Z Hotels City Limited
Financial Statements
For the year ended 31 March 2024
Pages for Filing with Registrar
Company Registration No. 08716635 (England and Wales)
Z Hotels City Limited
Company Information
Directors
B King
S Shah
M Gudka
P Leighton
M Gudka
Company number
08716635
Registered office
53-59 Chandos Place
London
WC2N 4HS
Auditor
Moore Kingston Smith LLP
6th Floor
9 Appold Street
London
EC2A 2AP
Z Hotels City Limited
Contents
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 11
Z Hotels City Limited
Balance Sheet
As at 31 March 2024
Page 1
2024
2023
unaudited
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
3
32,460,106
13,923,474
Current assets
Stock
4
50,658
49,913
Debtors
5
852,245
1,042,008
Cash at bank and in hand
592,894
798,221
1,495,797
1,890,142
Creditors: amounts falling due within one year
6
(6,080,766)
(7,687,329)
Net current liabilities
(4,584,969)
(5,797,187)
Total assets less current liabilities
27,875,137
8,126,287
Provisions for liabilities
7
(6,479,898)
(1,907,775)
Net assets
21,395,239
6,218,512
Capital and reserves
Called up share capital
8
1
1
Revaluation reserve
20,535,128
6,399,919
Profit and loss reserves
860,110
(181,408)
Total equity
21,395,239
6,218,512
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 23 April 2025 and are signed on its behalf by:
M Gudka
Director
Company Registration No. 08716635
Z Hotels City Limited
Statement of Changes in Equity
For the year ended 31 March 2024
Page 2
Share capital
Revaluation reserve
Profit and loss reserves
Total
£
£
£
£
As restated for the period ended 31 March 2023:
Balance at 1 April 2022
1
8,042,155
(2,551,846)
5,490,310
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
-
728,202
728,202
Transfers
-
(1,642,236)
1,642,236
-
Balance at 31 March 2023
1
6,399,919
(181,408)
6,218,512
Year ended 31 March 2024:
Loss for the year
-
-
(3,747,160)
(3,747,160)
Other comprehensive income:
Revaluation of tangible fixed assets
-
18,923,887
-
18,923,887
Total comprehensive income for the year
-
18,923,887
(3,747,160)
15,176,727
Transfers
-
(4,788,678)
4,788,678
-
Balance at 31 March 2024
1
20,535,128
860,110
21,395,239
Z Hotels City Limited
Notes to the Financial Statements
For the year ended 31 March 2024
Page 3
1
Accounting policies
Company information
Z Hotels City Limited is a private company limited by shares incorporated in England and Wales. The registered office is 53-59 Chandos Place, London, WC2N 4HS.
1.1
Accounting convention
These financial statements have been prepared in accordance with Section 1A of FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.
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 leasehold properties at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
The company made a profit before tax for the year of £1,002,727 (2023: restated £182,065) and had net assets at the reporting date of £21,395,239 (2023: restated £6,218,512) Included within creditors is an amount of £1,497,499 (2023: restated £3,032,495) due to group undertakings. true
The directors have assessed the company's financial position, budgets and cash flow forecasts to May 2026. The directors have a reasonable expectation that the group has adequate resources to continue in operational existence for more than one year from the signing of these accounts. As as result the company has prepared financial statements on a going concern basis.
1.3
Turnover
Turnover is recognised to the extent that it is probable that the economic benefits will flow to the company and revenue can be reliably measured.
Turnover comprises revenue recognised by the company in respect of goods and services supplied during the year, exclusive of Value Added Tax and trade discounts. Turnover in respect of accommodation is recognised at the point of the customers stay whilst other sales, including food and beverage revenues, are recognised at the point of purchase.
1.4
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.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold land and buildings
Period of the lease
Fixtures and fittings
3 years straight line
Computer equipment
3 years straight line
Food and beverage equipment
3 years straight line
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 credited or charged to profit or loss.
Z Hotels City Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
1
Accounting policies
(Continued)
Page 4
1.5
Impairment of fixed assets
At each reporting period end date, the company 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.
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 profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
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 profit or loss, 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.
1.6
Stock
Stock is stated at the lower of cost and estimated selling price less costs to complete and sell. Where stock is held for distribution at no consideration it is measured at the lower of cost and replacement cost.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stock over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.7
Cash at bank and in hand
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.8
Financial instruments
The company only has basic financial instruments measured at amortised cost, with no financial instruments classified as other or basic instruments at fair value.
1.9
Equity instruments
Equity instruments issued by the company 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 company.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Z Hotels City Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
1
Accounting policies
(Continued)
Page 5
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 company’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 when the company has 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.
Z Hotels City Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
1
Accounting policies
(Continued)
Page 6
1.11
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to income 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 lease asset are consumed.
2
Taxation
2024
2023
unaudited
restated
£
£
Deferred tax
Origination and reversal of timing differences
4,749,887
(546,137)
The actual charge/(credit) 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
unaudited
restated
£
£
Profit before taxation
1,002,727
182,065
Expected tax charge based on the standard rate of corporation tax in the UK of 25% (2023: 19%)
250,682
34,592
Tax effect of expenses that are not deductible in determining taxable profit
19
Tax effect of income not taxable in determining taxable profit
181
Adjustments in respect of prior years
(24)
(16,262)
Group relief
(138,004)
Capital allowances for year in excess of depreciation
(1,169,000)
Chargeable losses
4,538,313
604,333
Adjustment to rate of deferred tax provision
98,920
Taxation charge/(credit) for the year
4,749,887
(546,137)
Z Hotels City Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
Page 7
3
Tangible fixed assets
Leasehold land and buildings
Fixtures and fittings
Computer equipment
Food and beverage equipment
Total
£
£
£
£
£
Cost or valuation
At 1 April 2023 (unaudited)
15,100,000
1,178,307
34,125
54,357
16,366,789
Additions
41,170
36,939
10,857
88,966
Revaluation
16,644,782
16,644,782
Transfers
632,218
(632,218)
At 31 March 2024
32,377,000
587,259
71,064
65,214
33,100,537
Depreciation and impairment
At 1 April 2023 (unaudited)
1,398,149
961,258
29,944
53,964
2,443,315
Depreciation charged in the year
395,680
66,089
13,483
969
476,221
Revaluation
(2,279,105)
(2,279,105)
Transfers
485,276
(485,276)
At 31 March 2024
542,071
43,427
54,933
640,431
Carrying amount
At 31 March 2024
32,377,000
45,188
27,637
10,281
32,460,106
At 31 March 2023
13,701,851
217,049
4,181
393
13,923,474
The leasehold property was valued on an open market basis by the directors as at 31 March 2024, guided by a third party valuation carried out in 2021 and an assessment of recent trading performance.
If revalued assets were stated on a historical cost basis rather than a fair value basis, the total amounts included would have been as follows:
2024
2023
£
£
Cost
6,539,179
5,906,961
Accumulated depreciation
(1,143,395)
(998,081)
Carrying value
5,395,784
4,908,880
Z Hotels City Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
Page 8
4
Stock
2024
2023
unaudited
£
£
Stock
50,658
49,913
5
Debtors
2024
2023
unaudited
as restated
Amounts falling due within one year:
£
£
Trade debtors
149
Other debtors
486,400
487,876
Prepayments and accrued income
365,696
376,368
852,245
864,244
Deferred tax asset
177,764
852,245
1,042,008
6
Creditors: amounts falling due within one year
2024
2023
unaudited
as restated
£
£
Trade creditors
98,829
101,120
Amounts owed to group undertakings
1,497,499
3,032,495
Taxation and social security
110,913
148,265
Other creditors
755,982
873,182
Accruals and deferred income
3,617,543
3,532,267
6,080,766
7,687,329
Z Hotels City Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
Page 9
7
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
unaudited
unaudited
restated
restated
Balances:
£
£
£
£
Accelerated capital allowances
33,810
-
-
9,731
Tax losses
-
-
-
168,033
Revaluations
6,446,088
1,907,775
-
-
6,479,898
1,907,775
-
177,764
2024
Movements in the year:
£
Liability at 1 April 2023
1,730,011
Charge to profit or loss
4,749,887
Liability at 31 March 2024
6,479,898
The deferred tax liability set out above is expected to reverse in more than 12 months and relates to accelerated capital allowances that are expected to mature within the same period.
8
Called up share capital
2024
2023
unaudited
£
£
Issued and fully paid
1 Ordinary Share of £1
1
1
9
Financial commitments
There is a fixed and floating charge over the assets of the company in respect of the bank loan held in a group company, Z Hotels City Hotel Limited.
Z Hotels City Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
Page 10
10
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:
2024
2023
unaudited
£
£
Within one year
848,148
717,340
Between two and five years
3,650,705
3,083,608
In over five years
40,317,184
43,738,001
44,816,037
47,538,949
11
Related party transactions
The company has taken advantage of the exemption contain in FRS 102 section 33 "Related Party Disclosures" from disclosing transactions with entities which are a wholly owned party of the group.
Included within debtors is an amount of £439,615 (2023: £475,065) due from companies under common control and included within creditors is an amount of £nil (2023: £2,282). During the year the company purchased assets amounting to £5,270 (2023: £nil) from companies under common control. Management fees of £172,265 (2023: £189,977) were payable to companies under common control.
12
Audit report information
As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006:
The auditor's report was unqualified.
Z Hotels City Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
12
Audit report information
(Continued)
Page 11
The senior statutory auditor was Katherine Edwards.
The auditor was Moore Kingston Smith LLP.
13
Prior period adjustment
Certain comparative disclosures have been amended, as indicated in the profit and loss account, and notes 5 and 6, to ensure consistency with current year disclosures. These restatements have had £nil impact on the overall profit reported for the prior period or the overall net asset position as at 31 March 2023.
In addition an adjustment has been posted to correct the deferred tax liability recognised on property revaluations and for the reclassification of deferred tax assets and liabilities as at 31 March 2023.
Changes to the balance sheet
As previously reported
Adjustment
As restated at 31 Mar 2023
£
£
£
Current assets
Debtors due within one year
2,369,244
(1,327,236)
1,042,008
Creditors due within one year
Loans and overdrafts
(4,307,693)
4,307,693
Other creditors
(4,736,371)
(2,802,693)
(7,539,064)
Provisions for liabilities
Deferred tax
(1,125,678)
(782,097)
(1,907,775)
Net assets
6,822,845
(604,333)
6,218,512
Capital and reserves
Revaluation reserve
8,042,155
(1,642,236)
6,399,919
Profit and loss reserves
(1,219,311)
1,037,903
(181,408)
Total equity
6,822,845
(604,333)
6,218,512
Changes to the profit and loss account
As previously reported
Adjustment
As restated
Period ended 31 March 2023
£
£
£
Taxation
1,150,470
(604,333)
546,137
Profit for the financial period
1,332,535
(604,333)
728,202
14
Parent company
The immediate parent is Z Hotels City Hotel LLP, an entity registered in England and Wales. In the opinion of the directors there is no ultimate controlling party.
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