Limited Liability Partnership Registration No. OC324399 (England and Wales)
RMH (Guildford) LLP
Annual Report and Financial Statements
For the year ended 31 December 2024
RMH (Guildford) LLP
Limited Liability Partnership Information
Designated members
RMH (Guildford) Limited
Limited liability partnership number
OC324399
Registered office
Harbour House
60 Purewell
Christchurch
England
BH23 1ES
Auditor
Fiander Tovell Limited
Stag Gates House
63 - 64 The Avenue
Southampton
SO17 1XS
RMH (Guildford) LLP
Contents
Page
Members' report
1 - 4
Independent auditor's report
5 - 7
Statement of comprehensive income
8
Statement of financial position
9
Reconciliation of members' interests
10
Notes to the financial statements
11 - 21
RMH (Guildford) LLP
Members' report
For the year ended 31 December 2024
- 1 -

The Members present their annual report and financial statements for the year ended 31 December 2024.

Principal activities

The principal activity of the Limited Liability Partnership continued to be that of owning and operating a hotel.

Fair review of the business

The partnership faced a dynamic trading environment in 2024, with continued macroeconomic pressures and changing consumer behaviour post-pandemic. Total revenue for the year was £10.3m, a 2% rise compared to the prior year. The increase against last year was primarily driven by an improvement in both occupancy and room rate. Despite this, pressure on costs notably direct payroll, resulted in a drop in profitability, particularly at the operating profit level, which decreased to £2.2 million (2023 - £2.3m).

Management’s ongoing focus on operational efficiency and cost discipline yielded strong results. EBITDA margins remained robust reflecting effective margin management in a high-cost environment.

Strategic initiatives included targeted investment in training and service quality, aligned with the partnership's positioning in the premium leisure and events market. Guest feedback mechanisms were further refined, and technology enhancements improved operational responsiveness and booking experience.

Looking ahead to 2025, the partnership will continue to operate within an economic context marked by inflationary pressures and heightened competition. To remain resilient and pursue growth, the company will focus on three strategic priorities:

  1. Enhancing the Luxury Experience: Expanding bespoke and high-value packages tailored to leisure and event guests, and elevating service delivery standards.

  2. Accelerating Digital Innovation: Further investment in digital infrastructure to support mobile-first engagement and more effective revenue management.

  3. Talent and Culture: Strengthening our people strategy to support retention, engagement, and development, with a focus on leadership capabilities and front-line excellence.

The members are confident that the company is well positioned to build on its strong 2024 operational base, navigating external headwinds while pursuing sustainable value creation for stakeholders.

Principal risks and uncertainties

Key risks include inflationary cost pressure, interest rate volatility, and demand fluctuations in the discretionary travel market. The Board monitors these closely and continues to take mitigating actions, including renegotiation of supplier contracts, dynamic pricing strategies, and rigorous cash flow management.

RMH (Guildford) LLP
Members' report (continued)
For the year ended 31 December 2024
- 2 -
Members' drawings, contributions and repayments

Each Member's subscription to the capital of the Limited Liability Partnership is determined by their share of the profit and is repayable following retirement from the Limited Liability Partnership.

 

Details of changes in Members' capital in the year ended 31 December 2024 are set out in the reconciliation of members' interests.

 

Members are remunerated from the profits of the Limited Liability Partnership and are required to make their own provision for other benefits. Profits are allocated and divided between Members after finalisation of the financial statements. Members draw a proportion of their profit shares subject to the cash requirements of the business.

 

The Members’ drawing policy allows each Member to draw a proportion of their profit share up to an amount that has accrued in their current account, subject to the cash requirements of the business.

 

No Member shall contribute, or be required to contribute, any additional capital unless agreed in writing by all the Members. New Members shall only be admitted if the admission is unanimously approved in writing by the Members. Such admission is permitted under the terms of the members agreement and the new Member executes a Deed of Adherence.

 

Capital contributed by each Member is divided into shares of £1 each.

 

The Limited Liability Partnership has an unconditional right to refuse repayment to the Members of initial amounts contributed by them and as such these amounts will be classified as equity. The Limited Liability Partnership does not have such an unconditional right with regards to contributions received from/loans issued to the Members and as such they will be classified as liabilities/debts, to be included within loans and other debts due to/from Members.

Designated members

The designated members who held office during the year and up to the date of signature of the financial statements were as follows:

RMH (Guildford) Limited
Members' insurance

The Limited Liability Partnership maintains insurance policies on behalf of all the Members against liability arising from negligence, breach of duty and breach of trust in relation to the Limited Liability Partnership.

Auditor

The auditor, Fiander Tovell Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

RMH (Guildford) LLP
Members' report (continued)
For the year ended 31 December 2024
- 3 -
Statement of members' responsibilities

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:

 

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.

Statement of disclosure to auditor

Each of the Members in office at the date of approval of this annual report confirms that:

 

RMH (Guildford) LLP
Members' report (continued)
For the year ended 31 December 2024
- 4 -
Going concern

The Members have carried out a thorough assessment of the Limited Liability Partnership's financial position and performance, taking into account various factors, including current and projected cash flows, financial obligations, and available resources. Based on this assessment, the Members have formed the opinion that the Limited Liability Partnership has adequate financial resources to meet its obligations and continue operating for the foreseeable future, at least for the next 12 months from the date of this report.

 

In making this assessment, the Members have considered both internal and external factors that may impact the Limited Liability Partnership's ability to continue as a going concern. These factors include market conditions, competitive landscape, regulatory changes, and potential risks and uncertainties. The Members have also considered the Limited Liability Partnership's current and future liquidity position, including its ability to generate sufficient cash flows, access additional funding if required, and manage its working capital requirements.

 

It is important to note that the assessment of going concern is based on various assumptions, estimates, and judgments, which are inherently uncertain and subject to change. The Members will continue to monitor the Limited Liability Partnership's financial performance and position, regularly reviewing its ability to operate as a going concern and taking appropriate actions if circumstances change.

 

In conclusion, based on the Members' assessment, the Limited Liability Partnership is considered to be a going concern, as it has adequate financial resources, liquidity, and operational plans in place to support its ongoing operations for the foreseeable future. The members report provides a transparent and balanced view of the Limited Liability Partnership's prospects, highlighting any significant risks and uncertainties that may impact its ability to operate as a going concern in the future.

For more information regarding the basis of preparation see note 1 to the financial statements.

Approved by the Members on 14 August 2025 and signed on behalf by:
RMH (Guildford) Limited
Designated Member
RMH (Guildford) LLP
Independent auditor's report
to the members of RMH (Guildford) LLP
- 5 -
Opinion

We have audited the financial statements of RMH (Guildford) LLP (the 'Limited Liability Partnership') for the year ended 31 December 2024 which comprise the statement of comprehensive income, the statement of financial position, the reconciliation of members' interests 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 FRS 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 limited liability partnership 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 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

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The members are 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.

RMH (Guildford) LLP
Independent auditor's report (continued)
to the members of RMH (Guildford) LLP
- 6 -
Matters on which we are required to report by exception

We have nothing to report in respect of the following matters where the Companies Act 2006 as applied to limited liability partnerships requires us to report to you if, in our opinion:

 

Responsibilities of members

As explained more fully in the members' responsibilities statement, the members are 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 members determine 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 members are responsible for assessing the limited liability partnership'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 members either intend to liquidate the limited liability partnership or to cease operations, or have 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.

Extent to which the audit was capable of detecting irregularities, including fraud

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:

We assessed the susceptibility of the Partnership’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

RMH (Guildford) LLP
Independent auditor's report (continued)
to the members of RMH (Guildford) LLP
- 7 -
Audit response to risks identified

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed those 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 Members 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 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.

Andrew Jay FCA FCCA (Senior Statutory Auditor)
For and on behalf of Fiander Tovell Limited
22 August 2025
Chartered Accountants
Statutory Auditor
Stag Gates House
63 - 64 The Avenue
Southampton
SO17 1XS
RMH (Guildford) LLP
Statement of Comprehensive Income
For the year ended 31 December 2024
- 8 -
2024
2023
Notes
£
£
Turnover
3
10,303,386
10,120,286
Cost of sales
(4,336,506)
(4,340,683)
Gross profit
5,966,880
5,779,603
Administrative expenses
(3,729,905)
(3,504,239)
Operating profit
4
2,236,975
2,275,364
Interest payable and similar expenses
6
(1,462,737)
(1,421,989)
Profit for the financial year before members' remuneration and profit shares available for discretionary division among members
774,238
853,375

The income statement has been prepared on the basis that all operations are continuing operations.

RMH (Guildford) LLP
Statement of financial position
As at 31 December 2024
- 9 -
2024
2023
as restated
Notes
£
£
£
£
Fixed assets
Tangible assets
7
42,049,491
41,990,143
Investments
8
5
5
42,049,496
41,990,148
Current assets
Stocks
10
73,823
75,997
Debtors
11
6,128,891
5,514,994
Cash at bank and in hand
92,447
74,116
6,295,161
5,665,107
Creditors: amounts falling due within one year
12
(4,103,130)
(4,187,965)
Net current assets
2,192,031
1,477,142
Total assets less current liabilities
44,241,527
43,467,290
Creditors: amounts falling due after more than one year
13
(29,953,363)
(29,953,363)
Net assets attributable to members
14,288,164
13,513,927
Represented by:
Members' other interests
Members' capital classified as equity
20,000
20,000
Revaluation reserve
12,157,372
12,157,372
Other reserves classified as equity
2,110,792
1,336,555
14,288,164
13,513,927
The financial statements were approved by the members and authorised for issue on 14 August 2025 and are signed on their behalf by:
RMH (Guildford) Limited
Designated member
Limited Liability Partnership Registration No. OC324399
RMH (Guildford) LLP
Reconciliation of members' interests
For the year ended 31 December 2024
- 10 -
Current financial year
EQUITY
TOTAL
Members' other interests
MEMBERS'
INTERESTS
Members' capital
Revaluation
reserve
Other reserves
Total
2024
£
£
£
£
Members' interests at 1 January 2024
20,000
12,157,372
1,336,554
13,513,926
Profit for the financial year available for discretionary division among members
-
-
774,238
774,238
Members' interests after profit for the year
20,000
12,157,372
2,110,792
14,288,164
Members' interests at 31 December 2024
20,000
12,157,372
2,110,792
14,288,164
Prior financial year
EQUITY
TOTAL
Members' other interests
MEMBERS'
INTERESTS
Members' capital
Revaluation
reserve
Other reserves
Total
2023
£
£
£
£
Members' interests at 1 January 2023
20,000
12,157,372
483,180
12,660,552
Profit for the financial year available for discretionary division among members
-
-
853,375
853,375
Members' interests after profit for the year
20,000
12,157,372
1,336,555
13,513,927
Members' interests at 31 December 2023
20,000
12,157,372
1,336,555
13,513,927
RMH (Guildford) LLP
Notes to the financial statements
For the year ended 31 December 2024
- 11 -
1
Accounting policies
Limited liability partnership information

RMH (Guildford) LLP is a limited liability partnership incorporated in England and Wales. The registered office is Harbour House, 60 Purewell, Christchurch, England, BH23 1ES.

 

The limited liability partnership's principal activities are disclosed in the Members' Report.

1.1
Accounting convention

These financial statements have been prepared in accordance with the Statement of Recommended Practice "Accounting by Limited Liability Partnerships" issued in December 2018, together 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 limited liability partnership. 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 leasehold properties at fair value. The principal accounting policies adopted are set out below.

This limited liability partnership 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 limited liability partnership, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The limited liability partnership has therefore taken advantage of exemptions from the following disclosure requirements:

 

 

The financial statements of the limited liability partnership are consolidated in the financial statements of Harbour International Limited. These consolidated financial statements may be obtained from Companies House, Crown Way, Cardiff, CF14 3UZ.

1.2
Going concern

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.

1.3
Turnover

Turnover represents amounts receivable from the provision of hotel services, recognised net of VAT at the point of service to the customer.

1.4
Members' participating interests

Members' participation rights are the rights of a member against the LLP that arise under the members' agreement (for example, in respect of amounts subscribed or otherwise contributed remuneration and profits).

 

Members' participation rights in the earnings or assets of the LLP are analysed between those that are, from the LLP's perspective, either a financial liability or equity, in accordance with section 22 of FRS 102. A member's participation rights including amounts subscribed or otherwise contributed by members, for example members' capital, are classed as liabilities unless the LLP has an unconditional right to refuse payment to members, in which case they are classified as equity.

RMH (Guildford) LLP
Notes to the financial statements (continued)
For the year ended 31 December 2024
1
Accounting policies
(continued)
- 12 -

All amounts due to members that are classified as liabilities are presented within 'Loans and other debts due to members' and, where such an amount relates to current year profits, they are recognised within ‘Members' remuneration charged as an expense’ in arriving at the relevant year’s result. Undivided amounts that are classified as equity are shown within ‘Members' other interests’. Amounts recoverable from members are presented as debtors and shown as amounts due from members within members’ interests.

 

Where there exists an asset and liability component in respect of an individual member’s participation rights, they are presented on a gross basis unless the LLP has both a legally enforceable right to set off the recognised amounts, and it intends either to settle on a net basis or to settle and realise these amounts simultaneously, in which case they are presented net.

Profits are automatically divided as they arise, so the LLP does not have an unconditional right to refuse payment and the amounts arising that are due to members are in the nature of liabilities. They are therefore treated as an expense and presented as members remuneration charged as an expense in arriving at the result for the relevant year. To the extent that they remain unpaid at the period end, they are shown as liabilities.

Whilst the members’ agreement does not differentiate between profits and losses for profit sharing purposes, it does stipulate that the LLP cannot demand additional contributions from members, and as a result the LLP does not have an unconditional right to demand payment from members for losses. Therefore, to the extent that losses exceed the balance on capital and current accounts, they are not recognised as a recoverable asset and so remain within equity until such time as profits are generated to set them against or detail other conditions as appropriate.

Once an unavoidable obligation has been created in favour of members through allocation of profits or other means, any undrawn profits remaining at the reporting date are shown as ‘Loans and other debts due to members’ to the extent they exceed debts due from a specific member.

1.5
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:

Leasehold land and buildings
50 years straight line
Plant and equipment
6% straight line
Fixtures and fittings
15% straight line
Computers
25% straight line
Motor vehicles
20% straight line
Finance lease asset
Nil

Freehold land and assets in the course of construction are not depreciated.

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 income statement.

1.6
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities 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 limited liability partnership. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

RMH (Guildford) LLP
Notes to the financial statements (continued)
For the year ended 31 December 2024
1
Accounting policies
(continued)
- 13 -
1.7
Impairment of fixed assets

At each reporting period end date, the limited liability partnership 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 limited liability partnership 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.

1.8
Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis.

1.9
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, cash in transit, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

 

The prior period has been restated to reflect cash in transit classified as cash, rather than trade debtors. The restatement has no effect upon equity.

1.10
Financial instruments

The partnership only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, and loans from related parties.

 

Financial liabilities and equity are classified according to the substance of the financial instrument's contractual obligations, rather than its legal form.

 

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. lf objective evidence of impairment is found, an impairment loss is recognised in the statement of comprehensive income.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

RMH (Guildford) LLP
Notes to the financial statements (continued)
For the year ended 31 December 2024
1
Accounting policies
(continued)
- 14 -
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.

Derecognition of financial assets

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.

Other financial liabilities

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.

Derecognition of financial liabilities

Financial liabilities are derecognised when the limited liability partnership’s obligations expire or are discharged or cancelled.

1.11
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 limited liability partnership is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.12
Retirement benefits and post retirement payments to members

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

RMH (Guildford) LLP
Notes to the financial statements (continued)
For the year ended 31 December 2024
1
Accounting policies
(continued)
- 15 -
1.13
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 statement of financial position 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.

1.14
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 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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Leases

Determine whether leases entered into by the partnership either as a lessor or a lessee are operating leases or finance leases. These decisions depend on an assessment of whether the risks and rewards of ownership have been transferred from the lessor to the lessee on a lease by lease basis.

Impairment of assets

Determine whether there are indicators of impairment of the partnership's tangible assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset and where it is a component of a larger cash-generating unit, the viability and expected future performance of that unit.

Disposal of assets

Where an asset is replaced and historic cost information pertaining to the original asset is not readily available, then the value is assigned to the year seen as most appropiate, and an RPI adjustment is made to determine the original purchase price.

RMH (Guildford) LLP
Notes to the financial statements (continued)
For the year ended 31 December 2024
2
Judgements and key sources of estimation uncertainty
(continued)
- 16 -
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.

Tangible fixed assets

Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors such as future economic viability, utilisation and continued relevance of the asset.

Leasehold property

Leasehold property is revalued by an independent valuation expert on a regular basis such that the carrying value is in line with the prevailing market rates. The valuation uses the profit method which is based on the partnership's

estimates and assumptions concerning its future revenue growth, trading and cash flows.

3
Turnover

An analysis of the limited liability partnership's turnover is as follows:

2024
2023
£
£
Turnover analysed by class of business
Provision of hotel services
10,303,386
10,120,286

Turnover is attributable to the principal activity of the partnership wholly undertaken in the United Kingdom.

4
Operating profit
2024
2023
Operating profit for the year is stated after charging:
£
£
Fees payable to the LLP's auditor for the audit of the LLP's financial statements
9,450
9,000
Depreciation of owned tangible fixed assets
482,011
500,044
Loss on disposal of tangible fixed assets
45,855
15,533
Operating lease charges
310,000
310,000
5
Employees

The average number of persons (excluding members) employed by the partnership during the year was:

2024
2023
Number
Number
Hotel staff
144
169
RMH (Guildford) LLP
Notes to the financial statements (continued)
For the year ended 31 December 2024
5
Employees
(continued)
- 17 -

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
2,772,794
2,647,279
Social security costs
211,088
195,688
Pension costs
42,015
37,581
3,025,897
2,880,548

The members did not receive any emoluments in respect of their current and prior year services to the LLP because their services to the LLP were merely incidental to their services to the group as a whole.

6
Interest payable and similar expenses
2024
2023
£
£
Interest payable to group undertakings
847,276
805,058
Interest on finance leases and hire purchase contracts
615,461
616,931
Total finance costs
1,462,737
1,421,989
RMH (Guildford) LLP
Notes to the financial statements (continued)
For the year ended 31 December 2024
- 18 -
7
Tangible fixed assets
Leasehold land and buildings
Assets under construction
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Finance lease asset
Total
£
£
£
£
£
£
£
£
Cost or valuation
At 1 January 2024
29,170,260
183,666
1,225,375
1,677,989
359,710
23,045
11,380,000
44,020,045
Additions
19,291
153,309
92,349
130,010
50,490
141,765
-
587,214
Disposals
-
-
(39,799)
(63,740)
(2,794)
-
-
(106,333)
At 31 December 2024
29,189,551
336,975
1,277,925
1,744,259
407,406
164,810
11,380,000
44,500,926
Depreciation and impairment
At 1 January 2024
335,595
-
462,880
887,277
325,812
18,338
-
2,029,902
Depreciation charged in the year
125,329
-
75,772
256,776
17,687
6,447
-
482,011
Eliminated in respect of disposals
-
-
(16,860)
(40,824)
(2,794)
-
-
(60,478)
At 31 December 2024
460,924
-
521,792
1,103,229
340,705
24,785
-
2,451,435
Carrying amount
At 31 December 2024
28,728,627
336,975
756,133
641,030
66,701
140,025
11,380,000
42,049,491
At 31 December 2023
28,834,665
183,666
762,495
790,712
33,898
4,707
11,380,000
41,990,143
RMH (Guildford) LLP
Notes to the financial statements (continued)
For the year ended 31 December 2024
- 19 -

Leasehold property, along with associated fixtures, fittings and equipment, were last professionally revalued as at 31 January 2022 by Cushman & Wakefield, independent valuers not connected with the group. The valuation was prepared on the basis of market value under the profits method and in accordance with the RICS Valuation – Global Standards.

As at 31 December 2024 the members have undertaken a review of current market conditions and relevant performance metrics for the properties. Based on this assessment, they are satisfied that there has been no material change in value since the last valuation and that the carrying values continue to reflect a fair approximation of market value. Accordingly, the members have concluded that there is no requirement to update the valuation at this time.

The following assets are carried at valuation. If the assets were measured using the cost model, the carrying amounts would be as follows:

Leasehold property
2024
2023
£
£
Cost
20,611,584
20,592,293
8
Fixed asset investments
2024
2023
Notes
£
£
Investments in subsidiaries
9
5
5
9
Subsidiaries

These financial statements are separate limited liability partnership financial statements for RMH Guildford LLP.

Details of the limited liability partnership's subsidiaries at 31 December 2024 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
RMH (Guildford) Management Limited
Harbour House, 60 Purewell, Christchurch, BH23 1ES
Ordinary
100.00
RMH (Guildford) Residential Developments Limited
Harbour House, 60 Purewell, Christchurch, BH23 1ES
Ordinary
100.00
10
Stocks
2024
2023
£
£
Raw materials and consumables
73,823
75,997
RMH (Guildford) LLP
Notes to the financial statements (continued)
For the year ended 31 December 2024
- 20 -
11
Debtors
2024
2023
Amounts falling due within one year:
£
£
Trade debtors
149,256
96,374
Amounts owed by group undertakings
5,620,039
4,991,730
Other debtors
12,247
70,638
Prepayments and accrued income
347,349
356,252
6,128,891
5,514,994

Amounts owed by group undertakings are interest free and repayable on demand.

12
Creditors: amounts falling due within one year
2024
2023
£
£
Trade creditors
205,696
273,793
Amounts owed to group undertakings
2,983,094
2,825,458
Other taxation and social security
436,690
380,571
Other creditors
208,352
381,283
Accruals and deferred income
269,298
326,860
4,103,130
4,187,965

Amounts owed to group undertakings are interest free and repayable on demand.

13
Creditors: amounts falling due after more than one year
2024
2023
Notes
£
£
Obligations under finance leases
14
11,125,008
11,125,008
Amounts owed to group undertakings
18,828,355
18,828,355
29,953,363
29,953,363

Amounts owed to group undertakings are repayable on 31 March 2027 and interest is charged at 4.5% per annum in respect of the issued loans.

14
Finance lease obligations
2024
2023
Future minimum lease payments due under finance leases:
£
£
In over five years
11,125,008
11,125,008
RMH (Guildford) LLP
Notes to the financial statements (continued)
For the year ended 31 December 2024
14
Finance lease obligations
(continued)
- 21 -

In 2013 the LLP entered into a sale and leaseback arrangement with a third party in respect of an interest in the hotel’s freehold land. The arrangement resulted in a finance lease with the proceeds of £11,380,000 being recognised as a liability net of costs. The liability is measured at amortised cost using the effective interest method, with annual payments of £330,000 (2023: £622,000) per annum increasing with movements in RPI. The land subject to the finance lease arrangement has been shown within fixed assets as a separate class of asset which is not subject to depreciation at a cost equivalent to the proceeds received.

 

15
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
42,015
37,581

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.

16
Financial commitments, guarantees and contingent liabilities

The bank loans of Harbour Hotels Group Limited, an intermediate parent company, are secured by a cross guarantee and a fixed and floating charge debenture over the LLP's assets.

17
Ultimate controlling party

The partnership is a subsidiary of RMH (Guildford) Limited. The ultimate parent company is Global Reach UK Holdings Limited, a company in which Turnstone (Isle of Man) Limited, Isle of Man, is considered the ultimate controlling party.

 

The smallest group in which the results of the partnership are consolidated is that headed by Harbour Hotels Group Limited and the largest group in which the results of the partnership are consolidated is that headed by Global Reach UK Holdings Limited. The registered office of Harbour Hotels Group Limited is 60 Purewell, Christchurch, England, BH23 1ES. The registered office of Global Reach UK Holdings Limited is c/o Zedra, Booths Hall, Booths Park 3, Chelford Road, Knutsford, Cheshire, England, WA16 8GS. Financial statements are publicly available from Companies House, Crown Way, Cardiff, CF14 3UZ.

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