Company registration number:
for the Year Ended
Meudon Vean Limited
(Registration number: 00797312)
Balance Sheet as at 31 December 2023
Note |
2023 |
2022 |
|
Fixed assets |
|||
Tangible assets |
|
|
|
Current assets |
|||
Stocks |
|
|
|
Debtors |
|
|
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current liabilities |
( |
( |
|
Total assets less current liabilities |
|
|
|
Creditors: Amounts falling due after more than one year |
- |
( |
|
Provisions for liabilities |
|||
Deferred tax liabilities |
- |
(8,540) |
|
Net assets/(liabilities) |
|
( |
|
Capital and reserves |
|||
Called up share capital |
|
|
|
Fair value reserve |
1,378,982 |
- |
|
Profit and loss account |
( |
( |
|
Total equity |
|
( |
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
|
Meudon Vean 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 (£).
Going concern
The company operates Hotel Meudon, a property near Falmouth in Cornwall. In recent years, with funding from its immediate parent company, the company has invested in the hotel, creating a much improved visitor experience. On 11 December 2024, the 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 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 this 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 company’s retained earnings.
Meudon Vean Limited
Notes to the Financial Statements
for the Year Ended 31 December 2023
The company has made an EBITDA loss in the year to December 2023 of £344k and a further EBITDA loss at level of approximately £309k in the year to 31 December 2024. Since October 2024, the parent company has raised £580k by issue of new equity shares. As a result of this issue of shares, this company and its parent, Kingfisher Resort Meudon Ltd are no longer members of the group headed up by Kingfisher Resorts St Ives Ltd.
Included in the liabilities of the company at year end are unsecured balances due to Kingfisher Resorts St Ives Ltd of £176k and its subsidiary company Kingfisher Una Resorts Ltd of £696k. These balances have reduced and are now £112k and £405k. 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 this 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 parent company has provided significant funding to this company and will need to complete a re-financing of its own borrowings prior to 31 December 2025, in conjunction with the development activities. Now that planning permission has been received, the directors expect this to be achievable, but there is no certainty that this will take place.
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:
• That the joint venture agreement 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 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
• The requirement for the parent company to re-finance its own borrowing before 31 December 2025.
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.
Meudon Vean Limited
Notes to the Financial Statements
for the Year Ended 31 December 2023
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.
The company recognises revenue when the amount of revenue can be reliably measured, it is probable that future economic benefits will flow to the entity and specific criteria have been met for each of the company's activities.
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.
Government grants
Government grants are recognised under the accruals model resulting in income being recognised on a systematic basis over the period in which the related costs are incurred for which the grant is compensating. The income from the scheme is recognised as other income in the profit and loss and timing differences presented as other debtors or deferred income within the balance sheet.
Tax
The tax expense for the period comprises deferred tax. Tax is recognised in the profit and loss account, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.
Deferred tax is recognised on timing differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.
Deferred tax liabilities are presented within provisions for liabilities on the balance sheet.
Tangible assets
Tangible assets, apart from freehold land and buildings, 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.
Freehold land and buildings are held at fair value and reviewed annually for changes to open market value.
Properties under construction include the costs incurred in relation to obtaining planning permission and which the directors expect to enhance the value of the hotel.
Meudon Vean Limited
Notes to the Financial Statements
for the Year Ended 31 December 2023
Depreciation of tangible assets
Depreciation is charged so as to write off the cost of assets, other than freehold land and buildings and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Freehold land and buildings |
2% straight line |
Plant and machinery |
5%-25% straight line |
Properties under construction |
Not depreciated until work complete |
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.
The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. 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. 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.
Meudon Vean Limited
Notes to the Financial Statements
for the Year Ended 31 December 2023
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.
Revaluation reserve is the surplus or deficit arising on the revaluation of an asset of a 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.
Staff numbers |
The average number of persons employed by the company (including directors) during the year was
Meudon Vean Limited
Notes to the Financial Statements
for the Year Ended 31 December 2023
Tangible assets |
Land and buildings |
Plant and machinery |
Properties under construction |
Total |
|
Cost or valuation |
||||
At 1 January 2023 |
|
|
|
|
Revaluations |
|
- |
- |
|
Additions |
|
|
|
|
At 31 December 2023 |
|
|
|
|
Depreciation |
||||
At 1 January 2023 |
|
|
- |
|
Charge for the year |
- |
|
- |
|
Writeback of depreciation |
( |
- |
- |
( |
At 31 December 2023 |
- |
|
- |
|
Carrying amount |
||||
At 31 December 2023 |
|
|
|
|
At 31 December 2022 |
|
|
|
|
Included within the net book value of land and buildings above is £3,500,000 (2022 - £1,898,681) in respect of freehold land and buildings.
Revaluation
Had this class of asset been measured on a historical cost basis, the carrying amount would have been £
Stocks |
2023 |
2022 |
|
Other stocks |
|
|
Meudon Vean Limited
Notes to the Financial Statements
for the Year Ended 31 December 2023
Debtors |
Current |
2023 |
2022 |
Trade debtors |
- |
|
Prepayments |
|
|
Other debtors |
- |
|
|
|
Creditors |
Creditors: amounts falling due within one year
Note |
2023 |
2022 |
|
Due within one year |
|||
Trade creditors |
|
|
|
Amounts owed to group undertakings and undertakings in which the company has a participating interest |
|
|
|
Taxation and social security |
|
|
|
Accruals and deferred income |
|
|
|
Other creditors |
|
|
|
|
|
Reserves reconciliation |
Fair value reserve |
|
Fair value adjustment on land and building revaluation |
|
At 31 December 2023 |
|
No deferred tax has been recognised on the revaluation of the freehold land and buildings as the company does not anticipate paying tax on any sale.
Financial commitments, guarantees and contingencies |
Amounts not provided for in the balance sheet
The total amount of financial commitments not included in the balance sheet is £
Meudon Vean Limited
Notes to the Financial Statements
for the Year Ended 31 December 2023
Related party transactions |
Summary of transactions with entities with joint control or significant interest
The company has balances of £695,861 and £175,656 respectively due to Kingfisher Una Resort Limited and Kingfisher Resorts St Ives Limited, companies within the same group.
The company also owes £33,000 to LRM St Ives Limited, a company controlled by a director.
Non adjusting events after the financial period |
|
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 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.