Caseware UK (AP4) 2024.0.164 2024.0.164 2024-12-312024-12-31225false2024-01-01No description of principal activityfalse222falsefalse 11577526 2024-01-01 2024-12-31 11577526 2023-01-01 2023-12-31 11577526 2024-12-31 11577526 2023-12-31 11577526 2023-01-01 11577526 1 2024-01-01 2024-12-31 11577526 1 2023-01-01 2023-12-31 11577526 2 2024-01-01 2024-12-31 11577526 2 2023-01-01 2023-12-31 11577526 3 2024-01-01 2024-12-31 11577526 3 2023-01-01 2023-12-31 11577526 d:Director1 2024-01-01 2024-12-31 11577526 d:Director2 2024-01-01 2024-12-31 11577526 d:RegisteredOffice 2024-01-01 2024-12-31 11577526 e:Buildings e:LongLeaseholdAssets 2024-01-01 2024-12-31 11577526 e:Buildings e:LongLeaseholdAssets 2024-12-31 11577526 e:Buildings e:LongLeaseholdAssets 2023-12-31 11577526 e:LandBuildings 2024-12-31 11577526 e:LandBuildings 2023-12-31 11577526 e:PlantMachinery 2024-01-01 2024-12-31 11577526 e:PlantMachinery 2024-12-31 11577526 e:PlantMachinery 2023-12-31 11577526 e:PlantMachinery e:OwnedOrFreeholdAssets 2024-01-01 2024-12-31 11577526 e:FurnitureFittings 2024-01-01 2024-12-31 11577526 e:FurnitureFittings 2024-12-31 11577526 e:FurnitureFittings 2023-12-31 11577526 e:FurnitureFittings e:OwnedOrFreeholdAssets 2024-01-01 2024-12-31 11577526 e:ComputerEquipment 2024-01-01 2024-12-31 11577526 e:ComputerEquipment 2024-12-31 11577526 e:ComputerEquipment 2023-12-31 11577526 e:ComputerEquipment e:OwnedOrFreeholdAssets 2024-01-01 2024-12-31 11577526 e:OwnedOrFreeholdAssets 2024-01-01 2024-12-31 11577526 e:CopyrightsPatentsTrademarksServiceOperatingRights 2024-12-31 11577526 e:CopyrightsPatentsTrademarksServiceOperatingRights 2023-12-31 11577526 e:CurrentFinancialInstruments 2024-12-31 11577526 e:CurrentFinancialInstruments 2023-12-31 11577526 e:Non-currentFinancialInstruments 2024-12-31 11577526 e:Non-currentFinancialInstruments 2023-12-31 11577526 e:CurrentFinancialInstruments e:WithinOneYear 2024-12-31 11577526 e:CurrentFinancialInstruments e:WithinOneYear 2023-12-31 11577526 e:Non-currentFinancialInstruments e:BetweenOneTwoYears 2024-12-31 11577526 e:Non-currentFinancialInstruments e:BetweenOneTwoYears 2023-12-31 11577526 e:ReportableOperatingSegment1 2024-01-01 2024-12-31 11577526 e:ReportableOperatingSegment1 2023-01-01 2023-12-31 11577526 e:ReportableOperatingSegment2 2024-01-01 2024-12-31 11577526 e:ReportableOperatingSegment2 2023-01-01 2023-12-31 11577526 e:ReportableOperatingSegment3 2024-01-01 2024-12-31 11577526 e:ReportableOperatingSegment3 2023-01-01 2023-12-31 11577526 e:ReportableOperatingSegment5 2024-01-01 2024-12-31 11577526 e:ReportableOperatingSegment5 2023-01-01 2023-12-31 11577526 e:ShareCapital 2024-01-01 2024-12-31 11577526 e:ShareCapital 2024-12-31 11577526 e:ShareCapital 2023-01-01 2023-12-31 11577526 e:ShareCapital 2023-12-31 11577526 e:ShareCapital 2023-01-01 11577526 e:RetainedEarningsAccumulatedLosses 2024-01-01 2024-12-31 11577526 e:RetainedEarningsAccumulatedLosses 2024-12-31 11577526 e:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 11577526 e:RetainedEarningsAccumulatedLosses 2023-12-31 11577526 e:RetainedEarningsAccumulatedLosses 2023-01-01 11577526 e:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2024-12-31 11577526 e:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2023-12-31 11577526 d:OrdinaryShareClass1 2024-01-01 2024-12-31 11577526 d:OrdinaryShareClass1 2024-12-31 11577526 d:OrdinaryShareClass1 2023-12-31 11577526 d:FRS102 2024-01-01 2024-12-31 11577526 d:Audited 2024-01-01 2024-12-31 11577526 d:FullAccounts 2024-01-01 2024-12-31 11577526 d:PrivateLimitedCompanyLtd 2024-01-01 2024-12-31 11577526 e:WithinOneYear 2024-12-31 11577526 e:WithinOneYear 2023-12-31 11577526 e:BetweenOneFiveYears 2024-12-31 11577526 e:BetweenOneFiveYears 2023-12-31 11577526 e:CopyrightsPatentsTrademarksServiceOperatingRights e:ExternallyAcquiredIntangibleAssets 2024-01-01 2024-12-31 11577526 e:CopyrightsPatentsTrademarksServiceOperatingRights e:OwnedIntangibleAssets 2024-01-01 2024-12-31 11577526 f:PoundSterling 2024-01-01 2024-12-31 iso4217:GBP xbrli:shares xbrli:pure

Registered number: 11577526









22 HOTEL MANAGEMENT LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

 
22 HOTEL MANAGEMENT LIMITED
 
 
COMPANY INFORMATION


Directors
R A Stone 
S N Mirtorabi 




Registered number
11577526



Registered office
4th Floor, Millbank Tower
21-24 Millbank

London

SW1P 4QP




Independent auditors
Adler Shine LLP
Chartered Accountants & Statutory Auditor

Aston House

Cornwall Avenue

London

N3 1LF





 
22 HOTEL MANAGEMENT LIMITED
 

CONTENTS



Page
Strategic report
1
Directors' report
2 - 3
Independent auditors' report
4 - 7
Statement of comprehensive income
8
Balance sheet
9
Statement of changes in equity
10
Statement of cash flows
11
Notes to the financial statements
12 - 26


 
22 HOTEL MANAGEMENT LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

Introduction
 
The principal activity of the company continued to be that of hotel operations.

Business review
 
The company operates a luxury hotel in London. The business provides accommodation, food and beverage services, events and conferencing facilities. The hotel’s strategy is to deliver high-quality guest experiences, maintain strong occupancy levels and achieve sustainable growth through service excellence and targeted marketing.

Principal risks and uncertainties
 
The company operates in a highly competitive hospitality market, where fluctuations in occupancy rates and customer preferences present ongoing risks. The company mitigates these risks by closely monitoring industry trends and continuously enhancing its service offerings and guest experiences to remain relevant and appealing.
To strengthen its market position, the company invests strategically in advertising, digital marketing campaigns, and promotional partnerships with travel platforms and booking agents. These efforts are designed to increase brand visibility, attract new guests, and retain loyal customers.

Financial key performance indicators
 
The Turnover increased to £18.6m compared to £15.3m in prior year. This represented a 22% Increase.  The Gross Profit Margin was 38% (2023: 32%). The operation profit margin increased to 16.3% compared to 3.3% in prior year.

Other key performance indicators
 
The Company monitors a range of key performance indicators to assess operational efficiency, financial health, and customer satisfaction across its hotel portfolio. Core metrics such as Occupancy Rate, Average Daily Rate (ADR), and Revenue Per Available Room (RevPAR) provide insight into room performance and revenue generation. These are benchmarked regularly against industry standards to ensure competitiveness.


This report was approved by the board and signed on its behalf.



R A Stone
Director

Date: 30 September 2025

Page 1

 
22 HOTEL MANAGEMENT LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

The directors present their report and the financial statements for the year ended 31 December 2024.

Directors' responsibilities statement

The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
 
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company 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 to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The profit for the year, after taxation, amounted to £2,089,610 (2023 - loss £69,873).

Directors

The directors who served during the year were:

R A Stone 
S N Mirtorabi 

Future developments

The company intends to continue its activities and improve the facilities and services offered to customers.

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Page 2

 
22 HOTEL MANAGEMENT LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

The auditorsAdler Shine LLPwere appointed in the year and will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board and signed on its behalf.
 





R A Stone
Director

Date: 30 September 2025

Page 3

 
22 HOTEL MANAGEMENT LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF 22 HOTEL MANAGEMENT LIMITED
 

Opinion


We have audited the financial statements of 22 Hotel Management Limited (the 'Company') for the year ended 31 December 2024, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of cash flows, the Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe 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).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 31 December 2024 and of its profit for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for 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 Auditors' 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 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.


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.


Page 4

 
22 HOTEL MANAGEMENT LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF 22 HOTEL MANAGEMENT LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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.


Opinion 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 light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 2, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.


In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Page 5

 
22 HOTEL MANAGEMENT LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF 22 HOTEL MANAGEMENT LIMITED (CONTINUED)


Auditors' responsibilities for the audit of the financial statements
 

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 Auditors' 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 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:
We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. 
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we have:
• considered the nature of the industry and sectors, control environment and business performance;
• made enquires of management about their own identification and assessment of the risk of irregularities; 
• performed audit work over the risk of management override of controls, including testing of journal entries
  and other adjustments for appropriateness and reviewing accounting estimates for bias;
• reviewed minutes of meetings;
• undertaken appropriate sample based testing of bank transactions;
• identified and evaluated compliance with relevant laws and regulations and made enquiries of any    instances of non-compliance; The key laws and regulations we considered in this context included UK
          Companies Act, tax legislation, anti-bribery, employment,  health and safety and food hygiene.
• discussed matters among the audit engagement team regarding how and where fraud might occur in the   financial statements and potential indicators of fraud.


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 Auditors' report.


Page 6

 
22 HOTEL MANAGEMENT LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF 22 HOTEL MANAGEMENT LIMITED (CONTINUED)


Use of our report
 

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 2006Our 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 Auditors' 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.





Alexander Chrysaphiades FCA (Senior Statutory Auditor)
for and on behalf of
Adler Shine LLP
Chartered Accountants
Statutory Auditor
Aston House
Cornwall Avenue
London
N3 1LF

30 September 2025
Page 7

 
22 HOTEL MANAGEMENT LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024

2024
2023
Note
£
£

  

Turnover
 4 
18,574,633
15,255,720

Cost of sales
  
(11,490,010)
(10,323,316)

Gross profit
  
7,084,623
4,932,404

Administrative expenses
  
(4,049,910)
(4,435,167)

Operating profit
  
3,034,713
497,237

Interest payable and similar expenses
  
(945,103)
(567,110)

Profit/(loss) before tax
  
2,089,610
(69,873)

Profit/(loss) for the financial year
  
2,089,610
(69,873)

There were no recognised gains and losses for 2024 or 2023 other than those included in the statement of comprehensive income.

There was no other comprehensive income for 2024 (2023:£NIL).

The notes on pages 12 to 26 form part of these financial statements.

Page 8

 
22 HOTEL MANAGEMENT LIMITED
REGISTERED NUMBER: 11577526

BALANCE SHEET
AS AT 31 DECEMBER 2024

2024
2023
Note
£
£

Fixed assets
  

Intangible assets
 10 
42,901
43,300

Tangible assets
 11 
815,040
1,079,993

  
857,941
1,123,293

Current assets
  

Stocks
 12 
657,876
551,040

Debtors
 13 
1,102,946
909,103

Cash at bank and in hand
 14 
2,467,324
536,276

  
4,228,146
1,996,419

Creditors: amounts falling due within one year
 15 
(11,446,208)
(11,289,418)

Net current liabilities
  
 
 
(7,218,062)
 
 
(9,292,999)

Total assets less current liabilities
  
(6,360,121)
(8,169,706)

  

Accruals and deferred income
 17 
(752,681)
(1,032,706)

Net liabilities
  
(7,112,802)
(9,202,412)


Capital and reserves
  

Called up share capital 
 18 
1
1

Profit and loss account
 19 
(7,112,803)
(9,202,413)

  
(7,112,802)
(9,202,412)


The financial statements were approved and authorised for issue by the board and were signed on its behalf by: 




R A Stone
Director
Date: 30 September 2025

The notes on pages 12 to 26 form part of these financial statements.

Page 9

 
22 HOTEL MANAGEMENT LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 January 2023
1
(9,132,540)
(9,132,539)


Comprehensive income for the year

Loss for the year
-
(69,873)
(69,873)
Total comprehensive income for the year
-
(69,873)
(69,873)



At 1 January 2024
1
(9,202,413)
(9,202,412)


Comprehensive income for the year

Profit for the year
-
2,089,610
2,089,610
Total comprehensive income for the year
-
2,089,610
2,089,610


At 31 December 2024
1
(7,112,803)
(7,112,802)


The notes on pages 12 to 26 form part of these financial statements.

Page 10

 
22 HOTEL MANAGEMENT LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024

2024
2023
£
£

Cash flows from operating activities

Profit/(loss) for the financial year
2,089,610
(69,873)

Adjustments for:

Amortisation of intangible assets
5,517
5,327

Depreciation of tangible assets
324,981
231,569

Loss on disposal of tangible assets
-
1,448

Interest paid
758,083
(567,109)

(Increase)/decrease in stocks
(106,836)
157,552

Decrease/(increase) in debtors
78,366
(55,243)

(Increase)/decrease in amounts owed by groups
(74,413)
-

(Increase)/decrease in amounts owed by joint ventures
(197,796)
-

(Decrease) in creditors
(638,006)
(561,728)

Net cash generated from operating activities

2,239,506
(858,057)


Cash flows from investing activities

Purchase of intangible fixed assets
(5,119)
(7,779)

Purchase of tangible fixed assets
(60,028)
(525,259)

Sale of tangible fixed assets
-
7,750

Net cash from investing activities

(65,147)
(525,288)

Cash flows from financing activities

Other new loans
514,772
613,059

Interest paid
(758,083)
567,109

Net cash used in financing activities
(243,311)
1,180,168

Net increase/(decrease) in cash and cash equivalents
1,931,048
(203,177)

Cash and cash equivalents at beginning of year
536,276
739,453


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
2,467,324
536,276

2,467,324
536,276


The notes on pages 12 to 26 form part of these financial statements.

Page 11

 
22 HOTEL MANAGEMENT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

1.


General information

22 Hotel Management Limited is a private company limited by shares incorporated in England and Wales. The registered office is 4th Floor, Millbank Tower, 21-24 Millbank, London, SW1P 4QP.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

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 management to exercise judgement in applying the Company's accounting policies (see note 3).

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 following principal accounting policies have been applied:

 
2.2

Going concern

Having reviewed the company’s financial forecasts and expected future cashflows, the directors have a reasonable expectation the company has adequate resources to continue in operational existence for the foreseeable future. Thus, notwithstanding the fact that the company's current liabilities exceed its current assets by £7,218,062 (2023: £9,292,999) and its total liabilities exceed total assets by £7,112,802 (2023: £9,202,412) the going concern basis has been adopted in preparing the financial statements for the period ended 31 December 2024. This assumes that continued financial support will be provided to the entity by its ultimate beneficial owners for at least 12 months from the date of approval of these financial statements. 

 
2.3

Foreign currency translation

Functional and presentation currency

The Company's functional and presentational currency is GBP.

Transactions and balances

Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.

At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.

Page 12

 
22 HOTEL MANAGEMENT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Company has transferred the significant risks and rewards of ownership to the buyer;
the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Company will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.5

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.6

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.7

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

Page 13

 
22 HOTEL MANAGEMENT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.8

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.

 
2.9

Taxation

Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


 
2.10

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 
2.11

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 14

 
22 HOTEL MANAGEMENT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)


2.11
Tangible fixed assets (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.

Depreciation is provided on the following basis:

Long-term leasehold property
-
20%
Straight line
Plant and machinery
-
20%
Straight line
Fixtures and fittings
-
20%
Straight line
Computer equipment
-
20%
Straight line

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.

 
2.12

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.13

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.14

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Company's cash management.

 
2.15

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Page 15

 
22 HOTEL MANAGEMENT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.16

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.17

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

The Company has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

Financial instruments are recognised in the Company's Balance sheet when the Company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with 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

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

Impairment of financial assets

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying
Page 16

 
22 HOTEL MANAGEMENT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)


2.17
Financial instruments (continued)

amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Basic financial liabilities

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 Company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.

Page 17

 
22 HOTEL MANAGEMENT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

3.


Judgements in applying accounting policies and key sources of estimation uncertainty

In the application of the company'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. 
The key assumptions and and other key sources of uncertainty that have a significant effect on the amounts recognised in the financial statements are described below:
Intangible and tangible fixed assets
Judgements have been made in relation to the lives of intangible and tangible fixed assets, in particular the valuation, the useful economic life and residual value of assets. The Directors are also required to consider the carrying value of assets and whether any impairment is required, or reversal of previously recognised impairments.
The Directors have concluded that the asset values and residual values are appropriate and are satisfied that assets are fairly stated at the balance sheet date.
Stock
Key judgements are made by management in estimating the level of provisioning required for slow moving inventory. In arriving at its conclusion, the Directors considers stock ageing and stock turn analysis.
The Directors have concluded that the stock values are fairly stated at the balance sheet date.
Recoverability of debtors
Judgements have been made on the recoverability of trade debtors and the valuation of provisions and the Directors are satisfied that the debts are recoverable.
Revenue recognition - membership fees
Judgements have been made in relation to the period in which membership fees relate to and the accounting period in which they are recognised. In particular, the Directors have considered and assessed the period over which life-time memberships are recognised.
The Directors have concluded that the revenue recognition policy is appropriate.

Page 18

 
22 HOTEL MANAGEMENT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

4.


Turnover

An analysis of turnover by class of business is as follows:


2024
2023
£
£

Hotel income
5,844,045
5,620,876

Room fees
8,764,683
8,379,751

Membership fees
1,965,905
1,255,093

Special events
2,000,000
-

18,574,633
15,255,720



5.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Exchange differences
(470)
236

Other operating lease rentals
(108,279)
44,291

Depreciation
324,981
205,661

Amortisation
5,518
5,327


6.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2024
2023
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
22,500
29,000

Page 19

 
22 HOTEL MANAGEMENT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

7.


Employees

Staff costs were as follows:


2024
2023
£
£

Wages and salaries
6,893,123
7,239,190

Social security costs
585,474
653,748

Cost of defined contribution scheme
120,169
134,613

7,598,766
8,027,551


The average monthly number of employees, including the directors, during the year was as follows:


        2024
        2023
            No.
            No.







Employees
222
225


8.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
945,103
567,110

945,103
567,110


9.


Taxation


2024
2023
£
£




Tax on profit/(loss)
-
-
Page 20

 
22 HOTEL MANAGEMENT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
 
9.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2023 - higher than) the standard rate of corporation tax in the UK of 25% (2023 - 25%). The differences are explained below:

2024
2023
£
£


Profit/(loss) on ordinary activities before tax
2,089,610
(69,873)


Profit/(loss) on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 25%)
522,403
(17,468)

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
-
23,714

Capital allowances for year in excess of depreciation
65,468
44,576

Utilisation of tax losses
(586,695)
-

Increase or decrease in pension fund prepayment leading to an increase (decrease) in tax
(1,176)
-

Group relief
-
(50,822)

Total tax charge for the year
-
-


Factors that may affect future tax charges

The company has losses of £7,712k (2023 - £10,059k) which would give rise to a deferred tax asset of £1,928k (2023 - £2,514k) that has not been recognised in these financial statements.

Page 21

 
22 HOTEL MANAGEMENT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

10.


Intangible assets




Trademarks

£



Cost


At 1 January 2024
52,802


Additions
5,119



At 31 December 2024

57,921



Amortisation


At 1 January 2024
9,502


Charge for the year on owned assets
5,518



At 31 December 2024

15,020



Net book value



At 31 December 2024
42,901



At 31 December 2023
43,300



Page 22

 
22 HOTEL MANAGEMENT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

11.


Tangible fixed assets





Long-term leasehold property
Plant and machinery
Fixtures and fittings
Computer equipment
Total

£
£
£
£
£



Cost or valuation


At 1 January 2024
135,591
168,520
718,509
413,403
1,436,023


Additions
-
6,089
47,216
6,723
60,028



At 31 December 2024

135,591
174,609
765,725
420,126
1,496,051



Depreciation


At 1 January 2024
47,550
52,492
116,260
139,728
356,030


Charge for the year on owned assets
27,118
34,445
180,999
82,419
324,981



At 31 December 2024

74,668
86,937
297,259
222,147
681,011



Net book value



At 31 December 2024
60,923
87,672
468,466
197,979
815,040



At 31 December 2023
88,041
116,028
602,249
273,675
1,079,993




The net book value of land and buildings may be further analysed as follows:


2024
2023
£
£

Long leasehold
60,923
88,041

60,923
88,041



12.


Stocks

2024
2023
£
£

Finished goods and goods for resale
657,876
551,040

657,876
551,040


Page 23

 
22 HOTEL MANAGEMENT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

13.


Debtors

2024
2023
£
£

Due after more than one year

Trade debtors
-
19,286

-
19,286

Due within one year

Trade debtors
398,921
488,040

Amounts owed by group undertakings
74,413
-

Other debtors
436,822
234,925

Prepayments and accrued income
192,790
166,852

1,102,946
909,103



14.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
2,467,324
536,276

2,467,324
536,276



15.


Creditors: Amounts falling due within one year

2024
2023
£
£

Other loans
8,172,367
7,657,595

Trade creditors
1,044,085
1,586,810

Other taxation and social security
725,503
931,082

Other creditors
281,452
259,799

Accruals and deferred income
1,222,801
854,132

11,446,208
11,289,418


Included in other loans are two loans totalling £8,172,367 (2023: £7,657,595), relating to loans from related parties. Interest is charged at the rate of 7% per annum on both loans.

Page 24

 
22 HOTEL MANAGEMENT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

16.


Financial instruments

2024
2023
£
£

Financial assets


Financial assets measured at fair value through profit or loss
2,467,324
536,276




Financial assets measured at fair value through profit or loss comprise cash at bank and in hand.


17.


Creditors: Amounts falling due more than one year

2024
2023
£
£

Deferred income more than 1 year
752,681
1,032,706

752,681
1,032,706



18.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



1 (2023 - 1) Ordinary shares share of £1.00
1
1

Since the balance sheet date, one £1 share was issued.



19.


Reserves

Profit and loss account

Retained earnings relate to cumulative net gains and losses less distributions made.


20.


Pension commitments

The company operates a defined contribution pension scheme. The pension cost charge represents contributions payable by the company to the fund and amounted to £120,169 (2023: £134,613). Contributions totalling £31,879 (2023: £50,695) were payable to the fund at the balance sheet date and are included in creditors.

Page 25

 
22 HOTEL MANAGEMENT LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

21.


Commitments under operating leases

At 31 December 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2024
2023
£
£


Not later than 1 year
124,493
106,973

Later than 1 year and not later than 5 years
37,500
-

161,993
106,973


22.


Transactions with directors

As at 31 December 2024, S N Mirtotabi owed £123,239 to the company (2023: £103,428 was owed by the company). The balance represents funds advanced by the director to support working capital requirements. 


23.


Related party transactions

The company has taken advantage of the exemptions under FRS102 not to disclose related party transactions entered into between two or more members of a group, provided that any subsidiary which is party to the transactions is wholly-owned by such a member.


24.


Controlling party

The immediate parent company is Applewhite South Corp, a company incorporated in the British Virgin Islands, as it holds 100% of the company's share capital.
The ultimate parent company is Hightower Investment Corp, a company incorporated in the British Virgin Islands.
The registered office of both companies is 2nd Floor, O'Neal Marketing Associates Building, PO Box 3174, Road Town, Tortola, British Virgin Islands.
Since the balance sheet date, one £1 share was issued to a director. As a result, Applewhite South Corp's interest in the company's share capital after this share was issued was reduced to 50%.

 
Page 26