Z Hotels Old Street Limited
Unaudited Financial Statements
For the year ended 31 March 2024
Pages for Filing with Registrar
Company Registration No. 08629034 (England and Wales)
Z Hotels Old Street Limited
Company Information
Directors
B King
M M Gudka
M Gudka
S Shah
P Leighton
Company number
08629034
Registered office
53-59 Chandos Place
London
WC2N 4HS
Accountants
Moore Kingston Smith LLP
6th Floor
9 Appold Street
London
EC2A 2AP
Z Hotels Old Street Limited
Contents
Page
Balance sheet
1 - 2
Statement of changes in equity
3
Notes to the financial statements
4 - 12
Z Hotels Old Street Limited
Balance Sheet
As at 31 March 2024
Page 1
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
3
29,870,842
13,522,472
Current assets
Stock
4
53,549
51,084
Debtors
5
709,319
1,082,630
Cash at bank and in hand
252,911
44,866
1,015,779
1,178,580
Creditors: amounts falling due within one year
6
(4,589,291)
(6,010,272)
Net current liabilities
(3,573,512)
(4,831,692)
Total assets less current liabilities
26,297,330
8,690,780
Provisions for liabilities
7
(7,584,718)
(3,487,865)
Net assets
18,712,612
5,202,915
Capital and reserves
Called up share capital
8
650,500
650,500
Revaluation reserve
23,810,139
6,738,122
Profit and loss reserves
(5,748,027)
(2,185,707)
Total equity
18,712,612
5,202,915

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

For the financial year ended 31 March 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The member has not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

Z Hotels Old Street Limited
Balance Sheet (Continued)
As at 31 March 2024
Page 2
The financial statements were approved by the board of directors and authorised for issue on 2 June 2025 and are signed on its behalf by:
M Gudka
Director
Company Registration No. 08629034
Z Hotels Old Street Limited
Statement of Changes in Equity
For the year ended 31 March 2024
Page 3
Share capital
Revaluation reserve
Profit and loss reserves
Total
£
£
£
£
As restated for the period ended 31 March 2023:
Balance at 1 April 2022
650,500
6,738,122
(984,276)
6,404,346
Year ended 31 March 2023:
Loss and total comprehensive income for the year
-
-
(1,201,431)
(1,201,431)
Balance at 31 March 2023
650,500
6,738,122
(2,185,707)
5,202,915
Year ended 31 March 2024:
Loss for the year
-
-
(3,562,320)
(3,562,320)
Other comprehensive income:
Revaluation of tangible fixed assets
-
17,072,017
-
17,072,017
Total comprehensive income for the year
-
17,072,017
(3,562,320)
13,509,697
Balance at 31 March 2024
650,500
23,810,139
(5,748,027)
18,712,612
Z Hotels Old Street Limited
Notes to the Financial Statements
For the year ended 31 March 2024
Page 4
1
Accounting policies
Company information

Z Hotels Old Street Limited is a private company limited by shares incorporated in England and Wales. The registered office is 53-59 Chandos Place, London, WC2N 4HS.

1.1
Accounting convention

These financial statements have been prepared in accordance with Section 1A of FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of leasehold properties at fair value. The principal accounting policies adopted are set out below.

1.2
Going concern

The company made a profit for the year of £599,340 (2023: £203,959) and had net assets at the reporting date of £24,279,662 (2023: £6,608,305). The parent company has a bank loan amounting to £33.5m that is due for repayment in October 2025 being less than 12 months from approval of these financial statements. This loan is expected to be refinanced.

 

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.3
Turnover

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the company and revenue can be reliably measured.

 

Turnover comprises revenue recognised by the company in respect of goods and services supplied during the year, exclusive of Value Added Tax and trade discounts. Turnover in respect of accommodation is recognised at the point of the customers stay whilst other sales, including food and beverage revenues, are recognised at the point of purchase.

1.4
Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Amortisation 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:

Software
3 years straight line
1.5
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.

Z Hotels Old Street Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
1
Accounting policies
(Continued)
Page 5

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Leasehold land and buildings
Period of the lease
Fixtures and fittings
3 years straight line
Computer equipment
3 years straight line
Food and beverage equipment
3 years straight line

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

1.6
Impairment of fixed assets

At each reporting period end date, the company 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.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.7
Stock

Stock is stated at the lower of cost and estimated selling price less costs to complete and sell. Where stock is held for distribution at no consideration it is measured at the lower of cost and replacement cost.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stock over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.8
Cash at bank and in hand

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

Z Hotels Old Street Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
1
Accounting policies
(Continued)
Page 6
1.9
Financial instruments

The company only has basic financial instrument measured at amortised cost, with no financial instruments classified as other or basic instruments at fair value.

1.10
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.11
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.12
Leases

Rentals payable under operating leases, including any lease incentives received, are charged to income on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the lease asset are consumed.

 

Z Hotels Old Street Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
Page 7
2
Intangible fixed assets
Software
£
Cost
At 1 April 2023 and 31 March 2024
20,094
Amortisation and impairment
At 1 April 2023 and 31 March 2024
20,094
Carrying amount
At 31 March 2024
-
0
At 31 March 2023
-
0
3
Tangible fixed assets
Leasehold land and buildings
Fixtures and fittings
Computer equipment
Food and beverage equipment
Total
£
£
£
£
£
Cost or valuation
At 1 April 2023
13,797,818
2,129,609
49,448
29,425
16,006,300
Additions
312,500
61,883
35,191
2,541
412,115
Revaluation
15,009,682
-
0
-
0
-
0
15,009,682
At 31 March 2024
29,120,000
2,191,492
84,639
31,966
31,428,097
Depreciation and impairment
At 1 April 2023
1,668,049
744,555
45,005
26,219
2,483,828
Depreciation charged in the year
394,286
723,060
14,815
3,601
1,135,762
Revaluation
(2,062,335)
-
0
-
0
-
0
(2,062,335)
At 31 March 2024
-
0
1,467,615
59,820
29,820
1,557,255
Carrying amount
At 31 March 2024
29,120,000
723,877
24,819
2,146
29,870,842
At 31 March 2023
12,129,769
1,385,054
4,443
3,206
13,522,472

The leasehold property was valued on an open market basis by the directors as at 31 March 2024, guided by an external valuation obtained from an external firm of professional valuer in August 2022.

 

If revalued assets were stated on a historical cost basis rather than a fair value basis, the total amounts included would have been as follows:

 

Z Hotels Old Street Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
3
Tangible fixed assets
(Continued)
Page 8
2024
2023
£
£
Cost
6,082,812
5,770,312
Accumulated depreciation
(1,581,080)
(1,407,285)
Carrying value
4,501,732
4,363,027
4
Stock
2024
2023
£
£
Stock
53,549
51,084
5
Debtors
2024
2023
as restated
Amounts falling due within one year:
£
£
Trade debtors
-
0
4,176
Other debtors
377,492
684,463
Prepayments and accrued income
331,827
329,184
709,319
1,017,823
Deferred tax asset
-
0
64,807
709,319
1,082,630
6
Creditors: amounts falling due within one year
2024
2023
as restated
£
£
Trade creditors
136,499
101,968
Amounts owed to group undertakings
623,211
2,397,534
Taxation and social security
103,840
-
0
Other creditors
1,043,515
649,417
Accruals and deferred income
2,682,226
2,861,353
4,589,291
6,010,272
Z Hotels Old Street Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
Page 9
7
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Liabilities
Liabilities
Assets
Assets
2024
2023
2024
2023
as restated
as restated
Balances:
£
£
£
£
Accelerated capital allowances
1,732,146
1,863,091
-
-
Tax losses
-
-
-
64,807
Revaluations
5,852,572
1,624,774
-
-
7,584,718
3,487,865
-
64,807
2024
Movements in the year:
£
Liability at 1 April 2023 - as restated
3,423,058
Charge to profit or loss
4,161,660
Liability at 31 March 2024
7,584,718
8
Called up share capital
2024
2023
£
£
Ordinary share capital
Issued and fully paid
500 Ordinary shares of £1 each
500
500
130 B Ordinary shares of £5,000 each
650,000
650,000
650,500
650,500

The rights of the Ordinary A shares of £1 each and the Ordinary B shares of £5,000 each rank pari passu in all respects.

Z Hotels Old Street Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
Page 10
9
Operating lease commitments
Lessee

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, as follows:

2024
2023
£
£
Within one year
826,262
717,653
Between two and five years
3,449,862
3,150,712
In over five years
22,445,194
21,412,729
26,721,318
25,281,094
Z Hotels Old Street Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
Page 11
10
Related party transactions

The company has taken advantage of the exemption in FRS 102 (section 33) "Related Parties Disclosure" in respect of the disclosures of transactions and balances with other wholly owned group undertakings.

 

Fees of £169,014 (2023: £152,077) were incurred from companies under common control during the year. Salary costs of £678,541 (2023: £583,031) were recharged from a company under common control.

 

Included within other debtors is £328,671 (2023: £395,996) due from companies under common control and included within other creditors is £428,507 (2023: £nil) due to companies under common control.

11
Parent company

The immediate parent company is Shoreditch Hotel Holdings Ltd, a company registered in the Isle of Man. The directors consider there is no ultimate controlling party.

 

12
Prior period adjustment

Certain comparative disclosures have been amended, as indicated in the profit and loss account, and notes 5 and 6, to ensure consistency with current year disclosures. These restatements have had £nil impact on the overall profit reported for the prior period or the overall net asset position as at 31 March 2023.

 

In addition an adjustment has been posted to correct the deferred tax liability recognised on property revaluations and for the reclassification of deferred tax assets and liabilities as at 31 March 2023.

Changes to the balance sheet
As previously reported
Adjustment
As restated at 31 Mar 2023
£
£
£
Current assets
Debtors due within one year
1,017,823
64,807
1,082,630
Provisions for liabilities
Deferred tax
(2,017,668)
(1,470,197)
(3,487,865)
Net assets
6,608,305
(1,405,390)
5,202,915
Capital and reserves
Profit and loss reserves
(780,317)
(1,405,390)
(2,185,707)
Z Hotels Old Street Limited
Notes to the Financial Statements (Continued)
For the year ended 31 March 2024
12
Prior period adjustment
(Continued)
Page 12
Changes to the profit and loss account
As previously reported
Adjustment
As restated
Period ended 31 March 2023
£
£
£
Taxation
(297,706)
(1,405,390)
(1,703,096)
Profit/(loss) for the financial period
203,959
(1,405,390)
(1,201,431)
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