Company registration number:
for the Year Ended
Kingfisher Resorts Meudon Limited
Contents
Balance Sheet |
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Notes to the Financial Statements |
Kingfisher Resorts Meudon Limited
(Registration number: 12891298)
Balance Sheet as at 31 December 2023
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2022 |
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Fixed assets |
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Tangible assets |
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Investments |
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Current assets |
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Debtors |
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Cash at bank and in hand |
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Creditors: Amounts falling due within one year |
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Net current liabilities |
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Total assets less current liabilities |
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Creditors: Amounts falling due after more than one year |
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Net assets |
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Capital and reserves |
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Called up share capital |
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Share premium reserve |
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Profit and loss account |
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Total equity |
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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
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Kingfisher Resorts Meudon Limited
Notes to the Financial Statements
for the Year Ended 31 December 2023
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
United Kingdom
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 (£).
Kingfisher Resorts Meudon Limited
Notes to the Financial Statements
for the Year Ended 31 December 2023
Going concern
The company owns 100% of Meudon Vean Ltd, which operates Hotel Meudon, a property near Falmouth in Cornwall. Both equity and loan note funding were obtained from shareholders in order to acquire the subsidiary company and investment in the development of the Hotel.
Since acquisition of the subsidiary company, there has been investment in the hotel, creating a much-improved guest experience. In December 2024, the subsidiary company obtained planning permission, after a lengthy and costly process, to develop premium villas within the grounds of the hotel with the aim of improving the economic viability of the hotel.
The company has made a loss in the year to 31 December 2023 of £400k, retaining net assets of just over £1m at this date. In the year to 31 December 2024, the company has made a further loss of approximately £500k. Since October 2024, the company has raised £575k by issue of new equity shares. As a result of this issue of shares, this company is no longer a member of the group headed up by Kingfisher Resorts St Ives Ltd.
The company has lent funds to the subsidiary company to enable planned investment in the refurbishment of the hotel and to obtain the planning permission. Since acquisition, the hotel has been trading at a loss and this is expected to continue until the villas can be developed and additional facilities added following the granting of the planning permission.
The subsidiary company is now in advanced talks with a potential joint venture partner to enable the development to proceed whilst managing financial risk. The planned arrangement would see the subsidiary company receive cash payments from the development including payments for the sale of land plots in the early stages of the development, as well as sharing in construction surpluses. The projected amounts will see a significant increase in the retained earnings of the subsidiary company.
This company has provided significant funding to the subsidiary company which will not be repaid in the short terms and therefore this company will need to complete a re-financing of its own borrowings prior to 31 December 2025. Now that planning permission has been received, and it is expected that development activities will be underway, the directors expect this to be achievable, but there is no certainty that this will take place.
Included in the liabilities of the company at year end are unsecured balances due to Kingfisher Resorts St Ives Ltd of £43k and its subsidiary company Kingfisher Una Resorts Ltd of £240k. The subsidiary company also has unsecured balances due to Kingfisher Resorts St Ives Ltd of £176k and its subsidiary company Kingfisher Una Resorts Ltd of £696k.
Kingfisher Resorts Meudon Limited
Notes to the Financial Statements
for the Year Ended 31 December 2023
These balances have reduced, and the combined balances are now £112k and £645k respectively. However, both these companies are now in Administration. Initial discussions by the Directors with both sets of Administrators indicate that they are aware the best chance for recovery of these balances is to allow the subsidiary company to continue its talks with the potential joint venture partner and the implementation of the arrangements. As a result, the Directors have prepared their cash flow forecasts on the basis that the administrators will continue this course of action until cash flow allows repayment of these amounts.
The forecasts of the directors show that the expected cash position of this company will be sufficient to continue its operations and service its debt as required by its creditors, but the margin is small and based on a number of key assumptions in both timing and amount which include the points detailed above.
The directors have concluded that it is appropriate to prepare these accounts on the going concern basis of accounting based on its forecasts and the assumptions made. These assumptions include a number of material uncertainties which are:
• the requirement for re-finance its own borrowing before 31 December 2025
• the joint venture agreement that the subsidiary company is seeking to enable the development of the villas in the grounds of the hotel is not yet certain
• the amount and timing of any cash receipts by the subsidiary company following a joint venture agreement being entered into is uncertain as it will depend on sale of land plots to buyers and construction timeframes.
• the trading position of the hotel continues to be loss making, whilst it operates with the current inventory levels, and with further economic pressures adding to the uncertainty of the cash requirements for working capital
• the potential uncertainty as to whether unsecured creditors (former group companies) will take action to recover amounts due
As a result, the directors have concluded that there are material uncertainties that may cast significant doubt on the company’s ability to continue as a going concern.
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.
Land is stated at cost and is not subject to depreciation.
Investments
Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.
Kingfisher Resorts Meudon Limited
Notes to the Financial Statements
for the Year Ended 31 December 2023
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
Amounts owed from group undertakings are recognised initially at transaction price. A provision for the impairment of amounts owed from group undertakings is established when there is evidence that an impairment is required.
Creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts 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.
Kingfisher Resorts Meudon Limited
Notes to the Financial Statements
for the Year Ended 31 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.
Assets held under hire purchase agreements are capitalised as tangible fixed assets with the future obligation being recognised as a liability. Finance costs are recognised in the Profit and Loss Account calculated at a constant periodic rate of interest over the term of the liability.
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.
Staff numbers |
The average number of persons employed by the company (including directors) during the year was
Tangible assets |
Land and buildings |
Total |
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Cost or valuation |
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At 1 January 2023 |
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At 31 December 2023 |
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Carrying amount |
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At 31 December 2023 |
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At 31 December 2022 |
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Included within the net book value of land and buildings above is £70,000 (2022 - £70,000) in respect of freehold land and buildings.
Kingfisher Resorts Meudon Limited
Notes to the Financial Statements
for the Year Ended 31 December 2023
Investments |
2023 |
2022 |
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Investments in subsidiaries |
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Subsidiaries |
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Cost or valuation |
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At 1 January 2023 |
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Carrying amount |
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At 31 December 2023 |
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At 31 December 2022 |
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Kingfisher Resorts Meudon Limited
Notes to the Financial Statements
for the Year Ended 31 December 2023
Details of undertakings
Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:
Undertaking |
Registered office |
Holding |
Proportion of voting rights and shares held |
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2022 |
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Subsidiary undertakings |
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Same as company |
Ordinary |
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England |
Subsidiary undertakings |
Meudon Vean Limited The principal activity of Meudon Vean Limited is |
Debtors |
2023 |
2022 |
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Trade debtors |
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Amounts owed by group undertakings and undertakings in which the company has a participating interest |
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Prepayments |
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Other debtors |
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Kingfisher Resorts Meudon Limited
Notes to the Financial Statements
for the Year Ended 31 December 2023
Details of non-current trade and other debtors
£1,757,521 (2022 -£1,735,934) of amounts owed by group undertakings is classified as non current.
Creditors |
Creditors: amounts falling due within one year
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2023 |
2022 |
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Due within one year |
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Loans and borrowings |
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Trade creditors |
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Amounts owed to group undertakings and undertakings in which the company has a participating interest |
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Accruals and deferred income |
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The company was in breach of the covenants imposed by its bankers on the loan in place at the year end and therefore the entire balance is shown as repayable on demand. As disclosed in note 9, the directors have undertaken a re-financing exercise since the year end and have subsequently repaid the bank and taken out new debt on a longer term basis.
Loans and borrowings |
Current loans and borrowings
2023 |
2022 |
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Bank borrowings |
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Non-current loans and borrowings
2023 |
2022 |
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Other borrowings |
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The bank and other borrowings are secured on all assets of the company.
Kingfisher Resorts Meudon Limited
Notes to the Financial Statements
for the Year Ended 31 December 2023
Non adjusting events after the financial period |
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Audit Report |
Material uncertainty related to going concern
We draw attention to note 2 in the financial statements, which sets out that there are a number of factors that will impact the cash flow of the company including the ongoing negotiations by the subsidiary company with a potential joint venture partner for development of villas in the hotel grounds following receipt of planning permission. There is no certainty that agreement will be reached.
As stated in note 2, these events or conditions, along with other matters set out in note 2, indicate that there are material uncertainties that 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.