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Registered number: 07180111









The Royal Toby Hotel (Castleton) Limited









Annual Report and Financial Statements

For the year ended 30 September 2024

 
The Royal Toby Hotel (Castleton) Limited
 
 
Company Information


Directors
C Brierley 
M Brierley 
V Cosgrove 




Company secretary
V Cosgrove



Registered number
07180111



Registered office
Unit F
Royle Pennine Trading Estate

Lynroyle Way

Rochdale

OL11 3EX




Independent auditors
Hurst Accountants Limited
Chartered Accountants & Statutory Auditors

Stockport

Cheshire

SK1 3GG




Bankers
HSBC UK Bank Plc
Landmark

St Peter's Square

1 Oxford Street

Manchester

M1 4PB




Solicitors
Gunnercooke LLP
53 King Street

Manchester

M2 4LQ





 
The Royal Toby Hotel (Castleton) Limited
 

Contents



Page
Strategic report
1 - 2
Directors' report
3 - 4
Independent auditors' report
5 - 8
Statement of comprehensive income
9
Balance sheet
10
Statement of changes in equity
11
Notes to the financial statements
12 - 25


 
The Royal Toby Hotel (Castleton) Limited
 
 
Strategic Report
For the year ended 30 September 2024

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

Business review
 
The directors continued to invest in the Royal Toby with the final floor of the hotel refurbishment being completed during March 2024.  The Royal Toby faced challenges with a reduction in hotel occupancy levels and a decline in the overall wedding market.  As a result, sales decreased by 4.5% to £3.955m.  The directors consider this to be a strong performance given the “cost of living crisis”, the impact of Covid on the wedding market, reduction in room availability resulting from the refurbishment, and increasing competition.  The extra bed capacity in the market from the opening of a new hotel by a competitor impacted the hotel performance.
The gross margin decreased by 1.8% (from 73.8% to 72%) and overall gross profit decreased by 6.82% following the reduction in accommodation revenue and the inflationary pressures on food and drink prices.  Key expenditure in the business including wages, utilities and interest rates all saw significant increases with these costs not able to be passed on in full to customers.   Despite these inflationary market pressures, the business was profitable producing a profit before tax of £186k with net assets increasing by £59k.
The year-on-year reduction in profit was anticipated given the cost increases and pressure on consumer spending.  Positive customer feedback remains high with the business delivering a quality customer experience.  The underlying business remains stable.
Principal risks and uncertainties
The company is part of a group headed by Deckers Hospitality Group Limited (“the group”). The directors consider the principal risks and uncertainties facing the group to be financial, liquidity, credit and legislative.
Pandemic Risk
Although the risk of another Pandemic exists, the directors believe the learnings from Covid 19 can be applied to mitigate the impact of any future closures.
Financial Risk
The directors monitor the interest rate closely. The company has previously used interest rate hedges and may do so again in the future if the directors consider it necessary to to reduce the uncertainty.
Liquidity Risk
The company aims to mitigate liquidity risk by managing cash generation from operations.
Investment is carefully monitored, with authorisation limits operating up to Board level. The approval procedures apply to all capital items. The method of funding to be used is dictated in each case by the cash flow implications.
Credit Risk
Debtors represent a significant level of the company’s financial assets. Levels of credit are carefully monitored and reviewed by the directors. The group manages its credit risk through credit insurance for the substantial part of the debt contained within the wholesale business.

Page 1

 
The Royal Toby Hotel (Castleton) Limited
 

Strategic Report (continued)
For the year ended 30 September 2024

Legislative risk
The company is subject to Health, Hygiene and Safety legislation which is constantly reviewed. Compliance imposes costs and failure to comply with these standards could result in the business being unable to operate. The group has a Health & Safety policy and promotes the culture of a safe working environment. All employees are included in the internal training programme.
Employee legislation is subject to continuous revision and any new Directive may have a material impact on the ability of the company to operate profitably.
 
Financial key performance indicators
 
The company uses a number of key performance indicators in assessing and driving performance. The key financial and non-financial indicators used by the company are sales, gross margin, net profit, bank balances, net assets, delivery targets and customer feedback.


2024
2023
Mvt

£000
£000
%
Turnover
3,955
4,141
(4.49)
Gross profit
2,847
3,056
(6.84)
Profit before tax
186
432
(56.9)
Cash at bank
116
121
(4.13)
Net assets
1,893
1,834
3.22


 

This report was approved by the board and signed on its behalf.



V Cosgrove
Director

Date: 13 June 2025

Page 2

 
The Royal Toby Hotel (Castleton) Limited
 
 
 
Directors' Report
For the year ended 30 September 2024

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

Directors' responsibilities statement

The directors are responsible for preparing the strategic report, the directors' 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 of the profit or loss of the Company for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments 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 transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The profit for the year, after taxation, amounted to £157,821 (2023 - £407,497).

Dividends of £100,000 (2023: £390,000) were paid during the year.

Directors

The directors who served during the year were:

C Brierley 
M Brierley  
V Cosgrove 

Page 3

 
The Royal Toby Hotel (Castleton) Limited
 
 
 
Directors' Report (continued)
For the year ended 30 September 2024

Future developments

The directors continue to be focussed on controlling key costs and overheads. The energy contract ended in October 2024 with the business benefitting from a significant reduction in prices.  Merchant card fees have been renegotiated and interest rates are anticipated to keep reducing, all helping to ease pressure on the cost base.
The Autumn 2024 Chancellor's budget is forecast to have a significant impact on the business.  The directors have addressed this by re-engineering job roles and menus to control the hours of employment per £ of income generated.  
The increased pressure on the hospitality industry from government policy needs to be considered by the directors before further capital expenditure on the site is incurred.
The business is financed centrally by Deckers Hospitality Group, the directors have no concerns over the viability of the business to continue as a going concern.

Disclosure of information to auditors

Each of the persons who are directors at the time when this directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

The auditorsHurst Accountants Limitedwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





V Cosgrove
Director

Date: 13 June 2025

Page 4

 
The Royal Toby Hotel (Castleton) Limited
 
 
 
Independent Auditors' Report to the Members of The Royal Toby Hotel (Castleton) Limited
 

Opinion


We have audited the financial statements of The Royal Toby Hotel (Castleton) Limited (the 'Company') for the year ended 30 September 2024, which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 30 September 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


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 Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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 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 auditors' report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Page 5

 
The Royal Toby Hotel (Castleton) Limited
 
 
 
Independent Auditors' Report to the Members of The Royal Toby Hotel (Castleton) Limited (continued)


Opinion 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 strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the strategic report and the directors' report 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 Company and its 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:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the 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 directors' responsibilities statement set out on page 3, 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 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 Company or to cease operations, or have no realistic alternative but to do so.


Page 6

 
The Royal Toby Hotel (Castleton) Limited
 
 
 
Independent Auditors' Report to the Members of The Royal Toby Hotel (Castleton) Limited (continued)


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 an auditors' 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.


Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Identifying and assessing potential risks related to irregularities
In identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following:
The nature of the industry and sector in which the company operates; the control environment and business performance including key drivers for directors' remuneration, bonus levels and performance targets.
The outcome of enquiries of local management and parent company management, including whether management was aware of any instances of non-compliance with laws and regulations, and whether management had knowledge of any actual, suspected, or alleged fraud. 
Supporting documentation relating to the Company's policies and procedures for:
°Identifying, evaluating, and complying with laws and regulations
°Detecting and responding to the risks of fraud
The internal controls established to mitigate risks related to fraud or non-compliance with laws and regulations.
The outcome of discussions amongst the engagement team regarding how and where fraud might occur in the financial statements and any potential indicators of fraud.
The legal and regulatory framework in which the Company operates, particularly those laws and regulations which have a direct effect on the financial statements, such as the Companies Act 2006, pensions and tax legislation, or which had a fundamental effect on the operations of the Company, including General Data Protection requirements, Anti-bribery and Corruption and the Alcohol Wholesaler Registration Scheme.

Audit response to risks identified

Our procedures to respond to the risks identified included the following:
 
Reviewing the financial statements disclosures and testing to supporting documentation to assess compliance with the provisions of those relevant laws and regulations which have a direct effect on the financial statements.
Discussions with management, including consideration of known or suspected instances of non-compliance with laws and regulations and fraud.
Evaluation of the operating effectiveness of management’s controls designed to prevent and detect irregularities.
Enquiring of management about any actual and potential litigation and claims
Performing analytical procedures to identify any unusual or unexpected relationships which may indicate risks of material misstatement due to fraud.
Reading minutes of meetings of those charges with governance.
Page 7

 
The Royal Toby Hotel (Castleton) Limited
 
 
 
Independent Auditors' Report to the Members of The Royal Toby Hotel (Castleton) Limited (continued)


We have also considered the risk of fraud through management override of controls by:
 
Testing the appropriateness of journal entries and other adjustments.
Challenging assumptions made by management in their significant accounting estimates, and assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and
Evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

There are inherent limitations in the audit procedures described above, and the further removed non-compliance with laws and regulations are from the events and transactions reflected in the financial statements, the less likely we would become aware of them.  Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
 


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 auditors' report.


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 2006Our 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 auditors' 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.





Helen Besant-Roberts (senior statutory auditor)
for and on behalf of
Hurst Accountants Limited
Chartered Accountants
Statutory Auditors
Stockport
Cheshire
SK1 3GG

15 June 2025
Page 8

 
The Royal Toby Hotel (Castleton) Limited
 
 
Statement of Comprehensive Income
For the year ended 30 September 2024

2024
2023
£
£

  

Turnover
 4 
3,954,850
4,140,779

Cost of sales
  
(1,107,698)
(1,085,195)

Gross profit
  
2,847,152
3,055,584

Distribution costs
  
(1,606,519)
(1,517,223)

Administrative expenses
  
(1,074,988)
(1,118,035)

Other operating income
 5 
20,665
11,865

Operating profit
  
186,310
432,191

Tax on profit
 9 
(28,489)
(24,694)

Profit for the financial year
  
157,821
407,497

There was no other comprehensive income for 2024 (2023:£NIL).

The notes on pages 12 to 25 form part of these financial statements.

Page 9

 
The Royal Toby Hotel (Castleton) Limited
Registered number: 07180111

Balance Sheet
As at 30 September 2024

2024
2023
Note
£
£

Fixed assets
  

Intangible assets
 11 
3,641
4,334

Tangible assets
 12 
6,068,219
5,944,695

  
6,071,860
5,949,029

Current assets
  

Stocks
 13 
99,327
95,696

Debtors: amounts falling due within one year
 14 
98,922
250,536

Cash at bank and in hand
 15 
115,866
120,612

  
314,115
466,844

Creditors: amounts falling due within one year
 16 
(3,856,883)
(3,970,329)

Net current liabilities
  
 
 
(3,542,768)
 
 
(3,503,485)

Total assets less current liabilities
  
2,529,092
2,445,544

Provisions for liabilities
  

Deferred tax
 17 
(637,325)
(611,598)

  
 
 
(637,325)
 
 
(611,598)

Net assets
  
1,891,767
1,833,946


Capital and reserves
  

Called up share capital 
  
1
1

Revaluation reserve
 19 
790,056
790,056

Profit and loss account
 19 
1,101,710
1,043,889

  
1,891,767
1,833,946


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




V Cosgrove
Director

Date: 13 June 2025

The notes on pages 12 to 25 form part of these financial statements.

Page 10

 
The Royal Toby Hotel (Castleton) Limited
 

Statement of Changes in Equity
For the year ended 30 September 2024


Called up share capital
Revaluation reserve
Profit and loss account
Total equity

£
£
£
£


At 1 October 2022
1
790,056
1,026,392
1,816,449


Comprehensive income for the year

Profit for the year
-
-
407,497
407,497
Total comprehensive income for the year
-
-
407,497
407,497


Contributions by and distributions to owners

Dividends: Equity capital
-
-
(390,000)
(390,000)


Total transactions with owners
-
-
(390,000)
(390,000)



At 1 October 2023
1
790,056
1,043,889
1,833,946


Comprehensive income for the year

Profit for the year
-
-
157,821
157,821
Total comprehensive income for the year
-
-
157,821
157,821


Contributions by and distributions to owners

Dividends: Equity capital
-
-
(100,000)
(100,000)


Total transactions with owners
-
-
(100,000)
(100,000)


At 30 September 2024
1
790,056
1,101,710
1,891,767


The notes on pages 12 to 25 form part of these financial statements.

Page 11

 
The Royal Toby Hotel (Castleton) Limited
 
 
 
Notes to the Financial Statements
For the year ended 30 September 2024

1.


General information

The Royal Toby (Casteton) Limited is a private company limited by shares and incorporated in England.  The registered office is Unit F, Royle Pennine Trading Estate, Lynroyle Way, Rochdale, OL11 3EX.
The principal activity of the company was that of a restaurateur and hotelier.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Deckers Hospitality Group Limited as at 30 September 2024 and these financial statements may be obtained from Companies House.

 
2.3

Revenue

Revenue recognised at the point of sale is the fair value of bar, food, function room hire and hotel room sales, after the deduction of discounts and sales-based taxes.
Revenue from hotel rooms is recognised when rooms are occupied and as services are provided after the deduction of discounts and sales-based taxes.
Revenue from function room hire is recognised at the date of event and as services are provided after the deduction of discounts and sales-based taxes.



Page 12

 
The Royal Toby Hotel (Castleton) Limited
 
 
 
Notes to the Financial Statements
For the year ended 30 September 2024

2.Accounting policies (continued)

 
2.4

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the Company in independently administered funds.

 
2.5

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

 
2.6

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 Amortisation is provided on the following bases:

Software
-
20%
straight line

Page 13

 
The Royal Toby Hotel (Castleton) Limited
 
 
 
Notes to the Financial Statements
For the year ended 30 September 2024

2.Accounting policies (continued)

 
2.7

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Freehold property
-
Not depreciated
Plant and machinery
-
5 to 20 years straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

No depreciation has been provided on freehold buildings contrary to Financial Reporting Standard 102, which require that provision be made for depreciation of fixed assets having a finite useful life.  The directors are of the opinion that the residual values at the end of the estimated useful lives of the buildings are not likely to be materially different from their carrying values.  This is because it is the company's policy to maintain buildings in such a condition that their value is not diminished by the passage of time and the relevant expenditure is charged to profit before tax in the year in which it is incurred.  Therefore, any element of depreciation is considered to be immaterial and no provision made.

 
2.8

Revaluation of tangible fixed assets

Individual freehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the balance sheet date.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.

Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.

 
2.9

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

Page 14

 
The Royal Toby Hotel (Castleton) Limited
 
 
 
Notes to the Financial Statements
For the year ended 30 September 2024

2.Accounting policies (continued)

 
2.10

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.11

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.12

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.13

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.14

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other receivables due with the operating cycle fall into this category of financial instruments.

Impairment of financial assets

Financial assets are assessed for indicators of impairment at each reporting date. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
Page 15

 
The Royal Toby Hotel (Castleton) Limited
 
 
 
Notes to the Financial Statements
For the year ended 30 September 2024

2.Accounting policies (continued)


2.14
Financial instruments (continued)


If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instruments any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other payables, bank loans and other loans are initially measured at their transaction price after transaction costs. When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade payables are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade payables are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade payables are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

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

 
2.15

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

Page 16

 
The Royal Toby Hotel (Castleton) Limited
 
 
 
Notes to the Financial Statements
For the year ended 30 September 2024

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

Preparation of the financial statements requires management to make significant judgements, estimates, and assumptions that affect the amounts reported for assets and liabilities at the balance sheet date and amounts reported for revenues and expenses during the year. The nature of estimation means that actual outcomes could be different from those estimates. The items in the financial statements where these judgements and estimates have been made include: 
Depreciation
Management of the company exercises judgement in estimating the useful economic life of property, plant, and equipment; such estimations are reviewed regularly to ensure they remain appropriate. Management have judged that the residual values at the end of the estimated useful lives of the buildings are not likely to be materially different from their carrying values. This is because it is the company’s policy to maintain buildings in such a condition that their value is not diminished by the passage of time, and the relevant expenditure is charged to profit before tax in the year in which it is incurred.
Value of property
Management consider the value of the company’s freehold property and make appropriate provision for impairment where it is believed that the realisable value of a property is below its book value. No further revaluations were made during the period.


4.


Turnover

The whole of the turnover is attributable to the principal activity of the company.

All turnover arose within the United Kingdom.


5.


Other operating income

2024
2023
£
£

Net rents receivable
20,665
11,865

20,665
11,865



6.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Depreciation of tangible fixed assets
122,360
104,405

Page 17

 
The Royal Toby Hotel (Castleton) Limited
 
 
 
Notes to the Financial Statements
For the year ended 30 September 2024

7.


Auditors' remuneration

Audit fees are borne and paid by Deckers Hospitality Group Limited, on behalf of the company.  The audit fee for The Royal Toby 





8.


Employees

Staff costs were as follows:


2024
2023
£
£

Wages and salaries
-
1,401,123

Social security costs
-
92,936

Cost of defined contribution scheme
-
23,164

-
1,517,223


The average monthly number of employees, including the directors, during the year was as follows:


        2024
        2023
            No.
            No.







Employees
-
93

During the financial year, all employees of the company were transferred to the parent entity as part of a group-wide
payroll centralisation initiative. Consequently, the average number of employees reported for the company has
decreased to nil. Staff costs are bourne by the parent company and recharged to The Royal Toby Hotel (Castleton) Ltd. The average number of employees who are employed by the parent company for The Royal Toby Hotel (Castleton) Ltd was 92. The statutory directors of the company are not employees of The Royal Toby Hotel (Castleton) Ltd and are therefore excluded from the average employee numbers disclosed above.

Page 18

 
The Royal Toby Hotel (Castleton) Limited
 
 
 
Notes to the Financial Statements
For the year ended 30 September 2024

9.


Taxation


2024
2023
£
£

Corporation tax


Current tax on profits for the year
2,762
-

Adjustments in respect of previous periods
-
8,920


Total current tax
2,762
8,920

Deferred tax


Origination and reversal of timing differences
26,218
15,774

Adjustments in respect of previous periods
(491)
-

Total deferred tax
25,727
15,774


Tax on profit
28,489
24,694

Factors affecting tax charge for the year

The tax assessed for the year is lower than (2023 - lower than) the standard rate of corporation tax in the UK of 25% (2023 - 22%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
186,310
432,191


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 22%)
46,578
95,082

Effects of:


Adjustments to tax charge in respect of prior periods - deferred tax
(491)
8,920

Other timing differences leading to an increase (decrease) in taxation
1,237
279

Super deduction enhancement
-
(977)

Group relief
(18,284)
(78,610)

Marginal relief
(551)
-

Total tax charge for the year
28,489
24,694


Factors that may affect future tax charges

There were no factors that may affect future tax charges.

Page 19

 
The Royal Toby Hotel (Castleton) Limited
 
 
 
Notes to the Financial Statements
For the year ended 30 September 2024

10.


Dividends

2024
2023
£
£


Dividends paid on equity capital
100,000
390,000

100,000
390,000


11.


Intangible assets




Computer software

£



Cost


At 1 October 2023
42,633



At 30 September 2024

42,633



Amortisation


At 1 October 2023
38,299


Charge for the year on owned assets
693



At 30 September 2024

38,992



Net book value



At 30 September 2024
3,641



At 30 September 2023
4,334



Page 20

 
The Royal Toby Hotel (Castleton) Limited
 
 
 
Notes to the Financial Statements
For the year ended 30 September 2024

12.


Tangible fixed assets





Freehold property
Plant and machinery
Total

£
£
£



Cost or valuation


At 1 October 2023
5,333,973
1,705,031
7,039,004


Additions
94,280
151,604
245,884



At 30 September 2024

5,428,253
1,856,635
7,284,888



Depreciation


At 1 October 2023
-
1,094,309
1,094,309


Charge for the year on owned assets
-
122,360
122,360



At 30 September 2024

-
1,216,669
1,216,669



Net book value



At 30 September 2024
5,428,253
639,966
6,068,219



At 30 September 2023
5,333,973
610,722
5,944,695

Freehold property is held at the revalued amount of £5,333,973 in these financial statements.  The historical cost of freehold property is shown below.
The valuation of the freehold property was undertaken on 16 May 2022 by CBRE Limited (Chartered Surveyours).
The directors are not aware of any material variances to the value between the date of the valuation report and the
balance sheet date.



If the land and buildings had not been included at valuation they would have been included under the historical cost convention as follows:

2024
2023
£
£



Cost
4,271,126
4,176,846

Page 21

 
The Royal Toby Hotel (Castleton) Limited
 
 
 
Notes to the Financial Statements
For the year ended 30 September 2024

13.


Stocks

2024
2023
£
£

Raw materials and consumables
48,595
48,595

Finished goods and goods for resale
50,732
47,101

99,327
95,696



14.


Debtors

2024
2023
£
£


Trade debtors
36,876
68,315

Amounts owed by group undertakings
2,734
124,360

Other debtors
691
2,503

Prepayments and accrued income
58,621
55,358

98,922
250,536



15.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
115,866
120,612

115,866
120,612


Page 22

 
The Royal Toby Hotel (Castleton) Limited
 
 
 
Notes to the Financial Statements
For the year ended 30 September 2024

16.


Creditors: Amounts falling due within one year

2024
2023
£
£

Trade creditors
101,192
97,361

Amounts owed to group undertakings
3,379,016
3,432,409

Corporation tax
2,762
8,920

Other taxation and social security
158,928
190,537

Other creditors
177,829
173,760

Accruals and deferred income
37,156
67,342

3,856,883
3,970,329


At the balance sheet date, the Company owed £3.4m (2023: £3.4m) to fellow group undertakings. These balances are unsecured, interest-free, and repayable on demand.


17.


Deferred taxation




2024


£






At beginning of year
(611,598)


Charged to profit or loss
(25,727)



At end of year
(637,325)

The provision for deferred taxation is made up as follows:

2024
2023
£
£


Accelerated capital allowances
437,241
411,514

Revaluation reserve
200,084
200,084

(637,325)
(611,598)


18.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



1 (2023 - 1) Ordinary share of £1.00
1
1


Page 23

 
The Royal Toby Hotel (Castleton) Limited
 
 
 
Notes to the Financial Statements
For the year ended 30 September 2024

19.


Reserves

Revaluation reserve

The cumulative revaluation gains and losses in respect of land and buildings, net of deferred tax liabilities arising thereon.

Profit and loss account

The profit and loss account includes all current and prior year period retained profits and losses after dividends paid.


20.


Financial commitments, guarantees and contingent liabilities

Contingent liabilities with the company's bankers
There is a group cross-company unlimited guarantee dated 2 May 2013 in favour of HSBC Bank plc. The guarantee
was given by Deckers Hospitality Group Limited, Deckers Trading Limited, Sale Waterpark Restaurant Limited, and
The Royal Toby Hotel (Castleton) Limited.
The company’s ultimate parent has a bank loan. This bank loan is secured by a debenture including a fixed and
floating charge over the group's present freehold and leasehold property, book and other debts, chattels, goodwill,
and uncalled capital, dated 3 May 2013. The total amount of loan outstanding at the balance sheet date was
£2,216,117 (2023: £2,440,756).
Contingent liabilities with HMRC
The company is included within a group registration for VAT purposes and is therefore jointly and severally liable
for all group companies' VAT liabilities. The total potential liability for the period end was £158,928 (2023:
£168,525).


21.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Company  in an independently administered fund. The pension cost charge represents contributions payable by the Company  to the fund and amounted to £480 (2023 - £23,164) . Contributions totalling £Nil (2023 - £1,024) were payable to the fund at the balance sheet date and are included in creditors.


22.


Commitments under operating leases

At 30 September 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2024
2023
£
£


Not later than 1 year
-
454

Later than 1 year and not later than 5 years
-
454

-
908

Page 24

 
The Royal Toby Hotel (Castleton) Limited
 
 
 
Notes to the Financial Statements
For the year ended 30 September 2024

23.


Related party transactions

The Company has taken advantage of the exemption under FRS 102 Section 33.1A 'Related Party Transactions' from disclosing transactions with wholly owned members of the Deckers Hospitality Group Limited.


24.


Controlling party

The immediate and ultimate parent company is Deckers Hospitality Group Limited, a company incorporated in England & Wales. Deckers Hospitality Group Limited is the parent company of the smallest and largest group for which consolidated accounts are prepared. The registered address of Deckers Hospitality Group Limited is Unit F, Royle Pennine Trading Estate, Lynroyle Way, Rochdale, OL11 3EX.
The ultimate controlling parties are Mr C Brierley, Mr M Brierley and Mrs V Cosgrove.

Page 25