| REGISTERED NUMBER: 11221052 (England and Wales) |
| Sheffield One (Hotel) Limited |
| Report of the Directors and |
| Consolidated Financial Statements |
| for the Year Ended 31 December 2024 |
| REGISTERED NUMBER: 11221052 (England and Wales) |
| Sheffield One (Hotel) Limited |
| Report of the Directors and |
| Consolidated Financial Statements |
| for the Year Ended 31 December 2024 |
| Sheffield One (Hotel) Limited (Registered number: 11221052) |
| Contents of the Consolidated Financial Statements |
| for the year ended 31 December 2024 |
| Page |
| Company Information | 1 |
| Report of the Directors | 2 |
| Report of the Independent Auditors | 4 |
| Consolidated Statement of Profit or Loss | 8 |
| Consolidated Statement of Profit or Loss and Other Comprehensive Income |
9 |
| Consolidated Statement of Financial Position | 10 |
| Company Statement of Financial Position | 11 |
| Consolidated Statement of Changes in Equity | 12 |
| Company Statement of Changes in Equity | 13 |
| Consolidated Statement of Cash Flows | 14 |
| Notes to the Consolidated Statement of Cash Flows | 15 |
| Notes to the Consolidated Financial Statements | 16 |
| Sheffield One (Hotel) Limited |
| Company Information |
| for the year ended 31 December 2024 |
| DIRECTORS: |
| REGISTERED OFFICE: |
| REGISTERED NUMBER: |
| AUDITORS: |
| Chartered Accountants and |
| Statutory Auditor |
| 28 Eaton Avenue |
| Matrix Office Park |
| Buckshaw Village |
| Chorley |
| Lancashire |
| PR7 7NA |
| Sheffield One (Hotel) Limited (Registered number: 11221052) |
| Report of the Directors |
| for the year ended 31 December 2024 |
| The directors present their report with the financial statements of the company and the group for the year ended 31 December 2024. |
| PRINCIPAL ACTIVITY |
| The principal activity of the group in the year under review was that of hotel ownership. |
| DIVIDENDS |
| No dividends will be distributed for the year ended 31 December 2024. |
| DIRECTORS |
| The directors who have held office during the period from 1 January 2024 to the date of this report are as follows: |
| STATEMENT OF DIRECTORS' RESPONSIBILITIES |
| The directors are responsible for preparing the Report of the Directors 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 UK-adopted international accounting standards. 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 company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: |
| - | select suitable accounting policies and then apply them consistently; |
| - | make judgements and accounting estimates that are reasonable and prudent; |
| - | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
| The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
| STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
| So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
| Sheffield One (Hotel) Limited (Registered number: 11221052) |
| Report of the Directors |
| for the year ended 31 December 2024 |
| AUDITORS |
| The auditors, McMillan & Co LLP, are deemed to be reappointed under section 487(2) of the Companies Act 2006. |
| ON BEHALF OF THE BOARD: |
| Report of the Independent Auditors to the Members of |
| Sheffield One (Hotel) Limited |
| Opinion |
| We have audited the financial statements of Sheffield One (Hotel) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the Consolidated Statement of Profit or Loss, the Consolidated Statement of Profit or Loss and Other Comprehensive Income, the Consolidated Statement of Financial Position, the Company Statement of Financial Position, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity, the Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and International Financial Reporting Standards (IFRSs) as adopted by the UK. |
| In our opinion: |
| - | the financial statements give a true and fair view of the state of the group's and of the parent company's affairs as at 31 December 2024 and of the group's loss for the year then ended; |
| - | the group financial statements have been properly prepared in accordance with IFRSs as adopted by the UK; |
| - | the parent company financial statements have been properly prepared in accordance with IFRSs as adopted by the UK and as applied in accordance with the provisions of the Companies Act 2006; and |
| - | the financial statements have been prepared in accordance with the requirements of the Companies Act 2006. |
| 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 Auditors' 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. |
| Material uncertainty related 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's and the 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 directors are responsible for the other information. The other information comprises the information in the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
| 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. |
| In connection with our audit of the financial statements, 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 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. |
| Opinions on other matters prescribed by the Companies Act 2006 |
| In our opinion, based on the work undertaken in the course of the audit: |
| - | the information given in the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
| - | the Report of the Directors has been prepared in accordance with applicable legal requirements. |
| Report of the Independent Auditors to the Members of |
| Sheffield One (Hotel) Limited |
| 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 its environment obtained in the course of the audit, we have not identified material misstatements in the Report of the Directors. |
| We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
| - | adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or |
| - | the parent company financial statements are not in agreement with the accounting records and returns; or |
| - | certain disclosures of directors' remuneration specified by law are not made; or |
| - | we have not received all the information and explanations we require for our audit. |
| Responsibilities of directors |
| As explained more fully in the Statement of Directors' Responsibilities set out on page two, 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 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 the 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 the parent company or to cease operations, or have no realistic alternative but to do so. |
| Report of the Independent Auditors to the Members of |
| Sheffield One (Hotel) Limited |
| Auditors' 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 a Report of the Auditors 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. |
| The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
| Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows: |
| - the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations; |
| - we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the sector; |
| - we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation; |
| - we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and |
| - identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit. |
| We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by: |
| - making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and |
| - considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations. |
| To address the risk of fraud through management bias and override of controls, we: |
| - performed analytical procedures to identify any unusual or unexpected relationships, and |
| - tested journal entries to identify unusual transactions. |
| In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to: |
| - agreeing financial statement disclosures to underlying supporting documentation; |
| - reading the minutes of meetings of those charged with governance; |
| - enquiring of management as to actual and potential litigation and claims; and |
| - reviewing correspondence with HMRC, relevant regulators including the Health and Safety Executive, and the company's legal advisors. |
| There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. |
| A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
| Report of the Independent Auditors to the Members of |
| Sheffield One (Hotel) Limited |
| Use of our report |
| This report is made solely to the 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 company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
| for and on behalf of |
| Chartered Accountants and |
| Statutory Auditor |
| Sheffield One (Hotel) Limited (Registered number: 11221052) |
| Consolidated Statement of Profit or Loss |
| for the year ended 31 December 2024 |
| 2024 | 2023 |
| Notes | £ | £ |
| CONTINUING OPERATIONS |
| Revenue | 2,099,764 | 1,962,520 |
| Cost of sales | (888,498 | ) | (843,188 | ) |
| GROSS PROFIT | 1,211,266 | 1,119,332 |
| Administrative expenses | (936,577 | ) | (920,681 | ) |
| OPERATING PROFIT | 274,689 | 198,651 |
| Finance costs | 4 | (472,327 | ) | (475,318 | ) |
| LOSS BEFORE INCOME TAX | 5 | (197,638 | ) | (276,667 | ) |
| Income tax | 6 | - | - |
| LOSS FOR THE YEAR | ( |
) | ( |
) |
| Loss attributable to: |
| Owners of the parent | (197,638 | ) | (276,667 | ) |
| Sheffield One (Hotel) Limited (Registered number: 11221052) |
| Consolidated Statement of Profit or Loss and Other Comprehensive Income |
| for the year ended 31 December 2024 |
| 2024 | 2023 |
| £ | £ |
| LOSS FOR THE YEAR | (197,638 | ) | (276,667 | ) |
| OTHER COMPREHENSIVE INCOME | - | - |
| TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
(197,638 |
) |
(276,667 |
) |
| Total comprehensive income attributable to: |
| Owners of the parent | (197,638 | ) | (276,667 | ) |
| Sheffield One (Hotel) Limited (Registered number: 11221052) |
| Consolidated Statement of Financial Position |
| 31 December 2024 |
| 2024 | 2023 |
| Notes | £ | £ |
| ASSETS |
| NON-CURRENT ASSETS |
| Property, plant and equipment | 8 | 5,945,467 | 6,194,915 |
| Investments | 9 | - | - |
| 5,945,467 | 6,194,915 |
| CURRENT ASSETS |
| Inventories | 10 | 5,731 | 3,724 |
| Trade and other receivables | 11 | 317,296 | 365,517 |
| Cash and cash equivalents | 12 | 881,727 | 454,247 |
| 1,204,754 | 823,488 |
| TOTAL ASSETS | 7,150,221 | 7,018,403 |
| EQUITY |
| SHAREHOLDERS' EQUITY |
| Called up share capital | 13 | 1,000 | 1,000 |
| Retained earnings | 14 | (2,160,173 | ) | (1,962,535 | ) |
| TOTAL EQUITY | (2,159,173 | ) | (1,961,535 | ) |
| LIABILITIES |
| CURRENT LIABILITIES |
| Trade and other payables | 15 | 9,309,394 | 8,979,938 |
| TOTAL LIABILITIES | 9,309,394 | 8,979,938 |
| TOTAL EQUITY AND LIABILITIES | 7,150,221 | 7,018,403 |
| The financial statements were approved by the Board of Directors and authorised for issue on 23 May 2025 and were signed on its behalf by: |
| A Aslam - Director |
| Sheffield One (Hotel) Limited (Registered number: 11221052) |
| Company Statement of Financial Position |
| 31 December 2024 |
| 2024 | 2023 |
| Notes | £ | £ |
| ASSETS |
| NON-CURRENT ASSETS |
| Property, plant and equipment | 8 |
| Investments | 9 | 1,000 | 1,000 |
| CURRENT ASSETS |
| Trade and other receivables | 11 |
| Cash and cash equivalents | 12 |
| TOTAL ASSETS |
| EQUITY |
| SHAREHOLDERS' EQUITY |
| Called up share capital | 13 |
| Retained earnings | 14 | ( |
) | ( |
) |
| TOTAL EQUITY | ( |
) | ( |
) |
| LIABILITIES |
| CURRENT LIABILITIES |
| Trade and other payables | 15 |
| TOTAL LIABILITIES |
| TOTAL EQUITY AND LIABILITIES |
| The financial statements were approved by the Board of Directors and authorised for issue on |
| Sheffield One (Hotel) Limited (Registered number: 11221052) |
| Consolidated Statement of Changes in Equity |
| for the year ended 31 December 2024 |
| Called up |
| share | Retained | Total |
| capital | earnings | equity |
| £ | £ | £ |
| Balance at 1 January 2023 | 1,000 | (1,685,868 | ) | (1,684,868 | ) |
| Changes in equity |
| Total comprehensive income | - | (276,667 | ) | (276,667 | ) |
| Balance at 31 December 2023 | 1,000 | (1,962,535 | ) | (1,961,535 | ) |
| Changes in equity |
| Total comprehensive income | - | (197,638 | ) | (197,638 | ) |
| Balance at 31 December 2024 | 1,000 | (2,160,173 | ) | (2,159,173 | ) |
| Sheffield One (Hotel) Limited (Registered number: 11221052) |
| Company Statement of Changes in Equity |
| for the year ended 31 December 2024 |
| Called up |
| share | Retained | Total |
| capital | earnings | equity |
| £ | £ | £ |
| Balance at 1 January 2023 | ( |
) | ( |
) |
| Changes in equity |
| Total comprehensive income | - | ( |
) | ( |
) |
| Balance at 31 December 2023 | ( |
) | ( |
) |
| Changes in equity |
| Total comprehensive income | - | ( |
) | ( |
) |
| Balance at 31 December 2024 | ( |
) | ( |
) |
| Sheffield One (Hotel) Limited (Registered number: 11221052) |
| Consolidated Statement of Cash Flows |
| for the year ended 31 December 2024 |
| 2024 | 2023 |
| £ | £ |
| Cash flows from operating activities |
| Cash generated from operations | 1 | 598,288 | 243,587 |
| Interest paid | (472,327 | ) | (475,318 | ) |
| Net cash from operating activities | 125,961 | (231,731 | ) |
| Cash flows from investing activities |
| New loans in year from Group | 301,519 | 428,126 |
| Loans to other group companies | - | (155,040 | ) |
| Net cash from investing activities | 301,519 | 273,086 |
| Increase in cash and cash equivalents | 427,480 | 41,355 |
| Cash and cash equivalents at beginning of year |
2 |
454,247 |
412,892 |
| Cash and cash equivalents at end of year |
2 |
881,727 |
454,247 |
| Sheffield One (Hotel) Limited (Registered number: 11221052) |
| Notes to the Consolidated Statement of Cash Flows |
| for the year ended 31 December 2024 |
| 1. | RECONCILIATION OF LOSS BEFORE INCOME TAX TO CASH GENERATED FROM OPERATIONS |
| 2024 | 2023 |
| £ | £ |
| Loss before income tax | (197,638 | ) | (276,667 | ) |
| Depreciation charges | 249,447 | 228,660 |
| Profit on disposal of fixed assets | - | (3,962 | ) |
| Finance costs | 472,327 | 475,318 |
| 524,136 | 423,349 |
| Increase in inventories | (2,007 | ) | (227 | ) |
| Decrease/(increase) in trade and other receivables | 49,030 | (31,908 | ) |
| Increase/(decrease) in trade and other payables | 27,129 | (147,627 | ) |
| Cash generated from operations | 598,288 | 243,587 |
| 2. | CASH AND CASH EQUIVALENTS |
| The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts: |
| Year ended 31 December 2024 |
| 31/12/24 | 1/1/24 |
| £ | £ |
| Cash and cash equivalents | 881,727 | 454,247 |
| Year ended 31 December 2023 |
| 31/12/23 | 1/1/23 |
| £ | £ |
| Cash and cash equivalents | 454,247 | 412,892 |
| Sheffield One (Hotel) Limited (Registered number: 11221052) |
| Notes to the Consolidated Financial Statements |
| for the year ended 31 December 2024 |
| 1. | STATUTORY INFORMATION |
| Sheffield One (Hotel) Limited is a |
| The presentation currency of the financial statements is the Pound Sterling (£). |
| The amounts in the financial statements have been rounded to the nearest £1. |
| 2. | ACCOUNTING POLICIES |
| Basis of preparation |
| Going concern |
| The financial statements have been prepared on a going concern basis which the directors consider to be appropriate. |
| The directors are of the opinion that the company will have sufficient funds to meet its liabilities as they fall due. Funds will be provided through funding from the ultimate parent company, Select Group Limited, if required. |
| The directors have considered the ability of Select Group Limited to provide financial support based on information provided by Select Group Limited. The ability of Select Group Limited to continue to provide this support is dependent on the group achieving its own cash flow forecast and the continued availability of shareholder loans to the Group. |
| Based on these indications, the directors believe that it remains appropriate to prepare the financial statements on a going concern basis. The financial statements do not include any adjustments that would result from the basis of preparation being inappropriate. |
| Basis of consolidation |
| These consolidated account incorporate the accounts of the Company and its subsidiary, which has been consolidated on a line-by-line basis. The financial accounts of the subsidiary have been prepared up to 31 December. |
| Subsidiaries |
| Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power of the entity. The financial statements of subsidiaries are included in the consolidated financial statements from the date on which control commences until the date on which control ceases. |
| Transactions eliminated on consolidation |
| All intra-group balances and transactions, and any unrealised gains or losses and income or expenses arising from intra-group transactions, are eliminated in full in preparing these consolidated financial statements. Unrealised gains arising from transactions with equity accounted investments are eliminated to the extent of the Group's interest in the entity. Unrealised losses are eliminated in the same way as unrealised gains, but only to the extent that there is no evidence of impairment. |
| Sheffield One (Hotel) Limited (Registered number: 11221052) |
| Notes to the Consolidated Financial Statements - continued |
| for the year ended 31 December 2024 |
| 2. | ACCOUNTING POLICIES - continued |
| Critical accounting judgements and key sources of estimation uncertainty |
| The critical accounting judgement and a source of some uncertainty is the discount rate applied to the lease liability. |
| Where, as in most cases, a discount rate implicit in the lease is not available, discount rates are calculated for each lease with reference to the underlying cost of borrowing available to the business and several other factors specific to the asset. |
| The selection of discount rates is therefore a management judgement. |
| A discount rate of 3% has been applied. |
| A critical judgement is also applied to the depreciation rate, useful economic life and residual value of the property, This is set out in the Property, plant and equipment accounting policy note. |
| Cash and cash equivalents |
| Cash represents cash in hand and deposits held on demand with financial institutions. Cash equivalents are short-term, highly-liquid investments with original maturities of three months or less (as at their date of acquisition). Cash equivalents are readily convertible to known amounts of cash and subject to an insignificant risk of change in that cash value. |
| In the presentation of the Statement of Cash Flows, cash and cash equivalents also include bank overdrafts. Any such overdrafts are shown within borrowings under ‘current liabilities’ on the Statement of Financial Position. |
| Property, plant and equipment |
| Freehold property | - |
| Fixtures and fittings | - |
| Financial instruments |
| Trade and other debtors/creditors |
| Trade and other debtors are recognised and measured at transaction price less attributable transaction costs. Trade and other creditors are also recognised and measured at transaction price plus attributable transaction costs. |
| Cash and cash equivalents |
| Cash and cash equivalents comprise cash balances and call deposits. Bank overdrafts that are repayable on demand and form an integral part of the Company's cash management are included as a component of cash and cash equivalents for the purpose only of the cash flow statements. |
| Interest-bearing borrowings |
| Interest bearing borrowings are recognised initially at fair value less attributable transaction costs. Subsequent to initial recognition, interest bearing borrowings are stated at amortised costs using the effective interest method, less any impairment losses. |
| Borrowing costs that are directly attributable to the acquisition, construction or production of a qualifying asset form part of the costs of that asset and are capitalised. Other borrowing costs are recognised as an expense. |
| Inventories |
| Inventories are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
| Sheffield One (Hotel) Limited (Registered number: 11221052) |
| Notes to the Consolidated Financial Statements - continued |
| for the year ended 31 December 2024 |
| 2. | ACCOUNTING POLICIES - continued |
| Taxation |
| Current taxes are based on the results shown in the financial statements and are calculated according to local tax rules, using tax rates enacted or substantially enacted by the statement of financial position date. |
| Leases |
| At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration. To assess whether a contract conveys the right to control the use of an identified asset, the Group uses the definition of a lease in IFRS 16. |
| i. As a lessee |
| At commencement or on modification of a contract that contains a lease component, the Group allocates the consideration in the contract to each lease component on the basis of its relative stand alone prices. However, for the leases of property the Group has elected not to separate non lease components and account for the lease and non lease components as a single lease component. |
| The Group recognises a right of use asset and a lease liability at the lease commencement date. The right of use asset is initially measured at cost, which comprises the initial amount of the lease liability adjusted for any lease payments made at or before the commencement date, plus any initial direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to restore the underlying asset or the site on which it is located, less any lease incentives received. |
| The right of use asset is subsequently depreciated using the straight line method from the commencement date to the end of the lease term, unless the lease transfers ownership of the underlying asset to the Group by the end of the lease term or the cost of the right of use asset reflects that the Group will exercise a purchase option. In that case the right of use asset will be depreciated over the useful life of the underlying asset, which is determined on the same basis as those of property and equipment. In addition, the right of use asset is periodically reduced by impairment losses, if any, and adjusted for certain remeasurements of the lease liability. |
| The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Group's incremental borrowing rate. Generally, the Group uses its incremental borrowing rate as the discount rate. |
| The Group determines its incremental borrowing rate by obtaining interest rates from various external financing sources and makes certain adjustments to reflect the terms of the lease and type of the asset leased. |
| Lease payments included in the measurement of the lease liability comprise the following: |
| - fixed payments, including in substance fixed payments; |
| - variable lease payments that depend on an index or a rate, initially measured using the index or rate as at the commencement date; |
| - amounts expected to be payable under a residual value guarantee; and |
| - the exercise price under a purchase option that the Group is reasonably certain to exercise, lease payments in an optional renewal period if the Group is reasonably certain to exercise an extension option, and penalties for early termination of a lease unless the Group is reasonably certain not to terminate early. |
| Sheffield One (Hotel) Limited (Registered number: 11221052) |
| Notes to the Consolidated Financial Statements - continued |
| for the year ended 31 December 2024 |
| 2. | ACCOUNTING POLICIES - continued |
| The lease liability is measured at amortised cost using the effective interest method. It is remeasured when there is a change in future lease payments arising from a change in an index or rate, if there is a change in the Group's estimate of the amount expected to be payable under a residual value guarantee, if the Group changes its assessment of whether it will exercise a purchase, extension or termination option or if there is a revised in?substance fixed lease payment. |
| When the lease liability is remeasured in this way, a corresponding adjustment is made to the carrying amount of the right of use asset, or is recorded in profit or loss if the carrying amount of the right of use asset has been reduced to zero. |
| The Group presents right of use assets that do not meet the definition of investment property in 'property, plant and equipment' and lease liabilities in 'loans and borrowings' in the statement of financial position. |
| Short-term leases and leases of low-value assets |
| The Group has elected not to recognise right of use assets and lease liabilities for leases of low value assets and short term leases, including IT equipment. The Group recognises the lease payments associated with these leases as an expense on a straight line basis over the lease term. |
| ii. As a lessor |
| At inception or on modification of a contract that contains a lease component, the Group allocates the consideration in the contract to each lease component on the basis of their relative stand-alone prices. |
| When the Group acts as a lessor, it determines at lease inception whether each lease is a finance lease or an operating lease. |
| To classify each lease, the Group makes an overall assessment of whether the lease transfers substantially all of the risks and rewards incidental to ownership of the underlying asset. If this is the case, then the lease is a finance lease; if not, then it is an operating lease. As part of this assessment, the Group considers certain indicators such as whether the lease is for the major part of the economic life of the asset. |
| The Group recognises lease payments received under operating leases as income on a straight-line basis over the lease term as part of 'other revenue'. |
| Government grants |
| The CJRS is a government grant accounted for under the accruals model. Where the grant is classed as revenue, it is recognised in income on a systematic basis over the periods in which the company recognises the related costs. |
| Finance income and expense |
| Financing expenses include interest payable, finance charges on shares classified as liabilities and finance charges on lease liabilities recognised in profit or loss using the effective interest method, unwinding of the discount on provisions, and net foreign exchange losses that are recognised in the income statement. Borrowing costs that are directly attributable to the acquisition, construction or production of an asset that takes a substantial time to be prepared for use, are capitalised as part of the cost of that asset. |
| Financing income comprise interest receivable on funds invested, dividend income, interest income on lease receivables and net foreign exchange gains. |
| Interest income and interest payable is recognised in profit or loss as it accrues, using the effective interest method. Dividend income is recognised in the income statement on the date the entity's right to receive payments is established. Foreign currency gains and losses are reported on a net basis. |
| Sheffield One (Hotel) Limited (Registered number: 11221052) |
| Notes to the Consolidated Financial Statements - continued |
| for the year ended 31 December 2024 |
| 3. | EMPLOYEES AND DIRECTORS |
| 2024 | 2023 |
| £ | £ |
| Wages and salaries | 510,316 | 484,961 |
| Social security costs | 89,804 | 90,264 |
| Other pension costs | 32,226 | 30,765 |
| 632,346 | 605,990 |
| The average number of employees during the year was as follows: |
| 2024 | 2023 |
| Operational and administrative staff |
| 2024 | 2023 |
| £ | £ |
| Directors' remuneration | - | - |
| 4. | NET FINANCE COSTS |
| 2024 | 2023 |
| £ | £ |
| Finance costs: |
| Loan interest | 472,327 | 475,318 |
| 5. | LOSS BEFORE INCOME TAX |
| The loss before income tax is stated after charging/(crediting): |
| 2024 | 2023 |
| £ | £ |
| Cost of inventories recognised as expense | 888,498 | 843,188 |
| Depreciation - owned assets | 249,448 | 228,660 |
| Profit on disposal of fixed assets | - | (3,962 | ) |
| Auditors' remuneration | 22,342 | 22,400 |
| 6. | INCOME TAX |
| Analysis of tax expense |
| No liability to UK corporation tax arose for the year ended 31 December 2024 nor for the year ended 31 December 2023. |
| 7. | LOSS OF PARENT COMPANY |
| As permitted by Section 408 of the Companies Act 2006, the statement of comprehensive income of the parent company is not presented as part of these financial statements. The parent company's loss for the financial year was £(222,268) (2023 - £(331,246)). |
| Sheffield One (Hotel) Limited (Registered number: 11221052) |
| Notes to the Consolidated Financial Statements - continued |
| for the year ended 31 December 2024 |
| 8. | PROPERTY, PLANT AND EQUIPMENT |
| Group |
| Fixtures |
| Freehold | and |
| property | fittings | Totals |
| £ | £ | £ |
| COST |
| At 1 January 2024 |
| and 31 December 2024 | 6,399,412 | 708,994 | 7,108,406 |
| DEPRECIATION |
| At 1 January 2024 | 585,464 | 328,027 | 913,491 |
| Charge for year | 159,986 | 89,462 | 249,448 |
| At 31 December 2024 | 745,450 | 417,489 | 1,162,939 |
| NET BOOK VALUE |
| At 31 December 2024 | 5,653,962 | 291,505 | 5,945,467 |
| At 31 December 2023 | 5,813,948 | 380,967 | 6,194,915 |
| Company |
| Fixtures |
| Freehold | and |
| property | fittings | Totals |
| £ | £ | £ |
| COST |
| At 1 January 2024 |
| and 31 December 2024 |
| DEPRECIATION |
| At 1 January 2024 |
| Charge for year |
| At 31 December 2024 |
| NET BOOK VALUE |
| At 31 December 2024 |
| At 31 December 2023 |
| Sheffield One (Hotel) Limited (Registered number: 11221052) |
| Notes to the Consolidated Financial Statements - continued |
| for the year ended 31 December 2024 |
| 9. | INVESTMENTS |
| Company |
| Shares in |
| group |
| undertakings |
| £ |
| COST |
| At 1 January 2024 |
| and 31 December 2024 | 1,000 |
| NET BOOK VALUE |
| At 31 December 2024 | 1,000 |
| At 31 December 2023 | 1,000 |
| The group or the company's investments at the Statement of Financial Position date in the share capital of companies include the following: |
| Subsidiary |
| Registered office: Bridge House,12 Market Street, Glossop, Derbyshire, SK13 8AR. |
| Nature of business: |
| % |
| Class of shares: | holding |
| 2024 | 2023 |
| £ | £ |
| Aggregate capital and reserves | ( |
) |
| Profit for the year |
| 10. | INVENTORIES |
| Group |
| 2024 | 2023 |
| £ | £ |
| Food stocks | 5,731 | 3,724 |
| 11. | TRADE AND OTHER RECEIVABLES |
| Group | Company |
| 2024 | 2023 | 2024 | 2023 |
| £ | £ | £ | £ |
| Current: |
| Amounts owed by group undertakings | 268,495 | 267,686 |
| Other debtors | 17,825 | 64,071 | 87,435 | 56,900 |
| Prepayments and accrued income | 30,976 | 33,760 | - | - |
| 317,296 | 365,517 |
| Sheffield One (Hotel) Limited (Registered number: 11221052) |
| Notes to the Consolidated Financial Statements - continued |
| for the year ended 31 December 2024 |
| 12. | CASH AND CASH EQUIVALENTS |
| Group | Company |
| 2024 | 2023 | 2024 | 2023 |
| £ | £ | £ | £ |
| Cash in hand | 361 | 390 |
| Bank accounts | 881,366 | 453,857 |
| 881,727 | 454,247 |
| 13. | CALLED UP SHARE CAPITAL |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal | 2024 | 2023 |
| value: | £ | £ |
| Ordinary | £1 | 1,000 | 1,000 |
| 14. | RESERVES |
| Group |
| Retained |
| earnings |
| £ |
| At 1 January 2024 | (1,962,535 | ) |
| Deficit for the year | (197,638 | ) |
| At 31 December 2024 | (2,160,173 | ) |
| Company |
| Retained |
| earnings |
| £ |
| At 1 January 2024 | ( |
) |
| Deficit for the year | ( |
) |
| At 31 December 2024 | ( |
) |
| Sheffield One (Hotel) Limited (Registered number: 11221052) |
| Notes to the Consolidated Financial Statements - continued |
| for the year ended 31 December 2024 |
| 15. | TRADE AND OTHER PAYABLES |
| Group | Company |
| 2024 | 2023 | 2024 | 2023 |
| £ | £ | £ | £ |
| Current: |
| Trade creditors | 117,855 | 55,002 |
| Amounts owed to group undertakings | 9,036,556 | 8,734,229 |
| Social security and other taxes | 5,150 | 1,042 |
| Other creditors | 13,341 | 19,145 |
| Accruals and deferred income | 110,729 | 145,883 |
| VAT | 25,763 | 24,637 | 18,407 | 9,233 |
| 9,309,394 | 8,979,938 |
| 16. | ULTIMATE PARENT COMPANY |
| The company is a wholly owned subsidiary of Select Investments Limited, a company registered in the Jabel Ali Free Trade Zone in the United Arab Emirates. This is a wholly owned subsidiary of Select Group Limited, The consolidated financial statements of these groups are not available to the public. The ultimate controlling party is Rahail Aslam. |
| 17. | RELATED PARTY DISCLOSURES |
| The Group continued to receive the benefit of a loan from its parent company, Select Investments Limited, throughout the year. At the balance sheet date an amount of £9,036,556 (2023: £8,734,229) was owed by the company. Interest of £472,327 (2023: £475,318) was charged at the rate of 7% during the year on the loan balance. |
| At the year end, loans were outstanding from the following fellow subsidiaries: |
| 2024 | 2023 |
| £ |
| Select Birmingham Limited | 60,000 | 60,000 |
| Echo Liverpool Limited | 24,000 | 24,000 |
| Select E Commerce Limited | 75,000 | 75,000 |
| Sheffield One (UK) Limited | 109,494 | 108,686 |
| Sheffield One (Hotel) Limited (Registered number: 11221052) |
| Notes to the Consolidated Financial Statements - continued |
| for the year ended 31 December 2024 |
| 18. | NEW AND REVISED STANDARDS | IN ISSUE BUT NOT YET EFFECTIVE |
| Adoption of new and revised Standards |
| New and amended IFRS Standards that are effective for the current year |
| In the current year, the Group has adopted all the new and revised Standards and Interpretations issued by the International Accounting Standards Board (the IASB) and the International Financial Reporting Interpretations Committee (the IFRIC) of the IASB that are relevant to its operations and effective for an annual period that begins on or after 1 January 2023 all of which were endorsed in the UK. Their adoption has not had any material impact on the disclosures or on the amounts reported in these financial statements. |
| - | Amendments to IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2: Disclosure of Accounting Policies |
| - | Amendments to IAS 8 Accounting policies, Changes in Accounting Estimates and Errors: Definition of Accounting Estimates |
| - | Amendments to IAS 12 Deferred Tax related to Assets and Liabilities arising from a Single Transaction |
| - | Amendments to IFRS 4 Extension of the Temporary Exemption from Applying IFRS 9 - Comparative Information |
| - | IFRS 17 Insurance Contracts |
| - | Initial Application of IFRS 17 and IFRS 19 - Comparative Information |
| - | Annual Improvements to IFRS Standards 2018 - 2020 |
| The Group has not adopted early any standards, interpretations or amendments that have been issued but are not yet effective. |
| Standards and interpretations published, but not yet applicable for the annual period beginning on 1 January 2023 |
| At the date of authorisation of these financial statement, the Group has not applied the following new and revised IFRS Standards and Interpretations that have been issued but are not yet effective and, in some cases, had not yet been adopted by the EU: |
| - | Amendments to IAS 1 Presentation of Financial Statements: Classification of Liabilities as Current or Non-current (applicable for annual periods beginning on or after 1 January 2024) |
| - | Amendments to IAS 1 Presentation of Financial Statements: Non-current Liabilities with Covenants (applicable for annual periods beginning on or after 1 January 2024) |
| - | Amendments to IAS 7 Statement of Cash Flows: Supplier Finance Arrangements (applicable for annual periods beginning on or after 1 January 2024) |
| - | Amendments to IAS 12 Income Taxes: International Tax Reform - Pillar Two Model Rules (applicable for annual periods beginning on or after 1 January 2024) |
| - | Amendments to IAS 21 The Effects of Changes in Foreign Exchange Rates: Lack of Exchangeability (applicable for annual periods beginning on or after 1 January 2025) |
| - | Amendments to IFRS 16 Lease Liability in a Sale and Leaseback (applicable for annual periods beginning on or after 1 January 2024) |
| It is expected that the standards and interpretations, not yet applicable, will have no significant impact on the Group's financial result or position. |