Company registration number 05157394 (England and Wales)
BUXTON CRESCENT LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
BUXTON CRESCENT LIMITED
COMPANY INFORMATION
Directors
T Osborne
P Hoffbrand
A Ryan
C Dudley-Scales
Secretary
E Lewis
Company number
05157394
Registered office
CP House
Otterspool Way
Watford
Hertfordshire
WD25 8JJ
Auditor
RSM UK Audit LLP, Statutory Auditor
Chartered Accountants
25 Farringdon Street
London
EC4A 4AB
BUXTON CRESCENT LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 24
BUXTON CRESCENT LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -
The directors present their strategic report for the year ended 31 December 2024. The principal activity of the company during the year was that of owning and operating a hotel.
In 2024 trading continued to recover and improve compared to previous years however the Hotel experienced challenges in recruiting quality staff and increasing costs for food and other operational expenses. The National Minimum Wage increase of 9.8%, from £10.42 per hour to £11.44 per hour also continued to put pressure on overall profit conversion.
The Directors have prepared the accounts on the Going Concern basis after carrying out an assessment (details of which are disclosed under Note 1.2). The assessment highlights a material uncertainty around the companies Going Concern status.
Review of the business
In 2024, Buxton Crescent saw a 16% revenue increase driven by higher room rates and occupancy. Room revenue rose by 15%, helped by successful events in May, June, and September. This resulted in a steady occupancy increase to 70% for 2024 (2023:64%), as well as an average room rate increase to £180 (2023: £169). Spa revenue also showed a 10% revenue increase from prior year. Despite staffing challenges in the food and beverage department, we have now put in place a new and experienced team which is expected to improve service and efficiency.
Operating losses before taxation decreased to £1.7m in 2024 (2023: £2.8m) largely due to the lower interest payable figures of £0.4m (2023:£1.4m) resulting from the settlement agreement put in place with our principal lender.
Principal risks and uncertainties
The directors consider the following to be the principal operating risks and uncertainties facing the company:
Liquidity Risk
The company manages its cash and borrowing requirements to ensure that the company has sufficient liquid resources to meet the operating needs of its business and maintains an active dialogue with lenders regarding its interest and capital repayments.
Interest Rate Risk
The company’s borrowings are linked to local government interest rates, and such it is exposed to the fluctuations on the interest rate market.
Economic Challenges
During the year, the Company continued to face a challenging economic environment, with continued pressures on rising operating costs. Notably, the substantial increase in the National Minimum Wage (9.8%) from April 2024 contributed to higher staff costs, alongside general cost escalations in utilities, supply chain expenses, and business rates. These factors have required ongoing assessment of operational efficiencies to mitigate the impact on profitability while maintaining service quality and compliance.
Tariff and Trade Concerns
The UK faces potential tariffs and trade barriers, while we don’t rely on the US travel market, the imposition of tariffs is likely to cause an overall slowdown in the global economy and demand for travel and tourism services. Furthermore, such measures could adversely affect trade relations and economic performance. At the same time, ongoing trade issues with the EU after Brexit are making it harder for the UK to trade smoothly, leading to a weaker economy.
BUXTON CRESCENT LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
Utilities
The company continued to mitigate its exposure to fluctuating fuel prices by taking advantage of fixed price contracts, which are currently in place for the company for both electricity and gas, with an expiry date of March 2026.
Other Operating Risks and Uncertainties
The company operates in a competitive environment and mitigates those pressures through continual investment and focus on providing exceptionally high levels of customer service.
The directors monitor potential changes in regulations in respect to employee, environmental and health & safety matters and have robust internal control procedures to ensure that the company operates in line with current legislation and regulations.
Outlook
The 2025 strategy focuses on continuing growth by enhancing guest experiences and expanding market presence which should drive both higher occupancy and room rates. Alongside this we hope to build on our successful events and seasonal offerings, to attract more leisure and corporate guests.
The revamped food and beverage team will optimise dining experiences to improve service and guest satisfaction. Spa services will expand with new wellness programs, and the introduction of a new booking system will help to boost revenue in this area.
Cost management remains crucial to an improvement in profitability in an environment of rising wages, higher national insurance contributions and operational expenses. While business rate discounts continue to provide some relief, future energy costs remain uncertain.
A Ryan
C Dudley-Scales
Director
Director
21 July 2025
BUXTON CRESCENT LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
The directors present their annual report and financial statements for the year ended 31 December 2024.
Principal activities
The principal activity of the company is the operation of the Buxton Crescent as a hotel and thermal spa.
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 final dividend.
Directors
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
T Osborne
P Hoffbrand
A Ryan
C Dudley-Scales
Qualifying third party indemnity provisions
The company has made qualifying third party indemnity provisions for the benefit of its directors during the year. These provisions remain in force at the reporting date.
Auditor
RSM UK Audit LLP, Statutory Auditor were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, the directors intend to reconfirm the appointment of RSM UK Audit LLP.
Matters covered in the strategic report
As permitted by s414c(11) of the Companies Act 2006, the directors have elected to disclose information, required to be in the directors' report by Schedule 7 of the 'Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008', in the strategic report.
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 company’s auditor 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 company’s auditor is aware of that information.
On behalf of the board
A Ryan
C Dudley-Scales
Director
Director
21 July 2025
BUXTON CRESCENT LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -
The directors are responsible for preparing 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 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 company and of the profit or loss of the company for that period.
In preparing those financial statements, the directors are required to:
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 enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
BUXTON CRESCENT LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF BUXTON CRESCENT LIMITED
- 5 -
Opinion
We have audited the financial statements of Buxton Crescent Limited (the 'company') for the year ended 31 December 2024 which comprise the profit and loss account, the balance sheet, the statement of changes in equity, the statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).
In our opinion the financial statements:
give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its loss 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.
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 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.
Material uncertainty related to going concern
We draw attention to note 1 in the financial statements, which indicates the company is reliant upon the continuing support of its principal third party lender and considerations subsequent to the potential sale.
As stated in note 1, these events or conditions, along with the other matters as set forth in note 1, indicate that a material uncertainty exists that may cast significant doubt on the company'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.
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 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.
BUXTON CRESCENT LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BUXTON CRESCENT LIMITED
- 6 -
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 and 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 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 4, 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.
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.
The extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit.
In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit.
BUXTON CRESCENT LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF BUXTON CRESCENT LIMITED
- 7 -
However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the audit engagement team:
obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework that the company operates in and how the company is complying with the legal and regulatory framework;
inquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud;
discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud.
As a result of these procedures, we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, the Companies Act 2006 and tax compliance regulations. We performed audit procedures to detect non-compliances which may have a material impact on the financial statements which included reviewing financial statement disclosures and inspecting tax computations.
The most significant laws and regulations that have an indirect impact on the financial statements are those in relation to health and safety in the workplace. We performed audit procedures to inquire of management whether the company is in compliance with these laws and regulations and reviewed legal expenditure to identify any indications of non-compliance and litigation.
The audit engagement team identified the risk of management override of controls and revenue recognition as the areas where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to testing a sample of journal entries and other adjustments utilising data analytics techniques, evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at: http://www.frc.org.uk/auditorsresponsibilities This description forms part of our auditor’s 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.
Christopher Tate (Senior Statutory Auditor)
For and on behalf of RSM UK Audit LLP, Statutory Auditor
Chartered Accountants
25 Farringdon Street
London
EC4A 4AB
22 July 2025
BUXTON CRESCENT LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
6,897,917
6,097,877
Other operating income
4
119,265
Raw materials and consumables
(1,605,183)
(1,509,129)
Staff costs
5
(3,182,562)
(2,838,187)
Depreciation
6
(986,167)
(982,621)
Other operating expenses
(2,436,261)
(2,323,133)
Operating loss
6
(1,312,256)
(1,435,928)
Interest payable and similar expenses
8
(448,362)
(1,397,394)
Loss before taxation
(1,760,618)
(2,833,322)
Tax on loss
9
Loss for the financial year
(1,760,618)
(2,833,322)
There are no items of comprehensive income for either the year or the prior year other than the loss or profit for the year. Accordingly, no statement of other comprehensive income has been presented.
BUXTON CRESCENT LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
11
3,415
7,747
Tangible assets
10
9,884,927
10,836,190
9,888,342
10,843,937
Current assets
Stocks
13
100,267
94,677
Debtors
12
482,268
333,742
Cash at bank and in hand
415,946
302,794
998,481
731,213
Creditors: amounts falling due within one year
14
(39,310,751)
(38,238,461)
Net current liabilities
(38,312,270)
(37,507,248)
Net liabilities
(28,423,928)
(26,663,311)
Capital and reserves
Called up share capital
17
100
100
Profit and loss reserves
(28,424,028)
(26,663,411)
Total shareholders' deficit
(28,423,928)
(26,663,311)
The notes on pages 12 to 24 form part of these financial statements.
The financial statements were approved by the board of directors and authorised for issue on 21 July 2025 and are signed on its behalf by:
A Ryan
C Dudley-Scales
Director
Director
Company registration number 05157394 (England and Wales)
BUXTON CRESCENT LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 10 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 January 2023
100
(23,830,089)
(23,829,989)
Year ended 31 December 2023:
Loss and total comprehensive income
-
(2,833,322)
(2,833,322)
Balance at 31 December 2023
100
(26,663,411)
(26,663,311)
Year ended 31 December 2024:
Loss and total comprehensive income
-
(1,760,617)
(1,760,617)
Balance at 31 December 2024
100
(28,424,028)
(28,423,928)
BUXTON CRESCENT LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash absorbed by operations
20
(211,850)
(327,070)
Investing activities
Purchase of tangible fixed assets
(24,998)
(14,478)
Net cash used in investing activities
(24,998)
(14,478)
Financing activities
Proceeds from borrowings
350,000
150,000
Net cash generated from financing activities
350,000
150,000
Net increase/(decrease) in cash and cash equivalents
113,152
(191,548)
Cash and cash equivalents at beginning of year
302,794
494,342
Cash and cash equivalents at end of year
415,946
302,794
BUXTON CRESCENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 12 -
1
Accounting policies
Company information
Buxton Crescent Limited is a private company limited by shares incorporated in England and Wales. The registered office is CP House, Otterspool Way, Watford, Hertfordshire, WD25 8JJ.
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 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 2).
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.
BUXTON CRESCENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 13 -
1.2
Going concern
During the year ended 31 December 2023 and since, the company is in non-compliance with the covenant obligations and capital and interest repayment terms as set out in the loan agreement with its principal third party lender. Having breached its obligations, the company has entered into a settlement agreement with its lender. In accordance with this agreement, the lender has waived all covenant breaches and postponed the repayment of both capital and interest on the loan, whilst the directors seek a buyer for the company.true
The directors are currently in discussions regarding the sale of I00% of the company’s share capital. Heads of Terms were signed in January 2025, and the directors expect this sale to progress and complete during Q3 or Q4 of 2025.
The current settlement agreement expires on 31 July 2025, which is prior to the anticipated completion of a sale. Whilst the directors believe that an extension will be granted as the lender, Derbyshire District Council is also the landlord and therefore has a vested interested in ensuring that the sale will proceed, they acknowledge that the provision of, and period covered by, an extension is uncertain.
Management have prepared trading forecasts for the Company to cover a period of 12 months following the signing of these financial statements, which assume that extensions to the settlement agreement on similar terms will be granted over the going concern assessment period, or up to the point of sale. Therefore, these forecasts exclude capital and interest repayments on the loan. The forecasts show that an element of cash flow support will be required from CP Holdings Limited and Trevor Osborne Limited.
CP Holdings Limited and Trevor Osborne Limited have confirmed to the directors, in writing, their willingness to provide support to a total of £300,000, and that amounts due to CP Holdings Limited and Trevor Osborne Limited will not be due for repayment within a period of 12 months following the signing of these financial statements.
On this basis, the directors are satisfied that the company has sufficient cash to meets its obligations as they fall due, for the period of 12 months following the signing of these financial statements, or up to the anticipated point of sale.
The directors have identified material uncertainties related to going concern, as follows:
• There is no guarantee that the principal third party lender, will extend the settlement agreement on similar terms to those currently provided beyond 31 July 2025 and/or that the period of the extension will be sufficient in which to conclude a sale; and
• The future structure and operation of the company, subsequent to sale.
Whilst noting these material uncertainties, the directors continue to adopt the going concern basis in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes.
Rendering of services and goods
Revenue from hotel ownership comprises amounts earned in respect of services, facilities and goods supplied by the hotel. Revenue from the rendering of services (such as accommodation and use of facilities) is recognised when services are performed. Revenue from the sale of goods (such as food and beverage sales) is recognised at the time when the goods are delivered to the customers.
1.4
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
BUXTON CRESCENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 14 -
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Software
20%
1.5
Tangible fixed assets
Tangible fixed assets 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 the condition necessary for it to be capable of operating the manner intended by management.
At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying value exceeds the recoverable amount.
Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the straight line basis:
Long Leasehold buildings
4%
Fixtures, fittings & equipment
20%
Computer equipment
20%
Kitchen equipment
10%
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
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 deadline.
1.6
Stocks
Stocks are consumable items valued at cost.
1.7
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.
1.8
Financial instruments
The company 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 company's balance sheet when the company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with 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.
BUXTON CRESCENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 15 -
Basic financial assets
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest for a similar debt instrument. Financial assets classified as receivable within one year are not amortised. Financing transactions are those in which payment is deferred beyond normal business terms or is financed at a rate of interest that is not a market rate.
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for objective indicators of impairment at each reporting end date. If objective evidence of impairment is found, an impairment loss is recognised in the profit and loss account.
For financial assets measured at cost less impairment, the impairment loss is measured as the difference between the asset's carrying amount and the best estimate of the amount the company would receive for the asset if it were to be sold at the reporting date. The impairment loss is recognised in profit or loss.
For financial assets measured at amortised cost, the impairment loss is measured as the difference between the asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If the financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company 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 company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including creditors, third party loans and loans from shareholders, 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 for a similar debt instrument. Financial liabilities classified as payable within one year are not amortised. Financing transactions are those in which payment is deferred beyond normal payment terms or is financed at a rate of interest that is not a market rate.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged, expires or cancelled.
BUXTON CRESCENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 16 -
1.9
Share capital
Ordinary shares are classified as equity.
1.10
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.11
Retirement benefits
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.
1.12
Grants
Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to the profit and loss account at the same rate of depreciation as the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the profit and loss account in the same period as the related expenditure or recognised in profit and loss in an amount corresponding with any impairment charges recognised.
1.13
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
BUXTON CRESCENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 17 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’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.
Critical judgements
The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.
Impairment of tangible assets
In preparing these financial statements, the directors have exercised judgment in determining whether the company's assets are impaired and have made significant estimates in determining the carrying amount of the tangible fixed assets based on their value in use and the associated amount of impairment to be recognised. The carrying value of the assets can be seen in note 10.
3
Turnover
The whole of turnover is attributable to the provision of hotel and spa services.
All turnover arose within the United Kingdom.
4
Other operating income
2024
2023
£
£
Government grants receivable and released
-
119,265
-
119,265
5
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2024
2023
Number
Number
166
166
BUXTON CRESCENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
5
Employees
(Continued)
- 18 -
2024
2023
£
£
Wages and salaries
2,824,074
2,532,080
Social security costs
225,428
188,160
Pension costs
133,060
117,947
3,182,562
2,838,187
During the year, no directors received any emoluments (2023: £nil), but are remunerated by the joint venture partners.
6
Operating loss
2024
2023
Operating loss for the year is stated after charging:
£
£
Depreciation of owned tangible fixed assets
981,834
978,288
Amortisation of intangible assets
4,332
4,332
Operating lease charges
24,584
63,076
7
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
41,250
36,760
8
Interest payable and similar expenses
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest on external finance provider's loan
448,362
843,196
Discounted loan interest charge
554,198
448,362
1,397,394
BUXTON CRESCENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 19 -
9
Taxation
The actual charge for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:
2024
2023
£
£
Loss before taxation
(1,760,618)
(2,833,322)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.52%)
(440,155)
(666,398)
Tax effect of expenses that are not deductible in determining taxable profit
6,763
8,667
Effect of change in corporation tax rate
(37,882)
Depreciation on assets not qualifying for tax allowances
58,030
55,733
Enhanced expenditure relief
(23)
Unrecognised deferred tax movement
375,362
639,903
Taxation charge for the year
-
-
10
Tangible fixed assets
Long Leasehold buildings
Fixtures, fittings & equipment
Computer equipment
Kitchen equipment
Total
£
£
£
£
£
Cost
At 1 January 2024
68,725,995
2,304,501
291,823
417,824
71,740,143
Additions
24,998
24,998
Disposals
(124)
(124)
At 31 December 2024
68,725,995
2,329,499
291,699
417,824
71,765,017
Depreciation and impairment
At 1 January 2024
59,196,226
1,334,189
216,809
156,729
60,903,953
Depreciation charged in the year
440,100
393,958
70,671
77,105
981,834
Transfers
(62)
(5,635)
(5,697)
At 31 December 2024
59,636,326
1,728,147
287,418
228,199
61,880,090
Carrying amount
At 31 December 2024
9,089,669
601,352
4,281
189,625
9,884,927
At 31 December 2023
9,529,769
970,312
75,014
261,095
10,836,190
BUXTON CRESCENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
10
Tangible fixed assets
(Continued)
- 20 -
The net book value of assets pledged as security was £9,884,927 (2023: £10,836,190 ).
Land and buildings include £1,313,062 (2023: £1,313,062) of capitalised borrowing costs incurred prior to opening of the hotel.
11
Intangible fixed assets
Software
£
Cost
At 1 January 2024 and 31 December 2024
21,644
Amortisation and impairment
At 1 January 2024
13,897
Amortisation charged for the year
4,332
At 31 December 2024
18,229
Carrying amount
At 31 December 2024
3,415
At 31 December 2023
7,747
12
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
171,626
111,968
Other debtors
3,015
6
Prepayments and accrued income
307,627
221,768
482,268
333,742
13
Stocks
2024
2023
£
£
Finished goods
100,267
94,677
BUXTON CRESCENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 21 -
14
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Other loans
15
13,996,083
13,731,940
Trade creditors
707,081
582,918
Taxation and social security
144,115
119,597
Other creditors
24,010,086
23,304,214
Accruals and deferred income
453,386
499,792
39,310,751
38,238,461
Secured loans
Of the other loans £13,996,083 (2023: £13,731,940) relates to a loan from external finance providers. This bears interest of 2.2% plus the EU UK State Aid Rate as published by the European Commission per annum and is secured over the assets of the company. The repayments were due to be made in quarterly instalments beginning 1st October 2023 with a final payment February 2058. Following discussions with its finance providers the instalments due under this facility have not been paid as such loan is treated as repayable upon demand. The loans are secured by way of a fixed charge over the fixed assets of the company.
Unsecured loans
Of the other creditors, £23,512,472 (2023: £22,978,252) are amounts owed to the shareholders of which the total amount is repayable on demand subject to the consent of the other finance providers. These loans are interest free.
15
Loans and overdrafts
2024
2023
£
£
External finance provider loan
13,996,083
13,731,940
Amounts owed to the shareholders
23,512,472
22,978,252
37,508,555
36,710,192
Payable within one year
37,508,555
36,710,192
Payable after one year
37,508,555
36,710,192
BUXTON CRESCENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 22 -
16
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
133,060
117,947
The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.
17
Share capital
2024
2023
2024
2023
Number
Number
£
£
Allotted, called up and fully paid
'A' Ordinary shares of £1 each
50
50
50
50
'B' Ordinary shares of £1 each
50
50
50
50
100
100
100
100
The 'A' and 'B' ordinary shares rank pari passu.
18
Operating lease commitments
Lessee
At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:
2024
2023
£
£
Within one year
5,000
5,000
Between two and five years
20,000
20,000
In over five years
955,000
960,000
980,000
985,000
19
Related party transactions
Transactions with related parties
Transactions with related parties are as follows:
BUXTON CRESCENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
19
Related party transactions
(Continued)
- 23 -
Loan
Expenses / Recharges
2024
2023
2024
2023
£
£
£
£
Trevor Osborne Ltd & other companies in that group
175,000
75,000
-
-
CP Holdings Limited (joint venture participant)
175,000
75,000
7,596
9,078
Ensana sro
-
-
273,020
269,431
Lenta Properties Limited
31,269
66,600
Old Hall Hotel Limited
56,423
41,990
350,000
150,000
368,308
387,099
2024
2023
Amounts due to related parties
£
£
Trevor Osborne Ltd & other companies in that group
(11,756,236)
(11,489,126)
CP Holdings Limited (joint venture participant)
(11,756,236)
(11,489,126)
Ensana sro
(273,020)
(86,937)
20
Cash absorbed by operations
2024
2023
£
£
Loss for the year after tax
(1,760,618)
(2,833,323)
Adjustments for:
Finance costs
448,362
1,397,394
Amortisation and impairment of intangible assets
4,332
4,332
Depreciation and impairment of tangible fixed assets
981,834
978,288
Movements in working capital:
Increase in stocks
(5,590)
(12,359)
Increase in debtors
(148,526)
(2,307)
Increase in creditors
268,356
140,905
Cash absorbed by operations
(211,850)
(327,070)
BUXTON CRESCENT LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 24 -
21
Analysis of changes in net debt
1 January 2024
Cash flows
31 December 2024
£
£
£
Cash at bank and in hand
302,794
113,152
415,946
Debt due within one year
(36,822,752)
(685,803)
(37,508,555)
(36,519,958)
(572,651)
(37,092,609)
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