The Lincoln Eastgate Hotel Limited Filleted accounts for Companies House (small and micro)

COMPANY REGISTRATION NUMBER: 4283048

The Lincoln Eastgate Hotel Limited

Filleted Unaudited Financial Statements

For the year ended

31 December 2024

The Lincoln Eastgate Hotel Limited

Statement of Financial Position

31 December 2024

	2024		2023
Note	£	£	£

Fixed assets

Intangible assets	5	2	2
Tangible assets	6	3,740,000	3,790,000
		-------------	-------------
		3,740,002	3,790,002

Current assets

Stocks		12,500	12,500
Debtors	7	82,386	288,353
Cash at bank and in hand		105,747	322,119
		----------	----------
		200,633	622,972

Creditors: amounts falling due within one year	8	868,172		786,721
		----------		----------
Net current liabilities			667,539	163,749
			-------------	-------------
Total assets less current liabilities			3,072,463	3,626,253

Creditors: amounts falling due after more than one year	9		1,790,644	2,020,591

Provisions

Taxation including deferred tax	–	9,822
	-------------	-------------
Net assets	1,281,819	1,595,840
	-------------	-------------

Capital and reserves

Called up share capital	250,099	250,099
Revaluation reserve	508,807	508,807
Profit and loss account	522,913	836,934
	-------------	-------------
Shareholders funds	1,281,819	1,595,840
	-------------	-------------

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In accordance with section 444 of the Companies Act 2006, the statement of income and retained earnings has not been delivered.

For the year ending 31 December 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Director's responsibilities:

- The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476 ;

- The director acknowledges his responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements .

The Lincoln Eastgate Hotel Limited

Statement of Financial Position (continued)

31 December 2024

These financial statements were approved by the board of directors and authorised for issue on 23 September 2025 , and are signed on behalf of the board by:

C J Nevile
Director

Company registration number: 4283048

The Lincoln Eastgate Hotel Limited

Notes to the Financial Statements

Year ended 31 December 2024

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Eastgate, Lincoln, Lincolnshire, LN2 1PN.

2. Statement of compliance

These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Going concern

The directors, having made due and careful enquiry, are of the opinion that the company has adequate working capital to continue trading over the next 12 months and that no material uncertainties exist. Therefore, the accounts have been prepared on a going concern basis.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. The actual outcome may diverge from these estimates if other assumptions are made, or other conditions arise. Key sources of estimation uncertainty Accounting estimates and assumptions are made concerning the future and, by their nature, will rarely equal the related actual outcome. The key assumptions and other sources of estimation uncertainty that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows: (i) Depreciation charges The annual depreciation charge for tangible assets is sensitive to changes in the useful economic lives and residual values of the assets. These are reviewed periodically by the Director to ensure that they reflect both external and internal factors. (ii) Asset valuation The value included for the tangible fixed assets is based on a triennial valuation undertaken by an appropriately qualified individual. In the preparation of the financial statements the value included is reviewed by the Director.

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.

Income tax

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date. Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Intangible assets

Intangible assets are initially recorded at cost, and are subsequently stated at cost less any accumulated amortisation and impairment losses. Any intangible assets carried at revalued amounts, are recorded at the fair value at the date of revaluation, as determined by reference to an active market, less any subsequent accumulated amortisation and subsequent accumulated impairment losses. Intangible assets acquired as part of a business combination are only recognised separately from goodwill when they arise from contractual or other legal rights, are separable, the expected future economic benefits are probable and the cost or value can be measured reliably.

Tangible assets

All fixed assets are initially recorded at cost. The company adopted the accounting policy of recording tangible fixed assets at valuation with effect from 1 January 2010. Formal revaluation is to occur at least every three years in line with best practice but the valuation is reviewed at least annually by the director. Freehold land and buildings are not subject to depreciation due to the level of regular maintenance and refurbishment and the frequency of valuations.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Fixtures & Fittings	-	20% straight line
Computer Equipment	-	30% straight line

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.

Finance leases and hire purchase contracts

Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised as a finance cost in profit or loss in the period it arises.

Financial instruments

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the entity after deducting all of its financial liabilities. Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability. Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity.

4. Employee numbers

The average number of persons employed by the company during the year amounted to 60 (2023: 55 ).

5. Intangible assets

	Goodwill	Development costs	Total
	£	£	£
Cost
At 1 January 2024 and 31 December 2024	1	1	2
	----	----	----
Amortisation
At 1 January 2024 and 31 December 2024	–	–	–
	----	----	----
Carrying amount
At 31 December 2024	1	1	2
	----	----	----
At 31 December 2023	1	1	2
	----	----	----

6. Tangible assets

	Land and buildings	Fixtures and fittings	Computer Equipment	Total
	£	£	£	£
Cost
At 1 January 2024 and 31 December 2024	3,740,000	250,000	10,000	4,000,000
	-------------	----------	---------	-------------
Depreciation
At 1 January 2024	–	200,000	10,000	210,000
Charge for the year	–	50,000	–	50,000
	-------------	----------	---------	-------------
At 31 December 2024	–	250,000	10,000	260,000
	-------------	----------	---------	-------------
Carrying amount
At 31 December 2024	3,740,000	–	–	3,740,000
	-------------	----------	---------	-------------
At 31 December 2023	3,740,000	50,000	–	3,790,000
	-------------	----------	---------	-------------

The valuation of freehold property comprises historic cost values of land of £510,000, buildings of £1,654,654 and improvements to property of £1,110,883. The land is not subject to depreciation. The carrying value of the freehold property at historic cost less depreciation would have been £1,833,789. The carrying value of the fixtures and fittings at historic cost less depreciation would have been £nil. The carrying value of the computer equipment at historic cost less depreciation would have been £nil. The assets were valued at £4,000,000 in total by Christie & Co (Chartered Surveyors) on the basis of open market value for existing use as at 31 December 2019. The values of the assets have been updated accordingly.

7. Debtors

	2024	2023
	£	£
Trade debtors	14,542	8,239
Other debtors	67,844	280,114
	---------	----------
	82,386	288,353
	---------	----------

8. Creditors: amounts falling due within one year

	2024	2023
	£	£
Bank loans and overdrafts	225,369	213,617
Trade creditors	180,553	96,074
Corporation tax	54,947	79,678
Social security and other taxes	106,902	128,776
Other creditors	300,401	268,576
	----------	----------
	868,172	786,721
	----------	----------

9. Creditors: amounts falling due after more than one year

	2024	2023
	£	£
Bank loans and overdrafts	1,790,644	2,020,591
	-------------	-------------

The loans are secured as follows:

By a first legal charge over the company's freehold property.

By a first, fixed and floating charge on all the assets of the company, both present and future, together with any uncalled capital.

By personal guarantee of the director limited to £1,000,000 plus interest and costs.

During the year ended 31 December 2020 the company entered into a loan agreement for £250,000 under the Coronavirus Business Interruption Loan Scheme.

Included within creditors: amounts falling due after more than one year is an amount of £826,601 (2023: £962,047) in respect of liabilities payable or repayable by instalments which fall due for payment after more than five years from the reporting date.

Of the above balance £1,267,332 will be outstanding at 19 February 2025 when the loan terms will be renegotiated.

10. Director's advances, credits and guarantees

During the year the director entered into the following advances and credits with the company:

	2024
	Balance brought forward	Advances/ (credits) to the director	Amounts repaid	Balance outstanding
	£	£	£	£
C J Nevile	216,000	234,000	450,000	900,000
	----------	----------	----------	----------

	2023
	Balance brought forward	Advances/ (credits) to the director	Amounts repaid	Balance outstanding
	£	£	£	£
C J Nevile	288,000	( 72,000)	–	216,000
	----------	---------	----	----------