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HARVEST HOSTS (UK) HOLDING CO. LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
Harvest Hosts (UK) Holding Limied (the ‘Company’) is a private company limited by shares and is incorporated, domiciled and registered in England and Wales (Registered number: 14602685). The nature of the Company’s operations is set out in the Directors' Report on page 2.
The financial statements have been prepared on a going concern basis and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland and the Companies Act 2006. The financial statements are prepared under the historical cost convention.
2.Accounting policies
The accounting policies which follow set out those policies which apply in preparing the financial statements for the period ended 31 December 2023. The Company's functional and presentational currency if GBP (£).
The financial statements have been prepared on a going concern basis which assumes the Company will continue in operational existence for the foreseeable future for a period of at least the next 12 months from the date of approval of these financial statements (up to 31 December 2025).
The directors have considered the consequences of the current economic uncertainties (e.g., rising inflation, increased costs of living affecting customer spend) and market volatility impacting the Company's future business performance. They do expect that it will continue to impact performance of the Company and, therefore, the measurement of some assets and liabilities and, to some extent, its liquidity. However, this is not believed to create a material uncertainty that casts significant doubt upon the Company's ability to continue as a going concern.
The directors have determined that preparing the financial statements on the going concern basis is appropriate due to the continued financial support of the ultimate parent company, Harvest Hosts OpCo LLC (together with its subsidiaries referred to as the 'Group'). The
directors’ going concern assessment covers the period to 31 December 2026 and confirmation has been received that Harvest Hosts OpCo LLC will support the Company until this date, so long as the Company remains a subsidiary of Harvest Hosts OpCo LLC. If the Company was sold within the next 12 months from 31 December 2024, confirmation has been received that Harvest Hosts OpCo LLC would ensure the Company remains in a position to continue as a going concern at the point of sale. The Company’s ability to meet its future liabilities is therefore dependent on the financial performance, position and liquidity of the Group as a whole. At the Group level, considerations included potential risks and uncertainties in the business, credit, market, property valuation and liquidity risks, including the availability and repayment profile of bank facilities, as well as forecast covenant compliance. Stress testing has been carried out to ensure the Group has sufficient cash resources to continue in operation for the period to 31 December 2025. This stress testing modelled a scenario with materially reduced levels of cash receipts over the next 12 months. Based on these considerations, together with available market information and the directors’ knowledge and experience of the Company, the directors continue to adopt the going concern basis in preparing the financial statements for the year ended 31 December 2024.
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Investments in subsidiary undertakings
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Investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversal of impairment losses are recognised immediately in profit or loss.
A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.
Amounts owed to Group undertakings
Amounts owed to Group undertakings are recognised initially at fair value less attributable transaction costs. Subsequent to initial recognition, amounts owed to Group undertakings are stated at amortised cost with any difference between the amount initially recognised and redemption value being recognised in the Statement of Comprehensive Income over the period of the loan, using the effective interest method.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
Final dividend distributions to the Company’s shareholders are recognised as a liability in the Company’s financial statements in the period in which the dividends are approved by the Company’s shareholders. Interim dividends are recognised when paid.
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