Z Hotels Covent Garden Limited
Financial Statements
For the year ended 31 March 2024
Pages for Filing with Registrar
Company Registration No. 09998033 (England and Wales)
Z Hotels Covent Garden Limited
Company Information
Directors
P Leighton
B King
M Gudka
S Shah
M Gudka
Company number
09998033
Registered office
53-59 Chandos Place
London
WC2N 4HS
Auditor
Moore Kingston Smith LLP
6th Floor
9 Appold Street
London
EC2A 2AP
United Kingdom
Z Hotels Covent Garden Limited
Contents
Page
Balance sheet
1
Statement of changes in equity
2
Notes to the financial statements
3 - 9
Z Hotels Covent Garden Limited
Balance Sheet
As at 31 March 2024
Page 1
2024
2023
unaudited
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
3
25,335,599
12,381,198
Current assets
Stock
4
52,752
52,438
Debtors
5
2,515,759
2,657,802
Cash at bank and in hand
680,057
321,653
3,248,568
3,031,893
Creditors: amounts falling due within one year
6
(13,905,283)
(14,960,157)
Net current liabilities
(10,656,715)
(11,928,264)
Total assets less current liabilities
14,678,884
452,934
Provisions for liabilities
(4,655,846)
(1,287,357)
Net assets/(liabilities)
10,023,038
(834,423)
Capital and reserves
Called up share capital
8
10
10
Revaluation reserve
13,745,976
4,386,671
Profit and loss reserves
(3,722,948)
(5,221,104)
Total equity
10,023,038
(834,423)
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. 09998033
Z Hotels Covent Garden 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
10
4,386,671
(6,128,827)
(1,742,146)
Year ended 31 March 2023:
Profit and total comprehensive income for the year
-
-
907,723
907,723
Balance at 31 March 2023
10
4,386,671
(5,221,104)
(834,423)
Year ended 31 March 2024:
Loss for the year
-
-
(2,591,682)
(2,591,682)
Other comprehensive income:
Revaluation of tangible fixed assets
-
13,449,143
-
13,449,143
Total comprehensive income for the year
-
13,449,143
(2,591,682)
10,857,461
Transfers
-
(4,089,838)
4,089,838
-
Balance at 31 March 2024
10
13,745,976
(3,722,948)
10,023,038
Z Hotels Covent Garden Limited
Notes to the Financial Statements
For the year ended 31 March 2024
Page 3
1
Accounting policies
Company information
Z Hotels Covent Garden 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 in the year of £1,117,380 (2023: restated £1,057,706), and had net assets at the reporting date of £10,023,038 (2023: restated net liabilities of £834,423) and net current liabilities of £10,656,715 (2023: restated £11,928,264). Included within creditors is an amount of £10,560,612 (2023: restated £11,168,466) due to group undertakings. A fellow group company has a bank loan amounting to £35.5m that is due for repayment in April 2026 for which the company's assets are provided as security, being less than 12 months from approval of these financial statements. The directors expect the loan to be refinanced and extended beyond April 2026 and this financing will ensure the companies' ability to meet its liabilities as they fall due.
The Directors of the company 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 consist of assets under construction. These assets are classified under tangible fixed assets due to the probability that a future economic benefit will be associated with the asset, and the cost or value can be measured reliably.
Leasehold improvements
Period of the lease
Fixtures and fittings
3 years straight line
Computers
3 years striaght line
Food and Beverage Equipment
3 years straight line
Z Hotels Covent Garden Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
1
Accounting policies
(Continued)
Page 4
1.5
Stock
Stock is stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stock to their present location and condition.
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.
1.6
Cash at bank and in hand
Cash at bank and in hand are basic financial assets and include cash in hand and deposits held at call with banks.
1.7
Financial instruments
The company only has financial instruments classified as basic and measured at amortised cost. The company has no financial instruments that are classified as 'other' or financial instruments measured at fair value.
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
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 Covent Garden Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
1
Accounting policies
(Continued)
Page 5
1.10
Leases
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss 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 leases asset are consumed.
2
Taxation
2024
2023
unaudited
£
£
Deferred tax
Origination and reversal of timing differences
3,709,062
149,983
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
unaudited
£
£
Profit before taxation
(1,117,380)
(1,057,706)
Expected tax charge based on the standard rate of corporation tax in the UK of 25% (2023: 19%)
279,345
200,964
Tax effect of expenses that are not deductible in determining taxable profit
2
Adjustments in respect of prior years
(6,219)
Effect of change in corporation tax rate
64,452
Other non-reversing timing differences
3,132
Fixed asset timing differences
134,453
Chargeable gains
3,295,264
(112,348)
Taxation charge for the year
3,709,062
149,983
Z Hotels Covent Garden Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
Page 6
3
Tangible fixed assets
Land and buildings
Plant and machinery etc
Food and Beverage Equipment
Total
£
£
£
£
Cost or valuation
At 1 April 2023 (unaudited)
15,004,867
144,669
10,050
15,159,586
Additions
27,959
20,388
896
49,243
Revaluation
10,276,174
10,276,174
At 31 March 2024
25,309,000
165,057
10,946
25,485,003
Depreciation and impairment
At 1 April 2023 (unaudited)
2,635,156
135,505
7,727
2,778,388
Depreciation charged in the year
537,813
4,808
1,364
543,985
Revaluation
(3,172,969)
(3,172,969)
At 31 March 2024
140,313
9,091
149,404
Carrying amount
At 31 March 2024
25,309,000
24,744
1,855
25,335,599
At 31 March 2023 (unaudited)
12,369,711
9,164
2,323
12,381,198
The leasehold property was valued on an open market basis by the directors as at 31 March 2024, guided by an external valuation obtained from an external firm of professional valuer during 2023.
If revalued assets were stated on an historical cost basis rather than a fair value basis, the total amounts included would have been as follows:
2024
2023
unaudited
£
£
Cost
8,961,784
8,933,825
Accumulated depreciation
(1,722,996)
(1,424,270)
Carrying value
7,238,788
7,509,555
4
Stock
2024
2023
unaudited
£
£
Stock
52,752
52,438
Z Hotels Covent Garden Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
Page 7
5
Debtors
2024
2023
unaudited
as restated
Amounts falling due within one year:
£
£
Trade debtors
50
Other debtors
525,879
315,344
Prepayments and accrued income
750,833
762,788
1,276,712
1,078,182
Deferred tax asset
1,239,047
1,579,620
2,515,759
2,657,802
6
Creditors: amounts falling due within one year
2024
2023
unaudited
as restated
£
£
Trade creditors
80,043
85,028
Amounts due to connected companies
10,560,612
11,168,466
Other taxation and social security
71,161
96,122
Other creditors
3,193,467
3,610,541
13,905,283
14,960,157
7
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
Assets
Assets
restated
restated
unaudited
unaudited
2024
2023
2024
2023
Balances:
£
£
£
£
Accelerated capital allowances
357,504
284,279
-
-
Tax losses
-
-
1,239,047
1,579,620
Revaluations
4,298,342
1,003,078
-
-
4,655,846
1,287,357
1,239,047
1,579,620
Z Hotels Covent Garden Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
7
Deferred taxation
(Continued)
Page 8
2024
Movements in the year:
£
Asset at 1 April 2023
(292,263)
Charge to profit or loss
3,709,062
Liability at 31 March 2024
3,416,799
8
Called up share capital
2024
2023
2024
2023
unaudited
unaudited
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of 10p each
100
100
10
10
9
Financial commitments, guarantees and contingent liabilities
There is a fixed and floating charge over the assets of the company held as security for borrowings held in a fellow group company, Z Hotels Covent Garden Hotel Limited.
10
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.
Senior Statutory Auditor:
Katherine Edwards
Statutory Auditor:
Moore Kingston Smith LLP
11
Operating lease commitments
Lessee
2024
2023
unaudited
£
£
Within one year
1,766,739
1,500,000
Between two and five years
7,434,721
6,000,000
In over five years
42,077,163
28,750,000
51,278,623
36,250,000
Z Hotels Covent Garden Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
Page 9
12
Related party transactions
Transactions with related parties
The company has taken advantage of the exemption contained in FRS 102 section 33 "Related Party Disclosures" from disclosing transactions with entities which are a wholly owned part of the group.
Included within creditors is an amount of £26,337 (2023: £117,145) due to companies under common control and included in debtors is an amount of £168,194 (2023: £291,850). During the year the company incurred management fees of £212,997 (2023: £212,018) from companies under common control.
No key management received remuneration from the company during the year or the prior year.
13
Controlling party
The immediate parent is Z Hotels Covent Garden Hotel Holdings, a company registered in England and Wales. In the opinion of the directors there is no ultimate controlling party,
14
Prior period adjustment
Certain comparative disclosures have been amended, as indicated in the profit and loss account, and notes 6 and 7, 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
1,258,097
1,399,705
2,657,802
Provisions for liabilities
Deferred tax
-
(1,287,357)
(1,287,357)
Net assets
(946,771)
112,348
(834,423)
Capital and reserves
Profit and loss reserves
(5,333,452)
112,348
(5,221,104)
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