Company registration number 09011526 (England and Wales)
PROVENANCE HOSPITALITY HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 25 AUGUST 2024
PROVENANCE HOSPITALITY HOLDINGS LIMITED
COMPANY INFORMATION
Director
C J Blundell
Company number
09011526
Registered office
The Barn
The Punch Bowl Inn
Marton cum Grafton
YORK
YO51 9QY
Auditor
Lithgow Perkins LLP
Crown Chambers
Princes Street
HARROGATE
HG1 1NJ
PROVENANCE HOSPITALITY HOLDINGS LIMITED
CONTENTS
Page
Strategic report
1
Director's report
2
Director's responsibilities statement
3
Independent auditor's report
4 - 7
Profit and loss account
8
Group statement of comprehensive income
9
Group balance sheet
10
Company balance sheet
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Company statement of cash flows
15
Notes to the financial statements
16 - 28
PROVENANCE HOSPITALITY HOLDINGS LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 25 AUGUST 2024
- 1 -
The director presents the strategic report for the year ended 25 August 2024.
Provenance Hospitality Holdings was founded in 2014 as the group holding company for Provenance Inns Limited and Provenance Hotels Limited. The group currently consists of five premium country inns, one town centre pub, and two luxury boutique hotels, all located in North Yorkshire. Two of the inns and both hotels offer luxury accommodation in addition to an extensive food and drink offering. Provenance Hospitality Holdings also has a management contract to provide the catering and accommodation services for an eleven-bedroom country lodge, situated in its own expansive grounds on the edge of the North York Moors.
Financial performance
Turnover for the group decreased by 1% compared to the previous year, primarily as a result of reduced trading days at one site. Nevertheless, gross profit increased by 12%, driven by improved cost control and efficiencies in operational processes. Operational trading losses were reduced by 17% due to lower administrative expenses, although interest charges rose by 40%. As a result, the overall loss for the financial year remained broadly in line with the previous year.
Principle risks and uncertainties
The group operates in a dynamic sector that is subject to a range of external and internal risks. The economic environment remains a significant factor, with hospitality businesses being particularly sensitive to inflationary pressures, fluctuations in interest rates, and shifts in consumer spending habits. Recent increases in borrowing costs have already impacted financial performance.
Labour market conditions also continue to pose challenges. Recruiting and retaining skilled personnel, especially in rural locations, is increasingly difficult, with wage inflation and staffing shortages contributing to operational pressures. Furthermore, supply chain disruptions have introduced volatility in the availability and cost of food, drink, and other key inputs, potentially affecting both profitability and the customer experience.
Regulatory changes also present a level of uncertainty, as the business must remain compliant with evolving legislation concerning health and safety, licensing, and employment. Seasonal variations and unpredictable weather further influence trading performance, particularly for rural sites that rely on tourism and local events.
To manage and mitigate these risks, the group is focused on sound financial management, operational resilience, and the continued investment in team development and customer service. These measures aim to ensure the business remains agile and well-positioned for sustainable growth.
C J Blundell
Director
23 May 2025
PROVENANCE HOSPITALITY HOLDINGS LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 25 AUGUST 2024
- 2 -
The director presents his annual report and financial statements for the year ended 25 August 2024.
Principal activities
The principal activity of the company and group during the year was the provision of hospitality services.
Results and dividends
The results for the year are set out on page 8.
No ordinary dividends were paid. The director does not recommend payment of a final dividend.
Director
The director who held office during the year and up to the date of signature of the financial statements was as follows:
C J Blundell
Strategic report
The truegroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the group's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of principle risks and uncertainties.
Statement of disclosure to auditor
So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the director individually has taken all the necessary steps that he ought to have taken as a director in order to make himself aware of all relevant audit information and to establish that the auditor of the company is aware of that information.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
C J Blundell
Director
23 May 2025
PROVENANCE HOSPITALITY HOLDINGS LIMITED
DIRECTOR'S RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 25 AUGUST 2024
- 3 -
The director is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group and company will continue in business.
The director is responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
PROVENANCE HOSPITALITY HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF PROVENANCE HOSPITALITY HOLDINGS LIMITED
- 4 -
Opinion
We have audited the financial statements of Provenance Hospitality Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 25 August 2024 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the group's and the parent company's affairs as at 25 August 2024 and of the group's loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
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 Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company 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 relating to going concern.
We draw attention to note 1.4 of the financial statements, which outlines the current challenges facing the company. It also indicates that the company's liabilities significantly exceed its assets and the company is dependent on the ongoing support of its director, who has indicated his continuing support.
These events or conditions indicate that a material uncertainty exists that may cast significant doubt on the company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The director is responsible for the other information contained within the annual report. 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. 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 course of 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 our audit:
The information given in the strategic report and the director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
The strategic report and the director's report have been prepared in accordance with applicable legal requirements.
PROVENANCE HOSPITALITY HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PROVENANCE HOSPITALITY HOLDINGS LIMITED
- 5 -
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 their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's report.
We have nothing to report in respect of the following matters in relation to which 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 director
As explained more fully in the director's responsibilities statement, the director is 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 director determines is 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 director is responsible for assessing 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 director either intends to liquidate the parent company or to cease operations, or has no realistic alternative but to do so.
Auditor's 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 an auditor's report 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.
PROVENANCE HOSPITALITY HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PROVENANCE HOSPITALITY HOLDINGS LIMITED
- 6 -
Extent to which the audit was capable of detecting irregularities, including fraud
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below;
Our procedures for detecting irregularities, including fraud, include the following:
enquiring of the directors the procedures relating to their processes for identifying, evaluating and complying with the laws and regulations and for detecting and responding to the risks of fraud
obtaining an understanding of the legal and regulatory frameworks applicable to the company. The most significant identified were food safety regulations, health and safety, employment and corporation tax legislation and compliance with the Companies Act 2006
discussing among the engagement team how and where fraud might occur in the financial statements and any potential indicators of fraud
As part of the discussion on fraud, we identified the following areas as having potential for fraud to occur;
management override of controls
revenue recognition and cut-off
misappropriation of stock
We designed and executed procedures in line with our responsibilities to detect material misstatements in respect of irregularities, including fraud. These procedures, together with the extent to which they are capable of detecting irregularities, including fraud, are detailed below;
we made enquires of management and reviewed correspondence with the relevant authorities to identify any irregularities or instances of non-compliance with laws and regulations and to identify any irregularities or instances of fraud
we tested the appropriateness of the accounting journals
we reviewed the company's accounting policies for non-compliance with the relevant accounting standards.
we attended the stock count on the year end date and reviewed the stock count procedures and controls in place
we considered the appropriateness of the revenue recognition policies
we considered significant accounting estimates for evidence of misstatement
We also communicated relevant laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with the laws and regulations throughout the audit.
Our audit procedures were designed to respond to risks of material misstatement in the financial statements. There are inherent limits in the audit procedures performed, not least due to the following;
the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting a material misstatement resulting from error, as fraud may involve deliberate concealment
the further removed the non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we are to become aware of it
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's 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 an auditor's report 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.
PROVENANCE HOSPITALITY HOLDINGS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF PROVENANCE HOSPITALITY HOLDINGS LIMITED
- 7 -
Michael Briggs BA FCA (Senior Statutory Auditor)
For and on behalf of Lithgow Perkins LLP, Statutory Auditor
Chartered Accountants
Crown Chambers
Princes Street
HARROGATE
HG1 1NJ
29 May 2025
PROVENANCE HOSPITALITY HOLDINGS LIMITED
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 25 AUGUST 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
7,156,088
7,243,645
Cost of sales
(4,652,567)
(5,000,500)
Gross profit
2,503,521
2,243,145
Administrative expenses
(4,228,848)
(4,306,322)
Other operating income
126,774
130,251
Operating loss
4
(1,598,553)
(1,932,926)
Interest payable and similar expenses
7
(1,146,160)
(821,000)
Loss before taxation
(2,744,713)
(2,753,926)
Tax on loss
8
Loss for the financial year
(2,744,713)
(2,753,926)
Loss for the financial year is all attributable to the owner of the parent company.
PROVENANCE HOSPITALITY HOLDINGS LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 25 AUGUST 2024
- 9 -
2024
2023
£
£
Loss for the year
(2,744,713)
(2,753,926)
Other comprehensive income
-
-
Cash flow hedges gain arising in the year
Total comprehensive income for the year
(2,744,713)
(2,753,926)
Total comprehensive income for the year is all attributable to the owner of the parent company.
PROVENANCE HOSPITALITY HOLDINGS LIMITED
GROUP BALANCE SHEET
AS AT
25 AUGUST 2024
25 August 2024
- 10 -
25 August 2024
27 August 2023
Notes
£
£
£
£
Fixed assets
Goodwill
9
104,838
Total intangible assets
104,838
Tangible assets
10
20,680,063
20,987,104
20,680,063
21,091,942
Current assets
Stocks
13
106,883
101,064
Debtors
14
417,789
468,800
Cash at bank and in hand
199,715
259,996
724,387
829,860
Creditors: amounts falling due within one year
15
(23,724,607)
(21,599,942)
Net current liabilities
(23,000,220)
(20,770,082)
Total assets less current liabilities
(2,320,157)
321,860
Creditors: amounts falling due after more than one year
16
(4,052,261)
(3,949,565)
Net liabilities
(6,372,418)
(3,627,705)
Capital and reserves
Called up share capital
19
4,000,100
4,000,100
Revaluation reserve
3,890,135
3,890,135
Profit and loss reserves
(14,262,653)
(11,517,940)
Total equity
(6,372,418)
(3,627,705)
These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.
The financial statements were approved and signed by the director and authorised for issue on 23 May 2025
23 May 2025
C J Blundell
Director
Company registration number 09011526 (England and Wales)
PROVENANCE HOSPITALITY HOLDINGS LIMITED
COMPANY BALANCE SHEET
AS AT 25 AUGUST 2024
25 August 2024
- 11 -
25 August 2024
27 August 2023
Notes
£
£
£
£
Fixed assets
Investments
11
101
101
101
101
Current assets
Debtors
14
8,000,918
4,000,000
Creditors: amounts falling due within one year
15
(47,741)
(1)
Net current assets
7,953,177
3,999,999
Total assets less current liabilities
7,953,278
4,000,100
Creditors: amounts falling due after more than one year
16
(4,052,261)
-
Net assets
3,901,017
4,000,100
Capital and reserves
Called up share capital
19
4,000,100
4,000,100
Profit and loss reserves
(99,083)
Total equity
3,901,017
4,000,100
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £99,083 (2023 - £0 profit).
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved and signed by the director and authorised for issue on 23 May 2025
23 May 2025
C J Blundell
Director
Company registration number 09011526 (England and Wales)
PROVENANCE HOSPITALITY HOLDINGS LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 25 AUGUST 2024
- 12 -
Share capital
Revaluation reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 29 August 2022
4,000,100
3,890,135
(8,764,014)
(873,779)
Year ended 27 August 2023:
Loss and total comprehensive income
-
-
(2,753,926)
(2,753,926)
Balance at 27 August 2023
4,000,100
3,890,135
(11,517,940)
(3,627,705)
Year ended 25 August 2024:
Loss and total comprehensive income
-
-
(2,744,713)
(2,744,713)
Balance at 25 August 2024
4,000,100
3,890,135
(14,262,653)
(6,372,418)
PROVENANCE HOSPITALITY HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 25 AUGUST 2024
- 13 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 29 August 2022
4,000,100
4,000,100
Year ended 27 August 2023:
Profit and total comprehensive income for the year
-
-
Balance at 27 August 2023
4,000,100
4,000,100
Year ended 25 August 2024:
Profit and total comprehensive income
-
(99,083)
(99,083)
Balance at 25 August 2024
4,000,100
(99,083)
3,901,017
PROVENANCE HOSPITALITY HOLDINGS LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 25 AUGUST 2024
- 14 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
21
5,421,030
2,672,930
Interest paid
(1,146,160)
(821,000)
Net cash inflow from operating activities
4,274,870
1,851,930
Investing activities
Purchase of tangible fixed assets
(385,586)
(1,438,630)
Proceeds from disposal of tangible fixed assets
-
11,880
Net cash used in investing activities
(385,586)
(1,426,750)
Financing activities
Repayment of bank loans
(3,949,565)
(322,038)
Net cash used in financing activities
(3,949,565)
(322,038)
Net (decrease)/increase in cash and cash equivalents
(60,281)
103,142
Cash and cash equivalents at beginning of year
259,996
156,854
Cash and cash equivalents at end of year
199,715
259,996
PROVENANCE HOSPITALITY HOLDINGS LIMITED
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 25 AUGUST 2024
- 15 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
22
99,083
Interest paid
(99,083)
Net cash inflow from operating activities
-
-
Net increase in cash and cash equivalents
-
-
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
PROVENANCE HOSPITALITY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 25 AUGUST 2024
- 16 -
1
Accounting policies
Company information
Provenance Hospitality Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is .
The group consists of Provenance Hospitality Holdings Limited and all of its subsidiaries.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
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 freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
1.2
Business combinations
In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries are accounted for at cost less impairment.
1.3
Basis of consolidation
The consolidated group financial statements consist of the financial statements of the parent company Provenance Hospitality Holdings Limited together with all entities controlled by the parent company its wholly owned subsidiaries.
All financial statements are made up to 25 August 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.
PROVENANCE HOSPITALITY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 25 AUGUST 2024
1
Accounting policies
(Continued)
- 17 -
1.4
Going concern
At the time of approving the financial statements, the director has a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.
The balance sheet shows that liabilities exceed assets by £6,372,418 (2023: £3,627,705) and the group is dependent on a loan from a company under common control and the director's funds for the continuance of normal trading operations. The director has indicated his ongoing support for the group.
Forecasts, including cash flows, for the period to 31 August 2026 show that the group would be reliant upon the continuing support of the director in order to continue in operational existence for a period of 12 months from the date of approval of the balance sheet. As the director has pledged not to withdraw any part of his loan account balance to the extent such withdrawal would be detrimental to the financial position of the group, the group continues to adopt the going concern basis in preparing the financial statements. The director has also confirmed his commitment to provide continued financial support to the group.
1.5
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
1.6
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.
1.7
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:
Freehold property
2% straight line
Kitchen and bar equipment
20% reducing balance
Fixtures and fittings
15% reducing balance
Computer and office equipment
15%/33.33% 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 recognised in the profit and loss account.
PROVENANCE HOSPITALITY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 25 AUGUST 2024
1
Accounting policies
(Continued)
- 18 -
1.8
Fixed asset investments
In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
1.9
Impairment of fixed assets
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible 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.
1.10
Stocks
Stocks are 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 stocks to their present location and condition.
Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks 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.
1.11
Cash and cash equivalents
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.
1.12
Financial instruments
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
PROVENANCE HOSPITALITY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 25 AUGUST 2024
1
Accounting policies
(Continued)
- 19 -
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
1.13
Equity instruments
Equity instruments issued by the group 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 group.
1.14
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.15
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
1.16
Leases
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
PROVENANCE HOSPITALITY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 25 AUGUST 2024
- 20 -
2
Judgements and key sources of estimation uncertainty
In the application of the group’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
The significant accounting estimates included in the financial statements are depreciation, prepayments and accruals. These accounting estimates are not complex.
The annual depreciation charge for tangible fixed assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. When necessary, rates will be amended to reflect current estimates based on future investments and physical conditions of the assets.
3
Turnover
2024
2023
£
£
Turnover analysed by class of business
Sale of goods
5,655,845
5,775,397
Rendering of services
1,500,243
1,468,248
7,156,088
7,243,645
4
Operating loss
2024
2023
£
£
Operating loss for the year is stated after charging:
Depreciation of owned tangible fixed assets
638,411
651,855
Loss on disposal of tangible fixed assets
54,216
24,672
Amortisation of intangible assets
104,838
146,776
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
-
-
Audit of the financial statements of the company's subsidiaries
25,500
24,000
PROVENANCE HOSPITALITY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 25 AUGUST 2024
- 21 -
6
Employees
The average monthly number of persons (including directors) employed by the group and company during the year was:
Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Management
22
23
-
-
Chefs and kitchen
36
40
-
-
Front of house
111
122
-
-
Housekeeping
20
19
-
-
Total
189
204
Their aggregate remuneration comprised:
Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
3,400,044
3,646,686
Social security costs
267,109
266,492
-
-
Pension costs
30,764
67,757
3,697,917
3,980,935
7
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
248,179
314,439
Other interest on financial liabilities
897,981
506,561
1,146,160
821,000
8
Taxation
PROVENANCE HOSPITALITY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 25 AUGUST 2024
8
Taxation
(Continued)
- 22 -
The actual charge for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Loss before taxation
(2,744,713)
(2,753,926)
Expected tax credit based on the standard rate of corporation tax in the UK of 19.00% (2023: 19.00%)
(521,495)
(523,246)
Unrecognised deferred tax assets
521,495
523,246
Taxation charge
-
-
9
Intangible fixed assets
Group
Goodwill
£
Cost
At 28 August 2023 and 25 August 2024
1,667,767
Amortisation and impairment
At 28 August 2023
1,562,929
Amortisation charged for the year
104,838
At 25 August 2024
1,667,767
Carrying amount
At 25 August 2024
At 27 August 2023
104,838
PROVENANCE HOSPITALITY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 25 AUGUST 2024
- 23 -
10
Tangible fixed assets
Group
Freehold property
Kitchen and bar equipment
Fixtures and fittings
Computer and office equipment
Total
£
£
£
£
£
Cost or valuation
At 28 August 2023
20,276,052
1,026,795
1,863,361
189,144
23,355,352
Additions
182,806
56,537
120,757
25,486
385,586
Disposals
(75,627)
(65,124)
(4,978)
(145,729)
At 25 August 2024
20,458,858
1,007,705
1,918,994
209,652
23,595,209
Depreciation and impairment
At 28 August 2023
677,725
542,529
1,017,616
130,378
2,368,248
Depreciation charged in the year
356,836
101,446
139,669
40,460
638,411
Eliminated in respect of disposals
(50,629)
(35,906)
(4,978)
(91,513)
At 25 August 2024
1,034,561
593,346
1,121,379
165,860
2,915,146
Carrying amount
At 25 August 2024
19,424,297
414,359
797,615
43,792
20,680,063
At 27 August 2023
19,598,327
484,266
845,745
58,766
20,987,104
Freehold property was valued at the year end date by the director. The valuation was based on a desktop valuation of the properties by CBRE Group.
The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:
Freehold property
2024
2023
£
£
Group
Cost
20,629,175
20,438,281
Accumulated depreciation
(2,850,141)
(2,560,533)
Carrying value
17,779,034
17,877,748
11
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
12
101
101
PROVENANCE HOSPITALITY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 25 AUGUST 2024
11
Fixed asset investments
(Continued)
- 24 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 28 August 2023 and 25 August 2024
101
Carrying amount
At 25 August 2024
101
At 27 August 2023
101
12
Subsidiaries
Details of the company's subsidiaries at 25 August 2024 are as follows:
Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Provenance Inns Limited
The Barn, The Punch Bowl Inn, Marton cum Grafton, york, YO51 9QY
Ordinary
100.00
Provenance Hotels Limited
The Barn, The Punch Bowl Inn, Marton cum Grafton, york, YO51 9QY
Ordinary
100.00
13
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Raw materials and consumables
106,883
101,064
-
-
14
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
132,504
180,168
1
Amounts owed by group undertakings
-
-
8,000,917
4,000,000
Other debtors
15,308
19,482
Prepayments and accrued income
269,977
269,150
417,789
468,800
8,000,918
4,000,000
PROVENANCE HOSPITALITY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 25 AUGUST 2024
- 25 -
15
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
£
£
£
£
Trade creditors
820,363
826,810
Other taxation and social security
348,294
508,774
-
-
Other creditors
20,370,193
18,970,353
47,741
1
Accruals and deferred income
2,185,757
1,294,005
23,724,607
21,599,942
47,741
1
A loan from a company under common control is secured by first legal charges over the licensed freehold properties The Carpenters Arms, Felixkirk, and The West Park Hotel, Harrogate.
In addition, there is a debenture comprising fixed and floating charges over all the assets and undertaking of the company including all present and future freehold and leasehold property, book and other debts, chattels, goodwill and uncalled capital, both present and future.
The group also has a guarantee dated 1 August 2014 in favour of GPUK LLP t/a Global Payments for £10,000.
An unlimited composite company guarantee by Provenance Inns Limited, Provenance Hospitality Holdings Limited (the company's parent undertaking) and Provenance Hotels Limited (a subsidiary of Provenance Hospitality Holdings Limited) exists to secure all liabilities of each other.
16
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
17
3,949,565
Other creditors
4,052,261
4,052,261
4,052,261
3,949,565
4,052,261
-
17
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
3,949,565
Payable after one year
3,949,565
PROVENANCE HOSPITALITY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 25 AUGUST 2024
- 26 -
18
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
30,764
67,757
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
19
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
4,000,100
4,000,100
4,000,100
4,000,100
20
Related party transactions
Key management personnel compensation in the year was £197,109 (2023: £224,456). No amounts were outstanding at the year end (2023: £nil).
Included in other creditors is a directors loan account balance of £20,274,941 (2023: £18,970,352). During the year the director advanced £1,554,599 to the company and was repaid £250,010. Interest is payable to the director on the loan at 3% above the base rate of the Bank of England. Loan interest of £798,898 was payable to the director during the year and £1,562,992 was outstanding at the year end. The loan is repayable on demand.
During the year the company made sales of £5,643 (2023: £17,361) and had amounts outstanding at the year end of £nil (2023: £667) to the owners and close family members. The company also had purchases of £74,257 (2023: £42,538) and had amounts outstanding of £95,669 (2023: £45,148).
During the year the company made sales of £18,620 (2023: £76,658) and had amounts outstanding at the year end of £5,827 (2023: £72,214) to entities controlled by the owners and close family members. The company also had purchases of £79,404 (2023: £53,780) and had amounts outstanding of £31,018 (2023: £33,309).
Included in creditors is a a loan from a company under common control. Interest is payable on the loan at 2% above the base rate of the Bank Of England. £47,740 of the loan is included in creditors due within one year and £4,052,261 is included within creditors due after one year. Loan interest of £99,083 was paid during the year.
PROVENANCE HOSPITALITY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 25 AUGUST 2024
- 27 -
21
Cash generated from group operations
2024
2023
£
£
Loss after taxation
(2,744,713)
(2,753,926)
Adjustments for:
Finance costs
1,146,160
821,000
Loss on disposal of tangible fixed assets
54,216
24,672
Amortisation and impairment of intangible assets
104,838
146,776
Depreciation and impairment of tangible fixed assets
638,411
651,855
Movements in working capital:
(Increase)/decrease in stocks
(5,819)
27,502
Decrease/(increase) in debtors
51,011
(84,351)
Increase in creditors
6,176,926
3,839,402
Cash generated from operations
5,421,030
2,672,930
22
Cash generated from operations - company
2024
2023
£
£
Loss after taxation
(99,083)
-
Adjustments for:
Finance costs
99,083
Movements in working capital:
Increase in debtors
(4,000,918)
-
Increase in creditors
4,100,001
-
Cash generated from operations
99,083
-
23
Analysis of changes in net funds/(debt) - group
28 August 2023
Cash flows
25 August 2024
£
£
£
Cash at bank and in hand
259,996
(60,281)
199,715
Borrowings excluding overdrafts
(3,949,565)
3,949,565
-
(3,689,569)
3,889,284
199,715
PROVENANCE HOSPITALITY HOLDINGS LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 25 AUGUST 2024
- 28 -
24
Analysis of changes in net funds - company
28 August 2023
25 August 2024
£
£
25
Ultimate controlling party
The ultimate controlling party is C J Blundell, by virtue of his shareholding in the company.
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