The members present their annual report and financial statements for the year ended 31 March 2025.
The LLP owns and operates the Arden Hotel in historic Stratford-upon-Avon. The Arden Hotel is a 45 bedroom luxury hotel located in the heart of the town, directly opposite the world-renowned Royal Shakespeare Company theatre. A second property, Arden House, a 10 bedroom luxury hotel a few minutes' walk away, was in the process of being divested at the year began, and this completed in Feb 2025.
The LLP's members are RSC Estates Limited and Arden Hotel Investments Limited.
RSC Estates Limited is part of the Royal Shakespeare Company ("RSC") group (www.rsc.org.uk). The RSC is a theatre and learning charity that creates world class theatre, made in Stratford-upon-Avon and shared around the world.
Arden Hotel Investments Limited is part of the Eden Hotel Collection group (www.edenhotelcollection.com), which owns or operates a portfolio of five luxury hotels, comprising of Mallory Court Hotel; Bovey Castle Hotel; The Arden Hotel; Brockencote Hall Hotel and The Greenway Hotel & Spa.
Eden Hotel Collection Limited, is a subsidiary of the Rigby Group (RG) plc (Rigby Group). Rigby Group has been at the forefront of transformative change in technology, philanthropy, and sustainable business practices for half a century. Today it is a third-generation family business and Europe’s largest private investor in technology. It is a top ten wholly-owned UK family business and in the top 500 globally, with a diverse portfolio but at our heart a technology-focused business built on our founder’s values of working hard, foresight, and enabling others, shaping industries and contributing to communities for the long term. Further information is available at www.rigbygroupplc.com.
The divestment of Arden House as envisaged at the previous year end did not proceed as planned. However alternative interest later in the year resulted in a sale at a higher price, resulting in a gain on disposal of £208,300, partially offsetting previous impairments. This sale allowed settlement of borrowings and positions the partnership to focus free cash on development of the Hotel asset.
Although the impact is much reduced, the members report that the results for the year continue to need to be considered against the legacy of the disruption associated with the Covid 19 pandemic. Stratford Upon Avon continued to experience reduced footfall compared to pre-pandemic for a longer period than other areas of the country and has not experienced any ‘rebound’ associated with other tourist destinations, instead slowly rebuilding demand.
The members report that turnover during the financial year increased by 9%, primarily from increased occupancy. This improved demand, combined with many activities around staff retention and efficiency resulted in a gross profit margin increased from 35.84% to 40.71%. The significant reduction in overheads from 49% to 31% of turnover was primarily related to the changes in impairment (prior year) and gain on disposal (current year) of the Arden House. Otherwise overheads remained controlled, with increases seen in utilities and from costs associated with divestment of Arden House.
Net assets on the balance sheet are £5,519,668 up from £5,333,171 at March 24.
The members consider that the partnership retains an underlying value as a premier hotel asset in Stratford upon Avon and a plan for various refurbishments will see the performance of the Hotel further improve.
The members' drawing policy allows each member to draw a proportion of their profit share, subject to the cash requirements of the business.
A member's capital requirement is linked to their share of profit and the financing requirement of the limited liability partnership. There is no opportunity for appreciation of the capital subscribed. Just as incoming members introduce their capital at "par", so the retiring members are repaid their capital at "par".
The designated members who held office during the year and up to the date of signature of the financial statements were as follows:
A resolution for the re-appointment of DJH Audit Limited will be proposed at a meeting of the members.
Members may only withdraw capital on the winding up of the LLP.
Drawings may be made quarterly by each member provided that all members approve such drawings. No member may withdraw cash of a higher value than its relevant proportion of profits for the corresponding accounting period
So far as the members are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the LLP's auditors are unaware, and each member has taken all the steps that he ought to have taken as a member in order to make himself aware of any relevant audit information and to establish that the LLP's auditors are aware of that information.
The members are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.
Company law (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008) requires the members to prepare financial statements for each financial year. Under that law the members have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice. Under company law (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008) the members 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 limited liability partnership and of the profit or loss of the limited liability partnership for that period. In preparing these financial statements, the members are required to:
select suitable accounting policies and then apply them consistently;
make judgements and accounting estimates that are reasonable and prudent;
prepare the financial statements on the going concern basis unless it is inappropriate to presume that the limited liability partnership will continue in business.
The members are responsible for keeping adequate accounting records that are sufficient to show and explain the limited liability partnership’s transactions and disclose with reasonable accuracy at any time the financial position of the limited liability partnership and enable them to ensure that the financial statements comply with the Companies Act 2006 (as applied by The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008). They are also responsible for safeguarding the assets of the limited liability partnership and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
We have audited the financial statements of Arden Hotel Waterside LLP (the 'limited liability partnership') for the year ended 31 March 2025 which comprise the profit and loss account, the statement of comprehensive income, the balance sheet, the reconciliation of members' interests, 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).
Basis for opinion
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the members' 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 limited liability partnership’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 members with respect to going concern are described in the relevant sections of this report.
Other information
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 limited liability partnership's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006 as applied by the Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008. Our audit work has been undertaken so that we might state to the limited liability partnership'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 limited liability partnership and the limited liability partnership's members as a body, for our audit work, for this report, or for the opinions we have formed.
The profit and loss account has been prepared on the basis that all operations are continuing operations.
Arden Hotel Waterside LLP is a limited liability partnership incorporated in England and Wales. The registered office is 44 Waterside, Stratford-Upon-Avon, Warwickshire, CV37 6BA.
The limited liability partnership's principal activities are disclosed in the Members' Report.
The financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the requirements of the Statement of Recommended Practice, Accounting by Limited Liability Partnerships. The financial statements have been prepared under the historical cost convention.
The presentation currency of the financial statements is the Pound Sterling (£).
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
At the time of approving the financial statements, the members have a reasonable expectation that the limited liability partnership has adequate resources to continue in operational existence for the foreseeable future. Thus the members continue to adopt the going concern basis of accounting in preparing the financial statements.
Turnover is measured at the fair value of the consideration received or receivable net of VAT and trade discounts. The policy adopted for the recognition of turnover is as follows:
Turnover represents the amount of net invoiced income from accommodation, restaurant and other ancillary sales and is recognised when significant risks and rewards of ownership of the services have transferred to the buyer, the amount of turnover can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the company and the costs incurred or to be incurred in respect of the transaction can be measured reliably.
Tangible fixed assets are stated at cost less accumulated depreciation. Cost includes costs directly attributable to making the asset capable of operating as intended.
Depreciation is provided on all tangible fixed assets at rates calculated to write off the cost less estimated residual value of each asset on a systematic basis over its expected useful life as follows:
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.
Freehold land is not depreciated.
Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit or loss unless the asset is carried at a revalued.
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Stocks are recognised as an expense in the period in which the related turnover is recognised.
Cost is determined on the first-in, first-out (FIFO) method. Cost includes the purchase price, including taxes and duties and transport and handling directly attributable to bringing the stock to its present location and condition.
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.
Cash comprises cash in hand and demand deposits. Cash equivalents are short-term, highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with an insignificant risk of change in value.
Financial liabilities are recognised when the LLP becomes a party to the contractual provisions of the instrument.
Financial liabilities are classified according to the substance of the contractual arrangements entered into.
Financial liabilities are measured at transaction price.
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.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the limited liability partnership 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.
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 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.
Financial liabilities are derecognised when the limited liability partnership’s obligations expire or are discharged or cancelled.
Tax to be paid on the profits arising in the LLP are a personal tax liability of the members of the LLP and therefore are not included as a tax charge or provision within these financial statements.
The LLP provides a range of benefits to employees, including annual bonus arrangements and defined contribution pension plans.
Short term benefits
Short term benefits, including holiday pay and other similar non-monetary benefits, are recognised as an expense in the period in which the service is received.
The LLP operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the LLP pays fixed contributions into a separate entity. Once the contributions have been paid, the LLP has no further payment obligations. The contributions are recognised as an expense when they are due. Amounts not paid are shown in accruals in the balance sheet. The assets of the plan are held separately from the LLP in independently administered funds.
Debtors and Creditors receivable/payable within one year
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.
Loans and borrowings
Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. If an arrangement constitutes a finance transaction it is measured at present value.
Provisions
Provisions are recognised when the company has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated.
In the application of the limited liability partnership’s accounting policies, the members 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.
An analysis of the limited liability partnership's turnover is as follows:
The average number of persons (excluding members) employed by the partnership during the year was:
Their aggregate remuneration comprised:
Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:
Included in the cost of freehold property is freehold land of £2,313,593 (2024 - £2,313,593) which is not depreciated.
Tangible fixed assets with a carrying value of £5,323,053 are pledged as security against any outstanding bank loans.
The LLP has received a small firms guaranteed loan with National Westminster Bank PLC of £900,000 which commenced in January 2022, with monthly repayments of £15,000 and an interest free period to December 2021, to which interest is then charged at 2.34% over the base rate and is due for repayment by December 2026.
The limited liability partnership operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the limited liability partnership in an independently administered fund.
The amounts included within the loan and other debts due to members represents the amounts owed in respect of accumulated profits/(losses).
In the event of a winding up the amounts included in "Loans and other debts due to members" will rank equally with unsecured creditors.
During the year Arden Hotel Waterside LLP undertook the following transactions on normal commercial terms with related parties:
Sales Purchases Debtor at Creditor at
to from 31.03.2025 31.03.2025
Specialist Computer Centres PLC 2,686 7,003 837
Royal Shakespeare Company 95,364 16,762 1,991 3,098
Rigby Group 966 171
Eden Hotel Collection Ltd 145,823 15,342
Mallory Court Hotel Ltd 420 247
Greenway Hotel & Spa 3,138
Arden Hotel Investments Ltd 128,547 39,085
SCC PLC 837
During the year, Arden Hotel Waterside LLP sold freehold property, Arden House for £1,325,000 to the Royal Shakespeare Company, who are the parent company of one of the LLP's members.
During the year the Members entered into an agreement to each lend the LLP £154,000, in addition to the existing loan in place of £150,000 from each Member. £104,000 of this new Member Loan was drawn down by the LLP from each Member and the entire amount of £508,000 (£254,000) was repaid to the Members upon sale of Arden House in the year. These loans incurred an interest charge of £13,630 in favour of each Member which was settled in the year