Company registration number 09703549 (England and Wales)
LION QUAYS HOTEL LIMITED
ANNUAL REPORT AND
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
LION QUAYS HOTEL LIMITED
COMPANY INFORMATION
Directors
Dr A Bansal
Mrs S Bansal
Mr C R Jenno
Mrs P Walker
Secretary
Mrs S Bansal
Company number
09703549
Registered office
Lion Quays Hotel & Spa
Weston Rhyn
Gobowen
Oswestry
Shropshire
SY11 3EN
Auditor
Morris Lane
31/33 Commercial Road
Poole
Dorset
BH14 0HU
LION QUAYS HOTEL LIMITED
CONTENTS
Page
Strategic report
1
Directors' report
2 - 3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Income statement
8
Statement of comprehensive income
9
Statement of financial position
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 30
Non statutory information
Detailed trading, profit and loss account
LION QUAYS HOTEL LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 1 -
The directors present the strategic report for the year ended 30 November 2023.
Review of the business
During the period under review, the hotel navigated several significant challenges while also making strategic improvements to enhance its long-term performance. The prior year’s increase in utility costs continued to exert pressure on our financial outcomes. Additionally, the rise in interest rates, staffing issues, and supply chain disruptions further hampered profitability.
Despite efforts, there was increased reliance on third-party agencies and, stable pricing was maintained to ensure affordability for customers. This approach has fostered customer loyalty and positioned the hotel for long-term growth as economic conditions improve.
Although a new borehole was drilled in the winter of 2022, problems continued with the Spa water supply until early summer, hampering the budgeted growth in revenue.
Changes in compliance requirements and potential legal challenges necessitated the introduction of new Training and H&S software and tracking platforms. These measures were implemented to mitigate uncertainties and manage additional costs effectively.
The rapid pace of technological and marketing change underscores the need for continuous investment, and there is a commitment to making these necessary enhancements throughout 2024 to maintain a competitive edge.
The profit before tax increased to £648,885 for the year ended 30 November 2023 compared with £235,608 for the year ended 30 November 2022. The balance sheet also strengthened, with total equity for the year ended 30 November 2023 being £3,579,457 compared with total equity of £3,522,834 in the year ended 30 November 2022.
Principal risks and uncertainties
The hotel and leisure sector faces several ongoing risks and uncertainties. The economic downturn, changes in consumer spending patterns, and fluctuations in tourism significantly impact our industry. Additionally, the continued fluctuations in the Bank of England interest rates pose further challenges.
The directors are keenly aware of these risks and are proactively managing them. Close monitoring of working capital requirements and strategic product investment will secure a stable future for the hotel.
Mrs P Walker
Director
5 August 2025
LION QUAYS HOTEL LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 2 -
The directors present their annual report and financial statements for the year ended 30 November 2023.
Principal activities
The principal activity of the company continued to be that of the running of Lion Quays Hotel and 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:
Dr A Bansal
Mrs S Bansal
Mr C R Jenno
Mrs P Walker
Financial instruments
Price risk, credit risk, liquidity risk and cash flow risk
The company aims to mitigate liquidity risk and cash flow risk by managing working capital, and as a result, it continues to closely monitor the working capital requirements. In addition, the directors continue to work with company's bankers to ensure that these working capital requirements are met.
Future developments
Future developments include a continuing programme of refurbishment in order to maintain standards and increase revenue. In addition, there is an ongoing centralisation and restructure of resources for cost saving efficiencies. The company continues to invest in staff welfare, training and development along with improved staff communication to ensure that the key policy of maintaining high customer service and satisfaction is met. In addition, there is an emphasis on fostering business relationships with supplier to maintain cost control.
Going Concern
The directors have considered the company's financial position, including net current liabilities of £8.5m as at 30 November 2023 and post year-end trading losses which have adversely impacted cash flow. These conditions indicate the existence of a material uncertainty which may cast significant doubt on the company's ability to continue as a going concern. Nevertheless, the directors have reasonable expectation that the company will be able to secure the necessary funding and manage its liabilities as they fall due. Accordingly, the financial statements have been prepared on a going concern basis.
Auditor
Morris Lane were appointed as auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.
Strategic report
The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of fair review of the business.
LION QUAYS HOTEL LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 3 -
Statement of disclosure to auditor
The directors of the company confirm that all relevant information has been disclosed to the auditors. Each director has taken all necessary steps to ensure that they are aware of any relevant audit information and to establish that the company’s auditors are aware of this information. To the best of their knowledge, there is no information relevant to the audit of which the auditors are unaware. This thorough disclosure ensures transparency and supports the integrity of the company’s financial reporting.
Medium-sized companies exemption
This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.
On behalf of the board
Mrs P Walker
Director
5 August 2025
LION QUAYS HOTEL LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 4 -
The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period.
In preparing these financial statements, the directors are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent; and
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.
LION QUAYS HOTEL LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LION QUAYS HOTEL LIMITED
- 5 -
Opinion
We have audited the financial statements of Lion Quays Hotel Limited (the 'company') for the year ended 30 November 2023 which comprise the income statement, the statement of comprehensive income, the statement of financial position, 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 30 November 2023 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Material uncertainty related to going concern
We draw your attention to note 1.2 in the financial statements, which indicates that the company has net current liabilities of £8.5m as at 30 November 2023 and has incurred losses post year-end. These events and conditions 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 our 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.
LION QUAYS HOTEL LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LION QUAYS HOTEL LIMITED (CONTINUED)
- 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 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 specific procedures and extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.
Identifying and assessing the risks of material misstatement due to irregularities, including fraud
We obtained an understanding of the legal and regulatory frameworks that are applicable to the company through discussion with the directors and from our general commercial experience. The identified laws and regulations were communicated to the audit team in order that they remained alert to any non-compliance throughout the audit.
The company is subject to laws and regulations which have a direct effect on the financial statements and the disclosures contained therein. These have been identified as: the financial reporting framework under which the company operates - Financial Reporting Standard 102; Statutory Instrument 2008/410 – The Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008; the Companies Act 2006 and taxation legislation including pay as you earn; value added tax; corporation tax and pensions legislation.
In addition to the above, the company is subject to other operational laws and regulations where non-compliance may have a material effect on the financial statements. Non-compliance of such laws and regulations may result in litigation, the imposition of fines or the closure of the business which could have a material impact on amounts or disclosures in the financial statements. We have identified the following laws and regulations which are more likely to have significant effect as: compliance with licencing laws; food hygiene laws; health and safety laws; General Data Protection Regulation (GDPR) and employment law.
LION QUAYS HOTEL LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LION QUAYS HOTEL LIMITED (CONTINUED)
- 7 -
Audit procedures designed to respond to the risks of material misstatement due to irregularities, including fraud
We considered the extent of compliance with these laws and regulations as part of our audit procedures on the related financial statement items including a review of financial statement disclosures. We reviewed the company's records of breaches of laws and regulations, minutes of meetings and correspondence with relevant authorities to identify potential material misstatements arising. We discussed the company's policies and procedures for compliance with laws and regulations with members of management responsible for compliance.
During the planning meeting with the audit team, the senior statutory auditor drew attention to the key areas which might involve non-compliance with laws and regulations or fraud. We enquired of management whether they were aware of any instances of non-compliance with laws and regulations or knowledge of any actual, suspected or alleged fraud. We addressed the risk of fraud through management override of controls by testing the appropriateness of journal entries and identifying any significant transactions that were unusual or outside the normal course of business. We assessed whether judgements made in making accounting estimates gave rise to possible indication of management bias. At the completion stage of the audit, the senior statutory auditor's review included ensuring that the team had approached their work with appropriate professional scepticism and thus the capacity to identify non-compliance with laws and regulations and fraud.
Auditing standards limit the audit procedures required to identify non-compliance with other operational laws and regulations to enquiry of directors and management and inspection of any correspondence. If a breach of operational regulations is not evident from relevant correspondence or disclosed to us, an audit is unlikely to detect that breach. In addition, the further removed non-compliance with laws and regulations is from the events and transactions included in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting to an error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.
Due to the inherent limitations of an audit, there is an unavoidable risk that, despite properly planning and performing our audit in accordance with accounting standards, some material misstatements may not have been detected.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.
Michelle Pettifer (Senior Statutory Auditor)
For and on behalf of Morris Lane, Statutory Auditor
Chartered Accountants
31/33 Commercial Road
Poole
Dorset
BH14 0HU
5 August 2025
LION QUAYS HOTEL LIMITED
INCOME STATEMENT
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 8 -
2023
2022
as restated
Notes
£
£
Revenue
3
6,667,523
6,756,409
Cost of sales
(3,662,584)
(3,619,550)
Gross profit
3,004,939
3,136,859
Administrative expenses
(1,889,215)
(2,663,237)
Operating profit
4
1,115,724
473,622
Finance costs
8
(466,839)
(238,014)
Profit before taxation
648,885
235,608
Tax on profit
9
(241,045)
(100,692)
Profit for the financial year
407,840
134,916
The income statement has been prepared on the basis that all operations are continuing operations.
LION QUAYS HOTEL LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 9 -
2023
2022
as restated
£
£
Profit for the year
407,840
134,916
Other comprehensive income
Revaluation of property, plant and equipment
(479,628)
2,966,869
Tax relating to other comprehensive income
128,411
(741,717)
Other comprehensive income for the year
(351,217)
2,225,152
Total comprehensive income for the year
56,623
2,360,068
LION QUAYS HOTEL LIMITED
STATEMENT OF FINANCIAL POSITION
AS AT
30 NOVEMBER 2023
30 November 2023
- 10 -
2023
2022
as restated
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
11
12,820,000
13,000,000
Current assets
Inventories
12
75,230
83,159
Trade and other receivables
13
507,952
1,478,141
Cash and cash equivalents
49,832
306,372
633,014
1,867,672
Current liabilities
14
(9,193,388)
(4,587,554)
Net current liabilities
(8,560,374)
(2,719,882)
Total assets less current liabilities
4,259,626
10,280,118
Non-current liabilities
15
(52,421)
(6,065,645)
Provisions for liabilities
Deferred tax liability
18
627,748
691,639
(627,748)
(691,639)
Net assets
3,579,457
3,522,834
Equity
Called up share capital
20
1,000
1,000
Revaluation reserve
21
1,839,918
2,225,152
Retained earnings
21
1,738,539
1,296,682
Total equity
3,579,457
3,522,834
These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.
The financial statements were approved by the board of directors and authorised for issue on 5 August 2025 and are signed on its behalf by:
Mrs P Walker
Director
Company registration number 09703549 (England and Wales)
LION QUAYS HOTEL LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 11 -
Share capital
Revaluation reserve
Retained earnings
Total
£
£
£
£
As restated for the period ended 30 November 2022:
Balance at 1 December 2021 as restated
1,000
1,161,766
1,162,766
Year ended 30 November 2022:
Profit for the year
-
-
134,916
134,916
Other comprehensive income:
Revaluation of property, plant and equipment
-
2,966,869
-
2,966,869
Tax relating to other comprehensive income
-
(741,717)
(741,717)
Total comprehensive income for the year
2,225,152
134,916
2,360,068
Balance at 30 November 2022 as restated
1,000
2,225,152
1,296,682
3,522,834
Year ended 30 November 2023:
Profit for the year
-
-
407,840
407,840
Other comprehensive income:
Revaluation of property, plant and equipment
-
(479,628)
-
(479,628)
Tax relating to other comprehensive income
-
128,411
128,411
Total comprehensive income for the year
(351,217)
407,840
56,623
Transfers
-
(34,017)
34,017
-
Balance at 30 November 2023
1,000
1,839,918
1,738,539
3,579,457
LION QUAYS HOTEL LIMITED
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 12 -
2023
2022
as restated
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
1,093,145
1,340,544
Interest paid
(427,058)
(238,014)
Income taxes paid
(72,597)
Net cash inflow from operating activities
666,087
1,029,933
Investing activities
Purchase of property, plant and equipment
(73,035)
(407,218)
Increase in loans to related parties
(423,768)
Net cash used in investing activities
(496,803)
(407,218)
Financing activities
Increase in loans from related parties
68,813
-
Repayment of bank loans
(470,459)
(540,937)
Payment of finance leases obligations
(24,178)
(33,894)
Net cash used in financing activities
(425,824)
(574,831)
Net increase (decrease) in cash and cash equivalents
(256,540)
47,884
Cash and cash equivalents at beginning of year
306,372
258,488
Cash and cash equivalents at end of year
49,832
306,372
LION QUAYS HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 13 -
1
Accounting policies
Company information
Lion Quays Hotel Limited is a private company limited by shares incorporated in England and Wales. The registered office is Lion Quays Hotel & Spa, Weston Rhyn, Gobowen, Oswestry, Shropshire, SY11 3EN.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold property at fair value. The principal accounting policies adopted are set out below.
1.2
Going concern
The financial statements have been prepared on a going concern basis. The company had net current liabilities of £8.5m as at 30 November 2023 and has incurred losses post year-end. These losses have negatively impacted the company's cash flow and its ability to meet liabilities as they fall due. These events and conditions indicate the existence of a material uncertainty that may cast significant doubt on the company's ability to continue as a going concern. The directors are actively engaging with creditors and exploring funding options and as such, the directors have a reasonable expectation that the company will continue to operate and meet its liabilities as they fall due.
1.3
Revenue
Revenue is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.
Revenue is recognised as follows:
Rooms
Revenue is recognised when the rooms are occupied.
Food and beverages
Revenue is recognised at the point of sale, when the food and beverages have been provided.
Health club and spa memberships
Revenue is recognised over the period of membership.
Health club and spa treatments and products
Revenue is recognised when the goods or service has been provided.
Deferred revenue consisting of deposits paid in advance are recognised on the day that services are performed.
LION QUAYS HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 14 -
1.4
Intangible fixed assets - goodwill
Goodwill represents the excess of the cost of acquisition of unincorporated businesses over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 5 years.
For the purposes of impairment testing, goodwill is allocated to the cash-generating units expected to benefit from the acquisition. Cash-generating units to which goodwill has been allocated are tested for impairment at least annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cash-generating unit is less than the carrying amount of the unit, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro-rata on the basis of the carrying amount of each asset in the unit.
1.5
Property, plant and equipment
Property, plant and equipment are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Freehold land and buildings
2% straight line
Plant and machinery
10% - 20% straight line
Fixtures and fittings
10% - 25% straight line
Office equipment
20% - 25% straight line
Freehold land is not depreciated.
During the year, the company revised the depreciation rates of certain fixed assets to better reflect their expected useful lives. This change in estimate was applied prospectively from 1 December 2022. As a result, the accumulated depreciation was recalculated, leading to a reduction of £745,441 in the current year's depreciation charge.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.
1.6
Impairment of non-current assets
At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
LION QUAYS HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 15 -
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
1.7
Inventories
Inventories are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition.
At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of inventories over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.
1.8
Cash and cash equivalents
Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.
1.9
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 statement of financial position 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.
Basic financial assets
Basic financial assets, which include trade and other receivables and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Other financial assets
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
LION QUAYS HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 16 -
Impairment of financial assets
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Derecognition of financial assets
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the 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 trade and other payables, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Other financial liabilities
Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
LION QUAYS HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 17 -
Derecognition of financial liabilities
Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.
1.10
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.11
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The 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 income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset 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.
1.12
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or non-current assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.13
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
LION QUAYS HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
1
Accounting policies
(Continued)
- 18 -
1.14
Leases
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessees. All other leases are classified as operating leases.
Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the statement of financial position as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.
Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.
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.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Fair value, residual value and depreciation of freehold property
Freehold property represents the company's most significant asset and is assessed to have a useful life of 50 years and is carried at a revalued amount, being its fair value at the date of revaluation less any subsequent depreciation.
The value of freehold property as at 30 November 2023 was determined based on an external valuation, having regards to factors such as current and future projected income levels, location and recent market residual value of the company's property which are determined by management and reviewed annually for appropriateness.
LION QUAYS HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 19 -
3
Revenue
An analysis of the company's revenue is as follows:
2023
2022
£
£
Revenue analysed by class of business
Rooms
2,026,507
1,960,795
Food and beverages
2,502,175
2,639,612
Healthclub and spa
1,920,606
1,936,303
Other
218,235
219,699
6,667,523
6,756,409
The whole of the turnover is attributable to the company's principal activity wholly undertaken in the United Kingdom.
4
Operating profit
2023
2022
As restated
Operating profit for the year is stated after charging/(crediting):
£
£
Depreciation of owned property, plant and equipment
(226,593)
660,360
Operating lease charges
37,079
36,132
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the company
16,500
10,500
For other services
Taxation compliance services
1,000
All other non-audit services
5,000
6,000
-
LION QUAYS HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 20 -
6
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2023
2022
Number
Number
Hotel and front of house services
130
129
Management and administration
9
8
Leisure club
27
31
Total
166
168
Their aggregate remuneration comprised:
2023
2022
£
£
Wages and salaries
2,567,213
2,434,636
Social security costs
205,646
171,607
Pension costs
41,968
33,466
2,814,827
2,639,709
The costs above are net of employee costs of £344,506 (2022 - £253,200) recharged to related party hotels.
7
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
108,812
106,185
The costs above are net of directors remuneration of £98,220 (2022 - £131,131) recharged to related party hotels.
8
Finance costs
2023
2022
£
£
Interest on bank overdrafts and loans
437,108
238,014
Other interest
29,731
466,839
238,014
LION QUAYS HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 21 -
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
177,571
45,451
Adjustments in respect of prior periods
(1,046)
2,442
Total current tax
176,525
47,893
Deferred tax
Origination and reversal of timing differences
64,520
52,799
Total tax charge
241,045
100,692
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
2023
2022
As restated
£
£
Profit before taxation
648,885
235,608
Expected tax charge based on the standard rate of corporation tax in the UK of 23.01% (2022: 19.00%)
149,308
44,766
Tax effect of expenses that are not deductible in determining taxable profit
3,948
Unutilised tax losses carried forward
1,047
Adjustments in respect of prior years
(1,047)
2,442
Depreciation in excess of capital allowances
(16,846)
65,544
Effect of prior year adjustments
105,682
(13,107)
Taxation charge for the year
241,045
100,692
In addition to the amount charged to the income statement, the following amounts relating to tax have been recognised directly in other comprehensive income:
2023
2022
As restated
£
£
Deferred tax arising on:
Revaluation of property
(128,411)
741,717
LION QUAYS HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 22 -
10
Intangible fixed assets
Goodwill
£
Cost
At 1 December 2022 and 30 November 2023
127,130
Amortisation and impairment
At 1 December 2022 and 30 November 2023
127,130
Carrying amount
At 30 November 2023
At 30 November 2022
11
Property, plant and equipment
Freehold land and buildings
Plant and machinery
Fixtures and fittings
Office equipment
Total
£
£
£
£
£
Cost or valuation
At 1 December 2022 as restated
11,743,769
495,519
3,185,916
176,748
15,601,952
Additions
7,500
8,667
46,303
10,565
73,035
Revaluation
(694,503)
(694,503)
At 30 November 2023
11,056,766
504,186
3,232,219
187,313
14,980,484
Depreciation and impairment
At 1 December 2022 as restated
227,853
2,242,929
131,170
2,601,952
Depreciation charged in the year
214,875
24,465
(486,945)
21,012
(226,593)
Revaluation
(214,875)
(214,875)
At 30 November 2023
252,318
1,755,984
152,182
2,160,484
Carrying amount
At 30 November 2023
11,056,766
251,868
1,476,235
35,131
12,820,000
At 30 November 2022 as restated
11,743,769
267,666
942,987
45,578
13,000,000
The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.
2023
2022
£
£
Plant and machinery
94,271
121,196
Property, plant and equipment with a carrying amount of £12,820,000 (2022 - £13,000,000) have been pledged to secure borrowings of the company and that of a company under common control. Additional information is given in note 16 and in note 24.
LION QUAYS HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
11
Property, plant and equipment
(Continued)
- 23 -
The value of the freehold property as at 30 November 2023 was determined based on the valuation performed on 31 January 2024 by Aitchison Raffety, independent valuers not connected with the company, on the basis of market value. The valuation conforms to RICS Valuation - Global Standard and is based on an income approach having regard to the property's trading potential.
The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:
2023
2022
As restated
£
£
Cost
10,050,407
10,042,907
Accumulated depreciation
(1,446,865)
(1,266,007)
Carrying value
8,603,542
8,776,900
12
Inventories
2023
2022
£
£
Finished goods and goods for resale
75,230
83,159
The carrying amount of inventories includes £75,230 (2022 - £83,159) pledged as security for liabilities. Additional information is given in note 16 and in note 24.
13
Trade and other receivables
2023
2022
Amounts falling due within one year:
£
£
Trade receivables
206,537
238,112
Other receivables
145,337
1,131,450
Prepayments and accrued income
156,078
108,579
507,952
1,478,141
The carrying amount of trade and other receivables includes £507,952 (2022 - £1,478,141) pledged as security for liabilities. Additional information is given in note 16 and in note 24.
LION QUAYS HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 24 -
14
Current liabilities
2023
2022
Notes
£
£
Bank loans
16
5,986,706
474,788
Obligations under finance leases
17
24,179
24,210
Other borrowings
16
1,042,983
2,369,050
Trade payables
562,894
413,866
Corporation tax
225,104
45,451
Other taxation and social security
324,792
178,414
Other payables
32,750
39,115
Accruals and deferred income
993,980
1,042,660
9,193,388
4,587,554
Obligations under finance leases are secured on the assets concerned.
15
Non-current liabilities
2023
2022
Notes
£
£
Bank loans and overdrafts
16
5,989,077
Obligations under finance leases
17
52,421
76,568
52,421
6,065,645
Obligations under finance leases are secured on the assets concerned.
16
Borrowings
2023
2022
£
£
Bank loans
5,986,706
6,463,865
Loans from related parties
1,042,983
Other loans
2,369,050
7,029,689
8,832,915
Payable within one year
7,029,689
2,843,838
Payable after one year
5,989,077
LION QUAYS HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
16
Borrowings
(Continued)
- 25 -
Included in bank loans is a loan of £5,528,102 (2022 - £5,869,802) which is repayable in instalments with a final repayment date of 31 July 2024. Interest was charged on the loan at 2.1% above SONIA per annum until 12 October 2023, and 3% above SONIA thereafter.
Also included in bank loans is a loan of £458,604 (2022 - £594,063) which is repayable in instalments with a final repayment date of 1 December 2026. This loan has been shown as fully repayable within one year as the company breached some of the financial covenants set by the lenders. Interest was charged on the loan at 4.25% above base rate per annum.
The bank loans are secured by a fixed and floating charge over the assets of the company, of Langstone Quays Ltd, and Langstone Quays Hotel Ltd, companies under common control.
Subsequent to the year end, all bank loans were refinanced with a new lender. The new bank loan is repayable by instalments with a final repayment in March 2029.
The loans from related parties are interest free, unsecured and repayable on demand.
17
Finance lease obligations
2023
2022
Future minimum lease payments due under finance leases:
£
£
Within one year
24,179
24,210
In two to five years
52,421
76,568
76,600
100,778
Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. The average lease term is 5 years. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.
18
Deferred taxation
The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:
Liabilities
Liabilities
2023
2022
As restated
Balances:
£
£
Accelerated capital allowances
14,442
(50,078)
Revaluations
613,306
741,717
627,748
691,639
LION QUAYS HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
18
Deferred taxation
(Continued)
- 26 -
2023
Movements in the year:
£
Liability at 1 December 2022 as restated
691,639
Charge to profit or loss
64,520
Credit to other comprehensive income
(128,411)
Liability at 30 November 2023
627,748
Of the deferred tax liability set out above, an amount of £32,902 is expected to reverse within 12 months and relates to accelerated capital allowances.
19
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
41,968
33,466
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.
The company operates a defines contribution pension scheme for its employees. Included in the balance sheet are pension commitments of £31,220 (2022 - £6,593).
20
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
1,000
1,000
1,000
1,000
21
Reserves
Revaluation reserve
Revaluation reserve relates to the unrealised profit on the remeasurement of freehold land and buildings at fair value together with annual deferred tax adjustments.
Retained earnings
Retained earnings represents cumulative profits or losses, net of dividends paid and other adjustments.
LION QUAYS HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 27 -
22
Operating lease commitments
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:
2023
2022
£
£
Within one year
18,408
21,768
Between two and five years
974
16,326
19,382
38,094
23
Capital commitments
The total amount contracted for but not provided in the financial statements was £nil (2022 - £7,500).
24
Financial commitments, guarantees and contingent liabilities
The company has provided security for the bank borrowings of Langstone Quays Hotel Limited, a company controlled by the directors, by way of a fixed and floating debenture over all of its assets. As at 30 November 2023, the maximum exposure of the company under the guarantee was £8,836,453 (2022 - £9,472,384).
25
Related party transactions
Transactions with related parties
During the year the company entered into the following transactions with related parties:
Cross charges to related entities
Cross charged from related entities
2023
2022
2023
2022
£
£
£
£
Entities under common control
778,557
884,671
2,874
7,904
778,557
884,671
2,874
7,904
The following amounts were outstanding at the reporting end date:
2023
2022
As restated
Amounts due to related parties
£
£
Entities under common control
145,337
1,131,450
145,337
1,131,450
LION QUAYS HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
25
Related party transactions
(Continued)
- 28 -
The following amounts were outstanding at the reporting end date:
2023
2022
Amounts due from related parties
£
£
Entities under common control
1,042,983
25,000
Directors' loan account
-
2,369,050
1,042,983
2,394,050
Other information
A director has given a personal guarantee of £500,000 (2022 - £500,000) as security for the company's bank borrowings.
Two companies, controlled by the directors have provided provided security for the company's bank borrowings (see note 16). The company has also provided security for the bank borrowings of one of these companies.
The loans to and from related parties above are interest free and repayable on demand.
26
Ultimate controlling party
The ultimate controlling parties are Dr A Bansal and Mrs S Bansal.
27
Cash generated from operations
2023
2022
As restated
£
£
Profit for the year after tax
407,840
134,916
Adjustments for:
Taxation charged
241,045
100,692
Finance costs
466,839
238,014
Depreciation and impairment of property, plant and equipment
(226,593)
660,360
Movements in working capital:
Decrease in inventories
7,929
5,679
Increase in trade and other receivables
(15,923)
(55,111)
Increase in trade and other payables
212,008
255,994
Cash generated from operations
1,093,145
1,340,544
LION QUAYS HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
- 29 -
28
Analysis of changes in net debt
1 December 2022
Cash flows
Other non-cash changes
30 November 2023
As restated
£
£
£
£
Cash at bank and in hand
306,372
(256,540)
-
49,832
Borrowings excluding overdrafts
(8,832,915)
1,809,926
(6,700)
(7,029,689)
Obligations under finance leases
(100,778)
24,178
-
(76,600)
(8,627,321)
1,577,564
(6,700)
(7,056,457)
29
Prior period adjustment
Reconciliation of changes in equity
1 December
30 November
2021
2022
Notes
£
£
Adjustments to prior year
Revaluation of freehold property
1
-
(198,623)
Deferred tax on revaluation of freehold property
2
-
49,656
Depreciation not charged on freehold property in prior years
3
(876,750)
(1,057,608)
Reclassify loans due from entities under common control
4
-
-
Reclassify loan due to director
5
-
-
Interest on directors' loan account charged in prior years
6
390,304
459,288
Total adjustments
(486,446)
(747,287)
Equity as previously reported
1,649,212
4,270,121
Equity as adjusted
1,162,766
3,522,834
Analysis of the effect upon equity
Revaluation reserve
-
(148,967)
Retained earnings
(486,446)
(598,320)
(486,446)
(747,287)
LION QUAYS HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2023
29
Prior period adjustment
(Continued)
- 30 -
Reconciliation of changes in profit for the previous financial period
2022
Notes
£
Adjustments to prior year
Revaluation of freehold property
1
-
Deferred tax on revaluation of freehold property
2
-
Depreciation not charged on freehold property in prior years
3
(180,858)
Reclassify loans due from entities under common control
4
-
Reclassify loan due to director
5
-
Interest on directors' loan account charged in prior years
6
68,984
Total adjustments
(111,874)
Profit as previously reported
246,790
Profit as adjusted
134,916
Notes to reconciliation
1. Revaluation of freehold property
The carrying value of the freehold property as at 30 November 2022 was adjusted to reflect the market value of the property as at that date. The adjustment results in a decrease in tangible fixed assets and a decrease in the revaluation reserve by £198,623 in the prior year.
2. Deferred tax on revaluation of freehold property
A deferred tax adjustment is required in line with the revaluation adjustment in note 1 above. This results in a decrease in the deferred tax liability and an increase in the revaluation reserve of £49,656 in the prior year.
3. Depreciation not charged on freehold property in prior years
This is to correct for depreciation on freehold properties in prior year. This correction results in a decrease in retained profit brought forward of £876,750 and a increase in the depreciation charge for the year of £180,858.
4. Reclassify loans due from entities under common control
The loans due from entities under common control in the prior year totalling £1,131,450 have been reclassified from an asset due in more than one year to an asset due within one year. Consequently, the loan amount is now classified as a current asset.
5. Reclassify loan due to director
The loan due to the director in the prior year of £2,369,050 has been reclassified from long-term liabilities to short term liabilities. Consequently, the loan amount is now classified as a current liability.
6. Interest on directors' loan charged in prior periods
This is in respect of interest charged on the directors' loan in prior years. This adjustment results in a decrease in the directors' loan by £459,288, an increase in retained earnings by £390,304 and a decrease in finance costs by £68,985 in the prior year.
2023-11-302022-12-01falsefalsefalseCCH SoftwareCCH Accounts Production 2025.200Dr A BansalMr C R JennoMrs P WalkerMs P WalkerMrs S Bansal097035492022-12-012023-11-3009703549bus:Director12022-12-012023-11-3009703549bus:CompanySecretaryDirector12022-12-012023-11-3009703549bus:Director22022-12-012023-11-3009703549bus:Director32022-12-012023-11-3009703549bus:CompanySecretary12022-12-012023-11-3009703549bus:Director42022-12-012023-11-3009703549bus:RegisteredOffice2022-12-012023-11-30097035492023-11-30097035492021-12-012022-11-3009703549core:DiscontinuedOperations2022-12-012023-11-3009703549core:RetainedEarningsAccumulatedLosses2021-12-012022-11-3009703549core:RetainedEarningsAccumulatedLosses2022-12-012023-11-3009703549core:RevaluationReserve2022-12-012023-11-3009703549core:RevaluationReserve2021-12-012022-11-3009703549core:RevenueReservesInvestmentFundsOnly2021-12-012022-11-3009703549core:ShareCapital2021-12-012022-11-3009703549core:ShareCapital2022-12-012023-11-30097035492022-11-3009703549core:LandBuildingscore:OwnedOrFreeholdAssets2023-11-3009703549core:PlantMachinery2023-11-3009703549core:FurnitureFittings2023-11-3009703549core:ComputerEquipment2023-11-3009703549core:LandBuildingscore:OwnedOrFreeholdAssets2022-11-3009703549core:PlantMachinery2022-11-3009703549core:FurnitureFittings2022-11-3009703549core:ComputerEquipment2022-11-3009703549core:CurrentFinancialInstrumentscore:WithinOneYear2023-11-3009703549core:CurrentFinancialInstrumentscore:WithinOneYear2022-11-3009703549core:Non-currentFinancialInstrumentscore:AfterOneYear2023-11-3009703549core:Non-currentFinancialInstrumentscore:AfterOneYear2022-11-3009703549core:CurrentFinancialInstruments2023-11-3009703549core:CurrentFinancialInstruments2022-11-3009703549core:Non-currentFinancialInstruments2023-11-3009703549core:Non-currentFinancialInstruments2022-11-3009703549core:ShareCapital2023-11-3009703549core:ShareCapital2022-11-3009703549core:RevaluationReserve2023-11-3009703549core:RevaluationReserve2022-11-3009703549core:RetainedEarningsAccumulatedLosses2023-11-3009703549core:RetainedEarningsAccumulatedLosses2022-11-3009703549core:ShareCapital2021-11-3009703549core:RevaluationReserve2021-11-3009703549core:RetainedEarningsAccumulatedLosses2021-11-30097035492021-11-3009703549core:ShareCapitalOrdinaryShareClass12023-11-3009703549core:ShareCapitalOrdinaryShareClass12022-11-300970354912022-12-012023-11-30097035492022-11-3009703549core:Goodwill2022-12-012023-11-3009703549core:LandBuildingscore:OwnedOrFreeholdAssets2022-12-012023-11-3009703549core:PlantMachinery2022-12-012023-11-3009703549core:FurnitureFittings2022-12-012023-11-3009703549core:ComputerEquipment2022-12-012023-11-300970354912021-12-012022-11-3009703549core:UKTax2022-12-012023-11-3009703549core:UKTax2021-12-012022-11-300970354922022-12-012023-11-300970354922021-12-012022-11-3009703549core:Goodwill2022-11-3009703549core:Goodwill2023-11-3009703549core:Goodwill2022-11-3009703549core:LandBuildingscore:OwnedOrFreeholdAssets2022-11-3009703549core:PlantMachinery2022-11-3009703549core:FurnitureFittings2022-11-3009703549core:ComputerEquipment2022-11-3009703549core:WithinOneYear2023-11-3009703549core:WithinOneYear2022-11-3009703549core:BetweenTwoFiveYears2023-11-3009703549core:BetweenTwoFiveYears2022-11-3009703549bus:OrdinaryShareClass12022-12-012023-11-3009703549bus:OrdinaryShareClass12023-11-3009703549bus:OrdinaryShareClass12022-11-3009703549bus:PrivateLimitedCompanyLtd2022-12-012023-11-3009703549bus:FRS1022022-12-012023-11-3009703549bus:Audited2022-12-012023-11-3009703549bus:FullAccounts2022-12-012023-11-30xbrli:purexbrli:sharesiso4217:GBP