneYear2024-06-30SC452799core:Non-currentFinancialInstrumentscore:AfterOneYear2023-06-30SC452799core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2024-06-30SC452799core:CurrentFinancialInstrumentscore:WithinOneYearbus:Consolidated2023-06-30SC452799bus:PrivateLimitedCompanyLtd2023-07-012024-06-30SC452799bus:FRS1022023-07-012024-06-30SC452799bus:Audited2023-07-012024-06-30SC452799bus:ConsolidatedGroupCompanyAccounts2023-07-012024-06-30SC452799bus:FullAccounts2023-07-012024-06-30xbrli:purexbrli:sharesiso4217:GBP