|
| Basis of opinion |
| We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
|
| Conclusions relating to going concern |
| In auditing the financial statements, we have concluded that the 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 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 directors with respect to going concern are described in the relevant sections of this report. |
|
| Other information |
| The other information comprises the information included in the report and financial statements, other than the financial statements and our auditor's report thereon. The directors are responsible for the other information. 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. In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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. |
|
| Opinions 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 directors’ report for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
| ● |
the strategic report and the directors’ report have been prepared in accordance with applicable legal requirements. |
|
| Matters on which we are required to report by exception |
|
|
In the directors' opinion, 'Artworks' may have a long economic life and may also have high residual value, consequently depreciation has not been charged. |
|
|
Short leasehold properties were revalued in 2023 in order to reflect the current market value. |
|
|
Impairment |
|
Financial assets (including trade and other debtors) |
|
A financial asset not carried at fair value through profit or loss is assessed at each reporting date to determine whether there is objective evidence that it is impaired. A financial asset is impaired if objective evidence indicates that a loss event has occurred after the initial recognition of the asset, and that the loss event had a negative effect on the estimated future cash flows of that asset that can be estimated reliably. |
|
Impairment |
|
Financial assets (including trade and other debtors) (Cont'd) |
|
An impairment loss in respect of a financial asset measured at amortised cost is calculated as the difference between its carrying amount and the present value of the estimated future cash flows discounted at the asset's original effective interest rate. For financial instruments measured at cost less impairment, an impairment is calculated as the difference between its carrying amount and the best estimate of the amount that the company would receive for the asset if it were to be sold at the reporting date. Interest on the impaired asset continues to be recognised through the unwinding of the discount. |
|
|
Impairment losses are recognised in profit or loss. When a subsequent event causes the amount of impairment loss to decrease, the decrease in impairment loss is reversed through profit or loss. |
|
|
Non-financial assets |
|
The carrying amounts of the company's non-financial assets are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset's recoverable amount is estimated. The recoverable amount of an asset is the greater of its value in use and its fair value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.
An impairment loss is recognised if the carrying amount of an asset exceeds its estimated recoverable amount. Impairment losses are recognised in profit or loss. |
|
|
Stocks |
|
Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell, after making due allowance for obsolete and slow moving items. Cost is determined using the first in first out method. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised. |
|
|
Debtors |
|
Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts. |
|
|
Creditors |
|
Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. |
|
|
Taxation |
|
Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.
Current or deferred taxation assets and liabilities are not discounted. Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the statement of financial position date. |
|
|
Deferred tax |
|
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the year end. |
|
|
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. |
|
|
Provisions |
|
Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably. |
|
|
Hire purchase and leasing commitments |
|
Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease. |
|
|
Pension costs and other post-retirement benefits |
|
The company operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. Contributions payable to the company's pension scheme are charged to income statement in the period to which they relate. |
|
| 2 |
Significant judgements and estimates |
|
The preparation of the Financial Statements requires Management to exercise judgement and to make estimates and assumptions that affect the application of policies, reported amounts of revenues, expenses, assets and liabilities and disclosures. These estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates. |
|
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. |
|
Significant judgements and estimates (cont'd) |
|
The areas of key judgements and estimates are in relation to i) Depreciation and amortisation ii) Leasehold valuations. With regards to depreciation and amortisation, judgements and estimates are based on an estimate of the useful life of each category of fixed asset. For short leasehold assets the area of judgement is its valuation to the business. This has been carried out by managements expert, any subsequent changes to the valuation have been reflected in the financial statements. It is the entities policy to carry out revaluations once the carrying value is deemed to be significantly different to the market value. |
|
| 3 |
Turnover |
|
|
The turnover is attributable to the principal activities of the company. All turnover arose within the United Kingdom. |
|
| 4 |
Operating profit |
2024 |
|
2023 |
| £ |
£ |
|
This is stated after charging: |
|
|
Depreciation of owned fixed assets |
515,848 |
|
523,503 |
|
Operating lease rentals - land and buildings |
1,027,000 |
|
1,013,940 |
|
Auditors' remuneration for audit services |
16,053 |
|
15,288 |
|
|
|
|
|
|
|
|
|
|
| 5 |
Staff costs |
2024 |
|
2023 |
| £ |
£ |
|
|
Wages and salaries |
2,767,941 |
|
2,883,474 |
|
Social security costs |
206,403 |
|
190,911 |
|
Other pension costs |
40,703 |
|
37,967 |
|
|
|
|
|
|
3,015,047 |
|
3,112,352 |
|
|
|
|
|
|
|
|
|
|
|
Average number of employees during the year |
Number |
Number |
|
|
Office and management |
21 |
|
4 |
|
Restaurant and hotel |
80 |
|
101 |
|
|
|
|
|
|
101 |
|
105 |
|
|
|
|
|
|
|
|
|
|
| 6 |
Interest payable |
2024 |
|
2023 |
| £ |
£ |
|
|
Bank loans and overdrafts |
247,288 |
|
204,450 |
|
|
|
|
|
|
|
|
|
| 7 |
Taxation |
2024 |
|
2023 |
|
Analysis of charge in period |
£ |
£ |
|
Current tax: |
|
|
UK corporation tax on profits of the period |
190,077 |
|
217,343 |
|
Adjustments in respect of previous periods |
- |
|
(35,096) |
|
|
|
|
|
|
190,077 |
|
182,247 |
|
|
|
|
|
|
|
|
|
|
Deferred tax: |
|
Origination and reversal of timing differences |
5,159 |
|
5,976 |
|
|
|
|
|
|
|
|
|
|
Tax on profit/ (loss) on ordinary activities |
195,236 |
|
188,223 |
|
|
|
|
|
|
|
|
|
|
|
Factors affecting current tax charge for period |
|
The differences between the tax assessed for the period and the standard rate of corporation tax are explained as follows: |
|
|
|
|
|
|
2024 |
|
2023 |
| £ |
£ |
|
Profit on ordinary activities before tax |
547,969 |
|
444,797 |
|
|
|
|
|
|
|
|
|
|
Standard rate of corporation tax in the UK |
25% |
|
25% |
|
| £ |
£ |
|
Profit/ (Loss) on ordinary activities multiplied by the standard rate of corporation tax |
|
136,992 |
|
111,199 |
|
|
Effects of: |
|
Expenses not deductible for tax purposes |
568,588 |
|
591,378 |
|
Capital allowances for period in excess of depreciation |
(510,344) |
|
(479,258) |
|
Adjustments to tax charge in respect of previous periods |
- |
|
(35,096) |
|
|
Current tax charge for period |
195,236 |
|
188,223 |
|
|
|
|
|
|
|
|
|
|
| 8 |
Tangible fixed assets |
|
|
|
|
Short leasehold |
|
Fixtures, fittings, tools and equipment |
|
Total |
|
Cost or valuation |
£ |
£ |
£ |
|
|
At 1 January 2024 |
10,646,742 |
|
2,963,049 |
|
13,609,791 |
|
At 31 December 2024 |
10,646,742 |
|
2,963,049 |
|
13,609,791 |
|
|
|
|
|
|
|
|
|
|
Depreciation |
|
|
At 1 January 2024 |
3,464,405 |
|
2,858,677 |
|
6,323,082 |
|
Charge for the year |
513,270 |
|
2,578 |
|
515,848 |
|
At 31 December 2024 |
3,977,675 |
|
2,861,255 |
|
6,838,930 |
|
Tangible fixed assets (Cont'd) |
|
|
|
|
Short leasehold |
|
Fixtures, fittings, tools and equipment |
|
Total |
| £ |
£ |
£ |
|
Carrying amount |
|
|
At 31 December 2024 |
6,669,067 |
|
101,794 |
|
6,770,861 |
|
At 31 December 2023 |
7,182,337 |
|
104,372 |
|
7,286,709 |
|
|
|
|
|
|
|
|
|
|
|
If the short leasehold property had not been revalued it would have been included at the following historical cost: |
|
|
|
|
|
|
2024 |
|
2023 |
| £ |
£ |
|
Cost |
2,674,886 |
|
2,674,886 |
|
Aggregate depreciation |
1,758,058 |
|
1,687,538 |
|
Carrying amount of short leasehold on cost basis |
916,828 |
|
987,348 |
|
|
|
|
|
|
|
|
|
|
The short leasehold property was revalued on a fair value basis on 15 May 2023 by Colliers International Property Consultants Ltd and the property's market value is reflected in the financial statements. |
|
| 9 |
Stocks |
2024 |
|
2023 |
| £ |
£ |
|
|
Finished goods and goods for resale |
58,544 |
|
50,530 |
|
|
|
|
|
|
|
|
|
|
| 10 |
Debtors |
|
|
|
|
|
|
2024 |
|
2023 |
| £ |
£ |
|
|
Trade debtors |
46,828 |
|
35,059 |
|
Amounts owed by group undertakings |
|
2,001,254 |
|
1,637,751 |
|
Deferred tax asset (see note 14) |
|
|
|
|
365,383 |
|
87,809 |
|
Other debtors |
38,316 |
|
52,395 |
|
Prepayments and accrued income |
363,469 |
|
335,457 |
|
|
|
|
|
|
2,815,250 |
|
2,148,471 |
|
|
|
|
|
|
|
|
|
|
| 11 |
Creditors: amounts falling due within one year |
2024 |
|
2023 |
| £ |
£ |
|
|
Bank loans |
329,000 |
|
329,000 |
|
Trade creditors |
615,766 |
|
293,431 |
|
Corporation tax |
190,077 |
|
228,436 |
|
Other taxes and social security costs |
497,844 |
|
463,029 |
|
Other creditors |
407,978 |
|
303,495 |
|
Accruals and deferred income |
225,624 |
|
560,881 |
|
|
|
|
|
|
2,266,289 |
|
2,178,272 |
|
|
|
|
|
|
|
|
|
|
| 12 |
Creditors: amounts falling due after one year |
2024 |
|
2023 |
| £ |
£ |
|
|
Bank loans |
2,549,750 |
|
2,878,750 |
|
|
|
|
|
|
|
|
|
|
| 13 |
Loans |
2024 |
|
2023 |
| £ |
£ |
|
Analysis of maturity of debt: |
|
Within one year or on demand |
329,000 |
|
329,000 |
|
Between one and two years |
658,000 |
|
658,000 |
|
Between two and five years |
1,891,750 |
|
2,220,750 |
|
|
|
|
|
|
2,878,750 |
|
3,207,750 |
|
|
|
|
|
|
|
|
|
|
The company's borrowings are secured as follows:
By a debenture;
By a fixed and floating charge on all the assets of the company;
By a composite guarantee between the company and Mogford Limited. |
|
|
| 14 |
Deferred taxation |
2024 |
|
2023 |
| £ |
£ |
|
|
Accelerated capital allowances |
(365,383) |
|
(87,809) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024 |
|
2023 |
| £ |
£ |
|
|
At 1 January |
(87,809) |
|
51,366 |
|
Charged to the profit and loss account |
5,159 |
|
5,976 |
|
Credited to other comprehensive income |
(282,733) |
|
(145,151) |
|
|
At 31 December |
(365,383) |
|
(87,809) |
|
|
|
|
|
|
|
|
|
|
| 15 |
Share capital |
Nominal |
|
2024 |
|
2024 |
|
2023 |
| value |
Number |
£ |
£ |
|
Allotted, called up and fully paid: |
|
Ordinary shares |
£1 each |
|
1,000 |
|
1,000 |
|
1,000 |
|
|
|
|
|
|
|
|
|
|
| 16 |
Other reserves |
2024 |
|
2023 |
|
Revaluation reserve |
£ |
£ |
|
|
At 1 January |
6,288,544 |
|
7,739,161 |
|
Loss on revaluation of land and buildings |
- |
|
(1,153,258) |
|
Transfer for additional depreciation on revaluation |
(442,500) |
|
(442,510) |
|
Deferred taxation arising on the revaluation of short leasehold |
|
282,733 |
|
145,151 |
|
|
At 31 December |
6,128,777 |
|
6,288,544 |
|
|
|
|
|
|
|
|
|
|
| 17 |
Profit and loss account |
2024 |
|
2023 |
| £ |
£ |
|
|
At 1 January |
(1,639,934) |
|
(2,339,018) |
|
Profit for the financial year |
352,733 |
|
256,574 |
|
Reserve movements |
442,500 |
|
442,510 |
|
|
At 31 December |
(844,701) |
|
(1,639,934) |
|
|
|
|
|
|
|
|
|
|
| 18 |
Other financial commitments |
|
Total future minimum lease payments under non-cancellable operating leases: |
|
|
|
|
|
|
|
Land and buildings |
|
Land and buildings |
|
|
|
|
|
|
2024 |
|
2023 |
| £ |
£ |
|
Falling due: |
|
within one year |
1,027,000 |
|
1,010,230 |
|
within two to five years |
5,135,000 |
|
5,051,150 |
|
in over five years |
8,466,480 |
|
6,642,350 |
|
|
|
|
|
|
14,628,480 |
|
12,703,730 |
|
|
|
|
|
|
|
|
|
|
| 19 |
Controlling party |
|
During the current and previous financial year, the company was controlled by Mr J L Mogford, the director who has a majority shareholding in its ultimate parent company, Mogford Limited. |
|
|
| 20 |
Presentation currency |
|
The financial statements are presented in Sterling. |
|
|
| 21 |
Ultimate parent company |
|
Mogford Limited is regarded by the directors as being the company's immediate and ultimate parent undertaking. |
|
|
| 22 |
Legal form of entity and country of incorporation |
|
Mogford Hotels Limited is a private company limited by shares and incorporated in England. |
|
| 23 |
Principal place of business |
|
The address of the company's principal place of business and registered office is: |
|
|
10a Woodstock Road |
|
Oxford |
|
Oxfordshire |
|
OX2 6HT |