| REGISTERED NUMBER: 11213847 (England and Wales) |
| Select Birmingham Limited |
| Group Strategic Report, |
| Report of the Directors and |
| Consolidated Financial Statements |
| for the Year Ended 31 December 2024 |
| REGISTERED NUMBER: 11213847 (England and Wales) |
| Select Birmingham Limited |
| Group Strategic Report, |
| Report of the Directors and |
| Consolidated Financial Statements |
| for the Year Ended 31 December 2024 |
| Select Birmingham Limited (Registered number: 11213847) |
| Contents of the Consolidated Financial Statements |
| for the year ended 31 December 2024 |
| Page |
| Company Information | 1 |
| Group Strategic Report | 2 |
| Report of the Directors | 3 |
| Report of the Independent Auditors | 5 |
| Consolidated Statement of Profit or Loss | 9 |
| Consolidated Statement of Profit or Loss and Other Comprehensive Income |
10 |
| Consolidated Statement of Financial Position | 11 |
| Company Statement of Financial Position | 12 |
| Consolidated Statement of Changes in Equity | 13 |
| Company Statement of Changes in Equity | 14 |
| Consolidated Statement of Cash Flows | 15 |
| Notes to the Consolidated Statement of Cash Flows | 16 |
| Notes to the Consolidated Financial Statements | 17 |
| Select Birmingham 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 |
| Select Birmingham Limited (Registered number: 11213847) |
| Group Strategic Report |
| for the year ended 31 December 2024 |
| The directors present their strategic report of the company and the group for the year ended 31 December 2024. |
| REVIEW OF BUSINESS |
| The hotel, which is the main trading asset in the Group, has increased turnover from £7.1m in 2023 to £7.7m in 2024. |
| The operating profit before financing costs for the year was £1.3m (2023: £0.6m). |
| The consolidated net liabilities at 31 December 2024 were £6.7m (2023: £6.7m). The cash balance was £3.0m (2023: £1.7m). |
| The Group continues to remain reliant on the support of its parent as the industry recovers. |
| PRINCIPAL RISKS AND UNCERTAINTIES |
| The directors continue to take steps to mitigate the principal risks and uncertainties facing the business. The key business risks are considered to be: |
| - Risk of loss of regular customers. The economic climate could lead to a loss of returning customers. The directors have assessed this risk and believe that the strength of the brand and quality of the facilities substantially reduce this risk. |
| - Liquidity/availability of finance and managing external facilities. The directors feel that the strength of the Group will enable the facilities to be renewed or repaid as they fall due. |
| - Labour and utility costs. The Group is exposed to the risk of increases in both labour and utility costs. The Group is looking at ways to spread and mitigate this risk. |
| GROUP'S KEY PERFORMANCE INDICATORS |
| 2024 | 2023 |
| Financial: |
| EBITDA profit/(loss) | £1.6m | £1.0m |
| Gross margin | 62.2% | 57.2% |
| Non-financial: |
| Average operational headcount | 74 | 74 |
| ON BEHALF OF THE BOARD: |
| Select Birmingham Limited (Registered number: 11213847) |
| 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 period under review was that of a hotel, restaurant and conference facility provider. |
| 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 Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
| Company law requires the directors to prepare Group and Parent Company financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with International Financial Reporting Standards as adopted by the European Union (IFRSs as adapted by the EU) and applicable law and have elected to prepare the Parent Company financial statements in accordance with UK Accounting Standards and applicable law (UK Generally Accepted Accounting Practice) following FRS 101 Reduced Disclosure Framework. |
| 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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the Group's auditors are aware of that information. |
| Select Birmingham Limited (Registered number: 11213847) |
| 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 |
| Select Birmingham Limited |
| Opinion |
| We have audited the financial statements of Select Birmingham 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 relating 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 Group Strategic Report and 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. |
| Report of the Independent Auditors to the Members of |
| Select Birmingham Limited |
| 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 Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
| - | the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
| 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 Group Strategic Report or 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 three, 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 |
| Select Birmingham 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 |
| Select Birmingham 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 |
| Select Birmingham Limited (Registered number: 11213847) |
| Consolidated Statement of Profit or Loss |
| for the year ended 31 December 2024 |
| 2024 | 2023 |
| Notes | £ | £ |
| CONTINUING OPERATIONS |
| Revenue | 3 | 7,733,617 | 7,084,400 |
| Cost of sales | (2,919,244 | ) | (3,028,618 | ) |
| GROSS PROFIT | 4,814,373 | 4,055,782 |
| Administrative expenses | (3,422,806 | ) | (3,256,622 | ) |
| Other operating expenses | (124,788 | ) | (197,504 | ) |
| OPERATING PROFIT | 1,266,779 | 601,656 |
| Finance costs | 5 | (1,273,244 | ) | (1,177,101 | ) |
| LOSS BEFORE INCOME TAX | 6 | (6,465 | ) | (575,445 | ) |
| Income tax | 7 | (29,189 | ) | (69,536 | ) |
| LOSS FOR THE YEAR | ( |
) | ( |
) |
| Loss attributable to: |
| Owners of the parent | (35,654 | ) | (644,981 | ) |
| Select Birmingham Limited (Registered number: 11213847) |
| Consolidated Statement of Profit or Loss and Other Comprehensive Income |
| for the year ended 31 December 2024 |
| 2024 | 2023 |
| £ | £ |
| LOSS FOR THE YEAR | (35,654 | ) | (644,981 | ) |
| OTHER COMPREHENSIVE INCOME | - | - |
| TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
(35,654 |
) |
(644,981 |
) |
| Total comprehensive income attributable to: |
| Owners of the parent | (35,654 | ) | (644,981 | ) |
| Select Birmingham Limited (Registered number: 11213847) |
| Consolidated Statement of Financial Position |
| 31 December 2024 |
| 2024 | 2023 |
| Notes | £ | £ |
| ASSETS |
| NON-CURRENT ASSETS |
| Goodwill | 9 | - | - |
| Property, plant and equipment | 10 | 15,763,092 | 16,126,343 |
| Investments | 11 | - | - |
| Deferred tax | 20 | 72,862 | 102,051 |
| 15,835,954 | 16,228,394 |
| CURRENT ASSETS |
| Inventories | 12 | 17,805 | 20,320 |
| Trade and other receivables | 13 | 722,077 | 1,165,429 |
| Cash and cash equivalents | 14 | 2,980,179 | 1,722,057 |
| 3,720,061 | 2,907,806 |
| TOTAL ASSETS | 19,556,015 | 19,136,200 |
| EQUITY |
| SHAREHOLDERS' EQUITY |
| Called up share capital | 15 | 1,000 | 1,000 |
| Retained earnings | 16 | (6,719,097 | ) | (6,683,443 | ) |
| TOTAL EQUITY | (6,718,097 | ) | (6,682,443 | ) |
| LIABILITIES |
| NON-CURRENT LIABILITIES |
| Trade and other payables | 17 | 15,180,628 | 14,458,687 |
| CURRENT LIABILITIES |
| Trade and other payables | 17 | 1,693,484 | 1,959,956 |
| Financial liabilities - borrowings |
| Interest bearing loans and borrowings | 18 | 9,400,000 | 9,400,000 |
| 11,093,484 | 11,359,956 |
| TOTAL LIABILITIES | 26,274,112 | 25,818,643 |
| TOTAL EQUITY AND LIABILITIES | 19,556,015 | 19,136,200 |
| The financial statements were approved by the Board of Directors and authorised for issue on 28 May 2025 and were signed on its behalf by: |
| A Aslam - Director |
| Select Birmingham Limited (Registered number: 11213847) |
| Company Statement of Financial Position |
| 31 December 2024 |
| 2024 | 2023 |
| Notes | £ | £ |
| ASSETS |
| NON-CURRENT ASSETS |
| Goodwill | 9 |
| Property, plant and equipment | 10 |
| Investments | 11 | 1 | 1 |
| CURRENT ASSETS |
| Trade and other receivables | 13 |
| Cash and cash equivalents | 14 |
| TOTAL ASSETS |
| EQUITY |
| SHAREHOLDERS' EQUITY |
| Called up share capital | 15 |
| Retained earnings | 16 | ( |
) | ( |
) |
| TOTAL EQUITY | ( |
) | ( |
) |
| LIABILITIES |
| NON-CURRENT LIABILITIES |
| Trade and other payables | 17 |
| CURRENT LIABILITIES |
| Trade and other payables | 17 |
| Financial liabilities - borrowings |
| Interest bearing loans and borrowings | 18 |
| TOTAL LIABILITIES |
| TOTAL EQUITY AND LIABILITIES |
| The financial statements were approved by the Board of Directors and authorised for issue on |
| Select Birmingham Limited (Registered number: 11213847) |
| 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 | (6,038,462 | ) | (6,037,462 | ) |
| Changes in equity |
| Total comprehensive income | - | (644,981 | ) | (644,981 | ) |
| Balance at 31 December 2023 | 1,000 | (6,683,443 | ) | (6,682,443 | ) |
| Changes in equity |
| Total comprehensive income | - | (35,654 | ) | (35,654 | ) |
| Balance at 31 December 2024 | 1,000 | (6,719,097 | ) | (6,718,097 | ) |
| Select Birmingham Limited (Registered number: 11213847) |
| 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 | ( |
) | ( |
) |
| Select Birmingham Limited (Registered number: 11213847) |
| Consolidated Statement of Cash Flows |
| for the year ended 31 December 2024 |
| 2024 | 2023 |
| £ | £ |
| Cash flows from operating activities |
| Cash generated from operations | 1 | 1,795,046 | 1,220,831 |
| Interest paid | (1,273,244 | ) | (1,177,101 | ) |
| Net cash from operating activities | 521,802 | 43,730 |
| Cash flows from investing activities |
| Purchase of tangible fixed assets | (65,081 | ) | (202,447 | ) |
| Sale of tangible fixed assets | 124,481 | - |
| Movement on intercompany loans in year | 676,920 | 760,933 |
| Net cash from investing activities | 736,320 | 558,486 |
| Increase in cash and cash equivalents | 1,258,122 | 602,216 |
| Cash and cash equivalents at beginning of year |
2 |
1,722,057 |
1,119,841 |
| Cash and cash equivalents at end of year |
2 |
2,980,179 |
1,722,057 |
| Select Birmingham Limited (Registered number: 11213847) |
| 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 | (6,465 | ) | (575,445 | ) |
| Depreciation charges | 303,851 | 436,276 |
| Finance costs | 1,273,244 | 1,177,101 |
| 1,570,630 | 1,037,932 |
| Decrease in inventories | 2,515 | 2,733 |
| Decrease/(increase) in trade and other receivables | 443,352 | (103,997 | ) |
| (Decrease)/increase in trade and other payables | (221,451 | ) | 284,163 |
| Cash generated from operations | 1,795,046 | 1,220,831 |
| 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 | 2,980,179 | 1,722,057 |
| Year ended 31 December 2023 |
| 31/12/23 | 1/1/23 |
| £ | £ |
| Cash and cash equivalents | 1,722,057 | 1,119,841 |
| Select Birmingham Limited (Registered number: 11213847) |
| Notes to the Consolidated Financial Statements |
| for the year ended 31 December 2024 |
| 1. | STATUTORY INFORMATION |
| Select Birmingham 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 |
| Statement of compliance |
| These financial statements have ben prepared in accordance with UK-adopted international accounting standards and with those parts of the Companies Act 2006 applicable to companies reporting under IFRS. The financial statements have been prepared under the historical cost convention. |
| These consolidated accounts are presented in £ Sterling which is the Group's functional currency and are rounded to the nearest £1. |
| Going concern |
| The directors are of the opinion that the Group 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. This includes funding which may be required to repay the bank funding due to be repaid within the year. |
| 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. |
| Select Birmingham Limited (Registered number: 11213847) |
| 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 preparation of consolidated financial statements requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates. |
| 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 and in any future periods affected. |
| Revenue recognition |
| The Group revenue streams are defined as hospitality. The Group turnover represents the fair value of all goods and services, delivered during the year, at selling price exclusive of discounts, rebates, Value Added Tax and other sales taxes. Sales are recognised at the point at which the Group has fulfilled its contractual obligations to the customer. |
| Revenue is recognised in the consolidated statement of profit or loss to the extent that it is probable that economic benefits will flow to the Group and the revenue and costs, if applicable, can be measured reliably. |
| 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. |
| Goodwill |
| Goodwill represents the cost of business acquisition in excess of the Group's interest in the net fair value of identifiable assets, liabilities and contingent liabilities of the acquiree. |
| Goodwill is measured at cost less accumulated impairment losses. |
| Property, plant and equipment |
| Property, plant and equipment is initially recorded at cost and subsequently measured at cost less depreciation. |
| Land is not depreciated, buildings are depreciated at a rate of 3% per annum. |
| Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life. |
| Fixtures and fittings - 20% on cost |
| Select Birmingham Limited (Registered number: 11213847) |
| Notes to the Consolidated Financial Statements - continued |
| for the year ended 31 December 2024 |
| 2. | ACCOUNTING POLICIES - continued |
| Financial instruments |
| The Group classifies non-derivative financial assets into the category of loans and receivables. The Group classify non-derivative financial liabilities into the other financial liabilities categories. |
| Non-derivative financial assets and liabilities - recognition and de-recognition |
| The Group initially recognises loans and receivables on the date that they are originated. All other financial assets and financial liabilities are initially recognised on the trade date. |
| The Group derecognises a financial asset when the contractual rights to the cash flows from the asset expire, or it transfers the rights to receive the contractual cash flows in a transaction in which substantially all of the risks and rewards of ownership of the financial asset are transferred, or it neither transfers nor retains substantially all of the risks and rewards of ownership and does not retain control over the transferred asset, Any interest in such derecognised financial assets that is created or retained by the Group is recognised as a separate asset or liability. |
| The Group derecognises a financial liability when its contractual obligations are discharged or cancelled or expired. |
| Financial assets and liabilities are offset and the net amount presented in the consolidated statement of financial position when, and only when, the Group has a legal right to offset the amounts and intends either to settle them on a net basis or to realise the asset and settle the liability simultaneously. |
| Non-derivative financial assets - measurement |
| Loans and receivables |
| These assets are initially recognised at fair value plus any directly attributable transaction costs. Subsequent to initial recognition, they are measured at amortised cost using the effective interest method. Loans and receivables comprise trade and other receivables (excluding prepayments) and cash and cash equivalents. |
| Non-derivative financial liabilities - measurement |
| Non-derivative financial liabilities are initially recognised at fair value less any directly attributable transaction costs. Subsequent to initial recognition, these liabilities are measured at amortised cost using the effective interest method. Non-derivative financial liabilities includes a loan from the Parent Company, trade and other payables and amount due to related parties. |
| Share capital |
| Incremental costs directly attributable to the issue of ordinary shares, net of any tax effects are recognised as a deduction from equity. |
| Inventories |
| Inventories are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items. |
| Select Birmingham Limited (Registered number: 11213847) |
| Notes to the Consolidated Financial Statements - continued |
| for the year ended 31 December 2024 |
| 2. | ACCOUNTING POLICIES - continued |
| Taxation |
| Income tax expense comprises current and deferred tax. Current tax and deferred tax are recognised in profit or loss except to the extent that it relates to a business combination, or items recognised directly in equity in which case it is recognised directly in equity. |
| If the Group's operation is subject to income tax for the year it is recognised in the consolidated statement of profit or loss. Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or substantially enacted at the reporting date, and any adjustments to tax payable in respect of previous years. |
| Deferred tax is recognised using the balance sheet liability method, providing for temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The temporary differences are not accounted for. Deferred tax is measured at the tax rates that are expected to be applied to temporary differences when they reverse, based on the laws that have been enacted or substantively enacted by the reporting date. Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities and assets, and entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets and liabilities will be realised simultaneously. |
| A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be available against which the temporary difference can be utilised. Deferred tax assets are reviewed at each reporting date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised. |
| Provisions |
| A provision is recognised if, as a result of a past event, the Group has a present legal or constructive obligation that can be estimated reliably, and it is probably that an outflow of economic benefits will be required to settle the obligation. |
| Select Birmingham Limited (Registered number: 11213847) |
| Notes to the Consolidated Financial Statements - continued |
| for the year ended 31 December 2024 |
| 2. | ACCOUNTING POLICIES - continued |
| Impairment |
| Non-derivative financial assets |
| Financial assets not classified as at fair value through profit or loss, are assessed at each reporting date to determine whether there is objective evidence of impairment. |
| Objective evidence that financial assets are impaired: |
| - default or delinquency by debtor; |
| - restructuring of an amount due to the Group on terms that the Group would not consider otherwise; |
| - indications that a debtor or issuer will enter bankruptcy; |
| - adverse changes in the payment status of borrowers or issuers; |
| - the disappearance of an active market for a security; or |
| - observable data indicating that there is a measurable decrease in expected cash flows from a group |
| of financial assets. |
| Financial assets measured at amortised cost |
| The Group considers evidence of impairment for these assets at both an individual asset and a collective level. All individually significant assets are individually assessed for impairment. Those found not to be impaired are then collectively assessed for any impairment that has been incurred but not yet individually identified. Assets that are not individually significant are collectively assessed for impairment. Collective assessment is carried out by grouping together assets with similar risk characteristics. |
| In assessing collective impairment, the Group uses historic information on the timing of recoveries and the amount of loss incurred, and makes an adjustment if current economic and credit conditions are such that the actual losses are likely to be greater or lesser than suggested by historical trends. |
| An impairment loss is calculated as the difference between an asset's carrying amount and the present value of the estimated future cash flows discounted at the asset's effective interest rate. Losses are recognised in profit or loss and reflected in an allowance amount. When the Group considers that there are no realistic prospects of recovery of the asset, the relevant amounts are written off. If the amount of impairment loss subsequently decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, then the previously recognised impairment loss is reversed through profit and loss. |
| Employee benefit costs |
| The Group operates a defined contribution pension scheme. Contributions payable to the Group's pension scheme are charged to the income statement in the period to which they relate. |
| Select Birmingham Limited (Registered number: 11213847) |
| Notes to the Consolidated Financial Statements - continued |
| for the year ended 31 December 2024 |
| 2. | ACCOUNTING POLICIES - continued |
| Financial risk management |
| Overview |
| The Group has exposure to the following risks from its use of financial instruments: |
| credit risk; |
| liquidity risk; and |
| market risk. |
| This note presents information about the Group's exposure to each of the above risks, the Group's objectives, policies and processes for measuring and managing risk and the Group's management of capital. |
| Credit risk |
| Credit risk is the risk of financial loss to the Group, if a customer or counterparty to a financial instrument fails to meet its contractual obligations. Credit risk mainly relates to trade and other receivables and cash and cash equivalents. Trade and other receivables are considered fully recoverable by the management. The Group's cash is placed with international banks. |
| Liquidity risk |
| Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its financial liabilities that are settled by delivering cash or another financial asset. The Group's approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group's reputation. Furthermore, the Parent Company has provided an undertaking that they will continue to provide or arrange for such financial support as would be necessary for the Group to meet its obligations as they fall due in the foreseeable future. |
| Market risk |
| Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates will affect the Group's income. The objective of market risk management is to manage and control market risk exposures within acceptable parameters, while optimizing the return on risk. The Group also incurs financial liabilities in order to manage market risks. |
| Currency risk |
| Currency risk is the risk that the value of a financial instrument will fluctuate because of changes in foreign exchange rates. The Group has no significant exposure to currency risk. |
| Interest rate risk |
| Interest rate risk is the risk that the value of a financial instrument will fluctuate because of changes in market interest rates. The Group's loan from the Parent Company carries interest at normal commercial rates. |
| Capital management |
| The Group sets the amount of capital in proportion to risk. The Group manages the capital structure and makes adjustments to it in light of change in economic conditions and the risk characteristics of the underlying assets. |
| 3. | REVENUE |
| Segmental reporting |
| Revenue is the value of goods and services invoiced in accordance with the Group's accounting policy on revenue. In general this occurs when a guest checks-out of the hotel. All revenue is derived from the United Kingdom and from the business of operating a hotel business. |
| Select Birmingham Limited (Registered number: 11213847) |
| Notes to the Consolidated Financial Statements - continued |
| for the year ended 31 December 2024 |
| 3. | REVENUE - continued |
| Revenue from contracts with customers |
| The Group recognises revenue from contracts with customers based on a five step model as set out in IFRS 15: |
| Step 1 | Identify the contract(s) with a customer: A contract is defined as an agreement between two or more parties that creates enforceable rights and obligations and sets out the criteria for every contract that must be met. |
| Step 2 | Identify the performance obligations in the contract: A performance obligation is a promise in a contract with a customer to transfer a good or service to the customer. |
| Step 3 | Determine the transaction price: The transaction price is the amount of consideration to which the Group expects to be entitled in exchange for transferring promised goods or services to a customer, excluding amounts collected on behalf of third parties. |
| Step 4 | Allocate the transaction price to the performance obligations in the contract: For a contract that has more than one performance obligation, the Group will allocate the transaction price to each performance obligation in an amount that depicts the amount of consideration to which the Group expects to be entitled in exchange for satisfying each performance obligation. |
| Step 5 | Recognise revenue when (or as) the entity satisfies a performance obligation. |
| The Group satisfies a performance obligation and recognises revenue over time, if one of the following criteria is met: |
| 1. | The customer simultaneously receives and consumes the benefits provided by the Group's performance as the Group performs; or |
| 2. | The Group's performance creates or enhances an asset that the customer controls as the asset is created or enhanced; or |
| 3. | The Group's performance does not create an asset with an alternative use to the Group and the Group has an enforceable right to payment for performance completed to date. |
| For performance obligations where one of the above conditions are not met, revenue is recognised at the point in time at which the performance obligation is satisfied. |
| When the Group satisfies a performance obligation by delivering the promised goods or services it creates a contract asset based on the amount of consideration earned by the performance. Where the amount of consideration received from a customer exceeds the amount of revenue recognised this gives rise to a contract liability. |
| 4. | EMPLOYEES AND DIRECTORS |
| 2024 | 2023 |
| £ | £ |
| Wages and salaries | 1,568,981 | 1,656,526 |
| Social security costs | 140,769 | 133,602 |
| Other pension costs | 32,828 | 36,352 |
| 1,742,578 | 1,826,480 |
| The average number of employees during the year was as follows: |
| 2024 | 2023 |
| Employees |
| 2024 | 2023 |
| £ | £ |
| Directors' remuneration | - | - |
| Select Birmingham Limited (Registered number: 11213847) |
| Notes to the Consolidated Financial Statements - continued |
| for the year ended 31 December 2024 |
| 5. | NET FINANCE COSTS |
| 2024 | 2023 |
| £ | £ |
| Finance costs: |
| Interest on intercompany loan | 661,941 | 667,508 |
| Loan | 611,303 | 509,593 |
| 1,273,244 | 1,177,101 |
| 6. | LOSS BEFORE INCOME TAX |
| The loss before income tax is stated after charging/(crediting): |
| 2024 | 2023 |
| £ | £ |
| Cost of inventories recognised as expense | 2,919,244 | 3,028,618 |
| Depreciation - owned assets | 303,852 | 436,275 |
| Auditors' remuneration | 28,355 | 28,150 |
| Foreign exchange differences | (46 | ) | - |
| 7. | INCOME TAX |
| Analysis of tax expense |
| 2024 | 2023 |
| £ | £ |
| Deferred tax | 29,189 | 69,536 |
| Total tax expense in consolidated statement of profit or loss | 29,189 | 69,536 |
| Factors affecting the tax expense |
| The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below: |
| 2024 | 2023 |
| £ | £ |
| Loss before income tax | (6,465 | ) | (575,445 | ) |
| Loss multiplied by the standard rate of corporation tax in the UK of 25 % (2023 - 25 %) |
(1,616 |
) |
(143,861 |
) |
| Effects of: |
| Depreciation on property disallowed | 62,812 | 89,369 |
| Interest disallowed | 49,646 | 50,063 |
| Unprovided deferred tax | (81,653 | ) | 73,965 |
| year |
| Tax expense | 29,189 | 69,536 |
| Select Birmingham Limited (Registered number: 11213847) |
| Notes to the Consolidated Financial Statements - continued |
| for the year ended 31 December 2024 |
| 8. | LOSS OF PARENT COMPANY |
| As permitted by Section 408 of the Companies Act 2006, the income statement of the parent company is not presented as part of these financial statements. The parent company's loss for the financial year was £(644,532) (2023 - £(940,699)). |
| 9. | GOODWILL |
| Group |
| £ |
| COST |
| At 1 January 2024 |
| and 31 December 2024 | 107,464 |
| AMORTISATION |
| At 1 January 2024 |
| and 31 December 2024 | 107,464 |
| NET BOOK VALUE |
| At 31 December 2024 | - |
| At 31 December 2023 | - |
| 10. | PROPERTY, PLANT AND EQUIPMENT |
| Group |
| Fixtures |
| Freehold | and |
| property | fittings | Totals |
| £ | £ | £ |
| COST |
| At 1 January 2024 | 17,275,406 | 4,990,575 | 22,265,981 |
| Additions | - | 65,081 | 65,081 |
| Disposals | - | (124,481 | ) | (124,481 | ) |
| At 31 December 2024 | 17,275,406 | 4,931,175 | 22,206,581 |
| DEPRECIATION |
| At 1 January 2024 | 1,444,665 | 4,694,972 | 6,139,637 |
| Charge for year | 251,246 | 52,606 | 303,852 |
| At 31 December 2024 | 1,695,911 | 4,747,578 | 6,443,489 |
| NET BOOK VALUE |
| At 31 December 2024 | 15,579,495 | 183,597 | 15,763,092 |
| At 31 December 2023 | 15,830,741 | 295,603 | 16,126,344 |
| Select Birmingham Limited (Registered number: 11213847) |
| Notes to the Consolidated Financial Statements - continued |
| for the year ended 31 December 2024 |
| 10. | PROPERTY, PLANT AND EQUIPMENT - continued |
| 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 |
| 11. | INVESTMENTS |
| Company |
| Shares in |
| group |
| undertakings |
| £ |
| COST |
| At 1 January 2024 |
| and 31 December 2024 | 1 |
| NET BOOK VALUE |
| At 31 December 2024 | 1 |
| At 31 December 2023 | 1 |
| 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: United Kingdom |
| Nature of business: |
| % |
| Class of shares: | holding |
| 2024 | 2023 |
| £ | £ |
| Aggregate capital and reserves | ( |
) |
| Profit for the year |
| Select Birmingham Limited (Registered number: 11213847) |
| Notes to the Consolidated Financial Statements - continued |
| for the year ended 31 December 2024 |
| 12. | INVENTORIES |
| Group |
| 2024 | 2023 |
| £ | £ |
| Stock | 17,805 | 20,320 |
| 13. | TRADE AND OTHER RECEIVABLES |
| Group | Company |
| 2024 | 2023 | 2024 | 2023 |
| £ | £ | £ | £ |
| Current: |
| Trade debtors | 442,954 | 870,627 |
| Amounts owed by group undertakings | 150,000 | 150,000 |
| Other debtors | - | 57,600 | - | 57,600 |
| Prepayments and accrued income | 129,123 | 87,202 | - | - |
| 722,077 | 1,165,429 |
| 14. | CASH AND CASH EQUIVALENTS |
| Group | Company |
| 2024 | 2023 | 2024 | 2023 |
| £ | £ | £ | £ |
| Cash in hand | 1,251 | 3,859 |
| Bank accounts | 2,978,928 | 1,718,198 |
| 2,980,179 | 1,722,057 |
| 15. | CALLED UP SHARE CAPITAL |
| Allotted, issued and fully paid: |
| Number: | Class: | Nominal | 2024 | 2023 |
| value: | £ | £ |
| Ordinary | £1 | 1,000 | 1,000 |
| Select Birmingham Limited (Registered number: 11213847) |
| Notes to the Consolidated Financial Statements - continued |
| for the year ended 31 December 2024 |
| 16. | RESERVES |
| Group |
| Retained |
| earnings |
| £ |
| At 1 January 2024 | (6,683,443 | ) |
| Deficit for the year | (35,654 | ) |
| At 31 December 2024 | (6,719,097 | ) |
| Company |
| Retained |
| earnings |
| £ |
| At 1 January 2024 | ( |
) |
| Deficit for the year | ( |
) |
| At 31 December 2024 | ( |
) |
| 17. | TRADE AND OTHER PAYABLES |
| Group | Company |
| 2024 | 2023 | 2024 | 2023 |
| £ | £ | £ | £ |
| Current: |
| Trade creditors | 247,095 | 237,499 |
| Amounts owed to group undertakings | 381,500 | 466,521 |
| Social security and other taxes | 427,296 | 270,313 |
| Other creditors | 114,047 | 85,361 |
| Accruals and deferred income | 440,254 | 867,132 |
| VAT | 83,292 | 33,130 | 83,292 | 33,130 |
| 1,693,484 | 1,959,956 |
| Non-current: |
| Amounts owed to group undertakings | 15,100,628 | 14,338,687 |
| Accruals and deferred income | 80,000 | 120,000 |
| 15,180,628 | 14,458,687 |
| Aggregate amounts | 16,874,112 | 16,418,643 |
| 18. | FINANCIAL LIABILITIES - BORROWINGS |
| Group | Company |
| 2024 | 2023 | 2024 | 2023 |
| £ | £ | £ | £ |
| Current: |
| Bank loans | 9,400,000 | 9,400,000 |
| Select Birmingham Limited (Registered number: 11213847) |
| Notes to the Consolidated Financial Statements - continued |
| for the year ended 31 December 2024 |
| 18. | FINANCIAL LIABILITIES - BORROWINGS - continued |
| Terms and debt repayment sched | ule |
| Group |
| 1 year or |
| less |
| £ |
| Bank loans | 9,400,000 |
| Company |
| 1 year or |
| less |
| £ |
| Bank loans |
| The bank loan was a shared facility with two other entities that are part of Select Global Corporation group. The other elements have been repaid, together with a partial payment of the element relating to Select Birmingham Limited. The Group's share of the loan is £9.4m (2023: £9.4m) and was extended in March 2024 until January 2025. Interest is charged at 1.5% plus LIBOR. The loan has loan to value and interest service cover financial covenants that must be complied with. The loan is secured on the property and cross guarantees are in place with the other companies that are a party to the loan. The carrying value of the borrowings approximates to fair value. |
| Select Birmingham Limited (Registered number: 11213847) |
| Notes to the Consolidated Financial Statements - continued |
| for the year ended 31 December 2024 |
| 19. | FINANCIAL INSTRUMENTS |
| Financial assets of the Group consist of trade and other receivables and cash in hand and at the bank. Financial liabilities of the Group consist of trade and other payables, amount due to related parties and loan from the Parent Company. Accounting policies for financial assets and liabilities are set out in note 2. |
| (a) | Exposure to credit risk |
| The carrying amount of financial assets represents the maximum credit exposure. |
| The maximum exposure to credit risk at the reporting date was: |
| 2024 | 2023 |
| £ | £ |
| Trade and other receivables (excluding prepayments) | 442,954 | 870,627 |
| (b) | Liquidity riskThe following are the contractual maturities of financial liabilities, including interest payments and excluding the impact of netting arrangements. |
| Carrying | Contractual | 1 year or | Over 1 |
| Amount | Cash Flows | less | Year |
| 31 December 2024 |
£ | £ | £ | £ |
| Non-Derivative financial liabilities |
| Trade and other payables |
(1,391,983 | ) | (1,391,983 | ) | (1,311,983 | ) | (80,000 | ) |
| Bank loan | (9,400,000 | ) | (9,963,060 | ) | (9,963,060 | ) |
| Loan from the Parent Company |
(15,100,628 | ) | (16,157,672 | ) | - | (16,157,672 | ) |
| (25,892,611 | ) | (27,512,715 | ) | (11,275,043 | ) | (16,237,672 | ) |
| 31 December | 2023 |
| Non-Derivative | financial | liabilities |
| Trade and other payables |
(1,613,435 | ) | (1,613,435 | ) | (1,493,435 | ) | (120,000 | ) |
| Bank loan | (9,400,000 | ) | (9,752,000 | ) | (9,752,000 | ) | - |
| Loan from the Parent Company |
(14,338,687 | ) | (15,342,395 | ) | - | (15,342,395 | ) |
| (25,352,122 | ) | (26,708,330 | ) | (11,245,935 | ) | (15,462,395 | ) |
| Select Birmingham Limited (Registered number: 11213847) |
| Notes to the Consolidated Financial Statements - continued |
| for the year ended 31 December 2024 |
| (c) | Interest rate risk |
| At the reporting date, the interest rate profile of the Group's interest bearing financial | instruments was: |
| 2024 | 2023 |
| Fixed rate instrument | £ | £ |
| Financial liability - loan from the Parent Company | 15,100,628 | 14,338,687 |
| The Group does not account for any fixed rate financial asset at fair value through profit or | loss.Therefore, a change in interest rates at the reporting date would not affect profit or loss. |
| Cash flow sensitivity analysis for variable rate instrument |
| It is estimated that a general increase/decrease of 1% in interest rates, with all other variables held constant, would decrease/increase the Group's profit after tax and retained earnings by approximately £237,000. The sensitivity analysis has been determined assuming that the change in interest rates had occurred at the end of the reporting date and has been applied to the exposure to interest rate risk for financial instruments in existence at that date. The 1% increase or decrease represents management's assessment of the likely maximum change in interest rates over the period until the next reporting date. |
| (d) | Fair value |
| The fair value of the financial assets and liabilities of the Group approximate their carrying values. |
| 20. | DEFERRED TAX |
| Group |
| 2024 | 2023 |
| £ | £ |
| Balance at 1 January | (102,051 | ) | (171,587 | ) |
| Movement in the year | 29,189 | 69,536 |
| Balance at 31 December | (72,862 | ) | (102,051 | ) |
| 21. | ULTIMATE PARENT COMPANY |
| The company's immediate parent undertaking is Select Investments Limited, a company incorporated under the Ras Al Khaimah Free Trade Zone in the United Arab Emirates. |
| This is a wholly owned subsidiary of Select Group Limited. The consolidated financial statements of Select Investments Limited and Select Group Limited are not publicly available. The ultimate controlling party is Rahail Aslam. |
| Select Birmingham Limited (Registered number: 11213847) |
| Notes to the Consolidated Financial Statements - continued |
| for the year ended 31 December 2024 |
| 22. | RELATED PARTY DISCLOSURES |
| The company, in the normal course of business, carries out transactions with other business enterprises that fall within the definition of a related party contained in International Accounting Standard 24. These details are at rates agreed with the parties. |
| Details with significant transactions with related parties are as follows : |
| 2024 | 2023 |
| £ |
| Interest on loan from the Holding company Select Investments Limited |
661,941 |
667,508 |
| Loan owed to the Holding company Select Investments Limited | (15,100,628) | (14,338,687) |
| Amount owed from/to the Holding company Select Investments Limited |
- |
| Amount owed to Nottingham (One) UK Limited | (25,430) | (25,430) |
| Amount owed by Surge Padel Limited | 150,000 | 150,000 |
| Amount owed to Sheffield One (Hotel) Limited | (60,000) | (60,000) |
| Amount owed to Echo Liverpool Limited | (120,000) | (120,000) |
| Amount owed to Select Baker St Limited | (159,070) | (159,070) |
| Amount owed to Select Investments Limited - current account | (17,000) | (100,000) |
| Select Birmingham Limited (Registered number: 11213847) |
| Notes to the Consolidated Financial Statements - continued |
| for the year ended 31 December 2024 |
| 23. | ACCOUNTING ESTIMATES AND JUDGEMENTS |
| The Group makes estimates and assumptions that affect the reported amounts of assets and liabilities within the next financial year. Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. |
| Going concern assumption |
| The Group's management has performed an assessment of the Group's ability to continue as a going concern, which covers a period of twelve months from the date of the financial statements, based on certain identified events and conditions that, individually or collectively, may cast significant doubt on the Group's ability to continue as a going concern. |
| The Group's management has performed an assessment of the Group's ability to continue as a going concern, which covers a period of twelve months from the date of the financial statements, based on certain identified events and conditions that, individually or collectively, may cast significant doubt on the Group's ability to continue as a going concern. |
| The Group's management is of the opinion that the Group will be able to continue its operations for the next twelve months from the reporting date and that the going concern assumption used in the preparation of these consolidated financial statements is appropriate as management expects that the future operations will be profitable. Moreover, the principal assumption underlying the preparation of these consolidated financial statements on a going concern basis is the existence of the continued financial support being provided by the Parent Company. |
| The appropriateness of the going concern assumption shall be reassessed on each reporting date. |
| Impairment losses on receivables |
| The Group's management reviews its receivables to assess impairment on an annual basis. The Group's credit risk is primarily attributable to its trade and other receivables. In determining whether impairment losses should be recorded in the profit or loss, management makes judgements as to whether there is any observable date indicating that there is a measurable decrease in the estimated future cash flows. Accordingly, an allowance for impairment is made where there is an identified loss event or condition which, based on previous experience, is evidence of a reduction in the recoverability of the cash flows. |
| Provision for income taxes and deferred tax assets |
| Significant judgement is required in determining the worldwide provision for income taxes. There are many transactions and calculations for which the ultimate tax determination is uncertain during the ordinary course of business. The Group recognises liabilities for anticipated ta claims based on estimates of whether additional taxes will be due. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the income tax and deferred tax provisions in the period in which such determination is made. |
| Deferred tax assets are recognised for all unused tax losses to the extent that it is probable that taxable profit will be available against which the losses can be utilised. Significant management judgement is required to determine the amount of deferred tax assets that can be recognised, based upon the likely timing and level of future taxable profits together with future tax planning strategies. |
| Select Birmingham Limited (Registered number: 11213847) |
| Notes to the Consolidated Financial Statements - continued |
| for the year ended 31 December 2024 |
| 24. | 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 Company 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 2024 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: Classification of Liabilities as Current or Non-current |
| - | Amendments to IAS 1 Presentation of Financial Statements: Non-current Liabilities with Covenants |
| - | Amendments to IAS 7 Statement of Cash Flows: Supplier Finance Arrangements |
| - | Amendments to IAS 12 Income Taxes: International Tax Reform - Pillar Two Model Rules |
| - | Amendments to IFRS 16 Lease Liability in a Sale and Leaseback |
| The Company 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 2024 |
| At the date of authorisation of these financial statement, the Company 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 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 7 Amendments to the Classification and Measurement of Financial Instruments (applicable for annual periods beginning on or after 1 January 2026) |
| - | Amendments to IFRS 9 Contracts referencing Nature-dependent Electricity (applicable for annual periods beginning on or after 1 January 2026) |
| - | Amendments to Annual Improvements to IFRS Accounting Standards - Volume 11 (applicable for annual periods beginning on or after 1 January 2026) |
| - | Amendments to IFRS 18 Presentation and Disclosure in Financial Statements (applicable for annual periods beginning on or after 1 January 2027) |
| - | Amendments to IFRS 19 Subsidiaries without Public Accountability: Disclosures (applicable for annual periods beginning on or after 1 January 2027) |
| It is expected that the standards and interpretations, not yet applicable, will have no significant impact on the Company's financial result or position. |