Axcel Hospitality (Inverness) Limited - Accounts to registrar (filleted)

REGISTERED NUMBER: 11906483 (England and Wales)

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2024

FOR

AXCEL HOSPITALITY (INVERNESS) LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

Sunil Patel

Shamir Patel

REGISTERED OFFICE:

2nd Floor

29 Dingwall Road

Croydon

Surrey

CR0 2NB

REGISTERED NUMBER:

11906483 (England and Wales)

SENIOR STATUTORY AUDITOR:

Hazel Day BSc (Hons) FCA DChA

AUDITORS:

Xeinadin Audit Limited

Beckett House

36 Old Jewry

LONDON

EC2R 8DD

FIXED ASSETS

Tangible assets

4

11,900,000

13,000,000

CURRENT ASSETS

Stocks

5

5,670

4,421

Debtors

6

159,636

813,553

Cash at bank and in hand

1,025,991

175,712

1,191,297

993,686

CREDITORS

Amounts falling due within one year

7

(787,989

)

(745,378

)

NET CURRENT ASSETS

403,308

248,308

TOTAL ASSETS LESS CURRENT
LIABILITIES

12,303,308

13,248,308

CREDITORS

Amounts falling due after more than one
year

8

(3,051,517

)

(3,153,235

)

PROVISIONS FOR LIABILITIES

11

(1,401,466

)

(1,676,466

)

NET ASSETS

7,850,325

8,418,607

CAPITAL AND RESERVES

Called up share capital

12

100

Revaluation reserve

13

4,204,399

5,029,399

Retained earnings

13

3,645,826

3,389,108

SHAREHOLDERS' FUNDS

7,850,325

8,418,607

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 25th September 2025 and were signed on its behalf by:

Sunil Patel - Director

1.	STATUTORY INFORMATION

Axcel Hospitality (Inverness) Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

The principal place of business is 83 Church Street, Inverness, IV11ES.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Turnover represents the fair value of consideration received or receivable for the provision of goods and services in the ordinary course of business, excluding value added tax and trade discounts. Revenue is recognised when it is probable that the economic benefits will flow to the company and the amount of revenue can be measured reliably.

Room revenue

Revenue from the provision of accommodation is recognised on a straight-line basis over the period of the guest’s stay. Amounts received in advance of the period of stay are recorded as deferred income and recognised as revenue when the related services are provided.

Other revenue

Revenue from other goods and services, including food and beverage sales, conferences and events, leisure services, and car parking, is recognised at the point when the goods are supplied or the services are rendered to the customer. Deposits and advance payments received in respect of these services are recorded as deferred income until the service obligation has been fulfilled.

Tangible fixed assets

Freehold property includes a freehold hotel which is carried at its revalued amount, being fair value at the date of valuation and impairment losses. Revaluations are performed by professional qualified valuers with sufficient regularity to ensure that the carrying amounts do not differ materially from those that would be determined using fair values at the end of each reporting period.

Any revaluation increase in the carrying amount of land and buildings is recognised in other comprehensive income and included in a revaluation reserve in equity, except to the extent that it reverses a revaluation decrease of the same asset previously recognised in profit or loss, in which case the increase is credited to profit and loss to the extent of the decrease previously expended.

Decreases that offset previous increases of the same asset are charged in other comprehensive income and debited against revaluation reserve in equity; decreases exceeding the balance in revaluation reserve relating to an asset are recognised in profit or loss. The use of a policy of revaluation provided more relevant and reliable information about the value of the property owned by the company.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Financial instruments

The company only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other accounts receivable and payable, loans from banks and other third parties, loans to related parties and investments in non-puttable ordinary shares.

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 balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

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.

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. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Bank and cash accounting

Cash at bank and in hand includes cash and short-term highly liquid investments with a maturity of three months or less from the date of acquisition. Bank overdrafts are shown within borrowings in current liabilities.

Significant accounting estimates

The preparation of the financial statements in accordance with UK GAAP requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making judgements about carrying values of assets and liabilities that are not readily apparent from other sources. 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 revision and future periods if the revision affects both current and future periods.

Significant estimates and assumptions are made in particular with regard to determining the valuation of the company's hotel included in Tangible Fixed Assets. In line with many other company's in the industry, the hotel value is derived from assumed future trading results which are discounted using interest rates provided by commercial property experts.

Expenditure accounting

Expenditure is recognised in the profit and loss account on an accruals basis as the related goods and services are received. Costs are charged to the profit and loss account except where they relate to the acquisition of an asset, in which case they are capitalised in accordance with the company’s capitalisation policy.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 20 (2023 - 22 ) .

4.	TANGIBLE FIXED ASSETS

Freehold

property

£

COST OR VALUATION

At 1st January 2024

13,000,000

Revaluations

(1,100,000

)

At 31st December 2024

11,900,000

NET BOOK VALUE

At 31st December 2024

11,900,000

At 31st December 2023

13,000,000

Cost or valuation at 31st December 2024 is represented by:

Freehold

property

£

Valuation in 2024

5,605,865

Cost

6,294,135

11,900,000

If Freehold land and buildings had not been revalued they would have been included at the following historical cost:

2024

2023

£

Cost

6,294,135

The hotel property was revalued at October 2024 at market value by an independent professional valuer.

5.

STOCKS

2024

2023

£

Stocks

5,670

4,421

6.

DEBTORS

2024

2023

£

Amounts falling due within one year:

Trade debtors

20,117

23,803

Amounts owed by group undertakings

13,725

18,044

Other debtors and prepayments

125,794

90,057

159,636

131,904

Amounts falling due after more than one year:

Amounts owed by group undertakings

-

681,649

Aggregate amounts

159,636

813,553

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

Bank loans and overdrafts (see note 9)

136,433

136,680

Trade creditors

152,338

155,093

Tax

344,636

219,949

Social security and other taxes

8,608

10,500

VAT

32,633

45,388

Other creditors and accruals

59,986

88,069

Directors' loan account

100

50,100

Accruals and deferred income

53,255

39,599

787,989

745,378

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR

2024

2023

£

Bank loans (see note 9)

3,051,517

3,153,235

Amounts falling due in more than five years:

Repayable by instalments

Bank loans more 5 yr by instal

-

2,610,739

9.

LOANS

An analysis of the maturity of loans is given below:

2024

2023

£

Amounts falling due within one year or on demand:

Bank overdrafts

809

1,056

Bank loans

135,624

136,433

136,680

2024

2023

£

Amounts falling due between two and five years:

Bank loans - 2-5 years

3,051,517

542,496

Amounts falling due in more than five years:

Repayable by instalments

Bank loans more 5 yr by instal

-

2,610,739

10.	SECURED DEBTS

The following secured debts are included within creditors:

2024

2023

£

Bank loans

3,187,141

3,288,859

Clydesdale Bank Plc holds a debenture from the company, supported by charges, debentures and guarantees from other companies within the Axcel Group.

11.	PROVISIONS FOR LIABILITIES

2024

2023

£

Deferred tax

1,401,466

1,676,466

Deferred

tax

£

Balance at 1st January 2024

1,676,466

Provided during year

(275,000

)

Balance at 31st December 2024

1,401,466

The deferred tax balance includes amounts arising on the revaluation of the hotel property. This balance does not directly match the uplift in valuation above cost because the property was subject to a sale and leaseback arrangement.

12.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2024

2023

value:

£

100

Ordinary

1

100

13.

RESERVES

Retained

Revaluation

earnings

reserve

Totals

£

At 1st January 2024

3,389,108

5,029,399

8,418,507

Profit for the year

256,718

Revaluation for the year

-

(1,100,000

)

(1,100,000

)

Deferred tax

-

275,000

At 31st December 2024

3,645,826

4,204,399

7,850,225

14.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Hazel Day BSc (Hons) FCA DChA (Senior Statutory Auditor)

for and on behalf of Xeinadin Audit Limited

15.	RELATED PARTY DISCLOSURES

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

16.	ULTIMATE CONTROLLING PARTY

The ultimate controlling parties are the directors Sunil Patel and Shamir Patel by virtue of having ownership of 100% of the issued ordinary share capital in the parent company Axcel Group Limited.