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COMPANY REGISTRATION NUMBER: 04219765
Burgh Island Limited
Financial Statements
30 September 2024
Burgh Island Limited
Financial Statements
Year ended 30 September 2024
Contents
Page
Officers and professional advisers
1
Strategic report
2
Directors' report
4
Independent auditor's report to the members
6
Statement of comprehensive income
10
Statement of financial position
11
Statement of changes in equity
12
Statement of cash flows
13
Notes to the financial statements
14
Burgh Island Limited
Officers and Professional Advisers
The board of directors
Mr P Booth-Clibborn
Ms P Brown (Resigned 1 October 2024)
Mr G Fuchs
Ms J Ward
Ms S Kennedy (Appointed 31 March 2025)
Registered office
10 Canberra House
Corbygate Business Park
Corby
Northamptonshire
England
NN17 5JG
Trading address:
Burgh Island Hotel
Burgh Island
Bigbury on Sea
Kingsbridge
Devon
TQ7 4BG
Auditor
Shaw Gibbs (Audit) Limited
Chartered Certified accountants & statutory auditor
264 Banbury Road
Oxford
Oxfordshire
OX2 7DY
Burgh Island Limited
Strategic Report
Year ended 30 September 2024
The directors present their Strategic Report and Audited Financial Statements for the year ended 30 September 2024. Principle activity The principal activity of the company remains the operation of Burgh Island Hotel and The Pilchard Inn and café, just off the south coast of Devon near Bigbury on Sea. The hotel has panoramic views overlooking Bigbury on Sea and Batham beaches. The hotel was developed by Archie Nettlefold in the 1930's after he purchased the island from George Chirgwin. Despite some turbulent periods the hotel has evolved into a classic example of Art Deco architecture containing one of the most comprehensive collections of Art Deco furnishings and accessories in the UK. As current custodians of the hotel the Directors' objective is to maintain the ambiance of the 1930s whilst utilising 21st century technology in an unintrusive way to enhance the guest experience. The hotel is situated on a tidal island which reinforces the guests experience of leaving the 21st century behind but increases the operational challenges with bringing staff and supplies to and from the island on a timely basis. The Pilchard Inn, a 14th century original smugglers inn, named after the pilchard fishing that took place when fishermen occupied the island, offers food and beverages to eat in and takeaway. Although the actual pub is cosy, the surrounding area has been developed to allow many more visitors to sit outside and enjoy the food and drinks on offer either from the pub or from the takeaway café below the actual Inn.
Business review The directors have successfully managed to promote the hotel throughout the year and it continues to feature heavily on TV and in major national and local publications. Consequently, the hotel has benefitted from high occupancy and the directors are pleased to report that guest satisfaction levels are extremely good. During the previous year, the directors had made the decision to sell the hotel and the Pilchard to new custodians, however, the business was taken off the market at the end of 2023 with the intention of keeping and developing it. As a result, there has been substantial capital investment in the buildings and building services. In addition, rising overheads and higher finance costs resulting from a change of banks have resulted in smaller profit margins despite consistent rates of occupancy. The operational challenges faced by the hotel remain the management and development of a hotel on a tidal island. Staff recruitment and retention, however, have improved due to by the provision of bespoke staff accommodation and a road map designed to identify opportunities for staff training and development. Results Results for the year were: profit before tax £45,421 (2023: £403,164) with a tax charge of £67,685 (2023: £29,745) and therefore a reporting loss of £22,264 (2023: profit £373,419). Cashflow remained positive throughout the year and the company was able to comfortably service its debts. The directors take a very prudent view of cash reserves and monitor discretionary spending very closely.
Principal risks and uncertainties As in previous years these risks remain common with other hospitality businesses, both nationally and locally. Specifically, the directors have identified the following: - The inflationary pressure on family incomes is now a risk mitigated in the case of Burgh Island by the proportion of business from repeat customers. In addition, the uniqueness of Burgh Island allows the hotel to benefit from extensive PR and successfully obtaining prime time TV exposure on a number of different TV travel shows. This linked with local advertising and social media marketing has been highly successful. - The costs of supplies have impacted all hospitality businesses. Cost management is therefore a key focus for the local management team and the Directors. The company retains a commitment to use local suppliers, and develop long term relationships wherever possible, to improve quality and reduce delivery times, cost and the carbon footprint. - Competition from other hospitality businesses both in UK and wider afield. - A change in government and the affect that will have on the employment, economic and environmental issues locally to Deven and nationally. Key performance indicators The Directors use a number of key performance indicators to manage and control the hotel and Pilchard. For the hotel, the KPIs are room rates, percentage occupancy, PEVPAR, TREVPAR, gross margins, EBITDA and cashflow. For the Pilchard, the KPIs are gross margin and EBITDA. All KPIs are measured and reported on a monthly basis.
This report was approved by the board of directors on 14 July 2025 and signed on behalf of the board by:
Mr G Fuchs
Director
Registered office:
10 Canberra House
Corbygate Business Park
Corby
Northamptonshire
England
NN17 5JG
Burgh Island Limited
Directors' Report
Year ended 30 September 2024
The directors present their report and the financial statements of the company for the year ended 30 September 2024 .
Directors
The directors who served the company during the year were as follows:
Mr P Booth-Clibborn
Ms P Brown
Mr G Fuchs
Ms J Ward
Ms S Kennedy (Appointed 31 March 2025)
Dividends
The directors do not recommend the payment of a dividend.
Disclosure of information in the strategic report
In line with section 414C (11) of Companies Act 2006 disclosures relating to future developments and business relationships have been made in the Strategic Report.
Directors' responsibilities statement
The directors are responsible for preparing the strategic report, 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 the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: - select suitable accounting policies and then apply them consistently; - make judgments and accounting estimates that are reasonable and prudent; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and 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. Auditor
Each of the persons who is a director at the date of approval of this report confirms that:
- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This report was approved by the board of directors on 14 July 2025 and signed on behalf of the board by:
Mr G Fuchs
Director
Registered office:
10 Canberra House
Corbygate Business Park
Corby
Northamptonshire
England
NN17 5JG
Burgh Island Limited
Independent Auditor's Report to the Members of Burgh Island Limited
Year ended 30 September 2024
Opinion
We have audited the financial statements of Burgh Island Limited (the 'company') for the year ended 30 September 2024 which comprise the statement of comprehensive income, statement of financial position, statement of changes in equity, statement of cash flows and the related notes, including a summary of 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: - give a true and fair view of the state of the company's affairs as at 30 September 2024 and of its loss for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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.
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or - the financial statements are not in agreement with the accounting records and returns; or - certain disclosures of directors' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the directors' responsibilities statement, 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. 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: We obtained an understanding of the legal and regulatory frameworks within which the company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, United Kingdom Generally Accepted Accounting Practice and relevant Taxation legislation. We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be the override of controls by management and the understatement of revenue. Our audit procedures to respond to these risks included enquiries of management about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing meeting minutes, regulatory correspondence and professional fees, detailed substantive testing on the completeness of income, and reviewing accounting estimates for biases. Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations. These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 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.
Robyn Liddell
(Senior Statutory Auditor)
For and on behalf of
Shaw Gibbs (Audit) Limited
Chartered Certified accountants & statutory auditor
264 Banbury Road
Oxford
Oxfordshire
OX2 7DY
14 July 2025
Burgh Island Limited
Statement of Comprehensive Income
Year ended 30 September 2024
2024
2023
Note
£
£
Turnover
4
6,135,596
6,136,205
Cost of sales
1,130,120
1,070,676
------------
------------
Gross profit
5,005,476
5,065,529
Administrative expenses
4,787,908
4,545,599
------------
------------
Operating profit
5
217,568
519,930
Other interest receivable and similar income
10
2,348
2,311
Interest payable and similar expenses
11
174,495
119,077
------------
------------
Profit before taxation
45,421
403,164
Tax on profit
12
67,685
29,745
--------
---------
(Loss)/profit for the financial year
( 22,264)
373,419
--------
---------
Revaluation of tangible assets
2,425,728
Tax relating to components of other comprehensive income
91,946
( 616,174)
--------
------------
Other comprehensive income for the year
91,946
1,809,554
--------
------------
Total comprehensive income for the year
69,682
2,182,973
--------
------------
All the activities of the company are from continuing operations.
Burgh Island Limited
Statement of Financial Position
30 September 2024
2024
2023
Note
£
£
Fixed assets
Intangible assets
13
4,959
9,318
Tangible assets
14
13,222,286
12,644,950
-------------
-------------
13,227,245
12,654,268
Current assets
Stocks
15
77,354
70,751
Debtors
16
2,030,469
641,926
Cash at bank and in hand
863,824
830,118
------------
------------
2,971,647
1,542,795
Creditors: amounts falling due within one year
17
1,387,620
4,713,713
------------
------------
Net current assets/(liabilities)
1,584,027
( 3,170,918)
-------------
-------------
Total assets less current liabilities
14,811,272
9,483,350
Creditors: amounts falling due after more than one year
18
5,355,000
72,500
Provisions
19
1,694,617
1,718,877
-------------
------------
Net assets
7,761,655
7,691,973
-------------
------------
Capital and reserves
Called up share capital
22
4
4
Revaluation reserve
23
6,217,591
6,125,645
Profit and loss account
23
1,544,060
1,566,324
------------
------------
Shareholders funds
7,761,655
7,691,973
------------
------------
These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.
These financial statements were approved by the board of directors and authorised for issue on 14 July 2025 , and are signed on behalf of the board by:
Mr G Fuchs
Director
Company registration number: 04219765
Burgh Island Limited
Statement of Changes in Equity
Year ended 30 September 2024
Called up share capital
Revaluation reserve
Profit and loss account
Total
Note
£
£
£
£
At 1 October 2022
4
4,316,091
1,192,905
5,509,000
Profit for the year
373,419
373,419
Other comprehensive income for the year:
Revaluation of tangible assets
14
2,425,728
2,425,728
Tax relating to components of other comprehensive income
12
( 616,174)
( 616,174)
----
------------
------------
------------
Total comprehensive income for the year
1,809,554
373,419
2,182,973
At 30 September 2023
4
6,125,645
1,566,324
7,691,973
Loss for the year
( 22,264)
( 22,264)
Other comprehensive income for the year:
Tax relating to components of other comprehensive income
12
91,946
91,946
----
------------
------------
------------
Total comprehensive income for the year
91,946
( 22,264)
69,682
----
------------
------------
------------
At 30 September 2024
4
6,217,591
1,544,060
7,761,655
----
------------
------------
------------
Burgh Island Limited
Statement of Cash Flows
Year ended 30 September 2024
2024
2023
£
£
Cash flows from operating activities
(Loss)/profit for the financial year
( 22,264)
373,419
Adjustments for:
Depreciation of tangible assets
138,115
133,673
Amortisation of intangible assets
4,359
4,360
Other interest receivable and similar income
( 2,348)
( 2,311)
Interest payable and similar expenses
174,495
119,077
Gains on disposal of tangible assets
( 2,847)
Tax on profit
67,685
29,745
Changes in:
Stocks
( 6,603)
16,301
Trade and other debtors
( 81,086)
( 123,318)
Trade and other creditors
( 40,949)
16,952
---------
---------
Cash generated from operations
228,557
567,898
Interest paid
( 83,430)
( 15,414)
Interest received
12,101
2,311
Tax (paid)/received
( 18,779)
22,237
---------
---------
Net cash from operating activities
138,449
577,032
---------
---------
Cash flows from investing activities
Purchase of tangible assets
( 415,154)
( 281,623)
Proceeds from sale of tangible assets
70,333
---------
---------
Net cash used in investing activities
( 344,821)
( 281,623)
---------
---------
Cash flows from financing activities
Bank loans repaid
( 142,500)
( 120,000)
Bank loans advanced
5,355,000
Repayment of loans from group undertakings
( 4,972,422)
( 525,000)
------------
---------
Net cash from/(used in) financing activities
240,078
( 645,000)
------------
---------
Net increase/(decrease) in cash and cash equivalents
33,706
( 349,591)
Cash and cash equivalents at beginning of year
830,118
1,179,709
---------
------------
Cash and cash equivalents at end of year
863,824
830,118
---------
------------
Burgh Island Limited
Notes to the Financial Statements
Year ended 30 September 2024
1. General information
The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 10 Canberra House, Corbygate Business Park, Corby, Northamptonshire, NN17 5JG, England.
2. Statement of compliance
These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Significant judgements and estimates
The preparation of financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the company accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed within the individual accounting policies below.
Going concern
The Company is in a positive net asset and net current asset position. This judgment has been made on the application of the going concern basis of accounting. In July 2024 the facility between Burgh Island Holdings Limited and Coutts Bank expired and was replaced by a facility between Burgh Island Limited and Metro Bank. The new facility provided additional capital of £750,000 which was used for further refurbishment and enhancement of the hotel. The financing with Metro Bank has only two covenants being the ratio of EBITDA to interest costs and Loan to Value. The directors took advantage of the traditionally quiet month of January to close the Hotel and complete the programme of renovation works begun in the previous year. As a result, the EBITDA to interest costs ratio for the first quarter of 2025 was not met. Since then, revenue has exceeded or is at least in line with budget, bookings are healthy, occupancy levels over 90% have prevailed and the expectation is that the EBITDA to interest costs ratio for the second quarter will be met. Cashflow within the business is robust and no further borrowing is anticipated. Taking account of all the above it is therefore the opinion of the directors of the company that it is appropriate to prepare financial statements on a going concern basis
Revenue recognition
Revenue is measured at fair value of the consideration received or receivable and represents the amount receivable for goods and services supplied to customers in the normal course of business, net of trade discount and VAT. Revenue includes room sales, food and beverage sales, and other sales to external customers. Turnover is recognised as follows: - Room Sales - Revenue is recognised when the customer stays. If a payment is received at the time of room booking, prior to arrival date, a liability for prepaid room purchases is recognised and held on the balance sheet as a contract liability. - Food and beverage sales (including the Pilchard) - Daily at the close of business - Other sales to external customers - On completion on the related service In addition, consideration is only recorded to the extent that the Company has performed its contractual obligations in respect of that consideration. Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that it is probable the expenses recognised will be recovered.
Government grants
Government grants are accounted for under FRS 102 Section 24 'Government grants'. Grants are not recognised until there is reasonable assurance that the company will comply with the conditions attaching to them and the grants will be received.
The Company has opted to account for Government grants under the accrual method. Grants relating to revenue shall be recognised in income on a systematic basis over the periods in which the entity recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it it becomes receivable.
Income tax
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Operating leases
Lease payments are recognised as an expense over the lease term on a straight-line basis. The aggregate benefit of lease incentives is recognised as a reduction to expense over the lease term, on a straight-line basis.
Intangible assets
Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses. Intangible assets acquired as part of a business combination are recorded at the fair value at the acquisition date.
Amortisation
Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:
Website costs
-
10% straight line
If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.
Tangible assets
Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
The Hotel, The Pilchard (pub) and The Beach House - Not depreciated
Plant and machinery - Straight line at variable rates
Motor vehicles - Straight line at variable rates
Equipment - Straight line at variable rates
Stocks
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.
Financial instruments
Cash and cash equivalents in the balance sheet comprise cash at banks and in hand and short term deposits with an original maturity date of three months or less. Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the statement of comprehensive income under administrative expenses. 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 entity after deducting all of its financial liabilities. Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability. Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.
4. Turnover
Turnover arises from:
2024
2023
£
£
Rendering of services
6,135,596
6,136,205
------------
------------
The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
5. Operating profit
Operating profit or loss is stated after charging/crediting:
2024
2023
£
£
Amortisation of intangible assets
4,359
4,360
Depreciation of tangible assets
138,115
133,673
Gains on disposal of tangible assets
( 2,847)
Operating lease rentals
17,211
5,337
---------
---------
6. Auditor's remuneration
2024
2023
£
£
Fees payable for the audit of the financial statements
15,200
15,200
--------
--------
7. Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
2024
2023
No.
No.
Number of directors
4
4
Operational activities
44
57
Drivers and Estates
9
Administration and support
4
6
Management
15
7
----
----
76
74
----
----
The aggregate payroll costs incurred during the year, relating to the above, were:
2024
2023
£
£
Wages and salaries
2,441,735
2,404,769
Social security costs
215,818
194,512
Other pension costs
37,281
34,912
------------
------------
2,694,834
2,634,193
------------
------------
8. Directors' remuneration
The directors' aggregate remuneration in respect of qualifying services was:
2024
2023
£
£
Remuneration
171,341
152,755
---------
---------
9. Key management personnel
The combined remuneration package of Key Management Personnel is deemed to be that of the directors remuneration packaged detailed in note 8.
10. Other interest receivable and similar income
2024
2023
£
£
Interest on loans and receivables
2,348
2,311
-------
-------
11. Interest payable and similar expenses
2024
2023
£
£
Interest on bank loans, overdrafts and intercompany balances
174,495
119,077
---------
---------
12. Tax on profit
Major components of tax expense
2024
2023
£
£
Current tax:
UK current tax expense
19,217
Adjustments in respect of prior periods
( 1)
( 2)
----
--------
Total current tax
( 1)
19,215
----
--------
Deferred tax:
Origination and reversal of timing differences
67,686
10,530
--------
--------
Tax on profit
67,685
29,745
--------
--------
Tax recognised as other comprehensive income or equity
The aggregate current and deferred tax relating to items recognised as other comprehensive income or equity for the year was £( 91,946 ) (2023: £ 616,174 ).
Reconciliation of tax expense
The tax assessed on the profit on ordinary activities for the year is higher than (2023: lower than) the standard rate of corporation tax in the UK of 25 % (2023: 22.01 %).
2024
2023
£
£
Profit on ordinary activities before taxation
45,421
403,164
--------
---------
Profit on ordinary activities by rate of tax
11,355
88,736
Adjustment to tax charge in respect of prior periods
( 1)
( 2)
Effect of capital allowances and depreciation
( 65,596)
( 12,534)
Utilisation of tax losses
( 56,985)
Unused tax losses
54,241
Effect of deferred tax
67,686
10,530
--------
---------
Tax on profit
67,685
29,745
--------
---------
13. Intangible assets
Website costs
£
Cost
At 1 October 2023 and 30 September 2024
43,597
--------
Amortisation
At 1 October 2023
34,279
Charge for the year
4,359
--------
At 30 September 2024
38,638
--------
Carrying amount
At 30 September 2024
4,959
--------
At 30 September 2023
9,318
--------
14. Tangible assets
The Hotel, The Pilchard (pub) and The Beach House
Plant and machinery
Motor vehicles
Equipment
Total
£
£
£
£
£
Cost or valuation
At 1 October 2023
11,964,943
907,586
244,490
1,518,366
14,635,385
Additions
367,783
406,431
8,723
782,937
Disposals
( 990)
( 111,175)
( 112,165)
-------------
------------
---------
------------
-------------
At 30 September 2024
12,332,726
1,313,027
133,315
1,527,089
15,306,157
-------------
------------
---------
------------
-------------
Depreciation
At 1 October 2023
487,378
88,503
1,414,554
1,990,435
Charge for the year
87,095
34,437
16,583
138,115
Disposals
( 330)
( 44,349)
( 44,679)
-------------
------------
---------
------------
-------------
At 30 September 2024
574,143
78,591
1,431,137
2,083,871
-------------
------------
---------
------------
-------------
Carrying amount
At 30 September 2024
12,332,726
738,884
54,724
95,952
13,222,286
-------------
------------
---------
------------
-------------
At 30 September 2023
11,964,943
420,208
155,987
103,812
12,644,950
-------------
------------
---------
------------
-------------
Cost or valuation at 30 September 2024 of The Hotel, The Pilchard (pub) and the Beach House is represented by:
Total
£
Valuation in 2004 578,622
Valuation in 2006 1,098,469
Valuation in 2010 2,196,354
Valuation in 2018 786,613
Valuation in 2020 468,572
Valuation in 2023 2,425,728
Cost pre 2024 4,410,585
-------------
Cost or valuation as at 30.09.2023 11,964,943
Cost in 2024 367,783
-------------
Cost or valuation as at 30.09.2024 12,332,726
-------------
As the directors do not have access to all the Company records, they are unable to confirm the exact cost basis. The method used to estimate the cost basis has been identified by respect to the land registry price back in October 2001 of £2,099,000. The remaining cost balance has been identified by using the current revalued amount less any revaluations to date. The residual value of The Hotel, The Pilchard (pub) and the Beach House is considered to be in excess of the original cost in light of the revaluation and on this basis, there is no depreciation for which to account. The Hotel, The Pilchard (pub) and The Beach House class of fixed assets were valued in December 2022 by Nick Boyd FRICS, of Knight Frank LLP. The valuation of £12,500,000 was on an open market basis assuming vacant possession and continuing use as a hotel and included fixtures and fittings and other assets. The Hotel, The Pilchard (pub) and The Beach House are included at £12,332,726 which is the revalued amount, plus additions in the year, less the NBV of fixtures and fittings, equipment, and vehicles of £566,778 at the point of valuation. The directors are of the opinion that there has been no material change in the estimated value of The Hotel, The Pilchard (pub) and The Beach House class of fixed assets between the year end and the date of valuation.
15. Stocks
2024
2023
£
£
Raw materials and consumables
77,354
70,751
--------
--------
16. Debtors
2024
2023
£
£
Trade debtors
3,922
19,673
Amounts owed by group undertakings
1,718,808
Prepayments and accrued income
219,065
525,451
Other debtors
88,674
96,802
------------
---------
2,030,469
641,926
------------
---------
17. Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans and overdrafts
70,000
Trade creditors
232,983
256,923
Amounts owed to group undertakings
1,900
3,213,215
Accruals and deferred income
756,944
781,400
Corporation tax
18,779
Social security and other taxes
314,070
322,477
Other creditors
81,723
50,919
------------
------------
1,387,620
4,713,713
------------
------------
18. Creditors: amounts falling due after more than one year
2024
2023
£
£
Bank loans and overdrafts
5,355,000
72,500
------------
--------
Metro Bank PLC hold a fixed and floating charge over all the assets of the Company in relation to the £5,355,000 loan drawdown taken out during the year. Interest is payable quarterly in arrears at 3% over Metro's Base rate.
19. Provisions
Deferred tax (note 20)
£
At 1 October 2023
1,718,877
Additions
67,686
Charge against provision
( 91,946)
------------
At 30 September 2024
1,694,617
------------
20. Deferred tax
The deferred tax included in the statement of financial position is as follows:
2024
2023
£
£
Included in provisions (note 19)
1,694,617
1,718,877
------------
------------
The deferred tax account consists of the tax effect of timing differences in respect of:
2024
2023
£
£
Accelerated capital allowances
187,228
119,542
Revaluation of tangible assets
1,507,389
1,599,335
------------
------------
1,694,617
1,718,877
------------
------------
21. Employee benefits
Defined contribution plans
The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 37,281 (2023: £ 34,912 ).
22. Called up share capital
Issued, called up and fully paid
2024
2023
No.
£
No.
£
Ordinary shares of £ 1 each
4
4
4
4
----
----
----
----
23. Reserves
Profit and loss account - This reserve records retained earnings and accumulated losses. Revaluation reserve - This reserve records the value of asset revaluations and fair value movements on assets recognised in other comprehensive income.
24. Analysis of changes in net debt
At 1 Oct 2023
Cash flows
At 30 Sep 2024
£
£
£
Cash at bank and in hand
830,118
33,706
863,824
Debt due within one year
(3,283,215)
3,281,315
(1,900)
Debt due after one year
(72,500)
(5,282,500)
(5,355,000)
------------
------------
------------
( 2,525,597)
( 1,967,479)
( 4,493,076)
------------
------------
------------
25. Operating leases
The total future minimum lease payments under non-cancellable operating leases are as follows:
2024
2023
£
£
Not later than 1 year
163,032
Later than 1 year and not later than 5 years
583,930
Later than 5 years
528,000
------------
----
1,274,962
------------
----
There is a 10 year rent operating lease from 1 June 2023 to 31 May 2033. Effective 1 February 2024 it was agreed that the annual rent within the operating lease agreement would increase from £120,000 per annum to £144,000 per annum. Also included with non-cancellable operating lease are two vehicles due to expire in February 2026.
Burgh Island Limited
Notes to the Financial Statements (continued)
Year ended 30 September 2024
26. Related party transactions
Ms P Brown was also a director of Abacus Laundry Ltd. and Independent Hotel Management Ltd. during the year. During the year Abacus Laundry Ltd. invoiced the Company for laundry services totalling £141,522 (2023: £30,318). At the year end the amount outstanding included within trade creditors is £870 (2023: £0). During the year Independent Hotel Management Ltd. invoiced the Company for management services totalling £17,341. At the year end the amount outstanding included within trade creditors is £300. The Company has availed itself of the exemption contained within FRS 102 Section 1AC.35 Related Party Disclosure not to disclose details of transactions with fellow group entities concluded under normal market conditions.
27. Ultimate controlling party
The Company's immediate parent undertaking is Burgh Island Holdings Limited, a company registered in England and Wales.
Office Space in Town Limited is the ultimate controlling party. A copy of the group accounts can be obtained from Office Space in Town Limited, whose registered office is 10 Canberra House, Corbygate Business Park, Corby, Northants, NN17 5JG.