Company Registration No. 08536317 (England and Wales)
THE DRAGON HOTEL MONTGOMERY LTD
Unaudited financial statements
For the year ended 30th September 2024
Pages for filing with registrar
THE DRAGON HOTEL MONTGOMERY LTD
Contents
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 8
THE DRAGON HOTEL MONTGOMERY LTD
Balance sheet
As at 30 September 2024
- 1 -
30 September 2024
2023
Notes
£
£
£
£
Fixed assets
Intangible assets
5
10,000
10,000
Tangible assets
6
1,081,649
1,104,181
1,091,649
1,114,181
Current assets
Stocks
-
22,894
Debtors
7
5,117
27,584
Cash at bank and in hand
-
0
40,358
5,117
90,836
Creditors: amounts falling due within one year
8
(77,927)
(172,591)
Net current liabilities
(72,810)
(81,755)
Total assets less current liabilities
1,018,839
1,032,426
Creditors: amounts falling due after more than one year
9
(294,809)
(286,127)
Net assets
724,030
746,299
Capital and reserves
Called up share capital
10
642,001
642,001
Profit and loss reserves
82,029
104,298
Total equity
724,030
746,299
THE DRAGON HOTEL MONTGOMERY LTD
Balance sheet (continued)
As at 30 September 2024
- 2 -

For the financial year ended 30 September 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

T he members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

The financial statements were approved by the board of directors and authorised for issue on 3 September 2025 and are signed on its behalf by:
Mr M Cadwallader
Director
Company registration number 08536317 (England and Wales)
THE DRAGON HOTEL MONTGOMERY LTD
Notes to the financial statements
For the year ended 30 September 2024
- 3 -
1
Accounting policies
Company information

The Dragon Hotel Montgomery Ltd is a private company limited by shares incorporated in England and Wales. The registered office is Eagle House, 25 Severn Street, Welshpool, Powys, SY21 7AD.

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 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary a mounts 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 and to include investment properties and certain financial instruments at fair value]. The principal accounting policies adopted are set out below.

1.2
Turnover

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

1.3
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. Revaluation shows value in excess of cost.

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.

1.4
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:

Land and buildings Freehold
Fixtures, fittings & equipment
5 - 15% as appropriate

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

THE DRAGON HOTEL MONTGOMERY LTD
Notes to the financial statements (continued)
For the year ended 30 September 2024
1
Accounting policies
(Continued)
- 4 -
1.5
Impairment of fixed 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.

1.6
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.

1.7
Cash at bank and in hand

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.

1.8
Financial instruments

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

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

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

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.

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 paymen ts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

1.9
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.

Changes in the fair value of derivatives that are designated and qualify as fair value hedges are recognised in profit or loss immediately, together with any changes in the fair value of the hedged asset or liability that are attributable to the hedged risk.

1.10
Taxation

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

THE DRAGON HOTEL MONTGOMERY LTD
Notes to the financial statements (continued)
For the year ended 30 September 2024
1
Accounting policies
(Continued)
- 5 -
Current tax

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

Deferred tax

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

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

1.11
Employee benefits

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

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 lease s 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.

3
Employees

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

2024
2023
Number
Number
Total
1
34
THE DRAGON HOTEL MONTGOMERY LTD
Notes to the financial statements (continued)
For the year ended 30 September 2024
- 6 -
4
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
-
0
2,977
Adjustments in respect of prior periods
-
0
(7,504)
Total current tax
-
0
(4,527)
5
Intangible fixed assets
Goodwill
£
Cost
At 1 October 2023 and 30 September 2024
10,000
Amortisation and impairment
At 1 October 2023 and 30 September 2024
-
0
Carrying amount
At 30 September 2024
10,000
At 30 September 2023
10,000

Goodwill not amortised as revaluation shows value in excess of cost.

6
Tangible fixed assets
Land and buildings Freehold
Fixtures, fittings & equipment
Total
£
£
£
Cost
At 1 October 2023 and 30 September 2024
973,729
269,054
1,242,783
Depreciation and impairment
At 1 October 2023
-
0
138,602
138,602
Depreciation charged in the year
-
0
22,532
22,532
At 30 September 2024
-
0
161,134
161,134
Carrying amount
At 30 September 2024
973,729
107,920
1,081,649
At 30 September 2023
973,729
130,452
1,104,181
THE DRAGON HOTEL MONTGOMERY LTD
Notes to the financial statements (continued)
For the year ended 30 September 2024
- 7 -
7
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
-
4,331
Other debtors
5,117
23,253
5,117
27,584
8
Creditors: amounts falling due within one year
2024
2023
£
£
Bank loans and overdrafts
58,589
18,000
Trade creditors
15,295
49,066
Corporation tax
-
0
4,999
Other taxation and social security
1,420
50,331
Other creditors
2,623
50,195
77,927
172,591
9
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Bank loans
169,809
240,079
Shareholder's loan
125,000
60,000
294,809
300,079
10
Called up share capital
2024
2023
£
£
Ordinary share capital
Issued and fully paid
290001 ordinary shares of £1 each
290,001
282,501
issued
7,500
290,001
290,001
Preference share capital
Issued and fully paid
Preference shares classified as equity
352,000
352,000
Total equity share capital
642,001
642,001
THE DRAGON HOTEL MONTGOMERY LTD
Notes to the financial statements (continued)
For the year ended 30 September 2024
- 8 -
11
Related party transactions
During the year,the company received invoices for accounting services totalling £7000 from cadwallader & Co LLP,an accounting practice in which one of the directors and shareholders,Mr M J Cadwallader,is a partner.The balance outstanding and included in creditors at the year end was £2000.
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