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Registered number: 09424668











________________________________________________________________________________________


S&A CORBY HOTEL LIMITED

________________________________________________________________________________________



ANNUAL REPORT

FOR THE YEAR ENDED 
31 DECEMBER 2024

 
S&A CORBY HOTEL LIMITED
 

CONTENTS



Page
Company Information
 
1
Strategic Report
 
2
Director's Report
 
3 - 4
Independent Auditors' Report
 
5 - 8
Statement of Comprehensive Income
 
9
Balance Sheet
 
10
Statement of Changes in Equity
 
11
Statement of Cash Flows
 
12
Analysis of Net Debt
 
13
Notes to the Financial Statements
 
14 - 25


 
S&A CORBY HOTEL LIMITED
 
 
COMPANY INFORMATION


Director
Mr M. E. Hewitt 




Registered number
09424668



Registered office
Holiday Inn Corby/Kettering A43
Geddington Road

Corby

Northamptonshire

NN18 8ET




Independent auditors
F. W. Smith, Riches & Co.
Chartered Accountants & Statutory Auditors

15 Whitehall

London

SW1A 2DD




Page 1

 
S&A CORBY HOTEL LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

Introduction
 
The director of the Company presents his Strategic Report for the year ended 31 December 2024.
The Strategic Report is a statutory requirement under the Companies Act 2006 (Strategic Report and Director's Report) Regulations 2013 and is intended to provide fair and balanced information that enables the director to be satisfied that he has complied with section 172 of the Companies Act 2006 which sets out the director's duty to promote the success of the Company. 


Principal activity

The Company’s principal activity throughout the period was the provision of hotel services under the Holiday Inn franchise.

Business review
 
The Company operates a hotel under the Holiday Inn franchise situated in Corby and suffered a loss of £360,978 (2023: £341,064) in the current period. Earnings before interest, tax, depreciation and amortisation were £181,343 in the current period (2023: £161,399). At the year end the Company had net assets of £3,253,421 (2023: £3,521,155). During the twelve months to 31 December 2024, the hotel had an average occupancy rate of 63.2% and average rooms sold of 2,122 per month, a decrease on the prior period average KPIs of 68.4% and 2,289 respectively. Although the KPIs for occupancy and rooms sold have fallen, there has been a £0.44 increase in the average room rate in the current year.

Principal risks and uncertainties
 
Competitive pressure in the UK is a continuing risk for the Company. The Company manages this risk by forming strong relationships with all customers and striving to maintain and improve all levels of amenities, service and expertise on offer to its customers.


This report was approved by the board on 26 September 2025 and signed on its behalf by:






Mr M. E. Hewitt
Director

Page 2

 
S&A CORBY HOTEL LIMITED
 
 
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

The director presents his report and the financial statements for the year ended 31 December 2024.

Results and dividends

The loss for the year, after taxation, amounted to £360,978 (2023 - loss £341,064).

The director has not recommended a dividend.

Directors

The directors who served during the year were:

Mr M. E. Hewitt 

Director's responsibilities statement

The director is responsible for preparing the Strategic Report, the Director's 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements 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 to enable him to ensure that the financial statements comply with the Companies Act 2006He 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.

Future developments

There have been no significant changes in the Company's principal activities since the Balance Sheet date.

Page 3

 
S&A CORBY HOTEL LIMITED
 
 
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024


Financial instruments

The Company's financial instruments comprise bank balances, trade debtors, certain other debtors, trade creditors, long-term loans, certain accruals and certain other creditors. Other financial risks are not considered to have a material impact on the assessment of the company's assets, liabilities, financial position or results for the period.

Going concern

The Company has prepared a cash flow projection covering a period of 12 months from the date of signing of these financial statements that indicates that the Company can continue to settle its liabilities as they fall due throughout this period. In addition, the Company's owner has committed to continue his support and, accordingly, the financial statements have been prepared on the going concern basis.

Matters covered in the Strategic Report

The Strategic Report on page 2 contains details of the principal activities of the Company and includes a business review which provides information on the development of the Company's business during the year, together with details of the risks and uncertainties that affect the Company's business.

Disclosure of information to auditors

The director at the time when this Director's Report is approved has confirmed that:
 
so far as he is aware, there is no relevant audit information (as defined by section 418(3) of the Companies Act 2006) of which the Company's auditors are unaware, and

he has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Auditors

The auditorsF. W. Smith, Riches & Co.will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 26 September 2025 and signed on its behalf by:
 





Mr M. E. Hewitt
Director

Page 4

 
S&A CORBY HOTEL LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF S&A CORBY HOTEL LIMITED

Opinion


We have audited the financial statements of S&A Corby Hotel Limited (the 'Company') for the year ended 31 December 2024, which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity, the Statement of Cash Flows and the related notes, including a summary of significant accounting policiesThe 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 31 December 2024 and of its loss for the year 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 Auditors' 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 United Kingdom, including the Financial Reporting Council'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.


Page 5

 
S&A CORBY HOTEL LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF S&A CORBY HOTEL LIMITED (CONTINUED)

Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' Report thereon. The director is responsible for the other information contained within the Annual ReportOur 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.


Opinion on other matters prescribed by the Companies Act 2006
 

In our opinion, based on the work undertaken in the course of the audit:


the information given in the Strategic Report and the Director's Report for the financial year 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.


Matters on which we are required to report by exception
 

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.


Responsibilities of directors
 

As explained more fully in the Director's Responsibilities Statement set out on page 3, 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.


Page 6

 
S&A CORBY HOTEL LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF S&A CORBY HOTEL LIMITED (CONTINUED)

Auditors' 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 Auditors' 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:

Discussions with, and enquiries of, management and those charged with governance were held with a view to identifying those laws and regulations that could be expected to have a material impact on the financial statements. During the engagement team briefing, the outcomes of these discussions and enquiries were shared with the team, as well as consideration as to where and how fraud may occur in the entity.
The following laws and regulations were identified as being of significance to the entity:
 
Compliance with Health and Safety Law, Credit Card Law, Employment Law, and Licensing Law is considered fundamental to the operating aspects of the business.

Those laws and regulations considered to have a direct effect on the financial statements include UK financial reporting standards, Company Law, and Tax and Pensions Legislation.

Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: enquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims and actual or potential breaches of regulations; review of legal and professional costs to identify any possible non-compliance; testing the appropriateness of journal entries; and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud.
No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud may be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material mistatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK).
 
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' Report.


Page 7

 
S&A CORBY HOTEL LIMITED
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF S&A CORBY HOTEL LIMITED (CONTINUED)

Use of our report
 

This report is made solely to the Company's members, as a body, 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 members those matters we are required to state to them in an Auditors' 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 members, as a body, for our audit work, for this report, or for the opinions we have formed.






M. J. Rooney (Senior Statutory Auditor)
for and on behalf of
F. W. Smith, Riches & Co.
Chartered Accountants & Statutory Auditors
London

26 September 2025
Page 8

 
S&A CORBY HOTEL LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024

2024
2023
Note
£
£

  

Turnover
 3 
3,900,398
3,881,476

Other operating income
 4 
48,042
104,148

Raw materials and consumables
  
(378,065)
(373,640)

Other external charges
  
(1,933,571)
(2,024,421)

Gross profit
  
1,636,804
1,587,563

Staff costs
  
(1,455,461)
(1,426,164)

Depreciation and amortisation
  
(435,383)
(406,473)

Operating loss
 5 
(254,040)
(245,074)

Interest payable and similar expenses
 9 
(106,938)
(95,990)

Loss before tax
  
(360,978)
(341,064)

Loss for the financial year
  
(360,978)
(341,064)

Other comprehensive income for the year
  
-
-

Total comprehensive income for the year
  
(360,978)
(341,064)

Page 9

 
S&A CORBY HOTEL LIMITED
REGISTERED NUMBER:09424668

BALANCE SHEET
AS AT 31 DECEMBER 2024

2024
2023
Note
£
£

Fixed assets
  

Intangible assets
 11 
8,546
33,975

Tangible assets
 12 
5,581,464
5,888,472

  
5,590,010
5,922,447

Current assets
  

Stocks
 13 
23,011
19,921

Debtors: amounts falling due within one year
 14 
145,861
288,329

Cash at bank and in hand
  
187,285
100,957

  
356,157
409,207

Creditors: Amounts Falling Due Within One Year
 15 
(598,685)
(827,626)

Net current liabilities
  
 
 
(242,528)
 
 
(418,419)

Total assets less current liabilities
  
5,347,482
5,504,028

Creditors: amounts falling due after more than one year
 16 
(2,094,061)
(1,982,873)

  

Net assets
  
3,253,421
3,521,155


Capital and reserves
  

Called up share capital 
 17 
1
1

Capital contribution
  
5,594,985
5,606,353

Profit And Loss Account
  
(2,341,565)
(2,085,199)

  
3,253,421
3,521,155


The financial statements on pages 9 to 25 were approved and authorised for issue by the board on   26 September 2025.and were signed on its behalf by:




Mr M. E. Hewitt
Director

Page 10

 
S&A CORBY HOTEL LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024


Called up share capital
Capital contribution
Profit and loss account
Total equity

£
£
£
£

At 1 January 2023
1
5,609,139
(1,840,125)
3,769,015


Comprehensive income for the year

Loss for the year
-
-
(341,064)
(341,064)


Other comprehensive income for the year
-
-
-
-


Total comprehensive income for the year
-
-
(341,064)
(341,064)


Contributions by and distributions to owners

Reserves transfer
-
(95,990)
95,990
-

Capital contribution
-
93,204
-
93,204


Total transactions with owners
-
(2,786)
95,990
93,204


At 1 January 2024
1
5,606,353
(2,085,199)
3,521,155


Comprehensive income for the year

Loss for the year
-
-
(360,978)
(360,978)


Other comprehensive income for the year
-
-
-
-


Total comprehensive income for the year
-
-
(360,978)
(360,978)


Contributions by and distributions to owners

Reserves transfer
-
(104,612)
104,612
-

Capital contribution
-
93,244
-
93,244


Total transactions with owners
-
(11,368)
104,612
93,244


At 31 December 2024
1
5,594,985
(2,341,565)
3,253,421


Page 11

 
S&A CORBY HOTEL LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024

2024
2023
£
£

Cash flows from operating activities

Loss for the financial year
(360,978)
(341,064)

Adjustments for:

Amortisation of intangible assets
25,429
25,430

Depreciation of tangible assets
409,953
381,043

Interest payable
106,938
95,990

(Increase)/decrease in stocks
(3,090)
2,498

Decrease in debtors
142,468
1,451

(Decrease)/increase in creditors
(228,941)
185,436

Net cash generated from operating activities

91,779
350,784


Cash flows from investing activities

Purchase of tangible fixed assets
(102,945)
(730,693)

Net cash used in investing activities

(102,945)
(730,693)

Cash flows from financing activities

New loans from group companies
500,000
450,000

Loans from group companies repaid
(400,180)
(50,000)

Interest paid
(2,326)
-

Net cash from financing activities
97,494
400,000

Net increase in cash and cash equivalents
86,328
20,091

Cash and cash equivalents at beginning of year
100,957
80,866

Cash and cash equivalents at the end of year
187,285
100,957


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
187,285
100,957

187,285
100,957


Page 12

 
S&A CORBY HOTEL LIMITED
 

ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2024





At 1 January 2024
Cash flows
Non-cash changes
At 31 December 2024
£

£

£

£

Cash at bank and in hand

100,957

86,328

-

187,285

Debt due after 1 year

(1,982,873)

(99,820)

(11,368)

(2,094,061)


(1,881,916)
(13,492)
(11,368)
(1,906,776)

Page 13

 
S&A CORBY HOTEL LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

1.Accounting policies

  
1.1

General information

The Company’s principal activity throughout the period was the provision of hotel services under the Holiday Inn franchise.
S&A Corby Hotel Limited is a private company limited by shares and is incorporated and domiciled in England and Wales. The address of its registered office and its principal place of business is Holiday Inn Croby/Kettering A43, Geddington Road, Corby, NN18 8ET.

  
1.2

Basis of preparation of financial statements

The financial statements have been prepared in accordance with United Kingdom Accounting Standards, including Financial Reporting Standard 102, ‘the Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland’ (“FRS 102”) and the Companies Act 2006.  The financial statements have been prepared under the historical cost convention.
The preparation of financial statements requires the use of certain critical accounting estimates.  It also requires management to exercise its judgement in the process of applying the Company's accounting policies.  The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in note 2.

  
1.3

Going concern

The Company has prepared a cash flow projection covering a period of 12 months from the date of signing of these financial statements that indicates that the Company can continue to settle its liabilities as they fall due throughout this period. In addition, the Company’s owner has committed to continue his support and, accordingly, the financial statements have been prepared on the going concern basis.

  
1.4

Revenue

Revenue is recognised to the extent that the Company obtains the right to consideration in exchange for its performance.  Revenue is measured at the fair value of the consideration received or receivable, net of discounts, rebates and value added tax.  The following criteria must also be met before revenue is recognised:
Hotel revenue
Hotel revenues consist of room rentals, food and beverage sales and other ancillary goods and services.  Revenues are recorded when rooms are occupied or goods and services have been delivered or rendered.
Leisure club revenue
Revenue relating to leisure club services is recognised as earned on a straight line basis over the membership term or when services have been delivered.
Interest receivable
Revenue is recognised as interest accrues using the effective interest method.

Page 14

 
S&A CORBY HOTEL LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

1.Accounting policies (continued)

  
1.5

Finance costs

Finance costs are charged to the Profit and Loss Account over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount.  Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

  
1.6

Taxation

Taxation expense for the period comprises current and deferred tax recognised in the reporting period. Tax is recognised in the Profit and Loss Account. Current or deferred taxation assets and liabilities are not discounted.
Current tax
Current tax is the amount of corporation tax payable in respect of the taxable profit for the year or prior years. Tax is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the period end.
Management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities.
 
Deferred tax
Deferred tax arises from timing differences that are differences between taxable profits and profit on ordinary activities before taxation as stated in the financial statements. These timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in the financial statements.
Deferred tax is recognised on all timing differences at the reporting date except for certain exceptions. Unrelieved tax losses and other deferred tax assets are only recognised when 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 tax rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing difference.

 
1.7

Defined contribution pension

The Company contributes to a defined contribution plan for its employees.  A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity.  Once the contributions have been paid the Company has no further payment obligations.  The contributions are recognised as an expense when they are due.  Amounts not paid are shown in accruals in the balance sheet.  The assets of the plan are held separately from the Company in independently administered funds.

Page 15

 
S&A CORBY HOTEL LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

1.Accounting policies (continued)

  
1.8

Business combinations and goodwill

Business combinations are accounted for by applying the purchase method.
The cost of a business combination is the fair value of the consideration given, liabilities incurred or assumed and of equity instruments issued plus the costs directly attributable to the business combination.
On acquisition of a business, fair values are attributed to the identifiable assets, liabilities and contingent liabilities unless the fair value cannot be measured reliably, in which case the value is incorporated into goodwill.
 
Subsequent to initial recognition, goodwill is amortised over its expected useful life as follows:
                Goodwill     -   10 years
Amortisation is charged to 'depreciation and amortisation' in the Profit and Loss Account. Goodwill is assessed for impairment where there are indicators of impairment and any impairment is charged to the Profit and Loss Account.

  
1.9

Tangible fixed assets

Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses.  Cost includes the original purchase price, costs directly attributable to bringing the asset to its working condition for its intended use and dismantling and restoration costs.
 
Depreciation is calculated, using the straight line method, to allocate the cost of assets less their residual value over their estimated useful lives, as follows:
                Long-term leasehold property  -   50 years
                Leasehold improvements  -   10 years
                Fixtures & fittings    -   5 years
                Plant & machinery   -   10 years
The assets’ residual values and useful lives are reviewed, and adjusted, if appropriate, at the end of each reporting period.  The effect of any change is accounted for prospectively.
Subsequent costs are included in the assets’ carrying amount or recognised as a separate asset, as appropriate, only when it is probable that economic benefits associated with the item will flow to the Company and the cost can be measured reliably.  Repairs and maintenance costs are expensed as incurred.
Tangible fixed assets are derecognised on disposal or when no future economic benefits are expected.  On disposal, the difference between the net disposal proceeds and the carrying amount is recognised in the Profit and Loss Account and included in ‘other external charges’.

Page 16

 
S&A CORBY HOTEL LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

1.Accounting policies (continued)

  
1.10

Stock

Stock is stated at the lower of cost and estimated selling price less costs to sell. Stock is recognised as an expense in the period in which the related revenue is recognised. 
Cost is determined on the first-in, first-out (FIFO) method. Cost includes all costs incurred in bringing the stock to its present location and condition. 
At the end of each reporting period stock is assessed for impairment. If an item of stock is impaired, the identified stock is reduced to its selling price less costs to complete and sell and an impairment charge is recognised in the Profit and Loss Account. Where a reversal of the impairment is required the impairment charge is reversed, up to the original impairment loss, and is recognised as a credit in the Profit and Loss Account.

  
1.11

Financial instruments

The Company has chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments.
 
Short term debtors and creditors
Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price.  Any losses arising from impairment are recognised in the Profit and Loss Account in ‘other external charges’.
Cash and cash equivalents
Cash and cash equivalents comprise cash at bank and in hand.
Loans
Loans which are basic financial instruments are initially recorded at fair value net of transaction costs incurred and are measured subsequently at amortised cost using the effective interest method. The fair value of loans that do not bear a market rate of interest is determined as the present value of future payments discounted at a market rate of interest for a similar loan. Loans that are payable within one year are not discounted.   
Offsetting
Financial assets and liabilities are offset and 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.

  
1.12

Share capital

Ordinary shares are classified as equity.

Page 17

 
S&A CORBY HOTEL LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

1.Accounting policies (continued)

  
1.13

Distributions to equity holders

Final dividends to the Company’s shareholder are recognised as a liability in the financial statements in the period in which the dividends are approved by the shareholder.  These amounts are recognised in the Statement of Changes in Equity. Interim dividends are recognised in the Statement of Changes in Equity as paid.
 
  
1.14

Foreign currency translation

Functional and presentation currency
The company's functional and presentation currency is the pound sterling.

  
1.15

Operating leases: lessee

At inception the Company assesses agreements that transfer the right to use assets.  The assessment considers whether the arrangement is, or contains, a lease based on the substance of the arrangement.
Leases that do not transfer all the risks and rewards of ownership are classified as operating leases.  Rentals payable under operating leases are charged to the Profit and Loss Account on a straight line basis over the period of the lease.  Lease incentives are recognised over the lease term on a straight line basis.

  
1.16

Operating leases: lessor

At inception the Company assesses agreements that transfer the right to use assets.  The assessment considers whether the arrangement is, or contains, a lease based on the substance of the arrangement.
Leases that do not transfer all the risks and rewards of ownership are classified as operating leases.  Rentals receivable under operating leases are credited to the Profit and Loss Account on a straight line basis over the period of the lease.  Lease incentives are recognised over the lease term on a straight line basis.

  
1.17

Related party transactions

The Company discloses transactions with related parties which are not wholly owned within the same group.  It does not disclose transactions with members of the same group that are wholly owned. Where appropriate, transactions of a similar nature are aggregated unless, in the opinion of the directors separate disclosure is necessary to understand the effect of the transactions on the Company’s financial statements.


2.


Judgements in applying accounting policies and key sources of estimation uncertainty

In preparing the financial statements management are required to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the period.  However, the nature of estimation means that actual outcomes could differ from these estimates.  Whilst management have made judgements, estimates and assumptions in preparing the financial statements, they consider that these have not had a significant effect on the amounts recognised.

Page 18

 
S&A CORBY HOTEL LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

3.


Analysis of turnover

2024
2023
£
£

Hotel revenue
3,411,105
3,411,644

Leisure revenue
489,293
469,832

3,900,398
3,881,476


All turnover arose within the United Kingdom.


4.


Other operating income

2024
2023
£
£

Sundry income
2,997
-

Ground rent receivable
45,045
55,933

Insurance claim receivable
-
48,215

48,042
104,148



5.


Operating loss

The operating loss is stated after charging:

2024
2023
£
£

Depreciation of tangible fixed assets
409,953
381,043

Amortisation of intangible assets
25,429
25,430

Operating lease charges
28,568
3,995


6.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2024
2023
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
19,500
20,000
Page 19

 
S&A CORBY HOTEL LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

7.


Employees

Staff costs were as follows:


2024
2023
£
£

Wages and salaries
1,325,726
1,301,475

Social security costs
101,166
98,005

Cost of defined contribution scheme
28,568
26,684

1,455,460
1,426,164


The average monthly number of employees, including the director, during the year was as follows:


        2024
        2023
            No.
            No.







Administrative staff
70
63



Sales staff
4
3

74
66


8.


Director's remuneration

During the year director's emoluments were £77,041 (2023: £77,053) and Company contributions to defined contribution pensions schemes were £6,604 (2023: £6,604).
Key management includes members of senior management. The compensation paid or payable to key management for employee services was £154,784 (2023: £153,749).





9.


Interest payable and similar expenses

2024
2023
£
£


Loans from group undertakings
104,612
95,990

Other interest payable
2,326
-

106,938
95,990

Page 20

 
S&A CORBY HOTEL LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

10.


Taxation


2024
2023
£
£



Total current tax
-
-


Taxation on profit on ordinary activities
-
-

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 23.52%). The differences are explained below:

2024
2023
£
£


Loss on ordinary activities before tax
(360,978)
(341,064)


Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 23.52%)
(90,245)
(80,219)

Effects of:


Expenses not deductible for tax purposes
26,182
23,067

Depreciation in excess of capital allowances for year
76,331
(53,002)

Tax losses (utilisation of tax losses) / carried forward
(12,268)
123,280

Depreciation on fixed assets not eligible for capital allowances
-
(13,126)

Total tax charge for the year
-
-


Factors that may affect future tax charges

The Company has tax losses of £1,268,777 (2023: £1,317,849) available to carry forward against future operating profits.

Page 21

 
S&A CORBY HOTEL LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

11.


Intangible assets




Goodwill

£



Cost


At 1 January 2024
254,298



At 31 December 2024

254,298



Amortisation


At 1 January 2024
220,323


Charge for the year on owned assets
25,429



At 31 December 2024

245,752



Net book value



At 31 December 2024
8,546



At 31 December 2023
33,975



Page 22

 
S&A CORBY HOTEL LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

12.


Tangible fixed assets





Long-term leasehold property
Leasehold improve-ments
Fixtures and fittings
Plant and machinery
Total

£
£
£
£
£



Cost or valuation


At 1 January 2024
5,010,200
2,660,613
1,269,683
368,572
9,309,068


Additions
-
31,635
633
70,677
102,945



At 31 December 2024

5,010,200
2,692,248
1,270,316
439,249
9,412,013



Depreciation


At 1 January 2024
868,435
1,075,273
1,267,079
209,809
3,420,596


Charge for the year on owned assets
100,204
264,103
770
44,876
409,953



At 31 December 2024

968,639
1,339,376
1,267,849
254,685
3,830,549



Net book value



At 31 December 2024
4,041,561
1,352,872
2,467
184,564
5,581,464



At 31 December 2023
4,141,765
1,585,340
2,605
158,762
5,888,472


13.


Stocks

2024
2023
£
£

Finished goods and goods for resale
23,011
19,921



14.


Debtors

2024
2023
£
£


Trade debtors
66,880
216,010

Other debtors
8,651
1,646

Prepayments and accrued income
70,330
70,673

145,861
288,329


Page 23

 
S&A CORBY HOTEL LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

15.


Creditors: Amounts falling due within one year

2024
2023
£
£

Trade creditors
189,864
402,161

Other taxation and social security
198,917
171,017

Other creditors
4,415
16,101

Accruals and deferred income
205,489
238,347

598,685
827,626



16.


Creditors: Amounts falling due after more than one year

2024
2023
£
£

Other loans
2,094,061
1,982,873


The other loans are unsecured, have an effective interest rate of 5% and are from entities under common control of the shareholder.


17.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



1 (2023 - 1) ordinary share of £1.00
1
1

There is a single class of ordinary shares.  There are no restrictions on the distribution of dividends and the repayment of capital.



18.


Reserves

Capital contribution
The capital contribution comprises capital injections from the owner together with the discounted portion of the other loans from entities under common control of the shareholder. Each year an amount is transferred from the profit and loss account to account for the unwinding of the discount on the loans. The capital contribution is not a distributable reserve. 
 
Profit and loss account
The profit and loss account is a distributable reserve.

Page 24

 
S&A CORBY HOTEL LIMITED
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

19.


Commitments under operating leases

At 31 December 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2024
2023
£
£


Not later than 1 year
1,760
3,902

Later than 1 year and not later than 5 years
4,400
6,160

6,160
10,062

The Company acquired a long leasehold agreement on 8 May 2015 for 997 years plus 90 days for which
annual commitments amount to £42,000.


20.


Controlling party

The Company's ultimate controlling party is Vladimir Kuksov.

Page 25