The director presents the strategic report for the period ended 30 September 2024.

The principal activity of the company is the running of a hotel, restaurant and bar in Bournemouth.

During the period, the company operated The Royal Exeter Hotel, the 1812 restaurant, and the Barso bar in Bournemouth, Dorset.

All turnover, and consequently profit, is derived from these operations within the United Kingdom.

The director considers that the company's financial position at the end of the period is satisfactory.

The principal risks and uncertainties facing the company arise from:

• the competitive markets in which the company operates which continue to place pressure on margins; and

• the general economic environment, including customers' overall level of disposable income and spending patterns.

On behalf of the board

The director presents his report for the period ended 30 September 2024.

The results for the period are set out on page 8.

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

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

The business is subject to certain financial risks, but has procedures and controls in place to mitigate these risks:

The company maintains a mixture of long-term group financing and short term bank overdraft facilities that are designed to ensure the company has sufficient available funds for present and planned future operations.

The company has both interest bearing assets and interest bearing liabilities. As at the balance sheet date the long term loan from Halix Pension Fund amounted to £nil (2023 - £39,000) with interest charged annually at 4% above the bank base rate. The business incurs minimal external interest charges. With limited external borrowing, the impact of interest rate changes is seen as a minimal risk.

The company works continually to improve the assessment of trading levels and credit risk which includes regular credit rating checks. Payment reliability remains high with a continued very low exposure to bad debts.

The director intends for the company to continue operating with its existing activities, whilst taking advantage of opportunities as they arise.

In accordance with the company's articles, a resolution proposing that Whitley Stimpson Limited be reappointed as auditor of the company will be put at a General Meeting.

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of the future developments of the company.

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

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 company and of the profit or loss of the company for that period. In preparing these financial statements, the director is 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 company will continue in business.

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

We have audited the financial statements of Halix Limited (the 'company') for the period ended 30 September 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the company's affairs as at 30 September 2024 and of its loss for the period then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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 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:

• the information given in the strategic report and the director's report for the financial period for which the financial statements are prepared is consistent with the financial statements; and

• the strategic report and the director's report have been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the 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:

• adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

• the financial statements are not in agreement with the accounting records and returns; or

• certain disclosures of director's remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit.

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 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 company or to cease operations, or has no realistic alternative but to do so.

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.

Based on our understanding of the company and its industry, we identified that the principal risks of non-compliance with laws and regulations related to the risk of revenue recognition being materially misstated due to fraud. We considered the extent to which non-compliance might have a material effect on the financial statements, and considered those laws and regulations that have a direct impact on the financial statements such as the Companies Act 2006 and tax legislation.

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks related to revenue.

Audit procedures performed included:

• Discussion amongst the audit team regarding the susceptibility of the client to fraud;

• Consideration of the risk of fraud when documenting and reviewing internal controls and procedures;

• Enquiring of management how they assess the risk of fraud, and identify and respond to the risks of fraud;

• Enquiring of management whether they have any knowledge of actual or suspected frauds or non-compliance with laws and regulations;

• Review of how those charged with governance exercise oversight of management's process for identifying and responding to the risk of fraud;

• Substantive testing of revenue and debtors including specific testing to cover the risks associated with the recognition of revenue;

• Review of journals for unusual items;

• Review of relevant tax correspondence;

• Review of VAT return entries and performing analytical procedures on VAT balances;

• Substantive testing on fixed assets including physical verification to confirm existence;

• Review of property valuations and consider indications of impairment;

• Verifying ownership of properties included within the financial statements;

• Verification of employees and rates of pay;

• Review of bank reconciliations for evidence of window dressing; and

• Confirmation of balances and transactions to third party documentation for valuation and accuracy.

There are inherent limitations in the 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, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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 member 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 member those matters we are required to state to the member 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 member, 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.

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

Halix Limited is a private company limited by shares incorporated in England and Wales. The registered office is The Royal Exeter Hotel, Exeter Road, Bournemouth, Dorset, BH2 5AG.

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 as modified to include the revaluation of freehold land and buildings. The principal accounting policies adopted are set out below.

This 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:

• Section 7 ‘Statement of Cash Flows’ – Presentation of a statement of cash flow and related notes and disclosures;

The financial statements of the company are consolidated in the financial statements of Brewers of Nuneham Limited. These consolidated financial statements are available from its registered office at The Royal Exeter Hotel, Exeter Road, Bournemouth, Dorset, BH2 5AG.

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

This is on the basis of a review of cashflow projections and the bank facilities available to the company, and in the understanding of, and in the expectation that, any bank facilities currently in place will be renewed at their expiry.

Turnover represents amounts receivable for goods and services provided in the normal course of business, net of trade discounts and VAT.

Turnover in respect of accommodation is recognised overnight during each night the customer stays, whilst all other sales, including restaurant, bar revenue and nightclub sales, are recognised at the point of sale.

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:

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.

Investment property, which is property held to earn rentals and/or for capital appreciation, is measured using the fair value model and stated at its fair value at the reporting end date. The surplus or deficit on revaluation is recognised in the profit and loss account.

Where fair value cannot be established without undue cost or effort, investment property is accounted for as tangible fixed assets.

Interests in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

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

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

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

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

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.

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.

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.

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.

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 company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

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.

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

The tax currently payable is based on taxable profit for the period. 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 periods 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.

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.

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

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.

Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.

In the application of the company’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.

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.

A valuation was carried out on 25 September 2023 by Savills, in respect of the company's freehold land and building in the amount of £4,700,000. The valuation was based on an open market existing use basis.

An analysis of the company's turnover is as follows:

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

Their aggregate remuneration comprised:

The actual charge for the period can be reconciled to the expected (credit)/charge for the period based on the profit or loss and the standard rate of tax as follows:

A valuation was carried out on 25 September 2023 by Savills, in respect of the freehold land and buildings, having a historical revaluation cost of £4,180,000 and net book value of £4,071,296 at that date, in the amount of £4,700,000 giving rise to a revaluation gain at that date in the amount of £628,704. The valuation was based on an open market existing use basis.

Subsequent expenditure on the freehold buildings is to be capitalised at cost.

If revalued assets were stated on an historical cost basis rather than a fair value basis, the total amounts included would have been as follows:

Details of the company's subsidiaries at 30 September 2024 are as follows:

National Westminster Bank plc hold a guarantee of £900,000 over Halix Limited, supported by a fixed and floating charge over The Royal Exeter Hotel, Exeter Road, Bournemouth and all its associated assets. National Westminster Bank plc also hold an unscheduled mortgage debenture against Halix Limited. These securities relate to a loan facility provided in October 2019 to Brewers of Nuneham Limited, the parent company of Halix Limited.

National Westminster Bank plc hold an unlimited inter-company cross guarantee between Brewers of Nuneham Limited and Brewers Joint Operations Limited dated 18 October 2004. This security also incorporates Halix Limited.

The overdraft facilities with National Westminster Bank plc are secured by a personal guarantee from P. J. Brewer, the sole shareholder and father to the director, of £900,000, an intercompany guarantee from Brewers Joint Operations Limited, and an unscheduled mortgage debenture. These securities relate to both the Halix Limited and Brewers of Nuneham Limited overdraft facilities.

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

The company operates defined contribution pension schemes for qualifying employees. The assets of the schemes are held separately from those of the company in independently administered funds.

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

At the reporting end date the total future minimum sublease payments expected to be received under non-cancellable subleases was £60,000 (2023 - £nil).

At the reporting end date the company had contracted with tenants for the following minimum lease payments:

On 18 October 2024, the immediate and ultimate parent company of Halix Limited, Brewers of Nuneham Limited financed an existing loan agreement with its bank, National Westminster Bank plc. The value refinanced on this date amounted to £714,000, with the final repayment due in October 2041.

In securing this new agreement, additional security has been granted in favour of National Westminster Bank plc, including a guarantee for £1,500,000, granted by Halix Limited. This is supported by a fixed charge against Royal Exeter Hotel, Exeter Road, Bournemouth and its associated assets. National Westminster Bank plc also hold a further debenture over Halix Limited in relation to this facility.

On 27 February 2025, Halix Limited Pension Fund provided a loan to the company amounting to £200,000. This loan is repayable by instalment. Halix Limited Pension Fund is a related party of the company by virtue of H. Brewer being a beneficiary.

This loan is secured by a first legal mortgage over an investment property owned by Brewers of Nuneham Limited.

In accordance with section 33.1A of FRS 102, disclosure is not given in these financial statements of transactions entered into between two or more members of the group, provided that any subsidiary which is party to the transaction is wholly owned by such a member.

P. J. Brewer is the ultimate controlling party and father of the director, and had previously advanced funds to Halix Limited. As at 30 September 2024, £580,570 (2023 - £815,766) was owed to P. J. Brewer and is included in other creditors.

P. J. Brewer is a beneficiary of The Land Enterprise Consulting Limited Pension Fund. During the period, Halix Limited settled expenses on behalf of The Land Enterprise Consulting Limited Pension Fund amounting to £12,236 (2023 - £3,938). As at 30 September 2024, The Land Enterprise Consulting Limited Pension Fund owed Halix Limited £133,800 (2023 - £121,564). This amount is included within other debtors.

H. Brewer, who is a director of Halix Limited, is also a director of Parkstone Yacht Club Limited. During the period, Halix Limited made sales totalling £5,455 (2023 - £7,559) to Parkstone Yacht Club Limited. At the reporting date, Halix Limited was owed £4,985 (2023 - £6,308). This amount is included within trade debtors.

As at 30 September 2024, Halix Limited owed £nil (2023 - £13,500) to Chromium Developments Limited, a company registered in Jersey in which P. J. Brewer holds an interest. This amount was included in other debtors. Rent charged by Chromium Developments Limited to Halix Limited in the period totalled £45,000 (2023 - £45,000).

H. Brewer is a beneficiary of Halix Limited Pension Fund. As at 30 September 2024 Halix Limited owed Halix Limited Pension Fund £nil (2023 - £78,000) and was owed £2,636 (2023 - £83,690) by Halix Limited Pension Fund. This amount is included in other debtors. Interest payable for the period ended 30 September 2024 totalled £3,769 credit (2023 - £4,680) and total interest payable due as at 30 September 2024 amounted to £nil (2023 - £18,720). This amount was included in other creditors. During the period, Halix Limited settled expenses on behalf of Halix Limited Pension Fund amounting to £4,305 (2023 - £38,327). During the period Halix Limited Pension Fund charged rent to Halix Limited amounting to £24,000 (2023 - £nil).

Advances or credits have been granted by the company to its director's as follows:

A loan has been granted by the company to its director; the loan is repayable on demand.

The immediate and ultimate parent company of Halix Limited is Brewers of Nuneham Limited, a company registered in England and Wales. The ultimate controlling party of Halix Limited is P. J. Brewer by virtue of his majority holding in the ordinary share capital of Brewers of Nuneham Limited.

Consolidated financial statements of the Brewers of Nuneham Limited group are available from its registered office at The Royal Exeter Hotel, Exeter Road, Bournemouth, Dorset. BH2 5AG.