Registration number: 04749472

Scarlet Hotel Limited

Contents

Company Information	1
Statement of Directors' Responsibilities	2
Balance Sheet	3
Notes to the Financial Statements	4 to 9

Scarlet Hotel Limited

Company Information

Directors

R Whittington R J Waghorn E Stratton

Registered office

Scarlet Hotel Tredragon Road Mawgan Porth Newquay Cornwall TR8 4DQ

Bankers

Barclays Bank Plc Cornwall Truro 9 Leicester Leicestershire LE87 2BB

Auditors

Thompson Jenner LLP Chartered Accountants 28 Alexandra Terrace Exmouth Devon EX8 1BD

Scarlet Hotel Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

•	select suitable accounting policies and 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 directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006 and in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Scarlet Hotel Limited

(Registration number: 04749472)
Balance Sheet as at 29 December 2024

	Note	2024 £	2023 £
Fixed assets
Tangible assets	4	13,556,535	13,430,715
Current assets
Stocks	5	71,469	73,210
Debtors	6	72,645	91,851
Cash at bank and in hand		1,956,633	925,059
		2,100,747	1,090,120
Creditors: Amounts falling due within one year	7	(9,505,336)	(8,600,882)
Net current liabilities		(7,404,589)	(7,510,762)
Total assets less current liabilities		6,151,946	5,919,953
Provisions for liabilities		(763,457)	(709,620)
Net assets		5,388,489	5,210,333
Capital and reserves
Called up share capital		2,000,000	2,000,000
Retained earnings		3,388,489	3,210,333
Shareholders' funds		5,388,489	5,210,333

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime. As permitted by section 444 (5A) of the Companies Act 2006, the directors have not delivered to the registrar a copy of the Profit and Loss Account.

Approved and authorised by the Board on 12 September 2025 and signed on its behalf by:
 

......................................... R J Waghorn Director

Scarlet Hotel Limited

Notes to the Financial Statements for the Period from 1 January 2024 to 29 December 2024

1	General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Scarlet Hotel
Tredragon Road
Mawgan Porth
Newquay
Cornwall
TR8 4DQ
England

2	Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Name of parent of group

These financial statements are consolidated in the financial statements of Red Hotels Limited.

The financial statements of Red Hotels Limited may be obtained from Bedruthan House, Trenance, Mawgan Porth, Newquay, Cornwall, TR8 4BU.

Audit report

The Independent Auditors' Report was unqualified. The name of the Senior Statutory Auditor who signed the audit report on 22 September 2025 was Mr Simon Lewis FCA, who signed for and on behalf of Thompson Jenner LLP.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts. The company recognises revenue when, the amount of revenue can be reliably measured and it is probable that future economic benefits will flow to the entity. As such revenue in relation to accommodation, spa, food and beverages are recognised in the period in which the service has been provided to the customer. Deposits received in advance of the service being provided are held within other creditors and released on provision of the service.

Scarlet Hotel Limited

Notes to the Financial Statements for the Period from 1 January 2024 to 29 December 2024

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

The tax expense for the period comprises current and deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Hotel freehold property	Nil
Fittings fixtures and equipment	10% & 20% straight line basis

Scarlet Hotel Limited

Notes to the Financial Statements for the Period from 1 January 2024 to 29 December 2024

Freehold land is not depreciated. The hotel buildings are maintained, as a matter of policy, by a programme of repair and refurbishment such that the residual value as at least equal to the book value. The residual value is based on the estimated amount that would be currently obtainable from disposal of the asset net of disposal costs if the asset were already of the age and condition expected at the end of its useful life.

An assessment of the hotel's residual value is performed at the end of the reporting period. In addition, the directors' policy is to ensure that the annual budget for repair and refurbishment projects takes into account matters raised in the annual impairment review.

Having regard to this, the directors are of the opinion that depreciation on the building would not be material.

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Scarlet Hotel Limited

Notes to the Financial Statements for the Period from 1 January 2024 to 29 December 2024

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

3	Staff numbers

The average number of persons employed by the company during the period, was 0 (2023 - 0).

4	Tangible assets

	Land and buildings £	Furniture, fittings and equipment  £	Total £
Cost or valuation
At 1 January 2024	13,571,311	1,211,151	14,782,462
Additions	-	204,330	204,330
At 29 December 2024	13,571,311	1,415,481	14,986,792
Depreciation
At 1 January 2024	304,070	1,047,677	1,351,747
Charge for the period	-	78,510	78,510
At 29 December 2024	304,070	1,126,187	1,430,257
Carrying amount
At 29 December 2024	13,267,241	289,294	13,556,535
At 31 December 2023	13,267,241	163,474	13,430,715

Included within the net book value of land and buildings above is £13,267,241 (2023 - £13,267,241) in respect of freehold land and buildings.
 

Scarlet Hotel Limited

Notes to the Financial Statements for the Period from 1 January 2024 to 29 December 2024

5

Stocks

	2024 £	2023 £
Finished goods and goods for resale	71,469	73,210

6

Debtors

	2024 £	2023 £
Trade debtors	12,818	44,127
Prepayments and accrued income	59,827	47,724
Total current trade and other debtors	72,645	91,851

7

Creditors

	2024 £	2023 £
Due within one year
Trade creditors	183,972	200,140
Amounts owed to group undertakings and undertakings in which the company has a participating interest	8,325,466	7,338,613
Taxation and social security	234,469	293,930
Other creditors	560,123	545,620
Accrued expenses	201,306	222,579
	9,505,336	8,600,882

8

Dividends

		2024		2023
		£		£
Interim dividend of £0.30 (2023 - £0.35) per ordinary share		600,000		700,000

9	Financial commitments, guarantees and contingencies

Amounts not provided for in the balance sheet

The company has a composite agreement with Barclays Bank Plc, in which the company guarantees the borrowings of Red Hotels Limited, the parent company.

The total amount of financial commitments not included in the balance sheet undertaken on behalf of any parent undertaking or any fellow subsidiary undertaking is £6,108,899 (2023 - £6,229,562).

Scarlet Hotel Limited

Notes to the Financial Statements for the Period from 1 January 2024 to 29 December 2024

10	Related party transactions

The company has taken advantage of the exemptions in FRS 102 Section 1A from disclosing transactions with other members of the group.

The company has a trading relationship with St Austell Brewery Company Limited, a company whose Chief Financial Offider, C Stratton, is the husband of E Stratton, director. During the year, the company made purchases form St Austell Brewery Company Limited of £11,185 (2023: £16,237). The balance owing at the year end was £2,719 (2023: £3,120).

11	Parent and ultimate parent undertaking

The company's immediate parent is Red Hotels Limited, incorporated in England and Wales.

 The most senior parent entity producing publicly available financial statements in which these financial statements are consolidated is Red Hotels Limited. These financial statements are available upon request from Bedruthan House, Trenance, Mawgan Porth, Newquay, Cornwall, TR8 4BU

 The ultimate controlling party is Mrs E Stratton.