Sara Developments Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2025

1	General information

The company is a private company limited by share capital, incorporated in United Kingdom.

The address of its registered office is:
Princes Square Hotel
23-25 Princes Square
London
W2 4NJ
United Kingdom

These financial statements were authorised for issue by the Board on 22 September 2025.

2	Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A smaller entities - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' and the Companies Act 2006 (as applicable to companies subject to the small companies' regime).

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the provision of hotel services and other lodging accommodation in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

Sales are recorded when payment is made, some of which might span the year end. As the amounts are negligible, no adjustment is made for either stay not paid for at the year end nor for stay just after the year but paid for prior to the year end.

Tax

The tax expense for the period comprises tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

Deferred tax is recognised in respect of all timing differences between taxable profits and profits reported in the financial statements.

Unrelieved tax losses and other deferred tax assets are 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 the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Sara Developments Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2025

Asset class	Depreciation method and rate
Freehold property	2% on cost
Fixtures and fittings	20% on cost
Plant and machinery	20% on cost
Office equipment	20% on cost
Motor vehicle	25% on WDV

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the profit and loss account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Sara Developments Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2025

3	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 18 (2024 - 17).

4

Taxation

Tax charged/(credited) in the profit and loss account

	2025 £	2024 £
Deferred taxation
Arising from accelerated capital allowances	-	58,565

5	Tangible assets

	Land and buildings £	Fixtures and fittings £	Plant and machinery £	Office equipment £	Total £
Cost or valuation
At 1 April 2024	4,977,758	1,061,441	374,906	41,351	6,455,456
Additions	-	2,160	-	10,130	12,290
At 31 March 2025	4,977,758	1,063,601	374,906	51,481	6,467,746
Depreciation
At 1 April 2024	2,323,001	692,313	139,512	35,846	3,190,672
Charge for the year	99,555	212,720	74,981	10,038	397,294
At 31 March 2025	2,422,556	905,033	214,493	45,884	3,587,966
Carrying amount
At 31 March 2025	2,555,202	158,568	160,413	5,597	2,879,780
At 31 March 2024	2,654,757	369,128	235,394	5,505	3,264,784

Included within the net book value of land and buildings above is £2,555,202 (2024 - £2,654,757) in respect of freehold land and buildings.
 

The company's Freehold property was revalued on 27 October 2022 by a independent valuer for £11,000,000, before any refurbishment work was conducted,
 

Sara Developments Limited

Notes to the Unaudited Financial Statements for the Year Ended 31 March 2025

6

Debtors

Current	Note	2025 £	2024 £
Amounts owed by the ultimate parent company and an entity with common control	10	639,999	639,999
Prepayments		10,610	23,691
Other debtors		1,698	17,212
Accrued income		-	2,089
		652,307	682,991

7

Creditors

Creditors: amounts falling due within one year

	Note	2025 £	2024 £
Due within one year
Loans and borrowings	9	235,000	237,186
Trade creditors		52,666	114,570
Amounts owed to the parent company	10	1,611,219	1,611,219
Taxation and social security		58,423	20,843
Accruals and deferred income		8,406	6,050
Other creditors		467	1,104
Customers deposits		5,617	-
Credit card liabilities		24,077	-
Directors loan account		900,316	1,150,137
		2,896,191	3,141,109