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Registered number: 08547346
CHART FORTE COURT (UK) LTD
FINANCIAL STATEMENTS
INFORMATION FOR FILING WITH THE REGISTRAR
FOR THE YEAR ENDED 31 OCTOBER 2024
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CHART FORTE COURT (UK) LTD
REGISTERED NUMBER: 08547346
STATEMENT OF FINANCIAL POSITION
AS AT 31 OCTOBER 2024
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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Provisions for liabilities
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Page 1
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CHART FORTE COURT (UK) LTD
REGISTERED NUMBER: 08547346
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 OCTOBER 2024
The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
................................................
J Kajani
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The notes on pages 4 to 15 form part of these financial statements.
Page 2
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CHART FORTE COURT (UK) LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2024
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At 1 November 2023 (as previously stated)
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Prior year adjustment - correction of errors (see Note 13)
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At 1 November 2023 (as restated)
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Comprehensive income for the year
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Gain on revaluation of freehold property
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Deferred tax recognised on revaluation of freehold property
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STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 OCTOBER 2023
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At 1 November 2022 (as previously stated)
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Prior year adjustment - correction of errors (see Note 13)
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At 1 November 2022 (as restated)
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Comprehensive income for the year
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Profit for the year (as restated - see note 13)
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Gain on revaluation of freehold property (as restated - see Note 13)
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Deferred tax recognised on revaluation of freehold property (as restated - see Note 13)
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At 31 October 2023 (as restated)
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The notes on pages 4 to 15 form part of these financial statements.
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Page 3
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CHART FORTE COURT (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
Chart Forte Court (UK) Limited is a private company, limited by shares, and incorporated in England and Wales. The Company's registered number is 08547346 and its registered office address is Cervantes House, 5-9 Headstone Road, Harrow, England, United Kingdom, HA1 1PD.
The principal activity of the Company continued to be that of owning and managing a hotel property.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' and the requirements of the Companies Act 2006. The disclosure requirements of Section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in sterling, which is the functional currency of the entity and rounded to the nearest £.
The following principal accounting policies have been applied:
The Company is reliant on its wider group's cash resources to meet its obligations. Based on the Group's cash flow forecasts which show it has sufficient cash to pay its liabilities as they fall due for a period of 12 months from the date of approval of these financial statements and confirmation from the Group that it intends to support the Company as required, the directors continue to adopt the going concern basis in the preparing the Company financial statements.
Revenue represents amounts receivable from the operation of hotels. Revenue is stated net of VAT and trade discounts.
Revenue from hotel operations is recognised when rooms are occupied and any amounts received in advance from guests is accounted for as deferred income.
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
All borrowing costs are recognised in profit or loss in the year in which they are incurred.
Page 4
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CHART FORTE COURT (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
2.Accounting policies (continued)
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 Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.
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Current and deferred taxation
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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 reporting 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 reporting 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 reporting date.
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
Page 5
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CHART FORTE COURT (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
2.Accounting policies (continued)
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Tangible fixed assets (continued)
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Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives.
Depreciation is provided on the following bases:
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2% Straight line basis down to its residual value which is considered to be equal to its fair value
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10% Reducing balance basis
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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.
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Revaluation of tangible fixed assets
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The Company's freehold property is accounted for under the revaluation model. Freehold property is therefore held at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the reporting date.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.
Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.
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 6
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CHART FORTE COURT (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
2.Accounting policies (continued)
The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the Company's Statement of Financial Position when the Company becomes party to the contractual provisions of the instrument.
Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
Basic financial assets
Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.
Impairment of financial assets
At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.
Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.
If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.
Financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.
Page 7
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CHART FORTE COURT (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
2.Accounting policies (continued)
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Financial instruments (continued)
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Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.
Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.
Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.
Derecognition of financial assets
Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.
Derecognition of financial liabilities
Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.
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The average monthly number of employees, including directors, during the year was 13 (2023: 15).
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Page 8
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CHART FORTE COURT (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
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At 1 November 2023 (as previously stated)
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At 1 November 2023 (as restated)
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Charge for the year on owned assets
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At 31 October 2023 (as restated)
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The valuation of the freehold property as at 31 October 2024 has been determined from a valuation performed by the directors on an existing use basis. In preparing this valuation, the directors have taken into account market conditions and a third party valuation performed by Colliers, also on an existing use basis, as at 1 June 2024 of £43,000,000.
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Page 9
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CHART FORTE COURT (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
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Amounts owed by group undertakings
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Prepayments and accrued income
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Amounts owed by group undertakings are unsecured, interest free and repayable on demand.
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Creditors: amounts falling due within one year
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Amounts owed to group undertakings
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Other taxation and social security
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Accruals and deferred income
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Amounts owed to group undertakings are unsecured, interest free and payable on demand.
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Creditors: amounts falling due after more than one year
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Page 10
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CHART FORTE COURT (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
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Analysis of the maturity of loans is given below:
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Amounts falling due 1-2 years
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Bank loans relates to a £21,300,000 loan provided by Punjab National Bank which has interest payable at 4.65% plus Bank of England base rate. The loan balance is due to be repaid in full on 15 September 2026 and is secured against the property held by the Company.
Loan arrangement fees of £85,200 (2023: £127,800) have been netted off against the outstanding bank loan balance.
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Charged to profit or loss
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The provision for deferred taxation is made up as follows:
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Accelerated capital allowances
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Related party transactions
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The Company has taken advantage of exemption, under the terms of Section 33.1A Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.
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Page 11
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CHART FORTE COURT (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
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Post balance sheet events
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On 18 November 2024 the Company refinanced its loan facilities, taking out a new commercial loan facility of £24.3m with Natwest Bank to repay its existing loan with Punjab National Bank. The new commercial loan facility is repayable in November 2029.
The Company's immediate parent company and controlling party is Chart Forte Holdings Ltd, a company which is registered in England and Wales at Cervantes House, 5-9 Headstone Road, Harrow, HA1 1PD. Chart Forte Holdings Ltd produces consolidated financial statements that include the Company, which may be obtained from Companies House.
The directors do not consider there to be a single ultimate controlling party.
Page 12
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CHART FORTE COURT (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
Valuation of freehold property:
The Company holds its freehold property under the revaluation model. However it has been identified that no revaluations have been accounted for since the period ended 31 October 2016. Therefore a prior year adjustment has been recognised to account for the unrecorded revaluation gains of £1,315,749 and £571,091 within the revaluation reserves for the years ended 31 October 2022 and 31 October 2023 respectively, based on directors' valuations of the freehold property at these dates on an existing use basis. These directors' valuations have taken into acount market conditions and a third party valuation performed by Colliers, also on an existing use basis, as at 10 August 2021.
As a result of the above, a prior year adjustment to the 2023 comparatives has been accounted for to recognise a deferred tax liability of £471,710, of which £142,773 relates to Other Comprehensive Income for the year ended 31 October 2023 and £328,937 has been recognised within the opening revaluation reserve as at 1 November 2022.
Recognition of loan arrangement fees:
During the year it has been identified that arrangement fees of £213,000 paid to the lender in respect of the bank loan were incorrectly recognised in full within administrative expenses during the year ended 31 October 2022 rather than netted off against the bank loan and amortised into administrative expenses over the term of the loan.
Therefore a prior year adjustment has been recognised to restate the prior year comparatives to net the remaining unamortised arrangement fees against the bank loan to which they relate. This has resulted in a reduction in a reduction in the bank loan liability of £127,800, a reduction in administrative expenses of £42,600 and an increase in the profit and loss account of £170,400 compared with amounts previously reported.
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Changes to the Statement of Comprehensive Income
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Administrative expenses - For the year ended 31 October 2023
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Profit for the financial year ended 31 October 2023
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Gain on revaluation of freehold property (OCI) - For the year ended 31 October 2023
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Deferred tax recognised on revaluation of freehold property (OCI) - For the year ended 31 October 2023
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Total comprehensive income for the year ended 31 October 2023
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Page 13
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CHART FORTE COURT (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
Page 14
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CHART FORTE COURT (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
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Changes to the Statement of Financial Position
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Tangible fixed assets as at 31 October 2023
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Creditors: amounts falling due after more than one year
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Bank loans as at 31 October 2023
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Provisions for liabilities
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Deferred taxation as at 31 October 2023
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Revaluation reserve b/fwd as at 1 November 2022
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Gain on revaluation of freehold property for the year ended 31 October 2023
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Deferred tax recognised on revaluation of freehold property for the year ended 31 October 2023
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Revaluation reserve c/fwd as at 31 October 2023
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Retained earnings b/fwd as at 1 November 2022
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Profit for the year ended 31 October 2023
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Profit and loss account c'fwd as at 31 October 2023
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The auditors' report on the financial statements for the year ended 31 October 2024 was unqualified.
The audit report was signed on 31 October 2025 by David Lyons (Senior Statutory Auditor) on behalf of HaysMac LLP.
Page 15
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CHART FORTE COURT (UK) LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 OCTOBER 2024
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