Company registration number SC598864 (Scotland)
STRATHMORE LEISURE LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
STRATHMORE LEISURE LIMITED
CONTENTS
Page
Company information
1
Strategic report
2 - 3
Director's report
4 - 6
Independent auditor's report
7 - 9
Group statement of comprehensive income
10
Group balance sheet
11
Company balance sheet
12
Group statement of changes in equity
13
Company statement of changes in equity
14
Group statement of cash flows
15
Notes to the financial statements
16 - 32
STRATHMORE LEISURE LIMITED
COMPANY INFORMATION
- 1 -
Director
Mr CL Rickard
Company number
SC598864
Registered office
116 Strathmore House
East Kilbride
UK
G74 1LF
Auditor
Consilium Audit Limited
169 West George Street
Glasgow
Scotland
G2 2LB
STRATHMORE LEISURE LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 2 -

The director presents the strategic report for the year ended 31 December 2023.

Review of the business

2023 saw a continuation of increasing costs due to the War in Ukraine pushing energy costs upwards. Continued supply chain issues also saw significant inflationary pressures and by extension interest rate increases. However due to Strathmore Hotels historic strategy of only operating units within key tourist and conference locations the company was, and is, always placed well to recover swiftly from any forced restriction on trade. In turn, the Company has always maintained prudence and risk aversion in terms of Borrowing so low LTV’s have always been maintained. This, coupled with shift away in 2014 in relying on fossil fuels as it’s primary energy source, means that, although the company has experienced significant increases in costs – the company is as well placed as any other to cope, and absorb, such increasing cost pressures.

Principal risks and uncertainties

Operating Climate

The Directors regard the group as having a strong and stable customer base. The majority of the customers are UK and European based. Guest demographic and strong location of the hotels maintains a demand that the directors believe assures the group’s core business. The principle risk in the medium term is the continuing economic climate.

 

Interest Rate risk

The Group finances it operations through a mixture of retained profits and bank borrowings. It is the group’s policy to undertake borrowings on the basis of variable interest rate facilities. The performance of the company during the pandemic and its consequential lack of requirement of extra borrowing, government assistance (i.e CBILS loan etc) , coupled with its long term strategy of minimising Loan to Value (LTV), means the directors are confident that the overall resources of the company are sufficient to enable it absorb any potential adverse change in interest rate.

 

Energy Costs

The war in Ukraine, coupled with a sharp increase of post pandemic demand for Oil and Gas has resulted in record high prices of fossil fuel. In 2014 the Directors decided to convert the hotels primary energy source from Gas to sustainable Biomass. This conversion has been extremely successful and has been operating well for several years. As a result, the Directors are confident that the company is well placed to avoid extreme energy costs due to its lack of reliance on Gas. 2023 saw the completion of installation and certification of a new Biomass system at the Ben Wyvis Hotel in Strathpeffer, replacing the aging Oil Heating system that was in situ. This new system, in addition to being sustainable, will see a significant decrease in energy costs and efficient at the site.

Key performance indicators

An analysis of the company's key performance indicators is as follows:

 

 

 

2023

2022

 

£m

£m

Turnover

19.2

17.6

Gross profit

8.2

7.1

Operating profit

2.4

2.3

Profit before tax

1.3

1.8

Interest cover

2.4

4.5

Net assets

11.0

9.8

Bed Occupancy

 

63%

62%

Future developments

The directors will continue with current management policies which have resulted in the group's growth in recent years.

STRATHMORE LEISURE LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 3 -
Section 172 Statement

The likely consequences of any decision in the long term

The directors are fully committed to the long-term sustainability of the company. This is evidenced by recent hotel additions and the continuing refurbishment of the hotel portfolio. All strategic decisions are made with a long term focus in mind.

 

The interests of the company's employees

The directors recognise the role the employees play in delivering customer service to guests through not only

customer-facing roles, but also in back-office administration and maintenance of the buildings and grounds.

 

We are active in training and motivating our workforce to retain our employees and provide the level of service that we pride ourselves in.

 

The impact of the company's operations on the community and the environment

We are committed to supporting the communities that we are based in and being environmentally responsible.

 

The importance of the company's business relationships with suppliers, customers and others

We aim to give a high level of service to our customers. Guest feedback is sought by way of satisfaction questionnaires and KPls.

 

There are a number of key suppliers that maintain engagement with the individual hotels. We work closely with our regular suppliers and maintain regular contact by phone and email.

 

The desirability of the company maintaining a reputation for high standards of business conduct

The directors are determined to ensure that the business operates to the highest standards possible. The directors review performance regularly to ensure that the business is able to meet these standards.

 

The need to act fairly between members of the company

The directors and members work closely together to ensure that all relevant parties are consulted when determining a course of action for the business.

 

 

On behalf of the board

Mr CL Rickard
Director
24 July 2025
STRATHMORE LEISURE LIMITED
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2023
- 4 -

The director presents his annual report and financial statements for the year ended 31 December 2023.

Principal activities

The principal activity of the company and group continued to be that of a holding company. The group's principal activity is that of owning and operating hotels.

Results and dividends

The results for the year are set out on page 10.

No ordinary dividends were paid. The director does not recommend payment of a further dividend.

Director

The director who held office during the year and up to the date of signature of the financial statements was as follows:

Mr CL Rickard
Disabled persons

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the group continues and that the appropriate training is arranged. It is the policy of the group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Employee involvement

The group's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.

 

Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance..

Auditor

Consilium Audit Limited were appointed as auditor to the company and are deemed to be reappointed under section 487(2) of the Companies Act 2006.

Energy and carbon report

The director recognises that the group has a responsbility to the environment and endeavours to be as environmentally friendly as possible in carrying out the group's business activities.

 

Scope 1 emissions are direct emissions from sources that are owned or controlled by the group (e.g hotels). Scope 2 emissions are indirect emissions from sources that are not owned or controlled by the group (e.g purchased electricity).

STRATHMORE LEISURE LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 5 -
Energy Use and Greenhouse Gas Emission
Results
Results
Category
2023
2022
Purchased electricity consumption (kWh)
2,425,164
2,544,227
Gas consumption (kWh)
682,909
2,234,684
Biomass (kWh)
4,806,015
4,786,855
Oil (kWh)
1,712,420
409,299
Total energy consumption used to calculate emissions (kWh)
9,626,508
9,975,065
Emissions from combustion of gas (Scope 1) (tCO2kg)
153
430
Emissions from purchased electricity (Scope 2) (tCO2kg)
492
541
Emissions from Biomass (Scope 1) (tCO2kg)
51
72
Emissions from Oil (Scope 1) (tCO2kg)
436
110
Total Gross CO2kg based on above (tCO2kg)
1,132
1,153
Quantification and reporting methodology

Our scope 1 and scope 2 energy use and greenhouse gas emissions data for 2022 has been produced by the director from information maintained by the group.

 

To calculate the footprint, data was collated from across the group and from our suppliers to identify the amount of energy used in our operations. The group uses the most robust and accurate data source available for each component of its energy use and carbon emission calculations. Assumptions and estimations are only used when strictly necessary by means of the most robust data and assumptions available.

 

Our market based data conversion factors are taken directly from each supplier's annual fuel mix disclosure statement as illustrated below.

 

Other conversion factors are taken from the UK government's conversion factors 2021.

 

Greenhouse gas emissions are calculated in line with GHG Reporting Protocol - Corporate standard and reported in line with the UK Government's guidance on Streamlined Energy and Carbon Reporting and mandatory GHG reporting guidance.

Statement of director's responsibilities

The director is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the director is required to:

 

 

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STRATHMORE LEISURE LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 6 -
Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

On behalf of the board
Mr CL Rickard
Director
24 July 2025
STRATHMORE LEISURE LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF STRATHMORE LEISURE LIMITED
- 7 -
Opinion

We have audited the financial statements of Strathmore Leisure Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2023 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including 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:

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 group and parent 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 director's 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 group's and parent 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 director 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 director is 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:

STRATHMORE LEISURE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF STRATHMORE LEISURE LIMITED
- 8 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's 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:

Responsibilities of director

As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the director either intends to liquidate the parent company or to cease operations, or has 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.

 

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

 

 

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence.

STRATHMORE LEISURE LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF STRATHMORE LEISURE LIMITED
- 9 -

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

David Holt (Senior Statutory Auditor)
For and on behalf of Consilium Audit Limited, Statutory Auditor
169 West George Street
Glasgow
G2 2LB
Scotland
30 July 2025
STRATHMORE LEISURE LIMITED
GROUP STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2023
- 10 -
2023
2022
Notes
£
£
Turnover
3
19,188,027
17,613,576
Cost of sales
(10,975,806)
(10,471,883)
Gross profit
8,212,221
7,141,693
Administrative expenses
(5,853,152)
(4,847,557)
Operating profit
4
2,359,069
2,294,136
Interest payable and similar expenses
8
(1,000,925)
(504,580)
Profit before taxation
1,358,144
1,789,556
Tax on profit
9
(205,187)
18,979
Profit for the financial year
1,152,957
1,808,535
Profit for the financial year is attributable to:
- Owners of the parent company
1,105,096
1,716,122
- Non-controlling interests
47,861
92,413
1,152,957
1,808,535
Total comprehensive income for the year is attributable to:
- Owners of the parent company
1,105,096
1,716,122
- Non-controlling interests
47,861
92,413
1,152,957
1,808,535
STRATHMORE LEISURE LIMITED
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2023
31 December 2023
- 11 -
2023
2022
Notes
£
£
£
£
Fixed assets
Goodwill
10
-
0
(1,129,392)
Tangible assets
11
31,735,029
31,870,783
31,735,029
30,741,391
Current assets
Stocks
14
694,837
676,622
Debtors
15
3,512,285
3,553,083
Cash at bank and in hand
20,057
19,649
4,227,179
4,249,354
Creditors: amounts falling due within one year
16
(5,444,425)
(5,369,975)
Net current liabilities
(1,217,246)
(1,120,621)
Total assets less current liabilities
30,517,783
29,620,770
Creditors: amounts falling due after more than one year
17
(15,178,401)
(15,515,010)
Provisions for liabilities
Deferred tax liability
19
4,306,172
4,225,507
(4,306,172)
(4,225,507)
Net assets
11,033,210
9,880,253
Capital and reserves
Called up share capital
21
2,383,139
2,383,139
Capital redemption reserve
950,000
600,000
Profit and loss reserves
5,159,355
4,404,259
Equity attributable to owners of the parent company
8,492,494
7,387,398
Non-controlling interests
2,540,716
2,492,855
Total equity
11,033,210
9,880,253
The financial statements were approved and signed by the director and authorised for issue on 24 July 2025
24 July 2025
Mr CL Rickard
Director
Company registration number SC598864 (Scotland)
STRATHMORE LEISURE LIMITED
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2023
31 December 2023
- 12 -
2023
2022
Notes
£
£
£
£
Fixed assets
Investments
12
10,741,916
10,741,916
Current assets
Debtors
15
250,000
-
0
Cash at bank and in hand
408
-
0
250,408
-
0
Creditors: amounts falling due within one year
16
(2,638,252)
(2,027,308)
Net current liabilities
(2,387,844)
(2,027,308)
Total assets less current liabilities
8,354,072
8,714,608
Creditors: amounts falling due after more than one year
17
(4,991,243)
(5,462,155)
Net assets
3,362,829
3,252,453
Capital and reserves
Called up share capital
21
2,383,139
2,383,139
Capital redemption reserve
950,000
600,000
Profit and loss reserves
29,690
269,314
Total equity
3,362,829
3,252,453

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £110,376 (2022 - £89,596 loss).

The financial statements were approved and signed by the director and authorised for issue on 24 July 2025
24 July 2025
Mr CL Rickard
Director
Company registration number SC598864 (Scotland)
STRATHMORE LEISURE LIMITED
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 13 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total controlling interest
Non-controlling interest
Total
Notes
£
£
£
£
£
£
Balance at 1 January 2022
2,383,139
380,000
2,908,137
5,671,276
2,400,442
8,071,718
Year ended 31 December 2022:
Profit and total comprehensive income
-
-
1,716,122
1,716,122
92,413
1,808,535
Redemption of shares
21
-
220,000
(220,000)
-
0
-
-
Balance at 31 December 2022
2,383,139
600,000
4,404,259
7,387,398
2,492,855
9,880,253
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
1,105,096
1,105,096
47,861
1,152,957
Redemption of shares
21
-
350,000
(350,000)
-
0
-
-
Balance at 31 December 2023
2,383,139
950,000
5,159,355
8,492,494
2,540,716
11,033,210
STRATHMORE LEISURE LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023
- 14 -
Share capital
Capital redemption reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2022
2,383,139
380,000
578,910
3,342,049
Year ended 31 December 2022:
Loss and total comprehensive income for the year
-
-
(89,596)
(89,596)
Redemption of shares
21
-
220,000
(220,000)
-
0
Balance at 31 December 2022
2,383,139
600,000
269,314
3,252,453
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
110,376
110,376
Redemption of shares
21
-
350,000
(350,000)
-
0
Balance at 31 December 2023
2,383,139
950,000
29,690
3,362,829
STRATHMORE LEISURE LIMITED
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 15 -
2023
2022
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
27
1,682,837
1,545,503
Interest paid
(1,000,925)
(504,580)
Income taxes (paid)/refunded
(322,422)
3,984
Net cash inflow from operating activities
359,490
1,044,907
Investing activities
Purchase of tangible fixed assets
(958,895)
(765,594)
Amounts advanced to directors
(226,579)
-
Net cash used in investing activities
(1,185,474)
(765,594)
Financing activities
Repayment of preference shares
(350,000)
(220,000)
Proceeds from new bank loans
1,000,000
-
Repayment of bank loans
(936,612)
(979,217)
Net cash used in financing activities
(286,612)
(1,199,217)
Net decrease in cash and cash equivalents
(1,112,596)
(919,904)
Cash and cash equivalents at beginning of year
(858,730)
61,174
Cash and cash equivalents at end of year
(1,971,326)
(858,730)
Relating to:
Cash at bank and in hand
20,057
19,649
Bank overdrafts included in creditors payable within one year
(1,991,383)
(878,379)
STRATHMORE LEISURE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2023
- 16 -
1
Accounting policies
Company information

Strathmore Leisure Limited (“the company”) is a private limited company domiciled and incorporated in Scotland. The registered office is .

 

The group consists of Strathmore Leisure Limited and all of its subsidiaries.

1.1
Accounting convention

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

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

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

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

 

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

STRATHMORE LEISURE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 17 -
1.3
Basis of consolidation

The consolidated group financial statements consist of the financial statements of the parent company Strathmore Leisure Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.

 

All financial statements are made up to 31 December 2023. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

 

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

1.4
Going concern

At the time of approving the financial statements, the director has a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

1.5
Turnover

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the company and the revenue can be reliably measured. Turnover is measured 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.

 

Room revenue is recognised at the point at which the rooms are occupied, whilst food and beverage sales are recognised at the point of sale.

1.6
Intangible fixed assets - goodwill

Negative goodwill represents the difference between the cost of acquisition of a business and the fair value of net assets acquired. Subsequent to initial recognition, negative goodwill is measured at cost less accumulated amortisation. Negative goodwill is amortised over 5 years, being the average period over which the group's non monetary assets are recovered.

1.7
Tangible fixed assets

Tangible fixed assets 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
Over 50 years
Leasehold properties
Over 20 years
Fixtures and fittings
Over 5 -30 years
Motor vehicles
Over 4 years

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

STRATHMORE LEISURE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 18 -

Properties whose fair value can be measured reliably are held under the revaluation model and are carried at a revalued amount, being their fair value at the date of valuation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The fair value of the land and buildings is usually considered to be their market value.

 

Revaluation gains and losses are recognised in other comprehensive income and accumulated in equity, except to the extent that a revaluation gain reverses a revaluation loss previously recognised in profit or loss or a revaluation loss exceeds the accumulated revaluation gains recognised in equity; such gains and loss are recognised in profit or loss.

 

1.8
Fixed asset investments

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

1.9
Impairment of fixed assets

At each reporting period end date, the group 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.

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.10
Stocks

Stocks 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 stocks to their present location and condition.

STRATHMORE LEISURE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 19 -

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

1.11
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.

1.12
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

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.

Classification of financial liabilities

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

STRATHMORE LEISURE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 20 -
Basic financial liabilities

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

1.13
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

1.14
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.15
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 fixed 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.

STRATHMORE LEISURE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
1
Accounting policies
(Continued)
- 21 -
1.16
Retirement benefits

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

1.17
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 balance sheet 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 leased asset are consumed.

1.18
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the director is 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.

STRATHMORE LEISURE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
2
Judgements and key sources of estimation uncertainty
(Continued)
- 22 -
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.

Property valuations

Individual freehold and leasehold properties are carried at fair value at the balance sheet date. A full valuation is obtained on a regular basis, and in any year where it is likely that there has been a material change in value. In years where no valuation is performed an assessment of valuation is carried out by the directors in light of current market conditions.

 

The carrying value of tangible fixed assets carried at valuation is outlined at note 11.

Depreciation

The estimates and assumptions made to determine asset lives require judgements to be made as regards to useful lives and residual values. The useful lives and residual values of the company's fixed assets are determined by management at the time the asset is acquired and reviewed annually for appropriateness. The lives are based on historical experience with similar assets. Historically, changes in useful lives have not resulted in material changes to the company's depreciation charge.

 

The depreciation charge in the year is outlined at note 11.

Negative goodwill

Negative goodwill is written off over the period from which the group's non-monetary assets are recovered. As the non-monetary assets exceeded the amount of negative goodwill at the point of acquisition, judgement is required in determining which of the non-monetary assets the negative goodwill should be matched against. The director has applied those assets with the shortest useful lives in arriving at an estimated average period of five years.

 

The carrying value of negative goodwill at the reporting date is outlined at note 10.

Carrying value of investments (company only)

The company holds an investment in subsidiary which is initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The director reviews the investment on an annual basis for any indicators of impairment.

 

The carrying value of the company's investment at the reporting date is outlined at note 12.

3
Turnover
2023
2022
£
£
Turnover analysed by class of business
Owning and operating hotels
19,188,027
17,613,576
4
Operating profit
2023
2022
£
£
Operating profit for the year is stated after charging/(crediting):
Depreciation of owned tangible fixed assets
1,111,648
1,118,377
Amortisation of intangible assets
(1,129,392)
(1,129,390)
Operating lease charges
135,430
133,683
STRATHMORE LEISURE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 23 -
5
Auditor's remuneration
2023
2022
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
6,500
5,000
Audit of the financial statements of the company's subsidiaries
24,500
26,825
31,000
31,825
For other services
Taxation compliance services
4,500
7,500
6
Employees

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

Group
Company
2023
2022
2023
2022
Number
Number
Number
Number
Hotels
406
366
-
-
Administration
10
11
1
1
Total
416
377
1
1

Their aggregate remuneration comprised:

Group
Company
2023
2022
2023
2022
£
£
£
£
Wages and salaries
6,866,758
6,562,340
-
0
-
0
Social security costs
526,514
451,911
-
-
Pension costs
137,196
129,689
-
0
-
0
7,530,468
7,143,940
-
0
-
0
7
Director's remuneration
2023
2022
£
£
Remuneration for qualifying services
85,000
85,000
Company pension contributions to defined contribution schemes
1,321
1,321
86,321
86,321
STRATHMORE LEISURE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 24 -
8
Interest payable and similar expenses
2023
2022
£
£
Interest on bank overdrafts and loans
962,553
463,357
Other interest on financial liabilities
38,372
41,223
Total finance costs
1,000,925
504,580
9
Taxation
2023
2022
£
£
Current tax
UK corporation tax on profits for the current period
124,522
164,105
Adjustments in respect of prior periods
-
0
(19,229)
Total current tax
124,522
144,876
Deferred tax
Origination and reversal of timing differences
80,665
95,245
Adjustment in respect of prior periods
-
0
(259,100)
Total deferred tax
80,665
(163,855)
Total tax charge/(credit)
205,187
(18,979)

The actual charge/(credit) 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
£
£
Profit before taxation
1,358,144
1,789,556
Expected tax charge based on the standard rate of corporation tax in the UK of 23.52% (2022: 19.00%)
319,435
340,016
Tax effect of expenses that are not deductible in determining taxable profit
(256,608)
(203,334)
Adjustments in respect of prior years
-
0
(19,229)
Other permanent differences
-
0
(82)
Deferred tax adjustments in respect of prior years
-
0
(259,100)
Fixed asset differences
137,585
99,549
Remeasurement of deferred tax for changes in rates
4,775
23,201
Taxation charge/(credit)
205,187
(18,979)
STRATHMORE LEISURE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 25 -
10
Intangible fixed assets
Group
Goodwill
£
Cost
At 1 January 2023 and 31 December 2023
(5,684,851)
Amortisation and impairment
At 1 January 2023
(4,555,459)
Amortisation charged for the year
(1,129,392)
At 31 December 2023
(5,684,851)
Carrying amount
At 31 December 2023
-
0
At 31 December 2022
(1,129,392)
The company had no intangible fixed assets at 31 December 2023 or 31 December 2022.
11
Tangible fixed assets
Group
Freehold land and buildings
Leasehold properties
Fixtures and fittings
Motor vehicles
Total
£
£
£
£
£
Cost or valuation
At 1 January 2023
27,488,255
6,141,891
2,995,929
65,361
36,691,436
Additions
-
0
-
0
898,736
77,158
975,894
At 31 December 2023
27,488,255
6,141,891
3,894,665
142,519
37,667,330
Depreciation and impairment
At 1 January 2023
2,856,913
806,891
1,091,488
65,361
4,820,653
Depreciation charged in the year
668,052
165,914
270,850
6,832
1,111,648
At 31 December 2023
3,524,965
972,805
1,362,338
72,193
5,932,301
Carrying amount
At 31 December 2023
23,963,290
5,169,086
2,532,327
70,326
31,735,029
At 31 December 2022
24,631,342
5,335,000
1,904,441
-
0
31,870,783
The company had no tangible fixed assets at 31 December 2023 or 31 December 2022.
STRATHMORE LEISURE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
11
Tangible fixed assets
(Continued)
- 26 -

Included in freehold property is freehold land at a a cost of £11,302,957 (2022 - £11,302,957).

 

As at 1 June 2021 the group's hotel properties and leasehold properties were valued by JLL, independent valuers and surveyors, on a fair value basis. The hotels were valued as fully equipped operational entities having regard to trading potential. Leasehold properties includes the Cairn Hotel valued on a leasehold interest basis. Valuations were undertaken in accordance with the RICS Appraisal and Valuation Manual. In assessing fair value of the company's hotels, multiples are applied to the maintainable operating profits for each hotel, with an adjustment made for capital expenditure. In making their fair value assessment at the reporting date, the directors have considered the June 2021 valuations and subsequent events and are satisfied that the carrying values stated above represent an appropriate fair value.

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
£
£
Group
Cost
28,052,342
28,052,342
Accumulated depreciation
(6,608,140)
(6,047,093)
Carrying value
21,444,202
22,005,249
12
Fixed asset investments
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Investments in subsidiaries
13
-
0
-
0
10,741,916
10,741,916
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2023 and 31 December 2023
10,741,916
Carrying amount
At 31 December 2023
10,741,916
At 31 December 2022
10,741,916
13
Subsidiaries

Details of the company's subsidiaries at 31 December 2023 are as follows:

STRATHMORE LEISURE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
13
Subsidiaries
(Continued)
- 27 -
Name of undertaking
Registered office
Nature of business
Class of
% Held
shares held
Direct
Indirect
Strathmore Hotels (Scotland) Limited
116 Strathmore House, East Kilbride, G74 1LF
Non-trading holding company
Ordinary
88.00
-
Strathmore Hotels Limited
116 Strathmore House, East Kilbride, G74 1LF
Owning and operating hotels
Ordinary
0
88.00
JLC Estates Limited
116 Strathmore House, East Kilbride, G74 1LF
Land development
Ordinary
100.00
-

JLC Estates Limited has taken the exemption available under section 479A of the Companies Act 2006 not to have their individual financial statements audited.

14
Stocks
Group
Company
2023
2022
2023
2022
£
£
£
£
Land held for sale
387,870
387,870
-
-
Finished goods and goods for resale
306,967
288,752
-
0
-
0
694,837
676,622
-
-
15
Debtors
Group
Company
2023
2022
2023
2022
Amounts falling due within one year:
£
£
£
£
Trade debtors
453,471
330,681
-
0
-
0
Amounts owed by group undertakings
-
-
250,000
-
Other debtors
2,488,136
2,595,444
-
0
-
0
Prepayments and accrued income
570,678
626,958
-
0
-
0
3,512,285
3,553,083
250,000
-
STRATHMORE LEISURE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 28 -
16
Creditors: amounts falling due within one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
18
2,940,495
1,777,494
120,912
120,912
Obligations under finance leases
16,999
-
0
-
0
-
0
Trade creditors
737,634
1,617,339
-
0
-
0
Amounts owed to group undertakings
-
0
-
0
2,424,062
1,659,230
Corporation tax payable
204,287
402,187
-
0
-
0
Other taxation and social security
968,785
895,777
-
-
Other creditors
351,125
392,546
-
0
192,260
Accruals and deferred income
225,100
284,632
93,278
54,906
5,444,425
5,369,975
2,638,252
2,027,308
17
Creditors: amounts falling due after more than one year
Group
Company
2023
2022
2023
2022
Notes
£
£
£
£
Bank loans and overdrafts
18
11,002,428
10,989,037
1,248,770
1,369,682
Other borrowings
18
4,175,973
4,525,973
3,742,473
4,092,473
15,178,401
15,515,010
4,991,243
5,462,155
18
Loans and overdrafts
Group
Company
2023
2022
2023
2022
£
£
£
£
Bank loans
11,951,540
11,888,152
1,369,682
1,490,594
Bank overdrafts
1,991,383
878,379
-
0
-
0
Preference shares
4,175,973
4,525,973
3,742,473
4,092,473
18,118,896
17,292,504
5,112,155
5,583,067
Payable within one year
2,940,495
1,777,494
120,912
120,912
Payable after one year
15,178,401
15,515,010
4,991,243
5,462,155

 

STRATHMORE LEISURE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
18
Loans and overdrafts
(Continued)
- 29 -

In September 2022, the group refinanced its bank borrowings to new £12.1m, 3 year facilities with interest payable at 2.7% above base rate. £2.9m of the loans are repayable in quarterly instalments, with the remaining £9.2m repayable at the maturity date.

 

The bank loans and overdrafts are secured by standard securities and debentures over the group's hotel properties, together with a bond and floating charge over the assets of the group.

19
Deferred taxation

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

Liabilities
Liabilities
2023
2022
Group
£
£
Accelerated capital allowances
2,288,049
2,207,384
Tax losses
2,018,123
2,018,123
4,306,172
4,225,507
The company has no deferred tax assets or liabilities.
Group
Company
2023
2023
Movements in the year:
£
£
Liability at 1 January 2023
4,225,507
-
Charge to profit or loss
80,665
-
Liability at 31 December 2023
4,306,172
-

 

20
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
137,196
129,689

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

STRATHMORE LEISURE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 30 -
21
Share capital
Group and company
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
2,383,139
2,383,139
2,383,139
2,383,139
2023
2022
2023
2022
Preference share capital
Number
Number
£
£
Issued and fully paid
A preference shares of £1 each
1,467,915
1,467,915
1,467,915
1,467,915
B preference shares of £1 each
1,251,873
1,601,873
1,251,873
1,601,873
C preference shares of £1 each
1,022,685
1,022,685
1,022,685
1,022,685
3,742,473
4,092,473
3,742,473
4,092,473
Preference shares classified as liabilities
3,742,473
4,092,473

The A and B preference shares carry a fixed cumulative preferential dividend at the rate of 1.25% per annum which is payable within 14 days of the company's financial year-end. If the company is not lawfully permitted to pay the dividend as a result of insufficient profits, the amount unpaid will be a debt due by the company and will accrue interest at the rate of 2.5% above the base lending rate of Royal Bank of Scotland PLC. The C preference shares, to the extent that they have not been redeemed, carry a right to a fixed cumulative preferential dividend from 31 August 2025 at the rate of 1.25% per annum which is payable within 14 days of the company's financial year-end. If the company is not lawfully permitted to pay the dividend as a result of insufficient profits, the amount unpaid will be a debt due by the company and will accrued interest at the rate of 2.5% above the base lending rate of Royal Bank of Scotland PLC.

 

On a winding up or sale, the holders of A,B and C preference shares have priority before all other classes of shares to receive repayment of capital plus any arrears of dividends.

 

The A and C preference shares have redemption rights, some of which are dependent on various events as details in the company's Articles of Association. No redemption notice can be served on the company prior to the repayment of certain directors loan balances. B preference shares have an annual redemption entitlement up to a maximum of £300,000 per B preference shareholder. They are automatically redeemed on the 7th anniversary of issue or on the occurrence of various events as detailed in the company's Articles of Association.

 

During 2023, £350,000 of B preference shares were redeemed.

22
Contingent liabilities

The company has provided guarantees in respect of bank borrowings of its subsidiary companies, Strathmore Hotels (Scotland) Limited and Strathmore Hotels Limited. The amount outstanding in respect of these guarantees at 31 December 2023 was £12,573,241 (2022: £11,275,937).

23
Operating lease commitments
Lessee

At 31 December 2023 the group had a lease for the Cairn Hotel, Harrogate. The period remaining is 78 years and the total amount payable is £8,852,118 (2022 - £8,967,118). The repayment profile of the lease is a payment of £115,000 per annum.

STRATHMORE LEISURE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 31 -
24
Related party transactions

The Company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

 

Included within amounts owed to group undertakings within note 16 is £2,424,062 (2022 - £1,659,230) owed to group undertakings not part of the wholly owned group.

 

Included within other debtors is £nil (2022 - £393,062) owed by connected companies.

 

Included within other creditors is £140,358 (2022 - £47,582) owed to connected companies.

25
Directors' transactions

The director had an interest free loan during the year. The loan is repayable on demand. The amounts repayable to the group at the balance sheet date was as follows:

Description
% Rate
Opening balance
Amounts advanced
Closing balance
£
£
£
Mr CL Rickard - Loan
-
90,158
226,579
316,737
90,158
226,579
316,737
26
Controlling party

The ultimate controlling party is Mr C Rickard by virtue of his 100% holding in the ordinary share capital of the company.

27
Cash generated from group operations
2023
2022
£
£
Profit after taxation
1,152,957
1,808,535
Adjustments for:
Taxation charged/(credited)
205,187
(18,979)
Finance costs
1,000,925
504,580
Amortisation and impairment of intangible assets
(1,129,392)
(1,129,390)
Depreciation and impairment of tangible fixed assets
1,111,648
1,118,377
Movements in working capital:
Increase in stocks
(18,215)
(77,381)
Decrease/(increase) in debtors
267,377
(1,080,044)
(Decrease)/increase in creditors
(907,650)
419,805
Cash generated from operations
1,682,837
1,545,503
STRATHMORE LEISURE LIMITED
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2023
- 32 -
28
Analysis of changes in net debt - group
1 January 2023
Cash flows
New finance leases
31 December 2023
£
£
£
£
Cash at bank and in hand
19,649
408
-
20,057
Bank overdrafts
(878,379)
(1,113,004)
-
(1,991,383)
(858,730)
(1,112,596)
-
(1,971,326)
Borrowings excluding overdrafts
(16,414,125)
286,612
-
(16,127,513)
Obligations under finance leases
-
-
(16,999)
(16,999)
(17,272,855)
(825,984)
(16,999)
(18,115,838)
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