The directors present the strategic report for the year ended 31 December 2024.
Easthampstead Park Conference centre (EPCC) was acquired on the 8th October 2018 for £4.3m all cash no debt.
Planning permissions were sought and received for the creation of a hotel and ancillary facilities
This is the sixth period since incorporation for the group and was set to be the second period of growing the operational revenue of the business following completion of the development works in March 2021. However due to covid affecting the first half of 2022 with omicron causing huge nervousness with our commercial clients, 2023 became our first year of normalized trading post development of the unit to a 93 bedroom hotel with F&B, meeting rooms, ballroom and gym facilities - 2024 is our second year.
Q1 2024 experienced continued slowness due to the effects of the war in Ukraine, price increases of consumables and deglobalization of the supply chain and continued rising of wages post covid on the hospitality market, however Q2 and Q3 despite the continued price rises had a reasonable trading period. However as happened the previous year nervousness around the economy crept in for Q4 2024 and we ended the year with dampened demand.
The group has reported revenues of £6.782m. (2023: £5.993m) There is sufficient cash in and available to the business to continue the business plan as envisaged. All liabilities that fell due in the period have been met and paid.
Operating profit for the year was £0.826m (2023: £0.546m). EBITDA was £1.640m. Adjusting for costs attributable to head office activity in assessing new projects, we consider the maintainable EBITDA to be £1.960m.
The group balance sheet at the period end shows net assets in excess of £1.178m (2023: £1.027m). There were no other significant matters or events during the period. All issues that arose were dealt with efficiently within the business and the business plan.
The financial risks and associated risk management objectives and procedures
The financial risk management within the group is governed by policies set by the board of directors and senior management. These policies cover interest rate risk and other areas, such as cash management.
Credit risk
The group has minimal exposure to credit risk. All cash is deposited with its UK banks. The principal amount disclosed within debtors are amounts due from UK-based customers.
Foreign exchange risk
The group is not exposed to foreign exchange risk as all of its income is derived from activities undertaken in the UK and all of its trade and other suppliers invoice in sterling.
Liquidity Risk
The Group is not exposed to liquidity risk as the shareholders have sufficient equity funds to support the business should it ever need supporting.
The risks set out above are not exhaustive and additional risks and uncertainties may arise or become material in the future. The board of directors monitors risks and uncertainties faced by the group on a continual basis.
The group sees the average room rate, occupancy levels and food and beverage gross profit margins as their key performance indicators (KPIs). These KPIs allow the group to monitor the performance of its financial model as well as its wider responsibilities to its stakeholders.
Following the successful development of Phase 1 (the hotel) and Phase 2 (the Marquee) the Group has reviewed the business plan and are planning the following works over the coming years:
Phase 3
The Group are planning for 2025 to upgrade meeting room space in the Mansion House with better breakout areas and food servery areas on the ground and 1st floor, new furniture and decorated rooms
Phase 4 – The refurbishment of an unused section of the Mansion House for two deluxe bedrooms and the refurbishment of the stable block from meeting rooms to 7 duplex bedrooms, planning permission already in place for all 9 proposed additional bedrooms, which the group will look to implement 2027
Phase 5 - Long term plans for the addition of 30-35 bedrooms on 1st and 2nd floors and extension to gym to take gym area up by 50%, create a total of 3 studios, swimming pool wet area and wet and dry spa as a new build attached to the Hepburn Building which will require planning permission which we will look to submit 2025
Phase 6 - An area on the site behind the Hepburn building has been identified for possible development as a 12 bedroom lodge with entertainment and service rooms on the groundfloor and bedrooms on the first floor.
On behalf of the board
The directors present their annual report and financial statements for the year ended 31 December 2024.
The results for the year are set out on page 8.
No ordinary dividends were paid. The directors do not recommend payment of a further dividend.
No preference dividends were paid. The directors do not recommend payment of a final dividend.
The directors who held office during the year and up to the date of signature of the financial statements were as follows:
The auditor, Gerald Edelman LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.
The financial statements have been prepared on the assumption that the group is a going concern. At the balance sheet date, the group had net current liabilities. The group meets its day to day working capital requirements through operating cash flows and through the financial support provided by its shareholders and banking facility. If the group directors believe further financial support is required then they assert that they can seek this additional funding either from existing shareholders or the bank as they have done in the past in order to provide the necessary finance. The company's shareholders have undertaken to financially support the group to the extent it requires funding or settlement of their liabilities as they fall due for at least 12 months following approval of these financial statements. They also assert that they can seek this additional funding from the bank as they have done in the past. As with placing reliance on any sources of funding, the directors acknowledge that there can be no certainty that this support will continue although, at the date of approval of these financial statements, they have no reason to believe that it will not do so. In the unlikely event of not receiving funding from the bank, shareholder funding will be relied upon.
The bank loans are due to expire in 2026 and the refinancing process has started at the date of sign off and remains in progress. Based on discussions with the lender to date, the directors are confident that these will be renewed.
Taking all matters and information into account the directors have at the time of approving the financial statements, a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the Directors continue to adopt the going concern basis of accounting in preparing the financial statements.
We have audited the financial statements of Easthampstead Holdings Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the group profit and loss account, the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows, the company statement of cash flows and notes to the financial statements, including 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).
Basis for 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 group's and parent 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
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of our 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.
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.
We planned our audit so that we have a reasonable expectation of detecting material misstatements in the financial statements resulting from irregularities, fraud or non-compliance with law or regulations.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:
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.
Enquiring of management of whether they are aware of any non-compliance with laws and regulations.
Enquiring of management whether they have knowledge of any actual, suspected or alleged fraud.
Enquiring of management their internal controls established to mitigate risk related to fraud or non-compliance with laws and regulations.
Discussions amongst the engagement team on how and where fraud might occur in the financial statements and any potential indicators of fraud. As part of this discussion, we identified potential for fraud in the following areas; posting of unusual journals.
Obtaining understanding of the legal and regulatory framework the company operates in focusing on those laws and regulations that had a direct effect on the financial statements or that had a fundamental effect on the operations. The key laws and regulations we considered in this context included UK Companies Act, tax legislation,data protection, anti-bribery, employment and health and safety.
To address the risk of fraud through management bias and override of controls, we:
Performed analytical procedures to identify any unusual or unexpected relationships.
Audited the risk of management override of controls, including through testing journal entries for appropriateness
Assessed whether judgements and assumptions made in determining the accounting estimates set out in note 2 were indicative of potential bias; and
Investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non compliance with laws and regulations, we designed procedures which included, but are not limited to:
Agreeing financial statements disclosures to underlying supporting documentation.
Enquiring of management as to actual and potential litigation claims.
Reviewing correspondence with HMRC.
The test nature and other inherent limitations of an audit, together with the inherent limitations of any accounting and internal control system, mean that there is an unavoidable risk that even some material misstatements in respect of irregularities may remain undiscovered even though the audit is properly planned and performed in accordance with ISAs (UK). Furthermore, the more removed that laws and regulations are from financial transactions, the less likely that we would become aware of non-compliance.
Our examination should therefore not be relied upon to disclose all such material misstatements or frauds, errors or instances of non-compliance that might exist. The responsibility for safeguarding the assets of the company and for the prevention and detection of fraud, error and non-compliance with law or regulations rests with the directors.
A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
Use of our report
This report is made solely to the parent 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 parent 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 parent company and the parent company’s members as a body, for our audit work, for this report, or for the opinions we have formed.
As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £665,323 (2023 - £447,401 loss).
Easthampstead Holdings Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 73 Cornhill, London, EC3V 3QQ.
The principal place of business of the group is Easthampstead Park Hotel, Off Peacock Lane, Wokingham, RG40 3DF.
The group consists of Easthampstead Holdings Limited and all of its subsidiaries.
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
The consolidated group financial statements consist of the financial statements of the parent company Easthampstead Holdings Limited together with all entities controlled by the parent company (its subsidiaries) and the group’s share of its interests in joint ventures and associates.
All financial statements are made up to 31 December 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
The financial statements have been prepared on the assumption that the group is a going concern. At the balance sheet date, the group had net current liabilities. The group meets its day to day working capital requirements through operating cash flows and through the financial support provided by its shareholders and banking facility. If the group directors believe further financial support is required then they assert that they can seek this additional funding either from existing shareholders or the bank as they have done in the past in order to provide the necessary finance. The company's shareholders have undertaken to financially support the group to the extent it requires funding or settlement of their liabilities as they fall due for at least 12 months following approval of these financial statements. They also assert that they can seek this additional funding from the bank as they have done in the past. As with placing reliance on any sources of funding, the directors acknowledge that there can be no certainty that this support will continue although, at the date of approval of these financial statements, they have no reason to believe that it will not do so. In the unlikely event of not receiving funding from the bank, shareholder funding will be relied upon.
The bank loans are due to expire in 2026 and the refinancing process has started at the date of sign off and remains in progress. Based on discussions with the lender to date, the directors are confident that these will be renewed.
Taking all matters and information into account the directors have at the time of approving the financial statements, a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the Directors continue to adopt the going concern basis of accounting in preparing the financial statements.
Turnover represents the amount derived from the provision of accommodation, services and sale of goods which fall within the group's ordinary activities stated net of value added tax and trade discounts.
Revenue from room sales and other guest services is recognised when rooms are occupied and as services are provided.
Revenue from the provision of hotel services is recognised as the services are provided to and received by the hotel's guests.
Revenue from the sale of food and beverage is recognised at the point at which the products have been transferred to the customer.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.
Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.
In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
At each reporting period end date, the group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.
Recoverable amount is the higher of fair value less costs to sell and value in use. 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 for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.
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.
Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.
Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.
Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.
Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.
Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.
Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.
In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Turnover is derived from the group's principal activity, undertaken wholly within the United Kingdom.
The average monthly number of persons (including directors) employed by the group and company during the year was:
Their aggregate remuneration comprised:
The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:
Details of the company's subsidiaries at 31 December 2024 are as follows:
There are no specific terms of interest or repayment attached to the amounts owed by group undertakings and they are repayable on demand.
There are no specific terms of interest or repayment attached to the amounts owed to group undertakings and they are repayable on demand
The bank loan is secured by way of legal charge on the freehold property known as Easthampstead Park Hotel, Peacock Lane, Wokingham, Berkshire RG40 3DF. There are fixed and floating charges on the assets of the company, and the assets of Easthampstead Hospitality Limited and Easthampstead Hotel Limited, subsidiaries of the company.
The loans, which are secured by fixed charges over the group's assets, are subject to various annual interest rates between 3.25% and 3.5% over the base rate. These bank loans have final repayment dates in 2026 and 2027.
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
The "A" and "B" shares rank equally in all respects save that the "B" shares have no right to any dividend unless so declared and approved by the Board. The preference shares have priority over the "A" and "B" shares on winding up, liquidation or sale insofar as their nominal value is redeemed. The B shares have no right to a distribution (including any such distribution on liquidation) thereafter until the holder of each A share has received a total distribution of £414,000 pa or proportion thereof of ownership, after which time the A shares will be entitled to 80% of the remainder and the B shares 20% of the remainder.
The redeemable preference shares and redeemable A preference shares shall be redeemable only at the discretion of the company and do not carry any voting rights or the right to receive dividends. The preference shares have priority over the ordinary shares on winding up, liquidation or sale, insofar as their nominal value is redeemed.
The group and company have taken advantage of the exemption available in FRS102 not to disclose transactions with wholly owned subsidiaries within the group.
The following amounts were outstanding at the reporting end date:
The following amounts were outstanding at the reporting end date:
There are no terms of interest and repayments attached to the above balances. Other related party transactions are included in the financial statements.