Sidmouth Hotels Limited 04028342 false 2024-02-01 2025-01-31 2025-01-31 The principal activity of the company is the trading of Hotel Elizabeth and The Kingswood & Devoran Hotel. 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Registration number: 04028342

Sidmouth Hotels Limited

Annual Report and Financial Statements

for the Year Ended 31 January 2025

 

Sidmouth Hotels Limited
(Registration number: 04028342)

Contents

Company Information

1

Strategic Report

2

Directors' Report

3

Statement of Directors' Responsibilities

4

Independent Auditor's Report

5 to 8

Profit and Loss Account

9

Statement of Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Notes to the Financial Statements

12 to 28

 

Sidmouth Hotels Limited
(Registration number: 04028342)

Company Information

Directors

M Seward

J Watson

T Seward

Registered office

The Esplanade
Sidmouth
Devon
EX10 8AT

Auditors

Thompson Jenner LLP
Statutory Auditors
28 Alexandra Terrace
Exmouth
Devon
EX8 1BD

 

Sidmouth Hotels Limited
(Registration number: 04028342)

Strategic Report for the Year Ended 31 January 2025

The directors present their strategic report for the year ended 31 January 2025.

Principal activity

The principal activity of the company is the trading of Hotel Elizabeth and The Kingswood & Devoran Hotel.

Fair review of the business

The directors consider that the key financial performance indicators are those that communicate the financial performance and strength of the company as a whole, these being turnover and the assessment of gross and net profit margins.

Overall the directors are satisfied with the profitability of the company.

The company's key financial and other performance indicators during the year were as follows:

Financial KPIs

Unit

2025

2024

Turnover

£

2,438,835

2,383,804

Turnover growth

%

2

1

Gross profit margin

%

46

49

Profit before tax

£

143,458

188,108

Net assets

£

2,475,834

2,510,999

Principal risks and uncertainties

The board of directors undertake a regular review of the company and the board of directors have identified that the principal risks faced by the company are economic downturns and consumer trends.

Approved and authorised by the Board on 23 October 2025 and signed on its behalf by:
 

.........................................
M Seward
Director

 

Sidmouth Hotels Limited
(Registration number: 04028342)

Directors' Report for the Year Ended 31 January 2025

The directors present their report and the financial statements for the year ended 31 January 2025.

Directors of the company

The directors who held office during the year were as follows:

M Seward

J Watson

T Seward

Financial instruments

Objectives and policies

The company's principal financial instruments comprise bank balances, bank overdrafts, trade creditors and both long and short term loans to the company. The main purpose of these instruments is to raise funds for the company's operations.

Price risk, credit risk, liquidity risk and cash flow risk

Due to the non-complex nature of the financial instruments used by the company, there is no exposure to price risk.

In respect of bank balances, the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the use of overdrafts at variable rates of interest.

Loans comprise loans from the directors and from financial institutions. The interest rates and monthly repayments on the loans from financial institutions are variable. The business manages the liquidity risk by ensuring that there are sufficient funds to meet the payments.

Trade creditors' liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

Future developments

Sidmouth Hotels Limited will continue trading the Hotel Elizabeth and The Kingswood and Devoran Hotel and the directors will continue to look for opportunities for further expansion.

Disclosure of information to the auditors

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditors are unaware.

Approved and authorised by the Board on 23 October 2025 and signed on its behalf by:
 

.........................................
M Seward
Director

 

Sidmouth Hotels Limited
(Registration number: 04028342)

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities for preparing the Annual 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 and apply them consistently;

make judgements and accounting estimates that are reasonable and prudent;

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

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 enable them to ensure that the financial statements comply with the Companies Act 2006 and in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). They 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.

 

Sidmouth Hotels Limited
(Registration number: 04028342)

Independent Auditor's Report to the Members of Sidmouth Hotels Limited

Opinion

We have audited the financial statements of Sidmouth Hotels Limited (the 'company') for the year ended 31 January 2025, which comprise the Profit and Loss Account, Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

give a true and fair view of the state of the company's affairs as at 31 January 2025 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 auditor 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 UK, including the FRC’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 director's 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 original financial statements were authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our 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.

In connection with our audit of the financial statements, 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 audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. 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.

 

Sidmouth Hotels Limited
(Registration number: 04028342)

Independent Auditor's Report to the Members of Sidmouth Hotels Limited

We have nothing to report in this regard.

Opinion on other matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

the Strategic Report and 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 our 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 and the Directors' Report.

We have nothing to report in respect of the following matters where 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 Statement of Directors' Responsibilities [set out on page 4], 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.

Auditor 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 auditor’s 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.

 

Sidmouth Hotels Limited
(Registration number: 04028342)

Independent Auditor's Report to the Members of Sidmouth Hotels Limited

The extent to which the audit was considered capable of detecting irregularities including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the hospitality and tourism sector;

we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, employment, environmental, fire safety and health and safety legislation;

we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management, reviewing licenses, certificates and relevant correspondence including the inspection of legal correspondence; and

identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud; and

considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.

To address the risk of fraud through management bias and override of controls, we:

performed analytical procedures to identify any unusual or unexpected relationships;

tested journal entries to identify unusual transactions;

assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

agreeing financial statement disclosures to underlying supporting documentation;

reading the minutes of meetings of those charged with governance;

enquiring of management as to actual and potential litigation and claims; and

reviewing correspondence with HMRC, relevant regulators and the company’s legal advisors.

 

Sidmouth Hotels Limited
(Registration number: 04028342)

Independent Auditor's Report to the Members of Sidmouth Hotels Limited

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s 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 2006. Our 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 auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

......................................
Mr David Tucker (Senior Statutory Auditor)
For and on behalf of Thompson Jenner LLP, Statutory Auditor

28 Alexandra Terrace
Exmouth
Devon
EX8 1BD

23 October 2025

 

Sidmouth Hotels Limited
(Registration number: 04028342)

Profit and Loss Account for the Year Ended 31 January 2025

Note

2025
£

2024
£

Turnover

3

2,438,835

2,383,804

Cost of sales

 

(1,313,270)

(1,206,248)

Gross profit

 

1,125,565

1,177,556

Administrative expenses

 

(941,914)

(957,749)

Other operating income

4

120,000

120,000

Operating profit

5

303,651

339,807

Interest payable and similar expenses

6

(160,193)

(151,699)

Profit before tax

 

143,458

188,108

Taxation

10

(57,623)

(64,354)

Profit for the financial year

 

85,835

123,754

The above results were derived from continuing operations.

The company has no recognised gains or losses for the year other than the results above.

Statement of Comprehensive Income for Year Ended 31 January 2025

2025
£

2024
£

Profit for the year

85,835

123,754

Total comprehensive income for the year

85,835

123,754

 

Sidmouth Hotels Limited
(Registration number: 04028342)

Balance Sheet as at 31 January 2025

Note

2025
£

2024
£

Fixed assets

 

Intangible assets

11

-

672

Tangible assets

12

4,705,960

4,523,174

Investment property

13

-

350,000

Investments

14

3

3

 

4,705,963

4,873,849

Current assets

 

Stocks

15

14,850

14,850

Debtors

16

264,377

289,154

Cash at bank and in hand

 

229,057

12,139

 

508,284

316,143

Creditors: Amounts falling due within one year

17

(1,550,224)

(1,323,483)

Net current liabilities

 

(1,041,940)

(1,007,340)

Total assets less current liabilities

 

3,664,023

3,866,509

Creditors: Amounts falling due after more than one year

17

(849,752)

(1,001,760)

Provisions for liabilities

20

(338,437)

(353,750)

Net assets

 

2,475,834

2,510,999

Capital and reserves

 

Called up share capital

100

100

Other reserves

24

90,608

90,608

Retained earnings

24

2,385,126

2,420,291

Total equity

 

2,475,834

2,510,999

Approved and authorised by the Board on 23 October 2025 and signed on its behalf by:
 

.........................................
M Seward
Director

 

Sidmouth Hotels Limited
(Registration number: 04028342)

Statement of Changes in Equity for the Year Ended 31 January 2025

Share capital
£

Non-distributable reserve
£

Retained earnings
£

Total
£

At 1 February 2024

100

90,608

2,420,291

2,510,999

Profit for the year

-

-

85,835

85,835

Dividends

-

-

(121,000)

(121,000)

At 31 January 2025

100

90,608

2,385,126

2,475,834

Share capital
£

Non-distributable reserve
£

Retained earnings
£

Total
£

At 1 February 2023

100

90,608

2,406,537

2,497,245

Profit for the year

-

-

123,754

123,754

Dividends

-

-

(110,000)

(110,000)

At 31 January 2024

100

90,608

2,420,291

2,510,999

 

Sidmouth Hotels Limited
(Registration number: 04028342)

Notes to the Financial Statements for the Year Ended 31 January 2025

1

General information

The company is a private company limited by share capital, incorporated in England & Wales.

The address of its registered office is:
The Esplanade
Sidmouth
Devon
EX10 8AT
United Kingdom

2

Accounting policies

Summary of significant accounting policies and key accounting estimates

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

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland and the Companies Act 2006'.

Basis of preparation

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

Summary of disclosure exemptions

The company has taken advantage of the following disclosure exemptions in FRS102 section 1.12:
- the requirement to present a statement of cash flows and related notes.
- financial instrument disclosures, including categories of financial instruments, items of income,
expenses, gains or losses relating to financial instruments and exposure to and management of financial risks.
- disclosure of key management personnel compensation.

Name of parent of group

These financial statements are consolidated in the financial statements of Sidmouth Hotels Holdings Limited.

The financial statements of Sidmouth Hotels Holdings Limited may be obtained from Companies House.

Group accounts not prepared

The company is exempt under section 400 of the Companies Act 2006 from the requirement to prepare consolidated financial statements as it and its subsidiary undertakings are included by full consolidation in the consolidated financial statements of its parent, Sidmouth Hotels Holdings Limited, a company incorporated in England and Wales.

Going concern

The financial statements have been prepared on a going concern basis.

 

Sidmouth Hotels Limited
(Registration number: 04028342)

Notes to the Financial Statements for the Year Ended 31 January 2025

Critical accounting judgements and estimation uncertainty

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Critical accounting estimates and assumptions

The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below.

i. Useful economic lives of tangible assets.

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. See note 12 for the carrying amount of the property plant and equipment, and the accounting policies note for the useful economic lives for each class of assets.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts. The company recognises revenue when, the amount of revenue can be reliably measured and it is probable that future economic benefits will flow to the entity. As such revenue is recognised in the period in which the service has been provided to the customer. Deposits received in advance of the service being provided are deferred and released on provision of the service.

Tax

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

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

Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

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

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

 

Sidmouth Hotels Limited
(Registration number: 04028342)

Notes to the Financial Statements for the Year Ended 31 January 2025

Depreciation

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

Asset class

Depreciation method and rate

Land and buildings

Straight line over 50 years

Fixtures and fittings

20% reducing balance

Motor vehicles

25% reducing balance

Computer equipment

50% reducing balance

Investment property

Investment property is carried at fair value, derived from the current market prices for comparable real estate determined annually by external valuers. The valuers use observable market prices, adjusted if necessary for any difference in the nature, location or condition of the specific asset. Changes in fair value are recognised in profit or loss.

Business combinations

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the company’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition. Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is held in the currency of the acquired entity and revalued to the closing rate at each reporting period date. Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

Intangible assets

Intangible assets are stated in the Balance Sheet at cost less accumulated amortisation and impairment. They are amortised on a straight line basis over their estimated useful lives.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class

Amortisation method and rate

Goodwill

10 years

Intangible assets other than goodwill

3 years

 

Sidmouth Hotels Limited
(Registration number: 04028342)

Notes to the Financial Statements for the Year Ended 31 January 2025

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.

Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Cash and cash equivalents

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

Trade debtors

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

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

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

Trade creditors

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

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

Borrowings

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

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

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

 

Sidmouth Hotels Limited
(Registration number: 04028342)

Notes to the Financial Statements for the Year Ended 31 January 2025

Leases

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

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.

Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.

Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Share capital

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

Dividends

Dividend distribution to the company’s shareholders is recognised as a liability in the financial statements in the reporting period in which the dividends are declared.

Defined contribution pension obligation

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

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

3

Turnover

The analysis of the company's Turnover for the year from continuing operations is as follows:

2025
£

2024
£

Accommodation revenue

2,186,768

2,142,657

Food and beverage revenue

225,668

219,913

Other revenue

26,399

21,234

2,438,835

2,383,804

 

Sidmouth Hotels Limited
(Registration number: 04028342)

Notes to the Financial Statements for the Year Ended 31 January 2025

4

Other operating income

The analysis of the company's other operating income for the year is as follows:

2025
£

2024
£

Miscellaneous other operating income

120,000

120,000

5

Operating profit

Arrived at after charging/(crediting)

2025
£

2024
£

Depreciation expense

176,413

183,883

Amortisation expense

672

1,848

Operating lease expense - plant and machinery

33,084

23,502

6

Interest payable and similar expenses

2025
£

2024
£

Interest on bank overdrafts and borrowings

1,499

14,452

Interest on obligations under finance leases and hire purchase contracts

2,106

1,559

Interest expense on other finance liabilities

156,588

135,688

160,193

151,699

7

Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

2025
£

2024
£

Wages and salaries

880,699

790,232

Social security costs

90,714

65,338

Other short-term employee benefits

10,571

10,151

Pension costs, defined contribution scheme

42,712

36,955

1,024,696

902,676

 

Sidmouth Hotels Limited
(Registration number: 04028342)

Notes to the Financial Statements for the Year Ended 31 January 2025

The average number of persons employed by the company (including directors) during the year, analysed by category was as follows:

2025
No.

2024
No.

Operational

50

48

Administration and support

4

4

54

52

8

Directors' remuneration

The directors' remuneration for the year was as follows:

2025
£

2024
£

Remuneration

96,599

99,156

Contributions paid to money purchase schemes

22,380

22,655

118,979

121,811

9

Auditors' remuneration

2025
£

2024
£

Audit of the financial statements

6,000

6,000


 

 

Sidmouth Hotels Limited
(Registration number: 04028342)

Notes to the Financial Statements for the Year Ended 31 January 2025

10

Taxation

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

2025
£

2024
£

Current taxation

UK corporation tax

73,656

76,311

UK corporation tax adjustment to prior periods

(720)

-

72,936

76,311

Deferred taxation

Arising from origination and reversal of timing differences

(15,313)

(11,957)

Tax expense in the income statement

57,623

64,354

The tax on profit before tax for the year is the same as the standard rate of corporation tax in the UK (2024 - the same as the standard rate of corporation tax in the UK) of 25% (2024 - 24%).

The differences are reconciled below:

2025
£

2024
£

Profit before tax

143,458

188,108

Corporation tax at standard rate

35,865

45,146

Tax increase from effect of capital allowances and depreciation

38,300

30,664

Decrease in UK and foreign current tax from unrecognised temporary difference from a prior period

(720)

-

Deferred tax credit from unrecognised temporary difference from a prior period

(15,313)

(11,957)

Tax (decrease)/increase from other tax effects

(509)

501

Total tax charge

57,623

64,354

 

Sidmouth Hotels Limited
(Registration number: 04028342)

Notes to the Financial Statements for the Year Ended 31 January 2025

Deferred tax

Deferred tax assets and liabilities

2025

Asset
£

Liability
£

Accelerated capital allowances

-

341,327

Other timing differences

2,890

-

2,890

341,327

2024

Asset
£

Liability
£

Accelerated capital allowances

-

357,900

Other timing differences

4,150

-

4,150

357,900

The directors have considered the deferred tax assets and liabilities and conclude that it is not possible to state the estimated amounts which will reverse within the next 12 months. This is due to the level of reversal being dependant on events which are not yet known.

As of 1 April 2023, the main rate of UK corporation tax increased from 19% to 25%. As the company’s previous financial year straddled this date, a blended corporation tax rate of 24.00% was applied which was calculated by apportioning the two tax rates on a weighted basis for the proportion of the financial year for which each main tax rate was applicable.

11

Intangible assets

Goodwill
 £

Other intangible assets
 £

Total
£

Cost or valuation

At 1 February 2024

530,000

5,600

535,600

At 31 January 2025

530,000

5,600

535,600

Amortisation

At 1 February 2024

530,000

4,928

534,928

Amortisation charge

-

672

672

At 31 January 2025

530,000

5,600

535,600

Carrying amount

At 31 January 2025

-

-

-

At 31 January 2024

-

672

672

Amortisation is included in administration expenses in the profit and loss account

 

Sidmouth Hotels Limited
(Registration number: 04028342)

Notes to the Financial Statements for the Year Ended 31 January 2025

12

Tangible assets

Land and buildings
£

Furniture, fittings and equipment
 £

Motor vehicles
 £

Computer equipment
£

Total
£

Cost or valuation

At 1 February 2024

5,793,585

1,097,036

39,596

24,048

6,954,265

Additions

9,294

2,165

-

-

11,459

Disposals

(689)

(14,735)

-

(7,194)

(22,618)

Transfers to/from investment property

350,000

-

-

-

350,000

At 31 January 2025

6,152,190

1,084,466

39,596

16,854

7,293,106

Depreciation

At 1 February 2024

1,554,042

844,974

11,477

20,598

2,431,091

Charge for the year

117,472

50,227

7,029

1,685

176,413

Eliminated on disposal

(83)

(13,160)

-

(7,115)

(20,358)

At 31 January 2025

1,671,431

882,041

18,506

15,168

2,587,146

Carrying amount

At 31 January 2025

4,480,759

202,425

21,090

1,686

4,705,960

At 31 January 2024

4,239,543

252,062

28,119

3,450

4,523,174

Included within the net book value of land and buildings above is £4,480,759 (2024 - £4,239,543) in respect of freehold land and buildings.
 

 

Sidmouth Hotels Limited
(Registration number: 04028342)

Notes to the Financial Statements for the Year Ended 31 January 2025

Assets held under finance leases and hire purchase contracts

The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:

2025
£

2024
£

Motor vehicles

21,089

28,119

   

Assets held under finance lease and hire purchase arrangements are pledged as security for their respective liabilities.

13

Investment properties

2025
£

At 1 February

350,000

Transfers to Tangible assets

(350,000)

At 31 January

-

The fair value of the investment property is based on a valuation by a professional valuer in 2022. The directors have used this valuation as a basis for the current fair value.

14

Investments

2025
£

2024
£

Investments in subsidiaries

3

3

Subsidiaries

£

Cost or valuation

At 1 February 2024

3

At 31 January 2025

3

Carrying amount

At 31 January 2025

3

At 31 January 2024

3

 

Sidmouth Hotels Limited
(Registration number: 04028342)

Notes to the Financial Statements for the Year Ended 31 January 2025

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking

Registered office

Holding

Proportion of voting rights and shares held

     

2025

2024

Subsidiary undertakings

Dukes of Sidmouth Limited

The Esplanade, Sidmouth, Devon, EX10 8AR

Ordinary

100%

100%

 

England

     

Hotel Elizabeth Limited

The Esplanade, Sidmouth, Devon, EX10 8AR

Ordinary

100%

100%

 

England

     

Kingswood Hotel Limited

The Esplanade, Sidmouth, Devon, EX10 8AR

Ordinary

100%

100%

 

England

     

Subsidiary undertakings

Dukes of Sidmouth Limited

The principal activity of Dukes of Sidmouth Limited is to remain dormant.

Hotel Elizabeth Limited

The principal activity of Hotel Elizabeth Limited is to remain dormant.

Kingswood Hotel Limited

The principal activity of Kingswood Hotel Limited is to remain dormant.

15

Stocks

2025
£

2024
£

Other stocks

14,850

14,850

16

Debtors

Note

2025
£

2024
£

Amounts owed by related parties

26

107,265

107,265

Other debtors

 

115,466

140,888

Prepayments and accrued income

 

41,646

41,001

Total current trade and other debtors

 

264,377

289,154

 

Sidmouth Hotels Limited
(Registration number: 04028342)

Notes to the Financial Statements for the Year Ended 31 January 2025

17

Creditors

Note

2025
£

2024
£

Due within one year

 

Loans and borrowings

18

4,447

51,661

Trade creditors

 

46,639

49,106

Amounts due to related parties

26

1,227,384

1,034,597

Social security and other taxes

 

180,485

150,042

Outstanding defined contribution pension costs

 

14,117

3,598

Accruals and deferred income

 

77,152

34,479

 

1,550,224

1,323,483

Due after one year

 

Loans and borrowings

18

16,551

20,997

Other non-current financial liabilities

 

833,201

980,763

 

849,752

1,001,760

18

Loans and borrowings

Current loans and borrowings

2025
£

2024
£

Bank overdrafts

-

45,203

Finance lease liabilities

4,447

6,458

4,447

51,661

Non-current loans and borrowings

2025
£

2024
£

Finance lease liabilities

16,551

20,997

19

Pension and other schemes

Defined contribution pension scheme

The company operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the company to the scheme and amounted to £42,712 (2024 - £36,955).

Contributions totalling £14,117 (2024 - £3,598) were payable to the scheme at the end of the year and are included in creditors.

 

Sidmouth Hotels Limited
(Registration number: 04028342)

Notes to the Financial Statements for the Year Ended 31 January 2025

20

Provisions for liabilities

Deferred tax
£

Total
£

At 1 February 2024

353,750

353,750

Increase (decrease) in existing provisions

(15,313)

(15,313)

At 31 January 2025

338,437

338,437

21

Obligations under leases and hire purchase contracts

Finance leases

The total of future minimum lease payments is as follows:

2025
£

2024
£

Not later than one year

4,447

6,458

Later than one year and not later than five years

16,551

20,997

20,998

27,455

Operating leases

The total of future minimum lease payments is as follows:

2025
£

2024
£

Not later than one year

23,638

22,354

Later than one year and not later than five years

37,307

3,289

60,945

25,643

The amount of non-cancellable operating lease payments recognised as an expense during the year was £33,084 (2024 - £23,502).

22

Commitments

Other financial commitments

The total amount of guarantees not included in the balance sheet is £2,249,620 (2024 - £2,286,636).
The company has acted as a guarantor on a bank loan provided to Sidmouth Hotels Holdings Limited, the parent company of Sidmouth Hotels Limited. The guarantee is secured by a fixed and floating charge over all the present and future assets of the company. The amount expected to be paid is nil (2024 - £nil).

 

Sidmouth Hotels Limited
(Registration number: 04028342)

Notes to the Financial Statements for the Year Ended 31 January 2025

23

Share capital

Allotted, called up and fully paid shares

2025

2024

No.

£

No.

£

Ordinary of £1 each

100

100

100

100

       

24

Reserves

Non distributable reserve

This reserve is used to record increases in the fair value of investment properties and decreases to the extent that such decrease relates to a previous increase on the same asset.

25

Dividends

2025

2024

£

£

Interim dividend of £1,210.00 (2024 - £1,100.00) per ordinary share

121,000

110,000

 

 

26

Related party transactions

Transactions with directors

2025

At 1 February 2024
£

Advances to director
£

Repayments by director
£

At 31 January 2025
£

Director 1, Interest free loan

120,568

93,704

(129,114)

85,158

         

2024

At 1 February 2023
£

Advances to director
£

Repayments by director
£

At 31 January 2024
£

Director 1, Interest free loan

109,940

139,046

(128,418)

120,568

         
       

 

Sidmouth Hotels Limited
(Registration number: 04028342)

Notes to the Financial Statements for the Year Ended 31 January 2025

 

Summary of transactions with other related parties

The Sidmouth Inn Holdings Limited
 During the year the company extended a loan to The Sidmouth Inn Holdings Limited, a company under common control. The loan is interest free and repayable on demand.
 
The Sidmouth Inn Limited
During the year, the company was in receipt of a loan from The Sidmouth Inn Limited, a company under common control. The loan is interest free and repayable on demand. The company also raised management charges to The Sidmouth Inn Limited.

Income and receivables from related parties

2025

Other related parties
£

Receipt of services

120,000

2024

Other related parties
£

Receipt of services

120,000

Loans to related parties

2025

Other related parties
£

Total
£

At start of period

107,265

107,265

At end of period

107,265

107,265

2024

Other related parties
£

Total
£

At start of period

107,265

107,265

At end of period

107,265

107,265

 

Sidmouth Hotels Limited
(Registration number: 04028342)

Notes to the Financial Statements for the Year Ended 31 January 2025

Loans from related parties

2025

Other related parties
£

Total
£

At start of period

902,581

902,581

Advanced

167,459

167,459

At end of period

1,070,040

1,070,040

2024

Other related parties
£

Total
£

At start of period

849,960

849,960

Advanced

52,621

52,621

At end of period

902,581

902,581

27

Parent and ultimate parent undertaking

The company's immediate parent is Sidmouth Hotels Holdings Limited, incorporated in England & Wales.

 The most senior parent entity producing publicly available financial statements in which these financial statements are consolidated is Sidmouth Hotels Holdings Limited. These financial statements are available upon request from Companies House

 The ultimate controlling party is M Seward.