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Registered number: SC268023










GATEWAY MANCHESTER HOTELS LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

 
GATEWAY MANCHESTER HOTELS LIMITED
 
 
COMPANY INFORMATION


Directors
M Pinson 
Zetland Director Services Limited 




Registered number
SC268023



Registered office
The Holyrood Hotel
81 Holyrood Road

Edinburgh

EH8 8AU




Business address
91 London Road
Manchester

United Kingdom

M1 2PG






Independent auditors
HaysMac LLP

10 Queen Street Place

London

EC4R 1AG





 
GATEWAY MANCHESTER HOTELS LIMITED
 

CONTENTS



Page
Strategic Report
 
1 - 2
Directors' Report
 
3 - 4
Independent Auditors' Report
 
5 - 8
Statement of Comprehensive Income
 
9
Balance Sheet
 
10
Statement of Changes in Equity
 
11
Notes to the Financial Statements
 
12 - 23


 
GATEWAY MANCHESTER HOTELS LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

Introduction
 
The Director presents the strategic report together with the audited financial statements for the year ended 31 December 2024.

Business review and key performance indicators
 
The Company made a profit of £447,577 (2023: £896,1890) for the year ended 31 December 2024. The year end position is set out on the balance sheet. The directors expect the Company's lead of activities to remain unchanged during the year ending 31 December 2025.
The hotel increased its revenue in the year by £9,980,125 (2023: £9,696,422) due to the implementation of effective and dynamic commercial strategies. However profits from Operations decreased by £448,612 As a result profit after tax decreased to £72,255 for the year reflecting the absorption of inflationary cost pressures, particularly in food, utilities, and payroll/labour, the latter driven mainly by competitive market pressures and the UK Government’s increase in the national living wage.
Financial key performance indicators 
The Company seeks to maximise its revenues and optimise its profit conversion through the active management of average daily rates and monitoring the costs associated with each revenue stream. 
Turnover: £9,980,125 (2023: £9,696,422)
Operating profit: £447,577 (2023: £896,189)
Profit before tax: £72,255 (2023: £788,442)
Shareholder’s funds: £14,776,862 (2023: £14,704,607)
As the prime measure of our economic output, revenue growth is key to measuring shareholder return and the success of our expansion and repositioning strategies.
Operating profit is the prime indicator used to measure the performance year-on-year of the hotel.
The Directors also monitor non-financial KPI's such as employee engagement, guest satisfaction and market benchmarking but do not disclose the results as they are considered to be proprietary information.
 

Page 1

 
GATEWAY MANCHESTER HOTELS LIMITED
 

STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

Principal risks and uncertainties
 
The Company’s activities expose it to a number of financial risks including cash flow risk, liquidity risk and price risk. The use of financial derivatives to manage risks is subject to Board approval and no financial derivatives are used for speculative purposes.
Competitive risks
Hotels are generally location driven and there are no new hotels planned within the immediate vicinity of the Company’s hotel affect hotel profitability. Management review the hotel against a selected group of competitor hotel. These reports allow the Company to compare accommodation occupancy percentage, average rate and revenue per available room against the competitive group.
Currency risk
The hotel business is affected by the strength of sterling, with a strong sterling adversely impacting the effective rates to international guests. 
Credit risk
The Company’s principal financial assets are bank balances and cash, trade and other receivables. The Company’s credit risk is primarily attributable to its trade receivables. The amounts presented in the balance sheet are net of allowances for doubtful debts. An allowance for impairment is made where there is an identified loss event which, based upon previous experience is considered to be irrecoverable.
Price risk
The Company is exposed to commodity price risk, particularly in relation to energy costs. The Company manages its exposure to energy cost price risks by using fixed rate contracts where appropriate to ensure consistent levels of costs.
Economic environment
The Company operates in a competitive environment influenced by the UK economy.  Adverse economic and financial market developments could lead to lower revenues and higher costs. Experience shows a recession lessens both leisure and business travel.  
Other risks
Other risks facing the hotel industry are include ones that reduce or prevent travel. The continuing threat of terrorism and the economic uncertainty can impact hotel performance. The reliance of hotels on economic growth as well as consumer confidence also plays a role.

 

This report was approved by the board on 25 September 2025 and signed on its behalf.



M Pinson
Director

Page 2

 
GATEWAY MANCHESTER HOTELS 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.

Principal activity

The principal activity of Gateway Manchester Hotels Limited continued to be that of ownership and operation of a hotel.

Results and dividends

The profit for the year, after taxation, amounted to £72,255 (2023 - £788,442).

No dividends were paid or declared during the year (2023: £NIL).

Directors

The directors who served during the year were:

M Pinson 
Zetland Director Services Limited 

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 judgments and accounting estimates that are reasonable and prudent;

state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

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.

Future developments

There are no significant future developments to disclose.

Page 3

 
GATEWAY MANCHESTER HOTELS LIMITED
 
 
 
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

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.

Post balance sheet events

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

Auditors

On 18 November 2024 the Company's auditor changed its name from Haysmacintyre to HaysMac LLP. The
auditors, HaysMac LLP, will be proposed for reappointment in accordance with section 485 of the Companies
Act 2006.

This report was approved by the board on 25 September 2025 and signed on its behalf.
 





M Pinson
Director
Page 4

 
GATEWAY MANCHESTER HOTELS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GATEWAY MANCHESTER HOTELS LIMITED
 

Opinion


We have audited the financial statements of Gateway Manchester Hotels Limited (the 'Company') for the year ended 31 December 2024, which comprise the Statement of Comprehensive Income, the Balance Sheet, 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 5

 
GATEWAY MANCHESTER HOTELS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GATEWAY MANCHESTER HOTELS 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 3, 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 6

 
GATEWAY MANCHESTER HOTELS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GATEWAY MANCHESTER HOTELS 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:

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud.
Based on our understanding of the Company and industry, we identified that the principal risks of non-compliance with laws and regulations related to food standards and minimum wage regulations, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, income tax, payroll tax and sales tax.
We evaluated management's incentives and opportunities or fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to posting inappropriate journal entries to revenue and management bias in accounting estimates. Audit procedures performed by the engagement team included:
 
inspecting correspondence with regulators and tax authorities;
discussions with management including consideration of known or suspected instances of non-compliance with laws and regulation and fraud;
evaluating management's controls designed to prevent and detect irregularities;
identifying and testing journals, in particular journal entries posted to revenue, postings significantly impacting profit, postings with unusual account combinations and postings around the year-end; an
challenging assumptions and judgements made by management in their critical accounting estimates.


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 7

 
GATEWAY MANCHESTER HOTELS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF GATEWAY MANCHESTER HOTELS 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.





David Lyons (Senior Statutory Auditor)
for and on behalf of
HaysMac LLP
Statutory Auditors
10 Queen Street Place
London
EC4R 1AG

25 September 2025
Page 8

 
GATEWAY MANCHESTER HOTELS LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024

2024
2023
Note
£
£

  

Turnover
 4 
9,890,125
9,696,442

Cost of sales
  
(564,300)
(544,232)

Gross profit
  
9,325,825
9,152,210

Administrative expenses
  
(8,878,248)
(8,256,021)

Operating profit
 5 
447,577
896,189

Tax on profit
 7 
(375,322)
(107,747)

Profit for the financial year
  
72,255
788,442

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

The notes on pages 12 to 23 form part of these financial statements.
Page 9

 
GATEWAY MANCHESTER HOTELS LIMITED
REGISTERED NUMBER: SC268023

BALANCE SHEET
AS AT 31 DECEMBER 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 8 
56,781,574
41,871,559

  
56,781,574
41,871,559

Current assets
  

Stocks
 9 
41,350
35,136

Debtors
 10 
1,112,952
1,225,980

Cash at bank and in hand
 11 
1,243,425
1,967,605

  
2,397,727
3,228,721

Creditors: amounts falling due within one year
 12 
(41,672,905)
(28,590,765)

Net current liabilities
  
 
 
(39,275,178)
 
 
(25,362,044)

Total assets less current liabilities
  
17,506,396
16,509,515

Creditors: amounts falling due after more than one year
  
(549,304)
-

Provisions for liabilities
  

Deferred tax
 14 
(2,180,230)
(1,804,908)

  
 
 
(2,180,230)
 
 
(1,804,908)

Net assets
  
14,776,862
14,704,607


Capital and reserves
  

Called up share capital 
 15 
1
1

Other reserves
 16 
3,825,121
3,825,121

Profit and loss account
 16 
10,951,740
10,879,485

  
14,776,862
14,704,607


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




M Pinson
Director

Date: 25 September 2025

The notes on pages 12 to 23 form part of these financial statements.
Page 10

 
GATEWAY MANCHESTER HOTELS LIMITED
 

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


Called up share capital
Other reserves
Profit and loss account
Total equity

£
£
£
£


At 1 January 2023 (as previously stated)
1
3,825,121
9,638,202
13,463,324

Prior year adjustment - correction of error
-
-
452,841
452,841


At 1 January 2023 (as restated)
1
3,825,121
10,091,043
13,916,165



Profit for the year
-
-
788,442
788,442



At 1 January 2024
1
3,825,121
10,879,485
14,704,607



Profit for the year
-
-
72,255
72,255


At 31 December 2024
1
3,825,121
10,951,740
14,776,862


The notes on pages 12 to 23 form part of these financial statements.
Page 11

 
GATEWAY MANCHESTER HOTELS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

1.


General information

Gateway Manchester Hotels Limited is a private company, limited by shares, incorporated in Scotland (registered number: SC268023). The registered office is The Holyrood Hotel, 81 Holyrood Road, Edinburgh, Scotland, EH8 8AU. The trading address is 91 London Road, Manchester, England,  M1 2PG.

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 judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of Section 26 Share-based Payment paragraphs 26.18(b), 26.19 to 26.21 and 26.23;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Gateway Investment Holdings Limited as at 31 December 2024 and these financial statements may be obtained from Companies House.

Page 12

 
GATEWAY MANCHESTER HOTELS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.3

Going concern

The Company meets its day to day working capital requirements from operational cashflows together with an intercompany loan and trading balances with the group headed by Gateway Financial Holdings Limited, the immediate parent company.
The Company has prepared cashflow forecasts and performed a going concern assessment which indicates that the Company will have sufficient funds to meet its liabilities as they fall due during the going concern assessment period.
 
The cashflow forecasts cover a period of 12 months from the date of signing these financial statements are based upon monthly operating budgets which take into account the expected occupancy and rate based upon the known calendar of events in the year and a targeted marketing strategy.  The budgets take into account anticipated inflationary increases in costs and particularly in the increase to the National Living Wage. These forecasts are dependent on the Company’s immediate parent company, Gateway Financial Holdings Limited not seeking repayment of the amounts currently due.
Gateway Financial Holdings has indicated that it does not intend to seek repayment of the amounts currently due to the Company, which at the 31 December 2024 amounted to £38,814,042, during the going concern assessment period unless there is sufficient surplus cash in the Company. 
 
Consequently the director is confident that the Company will have sufficient funds to continue to meet its liabilities as they fall due for at least 12 months from the date of approval of the financial statements and therefore have prepared the financial statements on a going concern basis.

 
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:

Revenue from hotel and room sales is recognised over the period of the guests' stay and any deposits or payments in advance are held as deferred income until the relevant services are provided.
Revenue from sales of food and beverages is recognised at the point at which the goods are provided to the customer.
Revenue from spa and leisure is recognised at the point at which the services are provided to the customer and any deposits or payments in advance are held as deferred income until the relevant services are provided.
Other income is recognised at the point in which risk and reward transfers from the Company to the customer.

Page 13

 
GATEWAY MANCHESTER HOTELS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.5

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.

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:

Freehold land and property
-
50 years (land is not depreciated)
Plant and machinery
-
20 years
Fixtures and fittings
-
4-10 years
Computer equipment
-
4 years

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.

  
2.6

Impairment of fixed assets

At each reporting period end date, the Company 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 recoverablé 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. 
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.

Page 14

 
GATEWAY MANCHESTER HOTELS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.7

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.

 
2.8

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.

 
2.9

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.

Basic financial assets

Basic financial assets, which include trade and other receivables, cash and bank balances, are initially measured at their transaction price including transaction costs 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 receivables due with the operating cycle fall into this category of financial instruments.

Financial Liabilities
Financial liabilities including short-term creditors are measured at the transaction price.

 
2.10

Debtors

Short-term debtors are measured at transaction price, less any impairment.

 
2.11

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

 
GATEWAY MANCHESTER HOTELS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.12

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. 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.

  
2.13

Employee benefits

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.

 
2.14

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.

Page 16

 
GATEWAY MANCHESTER HOTELS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

3.


Judgements and-key sources of estimation uncertainty

In the application of the Company’s accounting policies, management 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.
Key judgements made by management include:
Useful lives of tangible fixed assets
Depreciation is provided in order to write down to estimated residual value the cost of each asset over its estimated useful economic life. These useful economic lives require the use of management judgement. These estimates are regularly reviewed. Based on the directors' assessment of the useful economic life of tangible fixed assets of £56,781,574 (2023: £41,871,559), a depreciation charge of £634,937 has been recognised within administrative expenses during the year (2023: £359,565).
Impairment of tangible fixed assets
Each cash generating unit (CGU) is reviewed annually for indicators of impairment. In assessing whether an asset has been impaired, the carrying value of the CGU is compared to its recoverable amount. The recoverable amount is the higher of its fair value less costs to sell and its value in use. Where value in use is estimated, this is calculated using a discounted cash flow model, which includes assumptions around future performance and the use of an appropriate discount rate. Future projections are compared to actual performance on a regular basis to assess the accuracy of such projections. Based on this, it has been concluded that there are are no impairments of tangible fixed assets for the year ended 31 December 2024 (2023: £NIL).


4.


Turnover

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


2024
2023
£
£

Hotel and room revenue
7,407,922
7,332,695

Food and beverage
1,999,534
1,844,528

Spa and leisure
222,897
256,466

Other
259,772
262,753

9,890,125
9,696,442


All turnover arose within the United Kingdom.

Page 17

 
GATEWAY MANCHESTER HOTELS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

5.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Exchange differences
2,917
-

Auditors remuneration
29,950
24,200

The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.


6.


Employees

Staff costs were as follows:


2024
2023
£
£

Wages and salaries
3,147,947
2,735,859

Social security costs
251,182
211,355

Cost of defined contribution scheme
47,090
43,223

3,446,219
2,990,437


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


        2024
        2023
            No.
            No.







Employees
148
144

Total remuneration payable to the directors, who are considered to constitute key management personnel, during the year was £NIL (2023: £NIL).

Page 18

 
GATEWAY MANCHESTER HOTELS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

7.


Taxation


2024
2023
£
£



Total current tax
-
-

Deferred tax


Origination and reversal of timing differences
257,295
242,999

Adjustments in respect of prior periods
118,027
(135,252)

Total deferred tax
375,322
107,747


Tax on profit
375,322
107,747

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2023 - lower than) the standard rate of corporation tax in the UK of 25% (2023 - 23.52%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
447,577
896,189


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 23.52%)
111,938
210,789

Effects of:


Fixed asset differences
52,299
12,611

Expenses not deductible for tax purposes
12,593
5,219

Adjustments to tax charge in respect of prior periods - deferred tax
118,027
(135,252)

Remeasurement of deferred tax for change in tax rates
-
14,380

Group relief
80,465
-

Total tax charge for the year
375,322
107,747
Page 19

 
GATEWAY MANCHESTER HOTELS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
 
7.Taxation (continued)


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


8.


Tangible fixed assets





Land and buildings
Plant and machinery
Fixtures and fittings
Computer equipment
Total

£
£
£
£
£



Cost or valuation


At 1 January 2024
41,949,689
2,445,816
7,770,887
392,625
52,559,017


Additions
15,504,850
4,653
35,624
-
15,545,127


Disposals
-
-
(7,173,887)
-
(7,173,887)



At 31 December 2024

57,454,539
2,450,469
632,624
392,625
60,930,257



Depreciation


At 1 January 2024
1,311,476
1,570,027
7,520,559
285,396
10,687,458


Charge for the year on owned assets
418,394
123,273
58,558
34,712
634,937


Disposals
-
-
(7,173,712)
-
(7,173,712)



At 31 December 2024

1,729,870
1,693,300
405,405
320,108
4,148,683



Net book value



At 31 December 2024
55,724,669
757,169
227,219
72,517
56,781,574



At 31 December 2023
40,638,213
875,789
250,328
107,229
41,871,559


9.


Stocks

2024
2023
£
£

Finished goods and goods for resale
41,350
35,136

41,350
35,136

Page 20

 
GATEWAY MANCHESTER HOTELS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

10.


Debtors

2024
2023
£
£


Trade debtors
569,606
254,302

Amounts owed by group undertakings
-
181,876

Other debtors
26,283
554,575

Prepayments and accrued income
400,779
118,943

Corporation tax recoverable
116,284
116,284

1,112,952
1,225,980


Amounts owed by group undertakings are unsecured, interest free, and repayable on demand.


11.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
1,243,425
1,967,605



12.


Creditors: Amounts falling due within one year

2024
2023
£
£

Trade creditors
644,610
1,144,368

Amounts owed to group undertakings
39,592,705
26,863,780

Other taxation and social security
359,464
51,268

Other creditors
203,196
123,574

Accruals and deferred income
872,930
407,775

41,672,905
28,590,765


Amounts owed by group undertakings are unsecured, interest free, and repayable on demand.


13.


Creditors: Amounts falling due after more than one year

2024
2023
£
£

Other creditors
549,304
-


Page 21

 
GATEWAY MANCHESTER HOTELS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

14.


Deferred taxation




2024


£






At beginning of year
(1,804,908)


Charged to profit or loss
(375,322)



At end of year
(2,180,230)

The provision for deferred taxation is made up as follows:

2024
2023
£
£


Accelerated capital allowances
(4,193,599)
(2,729,103)

Losses and other deductions
2,013,369
924,195

(2,180,230)
(1,804,908)


15.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



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



16.


Reserves

Other reserves

Other reserves represents a capital contribution made by the ultimate parent company. 

Profit and loss account

The profit and loss account includes all current and prior period retained profits and losses. 

Page 22

 
GATEWAY MANCHESTER HOTELS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

17.


Contingent liabilities

There is a possible utility expense payable for an estimated £409k that arose prior to the current owner's acquisition of the business in 2021. As this relates to the previous ownership and there has been no correspondence received by the business in the intervening 4 years, the Directors do not consider this to be a valid liability for which there will be a probable outflow of economic resources to settle it. As such they do not consider it to meet the criteria for recognition as an accrual or provision in these financial statements. However, there remains the possibility that this could crystalise in future and so the Directors consider this to constitute a contingent liability. 


18.


Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £47,090 (2023: £43,223). Contributions totalling £4,676 (2023: £10,082) were payable to the fund at the reporting date.


19.


Related party transactions

The Company has advantage of exemptions from disclosing transactions with related companies under the provisions of Section 33 of Financial Reporting Standard 102.


20.


Controlling party

The immediate parent is Gateway Financial Holdings Limited (registered number: 13637148), incorporated in England & Wales. The registered address of Gateway Financial Holdings Limited is Suite 4th Floor Phoenix House, 1 Station Hill, Reading, Berkshire, RG1 1NB.
Gateway Investments Holdings Limited (registered number: 13636718) is the ultimate UK parent company and the ultimate parent company and controlling party is Zetland Special Situations Fund ll SCSp SICAV RAIF, based in Luxembourg.
Gateway Financial Holdings Limited and Gateway Investment Holdings Limited both prepare consolidated financial statements which are available from Companies House.

Page 23