Company Registration Number 03473990
PEEL HOTELS LIMITED
COMPANY INFORMATION
PEEL HOTELS LIMITED
CONTENTS
PEEL HOTELS LIMITED
GROUP STRATEGIC REPORT
FOR THE PERIOD ENDED 19 JANUARY 2025
The Directors present the Strategic Report of the Group for the period ended 19 January 2025.
Results
The key performance indicators for the Group are revenue, EBITDA, profit before tax, REVPAR and net debt.
Hotel revenue decreased to £9,868,976 (2024: £9,895,053). The Group generated a gross profit before depreciation and Group administration expenses of £1,319,227 (2024: loss of £376,538), EBITDA has increased to a profit of £592,968 (2024: loss of £1,079,196).
Profit before tax was a loss of £115,501 (2024: £1,672,857). However, if the exceptional expenses were stripped out, the Group was profitable.
REVPAR (accommodation revenue per available room) was up 4.9% with occupancy up 0.4% and average room rate up 4.6%.
Administration expenses increased by 3.4%.
Finance
As at 19 January 2025 net debt stood as a debit of £1,386,407 (2024: £196,057 credit) representing £2,094,417 of bank loans (2024: £Nil) less cash at bank and in hand £958,010 (2024: £196,057). Net debt increased by £1,582,464 compared with the previous year.
Capital expenditure
£978,158 was spent during the year (2024: £845,201).
We are proud to offer free electric charging points in all our Hotel’s Car Parks and intend to expand these points in line with demand.
In addition to Capital Expenditure £188,841 (2024: £355,987) was spent on repair and renewals which help us to ensure that we are constantly and consistently maintaining and improving our product. Proof of which is the continuing improvements in rating of each hotel assessed by the Automobile Association, and the Caledonian Hotel in Newcastle achieving 4 star acceditation.
The key performance indicators for the Group are revenue, EBITDA, profit before tax, REVPAR and net debt.
Hotel revenue decreased to £9,868,976 (2024: £9,895,053). The Group generated a gross profit before depreciation and Group administration expenses of £1,319,227 (2024: loss of £376,538), EBITDA has increased to a profit of £592,968 (2024: loss of £1,079,196).
Profit before tax was a loss of £115,501 (2024: £1,672,857). However, if the exceptional expenses were stripped out, the Group was profitable.
REVPAR (accommodation revenue per available room) was up 4.9% with occupancy up 0.4% and average room rate up 4.6%.
Administration expenses increased by 3.4%.
Finance
As at 19 January 2025 net debt stood as a debit of £1,386,407 (2024: £196,057 credit) representing £2,094,417 of bank loans (2024: £Nil) less cash at bank and in hand £958,010 (2024: £196,057). Net debt increased by £1,582,464 compared with the previous year.
Capital expenditure
£978,158 was spent during the year (2024: £845,201).
We are proud to offer free electric charging points in all our Hotel’s Car Parks and intend to expand these points in line with demand.
In addition to Capital Expenditure £188,841 (2024: £355,987) was spent on repair and renewals which help us to ensure that we are constantly and consistently maintaining and improving our product. Proof of which is the continuing improvements in rating of each hotel assessed by the Automobile Association, and the Caledonian Hotel in Newcastle achieving 4 star acceditation.
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PEEL HOTELS LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE PERIOD ENDED 19 JANUARY 2025
The Directors have set in place a thorough risk management process that identifies the key risks faced by the Group and ensures that processes are adopted to monitor and mitigate such risks.
The principal non financial risk affecting the business relates to the fact that the market in which the Group operates is highly competitive, with constant pressure on rates in the provincial marketplace. The Group seeks to mitigate this by ensuring its product offering is maintained to a high standard, via a programme of on going refurbishment to maintain competitiveness.
The principal financial risks affecting the business are currency risk, credit risk and liquidity risk.
All the Group’s sales and purchases are made in sterling, therefore the Group is not exposed to any significant currency risks.
The Directors are satisfied that the credit risk is adequately managed and the level of bad debt is consistent with the nature of the industry.
Liquidity needs are managed by regular review of the timing of expected receivables and payments (including capital payments required on the bank and other loans) and the availability of facilities and levels of cash on deposit via the preparation of cash flow forecasts.
The principal non financial risk affecting the business relates to the fact that the market in which the Group operates is highly competitive, with constant pressure on rates in the provincial marketplace. The Group seeks to mitigate this by ensuring its product offering is maintained to a high standard, via a programme of on going refurbishment to maintain competitiveness.
The principal financial risks affecting the business are currency risk, credit risk and liquidity risk.
All the Group’s sales and purchases are made in sterling, therefore the Group is not exposed to any significant currency risks.
The Directors are satisfied that the credit risk is adequately managed and the level of bad debt is consistent with the nature of the industry.
Liquidity needs are managed by regular review of the timing of expected receivables and payments (including capital payments required on the bank and other loans) and the availability of facilities and levels of cash on deposit via the preparation of cash flow forecasts.
The Directors believe in building long term, strong and sustainable relationships with our customers and suppliers. This approach has enabled us to win long term contracts of supply with our customers. The company's hotels play an active part within their local communities as it aims to employ local people and utilise the services of local companies where possible. The Directors are committed to employees’ health, wellbeing and training. Engaging with specialists for external training and providing in house sessions where required.
This report was approved by the board and signed on its behalf.
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PEEL HOTELS LIMITED
DIRECTORS' REPORT
FOR THE PERIOD ENDED 19 JANUARY 2025
The directors present their report and the financial statements for the period ended 19 January 2025.
The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Group's financial statements and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The profit for the period, after taxation, amounted to £1,260,094 (2024 - loss £1,816,410).
The Directors recommend that no dividend be paid (2024 - £Nil).
Robert Peel was appointed on 25 November 1997.
Nicholas Parrish was appointed on 19 October 2012.
Nicholas Parrish was appointed on 19 October 2012.
Haydn Fentum was appointed on 22 July 2016.
All Directors served throughout the year.
The Directors are not aware of any persons, other than Robert Peel and his brother Charles Peel, who directly or indirectly, jointly or severally, exercise control over the Company.
All Directors served throughout the year.
The Directors are not aware of any persons, other than Robert Peel and his brother Charles Peel, who directly or indirectly, jointly or severally, exercise control over the Company.
The Directors are of the opinion, that the market value of the land and buildings is not materially different to their balance sheet values.
We are clear in our strategy which is to recover our EBITDA lost to Covid and thereafter sell down a proportion of our assets to become debt free in the future.
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PEEL HOTELS LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 19 JANUARY 2025
The Group has purchased Directors' and Officers liability insurance.
We have been extremely sensitive to the problems our guests have faced in terms of reorganising reservations and claiming back deposits. The fact that we encourage telephonic activity in our hotels and at our London office ensures personal and friendly communication rather than computerised communication and this greatly helps our clients, in particular the older ones.
This financial year we have ensured that our payments to suppliers have been speedy. The average creditor days figure for the year was less than 30 days.
This financial year we have ensured that our payments to suppliers have been speedy. The average creditor days figure for the year was less than 30 days.
Information is not shown in the Director's Report because it is shown in the Strategic Report under s414C(11). The Strategic Report includes a business review, principal risks and uncertainties, information on the Group's key performance indicators and the Director's statement of compliance with their duty to promote the success of the Group.
Under section 487(2) of the Companies Act 2006, Armstrong Watson Audit Limited will be deemed to have
been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after
the latest date prescribed for filing the accounts with the registrar, whichever is earlier.
been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after
the latest date prescribed for filing the accounts with the registrar, whichever is earlier.
This report was approved by the board and signed on its behalf.
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PEEL HOTELS LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PEEL HOTELS LIMITED
We have audited the financial statements of Peel Hotels Limited (the 'parent Company') and its subsidiaries (the 'Group') for the period ended 19 January 2025, which comprise the Consolidated statement of income and retained earnings, the Consolidated statement of financial position, the Company statement of financial position, the Consolidated statement of cash flows, Consolidated analysis of net debt and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
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 Group 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.
In auditing the financial statements, we have concluded that the directors' 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 group'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 directors with respect to going concern are described in the relevant sections of this report.
The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's report thereon. The directors 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.
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PEEL HOTELS LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PEEL HOTELS LIMITED (CONTINUED)
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group strategic report and the Directors' report for the financial period for which the financial statements are prepared is consistent with the financial statements; and
∙the Group strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group strategic report or the Directors' report.
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PEEL HOTELS LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PEEL HOTELS LIMITED (CONTINUED)
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 Group 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:
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:
∙the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
∙we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the hotel and hospitality sector;
∙we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management; and
∙identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the Company’s financial statements to material misstated, including obtaining an understanding of how fraud might occur, by:
∙making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and
∙considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management override of controls, we:
∙performed analytical procedures to identify unusual or unexpected relationships;
∙tested journal entries to identify unusual transactions; and
∙assessed whether the judgements and assumptions made in determining the accounting estimates set out in Note 3 were indicative of potential bias.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
∙agreeing financial statement disclosures to underlying supporting documentation;
∙enquiring of management as to actual and potential litigation and claims; and
∙enquiring of the Company’s solicitors as to actual and potential litigation and claims.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
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 Auditor's report.
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PEEL HOTELS LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF PEEL HOTELS LIMITED (CONTINUED)
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 Auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants
Statutory Auditors
Northallerton
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PEEL HOTELS LIMITED
CONSOLIDATED STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE PERIOD ENDED 19 JANUARY 2025
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PEEL HOTELS LIMITED
REGISTERED NUMBER: 03473990
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 19 JANUARY 2025
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PEEL HOTELS LIMITED
REGISTERED NUMBER: 03473990
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 19 JANUARY 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 17 to 37 form part of these financial statements.
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PEEL HOTELS LIMITED
REGISTERED NUMBER: 03473990
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 19 JANUARY 2025
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PEEL HOTELS LIMITED
REGISTERED NUMBER: 03473990
COMPANY STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 19 JANUARY 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 17 to 37 form part of these financial statements.
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PEEL HOTELS LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 19 JANUARY 2025
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PEEL HOTELS LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE PERIOD ENDED 19 JANUARY 2025
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PEEL HOTELS LIMITED
CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE PERIOD ENDED 19 JANUARY 2025
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PEEL HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 19 JANUARY 2025
Peel Hotels Limited is a private company limited by shares incorporated in the United Kingdom. The company's registered office address is c/o Thrings LLP, 6 Drakes Meadow, Penny Lane, Swindon, SN3 3LL.
The principal activity of the company is the operation of hotels.
These financial statements have been presented in Pound Sterling as this is the currency of the primary economic environment in which the company operates.
The principal activity of the company is the operation of hotels.
These financial statements have been presented in Pound Sterling as this is the currency of the primary economic environment in which the company operates.
2.Accounting policies
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of income and retained earnings in these financial statements.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of financial position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the consolidated statement of income and retained earnings from the date on which control is obtained. They are deconsolidated from the date control ceases.
In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of financial position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the consolidated statement of income and retained earnings from the date on which control is obtained. They are deconsolidated from the date control ceases.
In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102.
The directors are mindful that the UK leisure and tourism sector has faced adverse pressures due to the pandemic over the last two years with the current cost of living crisis likely to extend that pressure in the form of restrictions to consumer disposable income and the cost of heating and fuelling hotel estates. Whilst those parameters exist the directors remain confident over the financial sustainability and future of the Group.
The Group will have sufficient cash inflows to meet all of its financial obligations, including the settlement of scheduled bank indebtedness, for at least 12 months from the approval of these financial statements. On that basis the directors have prepared the financial statements on a going concern basis.
The Group will have sufficient cash inflows to meet all of its financial obligations, including the settlement of scheduled bank indebtedness, for at least 12 months from the approval of these financial statements. On that basis the directors have prepared the financial statements on a going concern basis.
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PEEL HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 19 JANUARY 2025
2.Accounting policies (continued)
The difference between the amount of income recognised and the amount invoiced on a particular contract is included in the statement of financial position as deposits, within accruals and deferred income. Amounts included in accruals in respect of deposits taken are expected to be recognised within one year and are included within current liabilities.
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PEEL HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 19 JANUARY 2025
2.Accounting policies (continued)
The contributions are recognised as an expense in the statement of income and retained earnings when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Company in independently administered funds.
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PEEL HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 19 JANUARY 2025
2.Accounting policies (continued)
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.
The estimated useful lives range as follows:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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PEEL HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 19 JANUARY 2025
2.Accounting policies (continued)
Provisions are made where an event has taken place that gives the Group a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Group becomes aware of the obligation, and are measured at the best estimate at the reporting date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Statement of financial position.
Provisions are charged as an expense to profit or loss in the year that the Group becomes aware of the obligation, and are measured at the best estimate at the reporting date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Statement of financial position.
The Group only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.
Debt instruments (other than those wholly repayable or receivable within one year), including loans and other accounts receivable and payable, are initially measured at present value of the future cash flows and subsequently at amortised cost using the effective interest method. Debt instruments that are payable or receivable within one year, typically trade debtors and creditors, are measured, initially and subsequently, at the undiscounted amount of the cash or other consideration expected to be paid or received. However, if the arrangements of a short-term instrument constitute a financing transaction, like the payment of a trade debt deferred beyond normal business terms or in case of an out-right short-term loan that is not at market rate, the financial asset or liability is measured, initially at the present value of future cash flows discounted at a market rate of interest for a similar debt instrument and subsequently at amortised cost, unless it qualifies as a loan from a director in the case of a small company, or a public benefit entity concessionary loan.
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PEEL HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 19 JANUARY 2025
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 if the revision effects only that period, or in the period of the revision and future periods if the revision effects both current and future periods.
The Directors consider that the key judgements and sources of estimation made in preparation of the financial statements are:
The key judgement and level of uncertainty within the financial statements is with regards the carrying value of tangible fixed assets. During the year all of the hotels had been placed for sale, allowing the group to determine the realisable value of all its hotels, all of the hotels had been valued in excess of the carrying value, and the offers received and accepted on some hotels have been for in excess of the carrying value of the hotels at the year end, in turn allowing them to determine that the carrying value of the hotels at the year end is not impaired. In determining the potential impairment the directors have considered the following:
• Consideration for the hotels when placed on the market for sale
• The offers made by the market for the acquisition of its assets
• The net book value of the assets held at the year end
In doing so the directors assessed the carrying value of assets have either been below the value deemed appropriate by the market and potential buyers, or in line with market expectations. The Directors have not identified any reasons for there to be a further impairment in the current year.
The whole of the turnover is attributable to the principal activity of the Group.
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PEEL HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 19 JANUARY 2025
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PEEL HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 19 JANUARY 2025
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PEEL HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 19 JANUARY 2025
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PEEL HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 19 JANUARY 2025
12.Taxation (continued)
The prior period adjustments relate to the treatment of tax on capital items.
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PEEL HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 19 JANUARY 2025
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PEEL HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 19 JANUARY 2025
13.Tangible fixed assets (continued)
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PEEL HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 19 JANUARY 2025
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PEEL HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 19 JANUARY 2025
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PEEL HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 19 JANUARY 2025
The bank loan is secured by a debenture over all the assets of the Group.
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PEEL HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 19 JANUARY 2025
The bank loan is secured by a debenture over all the assets of the Group.
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PEEL HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 19 JANUARY 2025
A £2.5m bank loan was taken out with Lloyds Bank on 17 January 2024, this incurs interest of 2.88% + base rate and matures in 10 years.
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PEEL HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 19 JANUARY 2025
The Group has exposure to the following risks from its use of financial instruments:
- credit risk
- interest rate risk
- market risk
This note presents information about the Group's exposure to each of the above risks, the Group's objectives, policies and processes for measuring and managing risk, and the Group's management of capital. Further qualitative disclosures are included throughout these financial statements.
The Board of Directors has overall responsibility for the establishment and oversight of the Group's risk management framework.
The Group's risk management policies are established to identify and analyse the risks faced by the Group, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Group's activities. The Group, through its training and management standards and procedures, aims to develop a disciplined and constructive control environment in which all employees understand their roles and obligations.
Credit risk
Credit risk is the risk of financial loss to the Group if a customer, or counterparty to a financial instrument, fails to meet its contractual obligations, and arises principally from the Group's receivables from customers, investment securities and cash holdings.
Trade and other receivables
The Group's exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the Group's customer base, including the default risk of the industry and country, in which customers operate, has less of an influence on credit risk.
The Group establishes an allowance for impairment that represents its estimate of losses in respect of trade and other receivables and investments. The main components of this allowance are a specific loss component that relates to individually significant exposures, and a collective loss component established for groups of similar assets in respect of losses that have been incurred but not yet identified. The collective loss allowance is determined based on historical data of payment statistics for similar financial assets.
Interest rate risk
Given the current market expectations as to the movement in SONIA, in the short to medium term, it is not the Group's intention to enter into any financial instruments to manage its interest rate risk. This policy will be kept under regular review. The Group is not materially exposed to changes in interest rates at 19 January 2025.
Currency risk
The Group has no material foreign currency risk.
Fair values of non-derivative financial instruments
The carrying value of the Group's financial instruments (trade and other receivables, cash and bank balances, bank overdrafts, trade and other payables and borrowings) approximate to their fair value.
Market rate risk
The Group was exposed to market rate risk through exposure of their base rate loans.
- credit risk
- interest rate risk
- market risk
This note presents information about the Group's exposure to each of the above risks, the Group's objectives, policies and processes for measuring and managing risk, and the Group's management of capital. Further qualitative disclosures are included throughout these financial statements.
The Board of Directors has overall responsibility for the establishment and oversight of the Group's risk management framework.
The Group's risk management policies are established to identify and analyse the risks faced by the Group, to set appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed regularly to reflect changes in market conditions and the Group's activities. The Group, through its training and management standards and procedures, aims to develop a disciplined and constructive control environment in which all employees understand their roles and obligations.
Credit risk
Credit risk is the risk of financial loss to the Group if a customer, or counterparty to a financial instrument, fails to meet its contractual obligations, and arises principally from the Group's receivables from customers, investment securities and cash holdings.
Trade and other receivables
The Group's exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of the Group's customer base, including the default risk of the industry and country, in which customers operate, has less of an influence on credit risk.
The Group establishes an allowance for impairment that represents its estimate of losses in respect of trade and other receivables and investments. The main components of this allowance are a specific loss component that relates to individually significant exposures, and a collective loss component established for groups of similar assets in respect of losses that have been incurred but not yet identified. The collective loss allowance is determined based on historical data of payment statistics for similar financial assets.
Interest rate risk
Given the current market expectations as to the movement in SONIA, in the short to medium term, it is not the Group's intention to enter into any financial instruments to manage its interest rate risk. This policy will be kept under regular review. The Group is not materially exposed to changes in interest rates at 19 January 2025.
Currency risk
The Group has no material foreign currency risk.
Fair values of non-derivative financial instruments
The carrying value of the Group's financial instruments (trade and other receivables, cash and bank balances, bank overdrafts, trade and other payables and borrowings) approximate to their fair value.
Market rate risk
The Group was exposed to market rate risk through exposure of their base rate loans.
Page 34
PEEL HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 19 JANUARY 2025
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Page 35
PEEL HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 19 JANUARY 2025
Share premium account
Profit and loss account
The Group is currently in negotiations over a historic long term lease on the now dissolved Strathdon Hotel, Nottingham. The liability is unconfirmed at the year end, however should the group become liabile, the value is material. As at the year end date, the group has a short term agreement in place, for which the full liability has been accrued for in full.
The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £82,067 (2024 - £100,604 ). Contributions totalling £7,961 (2024 - £3,071 ) were payable to the fund at the reporting date and are included in creditors.
Page 36
PEEL HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 19 JANUARY 2025
Included within debtors, amounts falling due within one year, is £5,006 (2024 - £34,944 ) amount due from Director and shareholder Robert Peel.
The immediate and ultimate controlling party is the director Robert Peel , by virtue of majority shareholding.
Page 37