Company Registration No. 11145841 (England and Wales)
LANGSTONE QUAYS HOTEL LIMITED
ANNUAL REPORT AND
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
LANGSTONE QUAYS HOTEL LIMITED
COMPANY INFORMATION
Directors
Dr A Bansal
Mrs S Bansal
Mrs P Walker
Company number
11145841
Registered office
Lion Quays Hotel & Spa
Weston Rhyn
Gobowen
Oswestry
Shropshire
SY11 3EN
Auditor
Morris Lane
31/33 Commercial Road
Poole
Dorset
BH14 0HU
LANGSTONE QUAYS HOTEL LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Income statement
8
Group statement of comprehensive income
9
Group statement of financial position
10
Company statement of financial position
11
Group statement of changes in equity
12
Company statement of changes in equity
13
Group statement of cash flows
14
Notes to the financial statements
15 - 35
LANGSTONE QUAYS HOTEL LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 1 -

The directors present the strategic report for the year ended 30 November 2023.

Fair review of the business

During the period under review, the hotel navigated several significant challenges while making strategic improvements to enhance long-term performance.

 

The previous year's increase in utility costs continued to pressure financial outcomes. Additionally, the rise in interest rates, staffing issues, and supply chain disruptions further hampered profitability. Despite efforts, there was increased reliance on third-party agencies, and it was not possible to fully pass on the inflationary increases to customers, leading to a strain on margins. As a result, the group had a loss before tax of £244,551 for the year ended 30 November 2023, compared to a profit before tax of £150,045 for the year ended 30 November 2022.

 

In response to these challenges, strategic investment was necessary. The installation of a new hot water system and the upgrade of the plant room these are expected to improve operational efficiencies. Furthermore, the completion of the 45 refurbished bedrooms was finalised to cater to the family market, building on the hotel's family ethos and values.

 

Changes in compliance requirements and potential legal challenges necessitated the introduction of new Training and H&S software and tracking platforms. These measures were implemented to mitigate uncertainties and manage additional costs effectively.

 

The rapid pace of technological and marketing change underscores the need for continuous investment, and there is a commitment to making these necessary enhancements throughout 2024 to maintain a competitive edge.

 

The group balance sheet weakened with total equity as at 30 November 2023 being £54,787 compared with total equity of £595,195 as at 30 November 2022. This is mainly as a result of the losses arising and the revaluation of freehold land and buildings.

Principal risks and uncertainties

The hotel and leisure sector faces several ongoing risks and uncertainties. The economic downturn, changes in consumer spending patterns, and fluctuations in tourism significantly impact our industry.  Additionally, the continued fluctuations in the Bank of England interest rates pose further challenges.

 

The directors are keenly aware of these risks and are proactively managing them. Close monitoring of working capital requirements and strategic product investment will secure a stable future for the hotel.

On behalf of the board

Mrs P Walker
Director
18 July 2025
LANGSTONE QUAYS HOTEL LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 2 -

The directors present their annual report and financial statements for the year ended 30 November 2023.

Principal activities

The principal activity of the company and group continued to be that of running of Langstone Quays Resort.

Results and dividends

The results for the year are set out on page 8.

No ordinary dividends were paid. 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:

Dr A Bansal
Mrs S Bansal
Mrs P Walker
Financial instruments
Price risk, credit risk, liquidity risk and cash flow risk

The group aims to mitigate liquidity risk and cash flow risk by managing working capital, and as a result, it continues to closely monitor the working capital requirements. In addition, the directors continue to work with group's bank to ensure that these working capital requirements are met.

Future developments

Future developments include a continuing program of refurbishment in order to maintain standards and increase revenue. In addition, there is an ongoing centralisation and restructure of resources for cost-saving efficiencies. The company continues to invest in staff welfare, training and development along with improved staff communication to ensure that the key policy of maintaining high customer service and satisfaction is met. In addition, there is an emphasis on fostering business relationships with suppliers to maintain cost control.

Going Concern

The directors have considered the financial position of the group and its ability to continue as a going concern. The group is reliant on the support of its directors, bankers, and other related parties to meet its liabilities as they fall due. The group balance sheet shows net current liabilities of £13.5m and a fall in net assets to £54,787. The net current liabilities include bank loans of £8.8m which were refinanced with a new lender post year end. The new bank loan has a final repayment date of 4 March 2029. The consolidated financial statements show a loss after tax of £308,925 for the year ended 30 November 2023, compared to a loss after tax of £23,118 for the previous year. These conditions indicate the existence of a material uncertainty that may cast significant doubt on the group's ability to continue as a going concern. However, the directors have a reasonable expectation that the group will continue to operate and meet its liabilities as they fall due, and therefore, the financial statements have been prepared on a going concern basis.

Auditor

Morris Lane 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.

Strategic report

The truegroup has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of fair review of the business.

LANGSTONE QUAYS HOTEL LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 3 -
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.

On behalf of the board
Mrs P Walker
Director
18 July 2025
LANGSTONE QUAYS HOTEL LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 4 -

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.

LANGSTONE QUAYS HOTEL LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LANGSTONE QUAYS HOTEL LIMITED
- 5 -
Opinion

We have audited the financial statements of Langstone Quays Hotel Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 November 2023 which comprise the group income statement, the group statement of comprehensive income, the group statement of financial position, the company statement of financial position, the group statement of changes in equity, the company statement of changes in equity, the group 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 FRS 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 company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Material uncertainty related to going concern

We draw your attention to note 1.4 in the financial statements, which indicates that the group has incurred a net loss of £308,925 during the year ended 30 November 2023 and, as of that date, the group had a net current liabilities of £13.5m. These conditions, along with other matters as set forth in note 1.4, indicate that a material uncertainty exists that may cast significant doubt on the group’s ability to continue as a going concern. Our opinion is not modified in respect of this matter.

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.

 

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:

LANGSTONE QUAYS HOTEL LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LANGSTONE QUAYS HOTEL LIMITED
- 6 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report and the directors' report.

 

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

 

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 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.

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 the risks of material misstatement due to irregularities, including fraud

 

We obtained an understanding of the legal and regulatory frameworks that are applicable to the group and the parent company through discussion with the directors and from our general commercial experience. The identified laws and regulations were communicated to the audit team in order that they remained alert to any non-compliance throughout the audit.

 

The group and parent company are subject to laws and regulations which have a direct effect on the financial statements and the disclosures contained therein. These have been identified as: the financial reporting framework under which the group and company operates - Financial Reporting Standard 102; Statutory Instrument 2008/410 – The Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008; the Companies Act 2006 and taxation legislation including pay as you earn; value added tax; corporation tax and pensions legislation.

 

In addition to the above, the group and parent company are subject to other operational laws and regulations where non-compliance may have a material effect on the financial statements. Non-compliance of such laws and regulations may result in litigation, the imposition of fines or the closure of the business which could have a material impact on amounts or disclosures in the financial statements. We have identified the following laws and regulations which are more likely to have significant effect as: compliance with licencing laws; food hygiene laws; health and safety laws; General Data Protection Regulation (GDPR) and employment law.

LANGSTONE QUAYS HOTEL LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LANGSTONE QUAYS HOTEL LIMITED
- 7 -

Audit procedures designed to respond to the risks of material misstatement due to irregularities, including fraud

We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statements items including a review of financial statements disclosures. We reviewed the group and parent company's records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the group and parent company's policies and procedures for compliance with laws and regulations with members of management responsible for compliance.

During the planning meeting with the audit team, the senior statutory auditor drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to possible indication of management bias. At the completion stage of the audit, the senior statutory auditor's review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.

Auditing standards limit the audit procedures required to identify non-compliance with other operational laws and regulations to enquiry of directors and management and inspection of any correspondence. If a breach of operational regulations is not evident from relevant correspondence or disclosed to us, an audit is unlikely to detect that breach. In addition, the further removed non-compliance with laws and regulations is from the events and transactions included in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting to an error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

Due to the inherent limitations of an audit, there is an unavoidable risk that, despite properly planning and performing our audit in accordance with accounting standards, some material misstatements may not have been detected.

In addition, the risk of not detecting material misstatement from due to fraud is higher than the risk of one not being detected through error as fraud may involve deliberate concealment through collusion, forgery, misrepresentations and intentional omissions.

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.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in 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.

Michelle Pettifer (Senior Statutory Auditor)
For and on behalf of Morris Lane
18 July 2025
Chartered Accountants
Statutory Auditor
31/33 Commercial Road
Poole
Dorset
BH14 0HU
LANGSTONE QUAYS HOTEL LIMITED
GROUP INCOME STATEMENT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 8 -
2023
2022
as restated
Notes
£
£
Revenue
3
5,447,617
5,399,979
Cost of sales
(3,013,458)
(2,858,957)
Gross profit
2,434,159
2,541,022
Administrative expenses
(2,045,365)
(2,043,573)
Operating profit
4
388,794
497,449
Finance costs
8
(633,345)
(347,404)
Profit (loss) before taxation
(244,551)
150,045
Tax on profit (loss)
9
(64,374)
(173,163)
Loss for the financial year
22
(308,925)
(23,118)
Loss for the financial year is all attributable to the owners of the parent company.

The income statement has been prepared on the basis that all operations are continuing operations.

LANGSTONE QUAYS HOTEL LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 9 -
2023
2022
as restated
£
£
Loss for the year
(308,925)
(23,118)
Other comprehensive income
Revaluation of property, plant and equipment
(306,744)
716,788
Tax relating to other comprehensive income
75,261
(179,197)
Other comprehensive income for the year
(231,483)
537,591
Total comprehensive income for the year
(540,408)
514,473
Total comprehensive income for the year is all attributable to the owners of the parent company.
LANGSTONE QUAYS HOTEL LIMITED
GROUP STATEMENT OF FINANCIAL POSITION
AS AT
30 NOVEMBER 2023
30 November 2023
- 10 -
2023
2022
as restated
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
10
14,000,000
14,500,000
Current assets
Inventories
14
47,310
60,744
Trade and other receivables
15
313,563
228,744
Cash and cash equivalents
14,744
373,057
375,617
662,545
Current liabilities
16
(13,905,085)
(5,274,999)
Net current liabilities
(13,529,468)
(4,612,454)
Total assets less current liabilities
470,532
9,887,546
Non-current liabilities
17
-
(8,841,456)
Provisions for liabilities
Deferred tax liability
19
415,745
450,895
(415,745)
(450,895)
Net assets
54,787
595,195
Equity
Called up share capital
21
100
100
Revaluation reserve
22
311,810
537,591
Retained earnings
22
(257,123)
57,504
Total equity
54,787
595,195
The financial statements were approved by the board of directors and authorised for issue on 18 July 2025 and are signed on its behalf by:
18 July 2025
Mrs P Walker
Director
LANGSTONE QUAYS HOTEL LIMITED
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 30 NOVEMBER 2023
30 November 2023
- 11 -
2023
2022
as restated
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
10
13,719,217
14,187,216
Investments
11
100
100
13,719,317
14,187,316
Current assets
Trade and other receivables
15
-
0
25,749
Cash and cash equivalents
140
47,555
140
73,304
Current liabilities
16
(17,732,305)
(8,090,530)
Net current liabilities
(17,732,165)
(8,017,226)
Total assets less current liabilities
(4,012,848)
6,170,090
Non-current liabilities
17
-
(8,841,456)
Provisions for liabilities
Deferred tax liability
19
374,921
407,884
(374,921)
(407,884)
Net liabilities
(4,387,769)
(3,079,250)
Equity
Called up share capital
21
100
100
Revaluation reserve
22
311,810
537,591
Retained earnings
22
(4,699,679)
(3,616,941)
Total equity
(4,387,769)
(3,079,250)

As permitted by s408 Companies Act 2006, the company has not presented its own income statement and related notes. The company’s loss for the year was £1,077,036 (2022 - £1,045,618 loss).

The financial statements were approved by the board of directors and authorised for issue on 18 July 2025 and are signed on its behalf by:
18 July 2025
Mrs P Walker
Director
Company Registration No. 11145841
LANGSTONE QUAYS HOTEL LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 12 -
Share capital
Revaluation reserve
Retained earnings
Total
£
£
£
£
As restated for the period ended 30 November 2022:
Balance at 1 December 2021 as restated
100
-
0
80,622
80,722
Year ended 30 November 2022:
Loss for the year
-
-
(23,118)
(23,118)
Other comprehensive income:
Revaluation of property, plant and equipment
-
716,788
-
716,788
Tax relating to other comprehensive income
-
(179,197)
-
0
(179,197)
Total comprehensive income for the year
-
537,591
(23,118)
514,473
Balance at 30 November 2022 as restated
100
537,591
57,504
595,195
Year ended 30 November 2023:
Loss for the year
-
-
(308,925)
(308,925)
Other comprehensive income:
Revaluation of property, plant and equipment
-
(306,744)
-
(306,744)
Tax relating to other comprehensive income
-
75,261
-
0
75,261
Total comprehensive income for the year
-
(231,483)
(308,925)
(540,408)
Transfers
-
5,702
(5,702)
-
Balance at 30 November 2023
100
311,810
(257,123)
54,787
LANGSTONE QUAYS HOTEL LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 13 -
Share capital
Revaluation reserve
Retained earnings
Total
£
£
£
£
As restated for the period ended 30 November 2022:
Balance at 1 December 2021 as restated
100
-
0
(2,571,323)
(2,571,223)
Year ended 30 November 2022:
Loss for the year
-
-
(1,045,618)
(1,045,618)
Other comprehensive income:
Revaluation of property, plant and equipment
-
716,788
-
716,788
Tax relating to other comprehensive income
-
(179,197)
-
0
(179,197)
Total comprehensive income for the year
-
537,591
(1,045,618)
(508,027)
Balance at 30 November 2022 as restated
100
537,591
(3,616,941)
(3,079,250)
Year ended 30 November 2023:
Loss for the year
-
-
(1,077,036)
(1,077,036)
Other comprehensive income:
Revaluation of property, plant and equipment
-
(306,744)
-
(306,744)
Tax relating to other comprehensive income
-
75,261
-
0
75,261
Total comprehensive income for the year
-
(231,483)
(1,077,036)
(1,308,519)
Transfers
-
5,702
(5,702)
-
Balance at 30 November 2023
100
311,810
(4,699,679)
(4,387,769)
LANGSTONE QUAYS HOTEL LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 14 -
2023
2022
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
728,616
1,592,538
Interest paid
(617,785)
(406,315)
Net cash inflow from operating activities
110,831
1,186,223
Investing activities
Purchase of property, plant and equipment
(235,332)
(791,668)
Net cash used in investing activities
(235,332)
(791,668)
Financing activities
Increase in loans from related parties
391,799
-
Repayment of bank loans
(625,611)
(1,116,361)
Net cash used in financing activities
(233,812)
(1,116,361)
Net decrease in cash and cash equivalents
(358,313)
(721,806)
Cash and cash equivalents at beginning of year
373,057
1,094,863
Cash and cash equivalents at end of year
14,744
373,057
LANGSTONE QUAYS HOTEL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 15 -
1
Accounting policies
Company information

Langstone Quays Hotel Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is Lion Quays Hotel & Spa, Weston Rhyn, Gobowen, Oswestry, Shropshire, SY11 3EN. The principle place of business is Langstone Hotel, Northney Road, Hayling Island, PO11 0NQ.

 

The group consists of Langstone Quays Hotel Limited and its subsidiary.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

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

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

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

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.

LANGSTONE QUAYS HOTEL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 16 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Langstone Quays Hotel Limited together with all entities controlled by the parent company (its subsidiaries).

 

All financial statements are made up to 30 November 2023. 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.

1.4
Going concern

The directors have considered the financial position of the group and its ability to continue as a going concern. The group is reliant on the support of its directors, bankers, and other related parties to meet its liabilities as they fall due. The group balance sheet shows net current liabilities of £13.5m and a fall in net assets to £54,787.The net current liabilities include bank loans of £8.8m which were refinanced with a new lender post year end. The new bank loan has a final repayment date of 4 March 2029. The consolidated financial statements show losses after tax of £308,925 for the year ended 30 November 2023, compared to a loss after tax of £23,118 for the previous year. This increase in losses has negatively impacted the group's cash flow and its ability to pay its liabilities as they fall due. These conditions indicate the existence of a material uncertainty that may cast significant doubt on the group's ability to continue as a going concern. However, the directors have a reasonable expectation that the group will continue to operate and meet its liabilities as they fall due, and therefore, the financial statements have been prepared on a going concern basis.

1.5
Revenue

Revenue 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.

 

Revenue is recognised as follows:

 

Rooms

Revenue is recognised when the rooms are occupied.

 

Food and beverages

Revenue is recognised at the point of sale, when the food and beverages have been provided.

 

Health club and spa memberships

Revenue is recognised over the period of membership.

 

Health club and spa treatments and products

Revenue is recognised when the goods or service has been provided.

 

Deferred revenue consisting of deposits paid in advance are recognised on the day that services are performed.

1.6
Property, plant and equipment

Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

LANGSTONE QUAYS HOTEL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 17 -

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% straight line
Plant and equipment
20% straight line
Fixtures and fittings
10% - 25% straight line
Office equipment
20% - 25% straight line

Freehold land is not depreciated.

During the period, the group revised the depreciation rates of certain fixed assets to better reflect their expected useful lives. This change in estimate was applied prospectively from 1 December 2022. As a result, the accumulated depreciation was recalculated, leading to a reduction of £74,331 in the current period's depreciation charge.

 

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 income statement.

1.7
Non-current investments

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.

1.8
Impairment of non-current assets

At each reporting period end date, the group reviews the carrying amounts of its tangible 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.

LANGSTONE QUAYS HOTEL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 18 -
1.9
Inventories

Inventories 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 inventories to their present location and condition.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of inventories 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.

1.10
Cash and cash equivalents

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

1.11
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 statement of financial position 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 trade and other receivables 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.

LANGSTONE QUAYS HOTEL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 19 -
Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of financial liabilities

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

Basic financial liabilities

Basic financial liabilities, including trade and other payables, 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 payables 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Derecognition of financial liabilities

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

1.12
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.

1.13
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 income statement 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.

LANGSTONE QUAYS HOTEL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 20 -
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 income statement, 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.

1.14
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or non-current assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.15
Retirement benefits

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

1.16
Leases

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

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.

LANGSTONE QUAYS HOTEL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 21 -
Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Fair value, residual value and depreciation of freehold property

Freehold property represents the company's most significant asset and is assessed to have a useful life of 50 years and is carried at a revalued amount, being its fair value at the date of revaluation less any subsequent depreciation.

 

The value of freehold property as at 30 November 2023 was determined based on an external valuation, having regards to factors such as current and future projected income levels, location and recent market residual value of the company's property which are determined by management and reviewed annually for appropriateness.

3
Revenue

An analysis of the group's revenue is as follows:

2023
2022
£
£
Revenue analysed by class of business
Rooms
2,669,549
2,579,141
Food and beverages
2,233,788
2,273,927
Healthclub and spa
356,977
316,013
Other
187,303
230,898
5,447,617
5,399,979

The whole of the turnover is attributable to the group's principal activity wholly undertaken in the United Kingdom.

4
Operating profit
2023
2022
As restated
£
£
Operating profit for the year is stated after charging:
Depreciation of owned property, plant and equipment
428,588
615,169
Operating lease charges
33,171
49,063
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
6,500
2,800
Audit of the financial statements of the company's subsidiaries
16,500
8,500
23,000
11,300
LANGSTONE QUAYS HOTEL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
5
Auditor's remuneration
(Continued)
- 22 -
2023
2022
£
£
For other services
Taxation compliance services
1,500
-
All other non-audit services
10,000
-
11,500
-
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Hotel & Front of House Services
97
96
-
-
Management and Admin
12
13
-
-
Leisure Club
5
5
-
-
Total
114
114
0
0

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
1,779,176
1,606,350
-
-
Social security costs
101,826
97,037
-
-
Pension costs
25,581
19,634
-
0
-
0
1,906,583
1,723,021
-
-

Included in employee remuneration above is £217,584 (2022 - £222,065) of employee costs recharged to the company from a related party hotel.

7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
79,996
99,996

The remuneration is in respect of directors' salary recharged from a related party hotel.

LANGSTONE QUAYS HOTEL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 23 -
8
Finance costs
2023
2022
£
£
Interest on bank overdrafts and loans
632,356
347,404
Other interest
989
-
Total finance costs
633,345
347,404
9
Taxation
2023
2022
As restated
£
£
Current tax
UK corporation tax on profits for the current period
24,263
2,314
Deferred tax
Origination and reversal of timing differences
40,111
170,849
Total tax charge
64,374
173,163

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

2023
2022
As restated
£
£
Profit (loss) before taxation
(244,551)
150,045
Expected tax charge (credit) based on the standard rate of corporation tax in the UK of 23.01% (2022: 19.00%)
(56,271)
28,509
Tax effect of expenses that are not deductible in determining taxable profit
322
-
0
Tax effect of utilisation of tax losses not previously recognised
-
0
(55,027)
Depreciation in excess of capital allowances
61,222
210,874
Effect of prior year adjustment
59,101
(11,193)
Taxation charge
64,374
173,163
LANGSTONE QUAYS HOTEL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
9
Taxation
(Continued)
- 24 -

In addition to the amount charged to the income statement, the following amounts relating to tax have been recognised directly in other comprehensive income:

2023
2022
As restated
£
£
Deferred tax arising on:
Revaluation of property
(75,261)
179,197
10
Property, plant and equipment
Group
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Office equipment
Total
£
£
£
£
£
Cost or valuation
At 1 December 2022 as restated
14,040,549
604,975
1,095,069
197,999
15,938,592
Additions
228,034
-
0
4,048
3,250
235,332
Revaluation
(549,366)
-
0
-
0
-
0
(549,366)
At 30 November 2023
13,719,217
604,975
1,099,117
201,249
15,624,558
Depreciation and impairment
At 1 December 2022 as restated
-
0
523,277
740,815
174,500
1,438,592
Depreciation charged in the year
242,622
80,995
86,043
18,928
428,588
Revaluation
(242,622)
-
0
-
0
-
0
(242,622)
At 30 November 2023
-
0
604,272
826,858
193,428
1,624,558
Carrying amount
At 30 November 2023
13,719,217
703
272,259
7,821
14,000,000
At 30 November 2022 as restated
14,040,549
81,698
354,254
23,499
14,500,000
LANGSTONE QUAYS HOTEL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
10
Property, plant and equipment
(Continued)
- 25 -
Company
Freehold land and buildings
Plant and equipment
Fixtures and fittings
Total
£
£
£
£
Cost or valuation
At 1 December 2022 as restated
14,040,549
600,000
500,000
15,140,549
Additions
228,034
-
0
-
0
228,034
Revaluation
(549,366)
-
0
-
0
(549,366)
At 30 November 2023
13,719,217
600,000
500,000
14,819,217
Depreciation and impairment
At 1 December 2022 as restated
-
0
520,000
433,333
953,333
Depreciation charged in the year
242,622
80,000
66,667
389,289
Revaluation
(242,622)
-
0
-
0
(242,622)
At 30 November 2023
-
0
600,000
500,000
1,100,000
Carrying amount
At 30 November 2023
13,719,217
-
0
-
0
13,719,217
At 30 November 2022 as restated
14,040,549
80,000
66,667
14,187,216

Property, plant and equipment with a carrying amount of £14,000,000 (2022 - £14,500,000) have been pledged to secure borrowings of the group and that of a company under common control. Additional information is given in notes 18 and 23.

The value of freehold land and buildings as at 30 November 2023 was determined based on a valuation performed on 30 January 2024 by Aitchison Raffety, independent valuers not connected to the company on the basis of market value. The valuation conforms to RICS Valuation - Global Standards and is based on an income approach having regard the property's trading potential.

Freehold land and buildings are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:

2023
2022
As restated
£
£
Group
Cost
14,553,666
14,325,632
Accumulated depreciation
(1,250,195)
(1,001,872)
Carrying value
13,303,471
13,323,760
Company
Cost
14,553,666
14,325,632
Accumulated depreciation
(1,250,195)
(1,001,872)
Carrying value
13,303,471
13,323,760
LANGSTONE QUAYS HOTEL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 26 -
11
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
12
-
0
-
0
100
100
Movements in non-current investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 December 2022 and 30 November 2023
100
Carrying amount
At 30 November 2023
100
At 30 November 2022
100
12
Subsidiaries

Details of the company's subsidiaries at 30 November 2023 are as follows:

Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Langstone Quays Limited
See below
Running of a hotel
Ordinary
100.00

The registered office of the above subsidiary is Lion Quays Hotel & Spa, Weston Rhyn, Gobowen, Oswestry, Shropshire, SY11 3EN.

13
Financial instruments
Group
Company
2023
2022
2023
2022
As restated
£
£
£
£
Carrying amount of financial assets
Debt instruments measured at amortised cost
111,732
102,046
n/a
n/a
Carrying amount of financial liabilities
Measured at amortised cost
13,581,224
13,910,667
n/a
n/a
LANGSTONE QUAYS HOTEL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 27 -
14
Inventories
Group
Company
2023
2022
2023
2022
£
£
£
£
Finished goods and goods for resale
47,310
60,744
-
0
-
0

The carrying amount of inventories includes £47,310 (2022 - £60,744) pledged as security for liabilities. Additional information is given in notes 18 and 23.

15
Trade and other receivables
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade receivables
111,732
76,297
-
0
-
0
Other receivables
-
25,749
-
0
25,749
Prepayments and accrued income
201,831
126,698
-
0
-
0
313,563
228,744
-
25,749

The carrying amount of trade and other receivable includes £313,563 (2022 - £228,744) pledged as security for liabilities. Additional information is given in notes 18 and 23.

16
Current liabilities
Group
Company
2023
2022
2023
2022
As restated
As restated
Notes
£
£
£
£
Bank loans
18
8,836,453
630,908
8,836,453
630,908
Other borrowings
18
3,727,751
3,289,952
8,822,811
7,413,127
Trade payables
490,495
330,728
-
0
-
0
Corporation tax payable
26,687
2,314
-
0
-
0
Other taxation and social security
297,174
203,474
-
-
Other payables
20,186
59,965
-
0
-
0
Accruals and deferred income
506,339
757,658
73,041
46,495
13,905,085
5,274,999
17,732,305
8,090,530
17
Non-current liabilities
Group
Company
2023
2022
2023
2022
As restated
As restated
Notes
£
£
£
£
Bank loans and overdrafts
18
-
0
8,841,456
-
0
8,841,456
LANGSTONE QUAYS HOTEL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 28 -
18
Borrowings
Group
Company
2023
2022
2023
2022
As restated
As restated
£
£
£
£
Bank loans
8,836,453
9,472,364
8,836,453
9,472,364
Loans from group undertakings
-
0
-
0
6,335,405
5,074,949
Loans from related parties
3,727,751
3,289,952
2,487,406
2,338,178
12,564,204
12,762,316
17,659,264
16,885,491
Payable within one year
12,564,204
3,920,860
17,659,264
8,044,035
Payable after one year
-
0
8,841,456
-
0
8,841,456

Included in bank loans above, is a loan of £8,498,425 (2022: £ 9,023,725), which is repayable by instalments with a final repayment date of 31 July 2024. Interest was charged on the loan at 2.1% above SONIA per annum until 12 October 2023, and 3% above SONIA per annum thereafter.

 

Also included in bank loans is a loan of £338,028 (2022: £448,639), which is being repaid by instalments with a final repayment date of 1 December 2026. Interest was charged on the loan at 4.25% above base rate per annum. This loan has been shown as fully repayable within one year as the group breached some of the financial covenants set by the lenders.

 

The bank loans are secured by a fixed and floating charge over assets of the group and of Lion Quays Hotel Limited, a company under common control.

 

Subsequent to the year end, all bank loans were refinanced with a new lender. The new bank loan is repayable by instalments with a final repayment date of 4 March 2029.

The loans from related parties are interest free, unsecured and repayable on demand.

19
Deferred taxation

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

Liabilities
Liabilities
2023
2022
As restated
Group
£
£
Accelerated capital allowances
311,809
271,698
Revaluations
103,936
179,197
415,745
450,895
LANGSTONE QUAYS HOTEL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
19
Deferred taxation
(Continued)
- 29 -
Liabilities
Liabilities
2023
2022
As restated
Company
£
£
Accelerated capital allowances
270,985
228,687
Revaluations
103,936
179,197
374,921
407,884
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 December 2022 as restated
450,895
407,884
Charge to profit or loss
40,111
42,298
Credit to other comprehensive income
(75,261)
(75,261)
Liability at 30 November 2023
415,745
374,921

 

Of the group's deferred tax liability set out above, an amount of £35,192 relating to accelerated capital allowances and £57,909 relating to revaluations are expected to reverse within 12 months.

 

Of the company's deferred tax liability set out above, an amount of £23,628 relating to accelerated capital allowances and £57,909 relating to revaluations are expected to reverse within 12 months.

20
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
25,581
19,634

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.

The company operates a defined contribution pension scheme for its employees. Included in the balance sheet are pensions commitments of £18,056 (2022 - £4,730).

21
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
LANGSTONE QUAYS HOTEL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 30 -
22
Reserves
Revaluation reserve

Revaluation reserve relates to the unrealised profit on the remeasurement of freehold land and buildings at fair value together with annual deferred tax adjustments.

Retained earnings

Retained earnings represents cumulative profits or losses net of dividends paid and other adjustments.

23
Financial commitments, guarantees and contingent liabilities

The group has provided security for the borrowings of Lion Quays Hotel Limited, a company under common control, by way of a fixed and floating charge over all the assets of the company. As at 30 November 2023, the maximum exposure of the group under the guarantee was £5,993,406 (2022 - £6,463,865).

24
Operating lease commitments

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

Group
Company
2023
2022
2023
2022
£
£
£
£
Within one year
3,291
3,949
-
-
Between two and five years
-
3,291
-
-
3,291
7,240
-
-
25
Related party transactions
Transactions with related parties

During the year the group entered into the following transactions with related parties:

Cross charges to related entities
Cross charges from related entities
2023
2022
2023
2022
£
£
£
£
Group
Entities under common control
3,261
59,666
625,022
936,433

The following amounts were outstanding at the reporting end date:

Amounts due to related parties
2023
2022
As restated
£
£
Group
Entities under common control
3,727,751
1,131,451
Directors' loan account
-
2,158,501
LANGSTONE QUAYS HOTEL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
25
Related party transactions
(Continued)
- 31 -
2023
2022
As restated
£
£
Company
Subsidiary undertaking
6,335,405
5,074,949
Entities under common control
2,487,406
179,677
Directors' loan account
-
2,158,501
Other information

The loans to and from related parties above are interest free and repayable on demand.

 

Additional related party information is given in notes 6, 7, 18, and 23,

26
Controlling party

The ultimate controlling parties are Dr A Bansal and Mrs S Bansal by virtue of their 100% ownership of the issued share capital of the company.

27
Cash generated from group operations
2023
2022
As restated
£
£
Loss for the year after tax
(308,925)
(23,118)
Adjustments for:
Taxation charged
64,374
173,163
Finance costs
633,345
347,404
Depreciation and impairment of property, plant and equipment
428,588
615,169
Movements in working capital:
Decrease (increase) in inventories
13,434
(10,436)
(Increase) decrease in trade and other receivables
(125,569)
4,345
Increase in trade and other payables
23,369
486,011
Cash generated from operations
728,616
1,592,538
28
Analysis of changes in net debt - group
1 December 2022
Cash flows
Other non-cash changes
Market value movements
30 November 2023
As restated
£
£
£
£
£
Cash at bank and in hand
373,057
(358,313)
-
-
14,744
Borrowings excluding overdrafts
(12,762,316)
208,302
110
(10,300)
(12,564,204)
(12,389,259)
(150,011)
110
(10,300)
(12,549,460)
LANGSTONE QUAYS HOTEL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 32 -
29
Prior period adjustment
Reconciliation of changes in equity - group
1 December
30 November
2021
2022
Notes
£
£
Adjustments to prior year
Revaluation of freehold property
1
-
(1,771,448)
Deferred tax on revaluation of freehold property
2
-
442,862
Transfer of fixed assets within group
3
180,399
303,453
Adjustment to deferred tax on capital allowances
4
-
(88,638)
Reclassify loans due to entities under common control
5
-
-
Interest on directors' loan account charged in prior years
6
197,941
256,852
Correct prior year intangible fixed asset allocation
7
1,075,590
(1,435,433)
Total adjustments
1,453,930
(2,292,352)
Equity as previously reported
(1,373,208)
2,887,547
Equity as adjusted
80,722
595,195
Analysis of the effect upon equity
Revaluation reserve
-
(4,162,286)
Retained earnings
1,453,930
1,869,934
1,453,930
(2,292,352)
Reconciliation of changes in loss for the previous financial period
2022
Notes
£
Adjustments to prior year
Revaluation of freehold property
1
-
Deferred tax on revaluation of freehold property
2
-
Transfer of fixed assets within group
3
123,054
Adjustment to deferred tax on capital allowances
4
(88,638)
Reclassify loans due to entities under common control
5
-
Interest on directors' loan account charged in prior years
6
58,911
Correct prior year intangible fixed asset allocation
7
322,677
Total adjustments
416,004
Loss as previously reported
(439,122)
Loss as adjusted
(23,118)
Notes to reconciliation
1. Revaluation of freehold property

The carrying value of the freehold property as at 30 November 2022 was adjusted to reflect the market value of the property as at that date. This adjustment results in a decrease in tangible fixed assets and a decrease in revaluation reserve of £1,771,448 in the prior year.

LANGSTONE QUAYS HOTEL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
29
Prior period adjustment
(Continued)
- 33 -
2. Deferred tax on revaluation of freehold property

A deferred tax adjustment is needed in line with the revaluation adjustment in note 1 above. This results in a decrease in deferred tax liability and an increase in revaluation reserve of £442,862 in the prior year.

3. Transfer of fixed assets within group

Tangible fixed assets totalling £1,866,135 previously accounted for in the subsidiary's financial statements as fixtures and fittings have been transferred to the parent entity's financial statements and treated as freehold property. This correction results in an increase in retained profit brought forward of £180,399 and a decrease in the depreciation charge of £123,054 in the prior year.

4. Adjustment to deferred tax on capital allowances

Due to changes in fixed assets as noted above, the deferred tax on capital allowances has been adjusted. This correction results in an increase of £88,638 in the deferred tax charge and the deferred tax liability in the prior year.

5. Reclassify loans due to entities under common control

Loans due to entities under common control totalling £1,131,451 in the prior year have been reclassified from long-term liabilities to short term. As a result, the loan amount is now classified as a current liability.

6. Interest on directors' loan charged in prior years

This is in respect of interest charged on the directors' loan in prior years. This adjustment results in a decrease of £256,852 in the directors' loan, an increase of £197,941 in retained earnings brought forward and a decrease of £58,911 in finance costs in the prior year.

7. Correct prior year intangible fixed assets allocation

In 2018, when the property was acquired as part of a business acquisition, £4,200,000 was allocated to intangible fixed assets instead of property, plant and equipment. To correct this, a prior year adjustment has been processed, resulting in the reduction of intangible fixed assets, a decrease in the revaluation reserve of £2,833,700, an increase in retained earnings brought forward of £1,075,590, the removal of the amortisation charge of £420,000, and an increase in the depreciation charge of £97,323 in the prior year. The comparative figures for the year ended 30 November 2022 have been restated to reflect these adjustments.

 

LANGSTONE QUAYS HOTEL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
29
Prior period adjustment
(Continued)
- 34 -
Reconciliation of changes in equity - company
1 December
30 November
2021
2022
Notes
£
£
Adjustments to prior year
Revaluation of freehold property
1
-
(1,771,448)
Deferred tax on revaluation of freehold property
2
-
442,862
Transfer of fixed assets from subsidiary
3
(407,699)
(554,139)
Adjustment to deferred tax on capital allowances
4
-
(161,477)
Reclassify loans due to entities under common control
5
-
-
Reclassify loan due to subsidiary
6
-
-
Interest on directors' loan account charged in prior years
7
197,941
256,852
Correct prior year intangible fixed asset allocation
8
1,075,590
(1,435,433)
Total adjustments
865,832
(3,222,783)
Equity as previously reported
(3,437,055)
143,533
Equity as adjusted
(2,571,223)
(3,079,250)
Analysis of the effect upon equity
Revaluation reserve
-
(4,162,286)
Retained earnings
865,832
939,503
865,832
(3,222,783)
Reconciliation of changes in loss for the previous financial period
2022
Notes
£
Adjustments to prior year
Revaluation of freehold property
1
-
Deferred tax on revaluation of freehold property
2
-
Transfer of fixed assets from subsidiary
3
(146,440)
Adjustment to deferred tax on capital allowances
4
(161,477)
Reclassify loans due to entities under common control
5
-
Reclassify loan due to subsidiary
6
-
Interest on directors' loan account charged in prior years
7
58,911
Correct prior year intangible fixed asset allocation
8
322,677
Total adjustments
73,671
Loss as previously reported
(1,119,289)
Loss as adjusted
(1,045,618)
LANGSTONE QUAYS HOTEL LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
29
Prior period adjustment
(Continued)
- 35 -
Notes to reconciliation
1. Revaluation of freehold property

The carrying value of the freehold property as at 30 November 2022 was adjusted to reflect the market value of the property as at that date. This adjustment results in a decrease of £1,771,448 in tangible fixed assets and a decrease of £1,771,448 in revaluation reserve in the prior year.

2. Deferred tax on revaluation of freehold property

A deferred tax adjustment is needed in line with the revaluation adjustment in note 1 above. This results in a decrease in deferred tax liability and an increase in revaluation reserve of £442,862 in the prior year.

3. Transfer of fixed assets from subsidiary

Tangible fixed assets previously accounted for in the subsidiary's financial statements have been transferred to the parent entity's financial statements. This correction results in an increase in amount due to the subsidiary of £1,866,135, a decrease in retained profit brought forward of £407,699, an increase in the depreciation charge for the year of £146,440 and an increase in tangible fixed assets of £1,311,997 in the prior year.

4. Adjustment to deferred tax on capital allowances

Due to changes in fixed assets as noted above, the deferred tax on capital allowances has been adjusted. This correction results in an increase of £161,477 in the deferred tax charge and the deferred tax liability in the prior year.

5. Reclassify loans due to entities under common control

Loans due to entities under common control totalling £179,677 in the prior year have been reclassified from long-term liabilities to short term. As a result, the loan amount is now classified as a current liability.

6. Reclassify loan due to subsidiary

The loan due to the subsidiary in the prior year of £3,208,814 has been reclassified from long-term to short term. Consequently, the loan amount is now classified as a current liability.

7. Interest on directors' loan charged in prior years

This is in respect of interest charged on the directors' loan in prior years. This adjustment results in a decrease of £256,852 in the directors loan, an increase of £197,941 in retained earnings brought forward and a decease of £58,911 in finance costs in the previous year.

 

8. Correct prior year intangible fixed assets allocation

In 2018, when the property was acquired as part of a business acquisition, £4,200,000 was allocated to intangible fixed assets instead of property, plant and equipment. To correct this, a prior year adjustment has been processed, resulting in a reduction in intangible fixed assets, a decrease in the revaluation reserve of £2,833,700, an increase in retained earnings brought forward of £1,075,590, the removal of the amortisation charge of £420,000, and an increase in the depreciation charge of £97,323 in the prior year. The comparative figures for the year ended 30 November 2022 have been restated to reflect these adjustments.

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