Company registration number NI047589 (Northern Ireland)
MCKEEVER HOTELS LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
MCKEEVER HOTELS LTD
COMPANY INFORMATION
Directors
Eugene McKeever
Bridgene Keeley
Catherine McKeever
Edward McKeever
Secretary
Bridgene Keeley
Company number
NI047589
Registered office
315 Ballyclare Road
Newtownabbey
Northern Ireland
BT36 4TQ
Auditor
Harbinson Mulholland
6th Floor East Tower
Lanyon Plaza
8 Lanyon Place
Belfast
Co. Antrim
BT1 3LP
Bankers
Ulster Bank Limited
11-16 Donegall Square East
Belfast
BT1 5UB
Solicitors
McKees
The Linenhall
32-38 Linenhall Street
Belfast
BT2 8BG
MCKEEVER HOTELS LTD
CONTENTS
Page
Strategic report
1 - 3
Directors' report
4 - 6
Independent auditor's report
7 - 10
Group statement of comprehensive income
11
Group balance sheet
12
Company balance sheet
13
Group statement of changes in equity
14
Company statement of changes in equity
15
Group statement of cash flows
16
Company statement of cash flows
17
Notes to the financial statements
18 - 39
MCKEEVER HOTELS LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 1 -

The directors present the strategic report for the year ended 30 September 2024.

Principal activities

The principal activities of the company continued to be operating hotels.

Review of the business

The directors have considered the results for the group for the year and the financial position at the end of the year to be satisfactory and to have been achieved in a challenging time for the industry with rising costs. The results for the year are set out in the Statement of Comprehensive Income and in the related notes.

Principal risks and uncertainties

The key business risk and uncertainties affecting the company are considered to relate to competition within the market, availability of labour supply and employee retention, and general economic conditions. Due to the company's reputation and standing in the marketplace, and effective management strategies, the directors believe that the risks and uncertainties facing the company can be adequately managed.

 

The company uses various financial instruments including bank loans, cash, and various items such as trade debtors and trade creditors that arise directly from its operations. The existence of these financial instruments exposes the company to some financial risks, which are described in more detail below. The company does not make use of derivative transactions to minimise exposure to interest rates or foreign exchange.

 

The main risks arising from the company's financial instruments are interest rate risk, and liquidity risk.

 

Liquidity risk

The company seeks to manage financial risk by ensuring sufficient liquidity is available to meet foreseeable needs. The company policy throughout the year has been to ensure continuity of funding by matching the source of funds to the intended use of those funds, so that fixed assets are financed out of reserves and with the use of long-term borrowings, with draw down and repayment terms that are spread over a period of years. Short-term flexibility is achieved by overdraft and other funding facilities.

 

Interest rate risk

The company finances its operations through a mixture of retained profits, bank and other borrowings. The company's exposure to interest rate fluctuations on its borrowings is managed through annual review of its borrowing requirements and, where appropriate, using fixed or floating interest arrangements.

 

Price and market risk

As the company does not normally make investments, price risk is considered inconsequential.

Key performance indicators

The directors consider turnover and gross profit margin to be the key performance indicators of the business.

 

2024     2023    

Turnover                17,211,995    15,220,433

Gross Profit margin %         76.3%     75.7%

MCKEEVER HOTELS LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 2 -
Section 172 (1) Statement

a) The likely consequence of any decision in the long -term

 

The board of directors consider the long-term strategic plan and monitor its implementation throughout the year using detailed reports on operating performance versus budgeted performance.

 

In the current period under review, the 5-year strategic plan was refreshed and signed off by the Board of Directors.

 

b) The interest of the Group’s employees

 

Those Charged with Governance understand the importance of the Group’s employees to the long-term success of the business.

 

The board have implemented a few initiatives having regard to employees’ interests including regular training and learning via a new electronic platform.

 

The group has a zero-tolerance approach to Modern Slavery of any kind within our business and/or supply chain. We are committed to constantly reviewing, updating and improving our practices to ensure that we are tackling slavery and human trafficking.

 

c) The need to foster the group’s business relationships with suppliers, customers and others.

 

Those Charged with Governance regularly review how the Group maintains positive relationships with all its stakeholders including suppliers, customers and others.

 

d) The impact of the group’s operations on the community and the environment

 

The Group are committed to environmentally friendly initiatives without compromising the guest experience. The Directors understand the impact that the hotels have on the environment and continually review processes and procedures to ensure environmental sustainability and their carbon footprint.

MCKEEVER HOTELS LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 3 -

e) The desirability of the company to maintain a reputation for high standards of business conduct.

 

The Group operate as a family-owned business with a strong commitment to uphold their values and well-known reputation for best in class.

 

2008 – Eugene McKeever was awarded Newtownabbey Businessperson of the Year 2008 for the second time in four years, due to his investment and dedication to the Newtownabbey area.

 

2009 – Eugene McKeever became President of the Northern Ireland Hotels Federation, after dedicating his time to the NIHF board for 10 years

 

2014 – Eugene McKeever was honoured with an MBE for his services to Hospitality & Tourism for Northern Ireland in the Queen’s Birthdays Honour in June 2014.

 

2018 – Eugene received a Licensed & Catering News Lifetime Achievement Award.

 

2019 – Corrs Corner Hotel named as 1 of Northern Ireland’s Top 100 Businesses by Hospitality Ulster. Dunadry Hotel and Garden was awarded for being China Ready & Accredited.

 

2021 – Dunadry Hotel Mill Race Restaurant received the AA rosette celebrating culinary excellence.

 

2021 and 2022 – Dunadry Hotel and Gardens won Wedding Venue of the Year

 

2022 – McKeever Hotel Group Wins Employer of the Year. Eddie McKeever became President of the Northern Ireland Hotels Federation

 

2023 – McKeever Hotels shortlisted Workplace and Employment Awards for Best Place to Work (Large Business)

 

2024- NI Tourism award winners and Highly Commended in Family Business of the Year. Eugene won lifetime achievement award. Won Knorrs Recommended Roast for Dunadry Hotel and The Lodge Hotel and obtained Green Tourism Silver Award.

f) The need to act fairly between members of the company.

 

Those Charged with Governance are focused on building a strong and sustainable business for the future.

On behalf of the board

Eugene McKeever
Director
28 April 2025
MCKEEVER HOTELS LTD
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 4 -

The directors present their annual report and financial statements for the year ended 30 September 2024.

Results and dividends

The results for the year are set out on page 11.

Ordinary dividends were paid amounting to £150,000. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Eugene McKeever
Bridgene Keeley
Catherine McKeever
Edward McKeever
Employee involvement

All employees are informed of plans and progress via regular briefing sessions where opportunity is provided for involvement of all in the group's decision making process.

Human Resources

All employees are carefully selected, inducted, and developed within the company. The Group was previously awarded the Employer of the year award and are currently nominated for Best Place to Work award. The People and Culture strategy is to ensure effective training and development is in place for all teams across all departments throughout the Group to in turn aid succession planning.

 

Engagement with Employees

Continued Investment in a communication platform to ensure staff are well informed of opportunities and of company goals continues to be an effective tool to ensure staff are kept well informed. There are regular staff surveys to ensure that we get feedback from all our teams during the year. Regular meetings are held at all hotels to ensure there is good communication across all departments.

 

Disabled Employees

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. It is the policy of the Group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

 

Engagement with suppliers, customers and others

Our Group Strategic Plan identifies the desire to grow the McKeever brand. As a company we value all our customers, new and old, and continue to develop and maintain good working relations. Our suppliers are essential to our strategy and enable the Group to deliver the standards we pride ourselves on.

Post reporting date events

There have been no significant events affecting the company since the balance sheet date.

Future developments

The Group are developing internal processes and procedures to grow the Group of companies. A well-established Head Office function is in place to facilitate any future projects and plans that the Directors have identified as part of their 5 year plan.

Auditor

Harbinson Mulholland Chartered Accountants were appointed as auditor to the group and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

MCKEEVER HOTELS LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 5 -
Energy and carbon report

The McKeever Hotels Group recognises its corporate responsibility to carry out its operations whilst minimising the environmental impact.

 

The Group is committed to environmentally friendly initiatives and reducing their energy consumption. During the year the group used a total of 6,785,004 kwh of energy split between gas and electricity. The Group has achieved 0% waste to landfill and has zero amount of single use plastics within our bedrooms. All energy activity is reported at the Senior Executive Committee and Board Level.

 

The Group have invested in a building management system (BMS) as well as an energy monitoring tool in in Dunadry Hotel and Gardens. This will help the Group effectively manage and reduce energy consumption in specific areas.

 

The Group continue to partner with Weev with multiple electric car charging stations across all our hotels available to guests.

 

The ESG policy of the group aligns with the Company “We Do More” brand promise and the Board are actively looking at ways to reduce carbon footprint whilst also providing benefits to the local community such as buying local. The Group have implemented an extensive recycling programme and energy reduction programme and a review of further solar panel installation.

 

The Group continues to push sustainability focusing on driving efficiency and reducing waste. The Group have well established green teams with staff selected who have an interest in sustainability and the environment; wanting to help the Group move forward with further green initiatives.

Statement of directors' responsibilities

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are 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. They are 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.

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 directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

MCKEEVER HOTELS LTD
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 6 -
On behalf of the board
Eugene McKeever
Director
28 April 2025
MCKEEVER HOTELS LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF MCKEEVER HOTELS LTD
- 7 -
Opinion

We have audited the financial statements of McKeever Hotels Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 September 2024 which comprise 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:

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 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.

Conclusions 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 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 other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are 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:

MCKEEVER HOTELS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MCKEEVER HOTELS LTD
- 8 -
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 directors' 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:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 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 directors are 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 directors either intend to liquidate the parent company or to cease operations, or have 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.

MCKEEVER HOTELS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MCKEEVER HOTELS LTD
- 9 -

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:

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 Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental and health and safety legislation

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

To address the risk of fraud through management bias and override of controls, we:

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;

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.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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.

MCKEEVER HOTELS LTD
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF MCKEEVER HOTELS LTD
- 10 -

The purpose of our audit work and to whom we owe our responsibilities

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.

Angela Craigan (Senior Statutory Auditor)
For and on behalf of Harbinson Mulholland, Statutory Auditors
Chartered Accountants
6th Floor East Tower
Lanyon Plaza
8 Lanyon Place
Belfast
Co. Antrim
BT1 3LP
28 April 2025
MCKEEVER HOTELS LTD
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 11 -
2024
2023
Notes
£
£
Turnover
3
17,211,995
15,220,434
Cost of sales
(4,081,588)
(3,702,806)
Gross profit
13,130,407
11,517,628
Administrative expenses
(11,419,754)
(9,882,572)
Other operating income
188,719
166,824
Operating profit
4
1,899,372
1,801,880
Interest receivable and similar income
8
62,481
185
Interest payable and similar expenses
9
(607,371)
(428,160)
Profit before taxation
1,354,482
1,373,905
Tax on profit
10
(453,337)
(364,139)
Profit for the financial year
26
901,145
1,009,766
Other comprehensive income
Currency translation loss taken to retained earnings
(26,550)
(14,774)
Total comprehensive income for the year
874,595
994,992
Profit for the financial year is all attributable to the owners of the parent company.
Total comprehensive income for the year is all attributable to the owners of the parent company.
MCKEEVER HOTELS LTD
GROUP BALANCE SHEET
AS AT
30 SEPTEMBER 2024
30 September 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Goodwill
12
255,000
90,000
Other intangible assets
12
83,125
15,000
Total intangible assets
338,125
105,000
Tangible assets
13
21,655,669
17,076,912
21,993,794
17,181,912
Current assets
Stocks
16
431,304
400,480
Debtors
17
814,268
728,862
Cash at bank and in hand
4,375,839
3,495,112
5,621,411
4,624,454
Creditors: amounts falling due within one year
18
(4,344,826)
(3,210,393)
Net current assets
1,276,585
1,414,061
Total assets less current liabilities
23,270,379
18,595,973
Creditors: amounts falling due after more than one year
19
(12,441,967)
(8,565,260)
Provisions for liabilities
Deferred tax liability
22
1,048,516
905,391
(1,048,516)
(905,391)
Government grants
23
(748,816)
(818,837)
Net assets
9,031,080
8,306,485
Capital and reserves
Called up share capital
25
1,000
1,000
Profit and loss reserves
26
9,030,080
8,305,485
Total equity
9,031,080
8,306,485
The financial statements were approved by the board of directors and authorised for issue on 28 April 2025 and are signed on its behalf by:
28 April 2025
Eugene McKeever
Director
Company registration number NI047589 (Northern Ireland)
MCKEEVER HOTELS LTD
COMPANY BALANCE SHEET
AS AT 30 SEPTEMBER 2024
30 September 2024
- 13 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
13
98,294
75,352
Investments
14
1,302
1,202
99,596
76,554
Current assets
Debtors
17
800,735
404,768
Cash at bank and in hand
1,456,165
1,283,971
2,256,900
1,688,739
Creditors: amounts falling due within one year
18
(1,004,676)
(623,091)
Net current assets
1,252,224
1,065,648
Total assets less current liabilities
1,351,820
1,142,202
Creditors: amounts falling due after more than one year
19
(900,000)
(900,000)
Provisions for liabilities
Deferred tax liability
22
24,330
18,602
(24,330)
(18,602)
Net assets
427,490
223,600
Capital and reserves
Called up share capital
25
1,000
1,000
Profit and loss reserves
26
426,490
222,600
Total equity
427,490
223,600

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £353,891 (2023 - £143,500 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 by the board of directors and authorised for issue on 28 April 2025 and are signed on its behalf by:
28 April 2025
Eugene McKeever
Director
Company registration number NI047589 (Northern Ireland)
MCKEEVER HOTELS LTD
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 14 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 October 2022
1,000
7,380,493
7,381,493
Year ended 30 September 2023:
Profit for the year
-
1,009,766
1,009,766
Other comprehensive income:
Currency translation differences
-
(14,774)
(14,774)
Total comprehensive income
-
994,992
994,992
Dividends
11
-
(70,000)
(70,000)
Balance at 30 September 2023
1,000
8,305,485
8,306,485
Year ended 30 September 2024:
Profit for the year
-
901,145
901,145
Other comprehensive income:
Currency translation differences
-
(26,550)
(26,550)
Total comprehensive income
-
874,595
874,595
Dividends
11
-
(150,000)
(150,000)
Balance at 30 September 2024
1,000
9,030,080
9,031,080
MCKEEVER HOTELS LTD
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 15 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 October 2022
1,000
149,100
150,100
Year ended 30 September 2023:
Profit and total comprehensive income for the year
-
143,500
143,500
Dividends
11
-
(70,000)
(70,000)
Balance at 30 September 2023
1,000
222,600
223,600
Year ended 30 September 2024:
Profit and total comprehensive income
-
353,890
353,890
Dividends
11
-
(150,000)
(150,000)
Balance at 30 September 2024
1,000
426,490
427,490
MCKEEVER HOTELS LTD
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 16 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
28
3,926,516
2,852,012
Interest paid
(607,371)
(428,160)
Income taxes paid
(301,580)
(671,565)
Net cash inflow from operating activities
3,017,565
1,752,287
Investing activities
Purchase of intangible assets
(275,000)
-
Purchase of tangible fixed assets
(5,864,225)
(1,860,542)
Proceeds from disposal of tangible fixed assets
10,001
9,966
Interest received
62,481
185
Net cash used in investing activities
(6,066,743)
(1,850,391)
Financing activities
Proceeds from new bank loans
167,921
778,122
Repayment of bank loans
3,924,110
(458,087)
Payment of finance leases obligations
(12,126)
(3,858)
Dividends paid to equity shareholders
(150,000)
(70,000)
Net cash generated from financing activities
3,929,905
246,177
Net increase in cash and cash equivalents
880,727
148,073
Cash and cash equivalents at beginning of year
3,495,112
3,347,039
Cash and cash equivalents at end of year
4,375,839
3,495,112
MCKEEVER HOTELS LTD
COMPANY STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 17 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
29
177,379
1,377,018
Income taxes paid
(3,265)
(13,413)
Net cash inflow from operating activities
174,114
1,363,605
Investing activities
Purchase of tangible fixed assets
(52,799)
(93,670)
Proceeds from disposal of subsidiaries
(100)
-
0
Interest received
44,200
-
0
Dividends received
156,779
77,286
Net cash generated from/(used in) investing activities
148,080
(16,384)
Financing activities
Dividends paid to equity shareholders
(150,000)
(70,000)
Net cash used in financing activities
(150,000)
(70,000)
Net increase in cash and cash equivalents
172,194
1,277,221
Cash and cash equivalents at beginning of year
1,283,971
6,750
Cash and cash equivalents at end of year
1,456,165
1,283,971
MCKEEVER HOTELS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 18 -
1
Accounting policies
Company information

McKeever Hotels Ltd (“the company”) is a private limited company domiciled and incorporated in Northern Ireland. The registered office is 315 Ballyclare Road, Newtownabbey, Northern Ireland, BT36 4TQ.

 

The group consists of McKeever Hotels Ltd 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. 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, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company McKeever Hotels Ltd together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 30 September 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.

Entities in which the group holds an interest and which are jointly controlled by the group and one or more other venturers under a contractual arrangement are treated as joint ventures. Entities other than subsidiary undertakings or joint ventures, in which the group has a participating interest and over whose operating and financial policies the group exercises a significant influence, are treated as associates.

MCKEEVER HOTELS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 19 -

Investments in joint ventures and associates are carried in the group balance sheet at cost plus post-acquisition changes in the group’s share of the net assets of the entity, less any impairment in value. The carrying values of investments in joint ventures and associates include acquired goodwill.

 

If the group’s share of losses in a joint venture or associate equals or exceeds its investment in the joint venture or associate, the group does not recognise further losses unless it has incurred obligations to do so or has made payments on behalf of the joint venture or associate.

 

Unrealised gains arising from transactions with joint ventures and associates are eliminated to the extent of the group’s interest in the entity.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group 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.

1.5
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.

 

For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.

1.7
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.

 

Intangible assets acquired on business combinations are recognised separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

MCKEEVER HOTELS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 20 -

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:

Patents & licences
Over 10 years
1.8
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 land and buildings
2% - 4% straight line
Plant and equipment
15% straight line
Fixtures and fittings
15% straight line
Computers
15% straight line
Motor vehicles
25% reducing balance

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.

1.9
Fixed asset investments

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

 

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities 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.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

 

Investments in associates are initially recognised at the transaction price (including transaction costs) and are subsequently adjusted to reflect the group’s share of the profit or loss, other comprehensive income and equity of the associate using the equity method. Any difference between the cost of acquisition and the share of the fair value of the net identifiable assets of the associate on acquisition is recognised as goodwill. Any unamortised balance of goodwill is included in the carrying value of the investment in associates.

 

Losses in excess of the carrying amount of an investment in an associate are recorded as a provision only when the company has incurred legal or constructive obligations or has made payments on behalf of the associate.

 

In the parent company financial statements, investments in associates are accounted for at cost less impairment.

Entities in which the group has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

MCKEEVER HOTELS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 21 -
1.10
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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

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.

1.11
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.

1.12
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.

MCKEEVER HOTELS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 22 -
1.13
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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

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.

MCKEEVER HOTELS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 23 -
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.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

 

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

1.14
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.

1.15
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 group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

MCKEEVER HOTELS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
1
Accounting policies
(Continued)
- 24 -
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 if, and only if, there is 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.

1.16
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.

1.17
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.18
Leases

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.

 

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

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.

1.19
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

MCKEEVER HOTELS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 25 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are 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.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Hotel income
17,211,995
15,220,434
2024
2023
£
£
Turnover analysed by geographical market
United Kingdom
14,707,617
12,732,110
Overseas
2,504,378
2,488,324
17,211,995
15,220,434
2024
2023
£
£
Other revenue
Interest income
62,481
185
Commissions received
35,951
44,489
Grants received
104,486
99,285
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Exchange losses
19,694
8,550
Government grants
(104,486)
(99,285)
Depreciation of owned tangible fixed assets
1,203,982
948,133
Profit on disposal of tangible fixed assets
(2,417)
-
Amortisation of intangible assets
41,875
35,000
MCKEEVER HOTELS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 26 -
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
4,100
3,850
Audit of the financial statements of the company's subsidiaries
36,400
31,150
40,500
35,000
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, including directors
24
26
6
6
Administration
8
14
9
7
Food & beverage
207
167
-
-
Hotel
127
91
-
-
Total
366
298
15
13

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
6,217,826
5,265,829
473,248
469,635
Social security costs
442,968
371,280
43,117
44,691
Pension costs
95,970
77,008
9,948
9,640
6,756,764
5,714,117
526,313
523,966
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
41,904
125,830
Company pension contributions to defined contribution schemes
471
2,634
42,375
128,464
MCKEEVER HOTELS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 27 -
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
56,974
-
0
Other interest income
5,507
185
Total income
62,481
185
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
56,974
-
9
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
607,371
424,079
Other finance costs:
Other interest
-
4,081
Total finance costs
607,371
428,160
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
310,212
356,727
Adjustments in respect of prior periods
-
0
(117)
Total current tax
310,212
356,610
Deferred tax
Adjustment in respect of prior periods
-
0
(2,748)
Other adjustments
143,125
10,277
Total deferred tax
143,125
7,529
Total tax charge
453,337
364,139
MCKEEVER HOTELS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
10
Taxation
(Continued)
- 28 -

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
1,354,482
1,373,905
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 22.01%)
338,621
302,396
Tax effect of expenses that are not deductible in determining taxable profit
957
5,576
Adjustments in respect of prior years
-
0
(117)
Permanent capital allowances in excess of depreciation
(118,859)
(10,558)
Other permanent differences
91,130
69,351
Effect of overseas tax rates
(1,637)
(10,038)
Deferred tax adjustments
143,125
7,529
Taxation charge
453,337
364,139
11
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Final paid
150,000
70,000
MCKEEVER HOTELS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 29 -
12
Intangible fixed assets
Group
Goodwill
Patents & licences
Total
£
£
£
Cost
At 1 October 2023
365,000
230,000
595,000
Additions
200,000
75,000
275,000
At 30 September 2024
565,000
305,000
870,000
Amortisation and impairment
At 1 October 2023
275,000
215,000
490,000
Amortisation charged for the year
35,000
6,875
41,875
At 30 September 2024
310,000
221,875
531,875
Carrying amount
At 30 September 2024
255,000
83,125
338,125
At 30 September 2023
90,000
15,000
105,000
The company had no intangible fixed assets at 30 September 2024 or 30 September 2023.
MCKEEVER HOTELS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 30 -
13
Tangible fixed assets
Group
Freehold land and buildings
Assets under construction
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
£
£
Cost
At 1 October 2023
18,839,159
-
0
149,697
6,580,381
120,509
132,494
25,822,240
Additions
3,906,000
277,601
5,945
1,619,049
4,857
50,773
5,864,225
Disposals
-
0
-
0
-
0
-
0
-
0
(21,079)
(21,079)
Exchange adjustments
(40,187)
-
0
(2,344)
(96,586)
-
0
-
0
(139,117)
At 30 September 2024
22,704,972
277,601
153,298
8,102,844
125,366
162,188
31,526,269
Depreciation and impairment
At 1 October 2023
4,412,910
-
0
98,461
4,088,658
98,997
46,302
8,745,328
Depreciation charged in the year
399,126
-
0
10,061
756,901
7,342
30,552
1,203,982
Eliminated in respect of disposals
-
0
-
0
-
0
-
0
-
0
(13,495)
(13,495)
Exchange adjustments
(6,460)
-
0
(2,141)
(56,614)
-
0
-
0
(65,215)
At 30 September 2024
4,805,576
-
0
106,381
4,788,945
106,339
63,359
9,870,600
Carrying amount
At 30 September 2024
17,899,396
277,601
46,917
3,313,899
19,027
98,829
21,655,669
At 30 September 2023
14,426,249
-
0
51,236
2,491,723
21,512
86,192
17,076,912
MCKEEVER HOTELS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 31 -
Company
Computers
Motor vehicles
Total
£
£
£
Cost
At 1 October 2023
-
0
93,670
93,670
Additions
2,026
50,773
52,799
At 30 September 2024
2,026
144,443
146,469
Depreciation and impairment
At 1 October 2023
-
0
18,318
18,318
Depreciation charged in the year
196
29,661
29,857
At 30 September 2024
196
47,979
48,175
Carrying amount
At 30 September 2024
1,830
96,464
98,294
At 30 September 2023
-
0
75,352
75,352

The net carrying value of tangible fixed assets included the following in respect of assets held under finance leases or hire purchase contracts.

Group
Company
2024
2023
2024
2023
£
£
£
£
Motor vehicles
-
0
7,757
-
0
-
0
14
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
1,302
1,202
MCKEEVER HOTELS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
14
Fixed asset investments
(Continued)
- 32 -
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 October 2023
1,202
Additions
100
At 30 September 2024
1,302
Carrying amount
At 30 September 2024
1,302
At 30 September 2023
1,202
MCKEEVER HOTELS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 33 -
15
Subsidiaries

Details of the company's subsidiaries at 30 September 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Indirect
Corrs Corner Hotel Ltd
Northern Ireland
Ordinary shares
100.00
-
E&C Inns Ltd
Northern Ireland
Ordinary shares
100.00
-
Dunsilly Hotel Ltd
Northern Ireland
Ordinary shares
100.00
-
Dunadry Hotel Ltd
Northern Ireland
Ordinary shares
100.00
-
Dillons Hotel Ltd
Republic of Ireland
Ordinary shares
100.00
-
Letterkenny Court Hotel Management Company Ltd (Owned 87% by Dillons Hotel Ltd)
Republic of Ireland
Ordinary shares
0
87.00
The Lodge Hotel (Coleraine) Limited
Northern Ireland
Ordinary shares
100.00
-
16
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Finished goods and goods for resale
431,304
400,480
-
0
-
0
17
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
507,366
559,649
-
0
-
0
Corporation tax recoverable
64,689
60,212
-
0
-
0
Amounts owed by group undertakings
-
-
778,796
389,568
Other debtors
138,764
16,842
-
0
5,000
Prepayments and accrued income
103,449
92,159
21,939
10,200
814,268
728,862
800,735
404,768
MCKEEVER HOTELS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 34 -
18
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans
20
568,899
389,725
-
0
-
0
Obligations under finance leases
21
-
0
12,126
-
0
-
0
Trade creditors
1,211,637
1,146,060
47,951
10,615
Amounts owed to group undertakings
-
0
-
0
839,836
524,076
Corporation tax payable
178,758
165,649
44,432
3,265
Other taxation and social security
973,762
647,270
37,627
36,960
Deferred income
23
704,313
334,404
-
0
-
0
Other creditors
236,850
144,678
14,604
20,693
Accruals and deferred income
470,607
370,481
20,226
27,482
4,344,826
3,210,393
1,004,676
623,091

Secured creditors

 

Bank loans are secured by the following:

- First Legal Charge over the properties held by the group;

- Debenture over the assets and undertakings of the group; and

- An unlimited intercompany cross guarantee between Dunadry Hotel Ltd, Corrs Corner Hotel Ltd, Dunsilly Hotel Ltd, Dillons Hotel Limited, E&C Inns Ltd, The Lodge Hotel (Coleraine) Limited and McKeever Hotels Ltd.

19
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
20
11,365,162
7,452,305
-
0
-
0
Other borrowings
20
900,000
900,000
900,000
900,000
Other creditors
176,805
212,955
-
0
-
0
12,441,967
8,565,260
900,000
900,000

Included within creditors: amounts falling due after more than one year is an amount of £11,365,162 (2023: £nil) in respect of liabilities payable or repayable by instalments which fall due for payment after more than five years from the reporting date.

MCKEEVER HOTELS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 35 -
20
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
11,934,061
7,842,030
-
0
-
0
Preference shares
900,000
900,000
900,000
900,000
12,834,061
8,742,030
900,000
900,000
Payable within one year
568,899
389,725
-
0
-
0
Payable after one year
12,265,162
8,352,305
900,000
900,000

Bank loans are secured as per Note 13.

The bank loans included in creditors at year end were over a period of 5 years. Loans are subject to interest rates of between 1.95% - 2% per annum over base rate.

21
Finance lease obligations
Group
Company
2024
2023
2024
2023
£
£
£
£
Future minimum lease payments due under finance leases:
Within one year
-
0
12,301
-
0
-
0
Less: future finance charges
-
0
(175)
-
0
-
0
-
12,126
-
0
-
0

Finance lease payments represent amounts payable under hire purchase agreements by the company or group for motor vehicles. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 4 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments. All leases held were fully repaid in the year.

22
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Group
£
£
Accelerated capital allowances
1,057,732
913,650
Timing differences
(9,216)
(8,259)
1,048,516
905,391
MCKEEVER HOTELS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
22
Deferred taxation
(Continued)
- 36 -
Liabilities
Liabilities
2024
2023
Company
£
£
Accelerated capital allowances
24,574
18,838
Timing differences
(244)
(236)
24,330
18,602
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 October 2023
905,391
18,602
Charge to profit or loss
143,125
5,728
Liability at 30 September 2024
1,048,516
24,330
23
Deferred income
Group
Company
2024
2023
2024
2023
£
£
£
£
Arising from government grants
748,816
818,837
-
-
Other deferred income
704,313
334,404
-
-
1,453,129
1,153,241
-
-

Deferred income is included in the financial statements as follows:

Current liabilities
704,313
334,404
-
0
-
0
Shown as deferred income on the face of the balance sheet
748,816
818,837
-
0
-
0
1,453,129
1,153,241
-
-
24
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
95,970
77,008
MCKEEVER HOTELS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
24
Retirement benefit schemes
(Continued)
- 37 -

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.

25
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary Class A of £1 each
300
200
300
200
Ordinary Class B of £1 each
200
300
200
300
Ordinary Class C of £1 each
500
500
500
500
1,000
1,000
1,000
1,000
2024
2023
2024
2023
Preference share capital
Number
Number
£
£
Issued and fully paid
Preference shares of £1 each
900,000
900,000
900,000
900,000
Preference shares classified as liabilities
900,000
900,000

Ordinary Shares

 

On 30 September 2014 the issued ordinary share capital was re-designated from Ordinary shares to Ordinary Shares 'A', Ordinary Shares 'B' and Ordinary 'C'. There are no differences in the rights attaching to each class of share and the shares rank pari passu.

 

On 1 October 2023 100 Ordinary B shares were re-designated as Ordinary A shares.

 

Preference Shares

 

The preference shares are redeemable on demand at the option of the shareholder. They are non-voting shares and are not entitled to dividends, unless where specifically approved by the board of directors in its absolute discretion. They are entitled to £1 per share in relation to assets of the company on sale or winding up of the company.

26
Reserves
Profit and loss reserves

The profit and loss account reserve represents the retained earnings less distributions.

MCKEEVER HOTELS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 38 -
27
Capital commitments

Amounts contracted for but not provided in the financial statements:

Group
Company
2024
2023
2024
2023
£
£
£
£
Acquisition of tangible fixed assets
111,314
76,406
-
46,559
28
Cash generated from group operations
2024
2023
£
£
Profit for the year after tax
901,145
1,009,766
Adjustments for:
Taxation charged
453,337
364,139
Finance costs
607,371
428,160
Investment income
(62,481)
(185)
Gain on disposal of tangible fixed assets
(2,417)
-
Amortisation and impairment of intangible assets
41,875
35,000
Depreciation and impairment of tangible fixed assets
1,203,982
948,133
Effect of foreign currency translations
47,352
1,326
Decrease in deferred income
(70,021)
(13,686)
Movements in working capital:
(Increase)/decrease in stocks
(30,824)
3,713
Increase in debtors
(80,929)
(70,700)
Increase in creditors
548,217
196,905
Increase/(decrease) in deferred income
369,909
(50,559)
Cash generated from operations
3,926,516
2,852,012
MCKEEVER HOTELS LTD
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 SEPTEMBER 2024
- 39 -
29
Cash generated from operations - company
2024
2023
£
£
Profit after taxation
353,890
143,500
Adjustments for:
Taxation charged
50,160
21,867
Investment income
(200,979)
(77,286)
Depreciation and impairment of tangible fixed assets
29,857
18,318
Movements in working capital:
(Increase)/decrease in debtors
(395,967)
721,541
Increase in creditors
340,418
549,078
Cash generated from operations
177,379
1,377,018
30
Analysis of changes in net debt - group
1 October 2023
Cash flows
30 September 2024
£
£
£
Cash at bank and in hand
3,495,112
880,727
4,375,839
Borrowings excluding overdrafts
(8,742,030)
(4,092,031)
(12,834,061)
Obligations under finance leases
(12,126)
12,126
-
(5,259,044)
(3,199,178)
(8,458,222)
31
Analysis of changes in net funds - company
1 October 2023
Cash flows
30 September 2024
£
£
£
Cash at bank and in hand
1,283,971
172,194
1,456,165
Borrowings excluding overdrafts
(900,000)
-
(900,000)
383,971
172,194
556,165
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