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Registered number: 08565837
THAT BOURNEMOUTH LITTLE HOTEL LIMITED
ANNUAL REPORT
FOR THE YEAR ENDED 31 JULY 2025
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THAT BOURNEMOUTH LITTLE HOTEL LIMITED
REGISTERED NUMBER: 08565837
BALANCE SHEET
AS AT 31 JULY 2025
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Provisions for liabilities
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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:
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S A Brown
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The notes on pages 2 to 10 form part of these financial statements.
Page 1
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THAT BOURNEMOUTH LITTLE HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2025
That Bournemouth Little Hotel Limited is a private company, limited by shares, registered in England and Wales. The company's registered number and registered office address can be found on the company information page.
2.Accounting policies
These financial statements have been prepared in accordance with FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' ('FRS 102') and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. 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 company. Monetary amounts in these financial statements are rounded to the nearest pound.
The financial statements have been prepared under the historical cost convention.
The following principal accounting policies have been applied:
The company made a loss of £374,233 in the year (2024: £286,308) and is in a net current liability position of £7,787,695 at the year end (2024: £7,717,743).
The company and the group, with whom the company's finances are closely intertwined, was not in compliance with some financial covenants attaching to its £27.5m loans in the group from HSBC (of which £6.7m was included in this company), both during the year and after the year end. However, since the year end, sale and leaseback agreements were completed by this company relating to its hotel, and by a group company relating to that company’s car park, that realised combined proceeds of £18.5m. The proceeds were used to repay this company’s HSBC loan and the relevant group company’s HSBC loan in full. The balance was used to reduce a fellow subsidiary's residual net loan with HSBC to £10m, as such compliance was restored. The price achieved is in excess of the carrying value of both properties within the companies’ respective Financial Statements.
The company has support confirmed by the majority shareholder and director of the group. This confirmation of support has been made to the ultimate parent company and all subsidiaries and has been given for a period of at least twelve months from approval of these financial statements. The company and group are reliant upon the majority shareholders’ ongoing support.
Based on the above, the directors have concluded that they can continue to adopt a going concern basis in preparing the company's annual report and accounts.
Turnover is recognised at the fair value of the consideration receivable for services provided in the normal course of business, to the date when the service is provided and is shown net of VAT and trade discounts.
Other income is recognised on receipt.
Finance costs are charged to the profit and loss account 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.
Page 2
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THAT BOURNEMOUTH LITTLE HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2025
2.Accounting policies (continued)
Intangible assets are in respect of long term insurance cover, in connection with the tangible fixed assets of the company. The asset is accounted for separately as this is considered to be a material component.
Intangible assets are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Intangible assets 12 years straight line basis
Tangible fixed assets are initially measured at cost and subsequently measured at cost net of depreciation and any impairment losses. Cost includes directly attributable finance costs incurred during the construction of new buildings.
Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life.
Depreciation is provided on the following basis:
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Long term leasehold property
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125 years being the length of the property lease
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Fixtures, fittings & equipment
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Impairment of fixed assets
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At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable 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.
Stocks, which consist of food and beverages, are stated at the lower of cost and estimated selling price. Liquor stock is valued by an independent third party.
Page 3
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THAT BOURNEMOUTH LITTLE HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2025
2.Accounting policies (continued)
The company has elected to apply the provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' of FRS 102 to all of its financial instruments.
Basic financial assets
Basic financial assets, which include debtors, balances due from connected companies and cash and bank balances, are initially measured at transaction price including transaction costs. Financial assets classified as receivable within one year are not amortised.
Basic financial liabilities
Basic financial liabilities, including creditors and loans from connected companies, are initially recognised at transaction price. Financial liabilities classified as payable within one year are not amortised.
Other financial liabilities
Derivatives, including interest rate swaps, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently remeasured at their fair value at the end of each reporting period. Changes in the fair value of derivatives are recognised in the profit and loss account in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.
Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through the profit and loss account. Debt instruments may be designated as being measured at fair value through the profit and loss account to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.
Interest rate swap fair values at respective year ends are based on independent, qualified valuer's information.
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs.
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Current and deferred taxation
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Taxation for the year comprises current and deferred tax. Tax is recognised in the profit and loss account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.
Current or deferred taxation assets and liabilities are not discounted.
Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.
Deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.
Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.
Page 4
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THAT BOURNEMOUTH LITTLE HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2025
2.Accounting policies (continued)
Current and deferred taxation (continued)
Deferred tax (continued)
Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
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.
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Critical accounting judgements and key sources of estimation uncertainty
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In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
Critical judgements
The items in the financial statements where these judgements and estimates have been made include:
Depreciation
Due to the significance of the depreciation charged in the financial statements, the directors consider this to be a crucial accounting judgement. An assessment is made of the useful economic lives, taking into account residual values, of the tangible assets, based on the directors' knowledge and industry. There are periodic reviews to determine if depreciation rates are still appropriate and whether any impairment is needed.
Recoverability of intercompany and related party balances
The company has balances due from related companies connected by common ownership. Management are of the opinion that these balances are fully recoverable by virtue of shareholder support which has been confirmed in writing and therefore no provision has been made against these balances.
Deferred tax
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Page 5
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THAT BOURNEMOUTH LITTLE HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2025
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The average monthly number of employees, including the directors, during the year was as follows:
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Average number of employees
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Intangible assets are in respect of long term insurance cover, in connection with the tangible fixed assets of the company. The asset is accounted for separately as this is considered to be a material component.
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Page 6
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THAT BOURNEMOUTH LITTLE HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2025
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Long term leasehold property
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Included within Long term leasehold property are capitalised finance costs of £445,338 (2024: £445,338).
After the year end the company entered into a sale and leaseback of its long term leasehold property at amounts in excess of the carrying value in the financial statements.
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Page 7
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THAT BOURNEMOUTH LITTLE HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2025
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Amounts owed by group undertakings
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The group undertakings have subordinated their intra-group debt to the bank lender and have assigned their intra-group debt as security to the lender. Except for some operational surpluses in excess of periodic debt service payments, it is only once the bank lender has been repaid that any payment can be received in respect of these intra-group debtors.
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Taxation and social security
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The bank loan is secured as detailed in note 12.
The bank loan interest rate derivative included above of £4,951 (2024: £27,982) has been recorded at fair value, based on information from an independent suitably qualified valuer. The total fair value being £6,688,425 (2024: £6,762,894) with the full amount falling due within one year. The book value of the related loan is £6,693,377 (2024: £6,790,876).
As referenced in note 2.2, the company and group were not in compliance with certain bank covenants both during the financial period and after it. As such all bank loans have been shown as falling due within 12 months. Subsequent to the year end sale and leaseback agreements were completed by this company relating to its car park, and by a group company relating to that company’s hotel property, that realised combined proceeds of £18.5m. The proceeds were used to repay this company’s HSBC loan and the relevant group company’s HSBC loan in full. The balance was used to reduce a fellow subsidiary's residual net loan with HSBC to £10m. As such compliance was restored.
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Page 8
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THAT BOURNEMOUTH LITTLE HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2025
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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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Short term timing differences
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Allotted, issued and fully paid:
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100 (2024: 100) Ordinary shares of £0.01 each
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The company is a member of a VAT group and is jointly and severally liable for the VAT liabilities of all other members of the group. At the reporting date, the company has confirmed that all VAT liabilities have been paid as they fall due, and the directors consider the likelihood of the company being required to settle the liabilities of other group members to be feasible but not probable. As such, no provision has been recognised. Due to the nature of the arrangement, it is not practicable to quantify the potential financial effect.
12.Financial commitments and guarantees
The bank loans are secured by a debenture dated 4 January 2019 over all leasehold and freehold property and by a fixed and floating charge over all assets of the company.
There is a composite company unlimited multilateral guarantee dated 4 January 2019 given by That Bournemouth Big Hotel Limited, That Bournemouth Little Hotel Limited, That Bournemouth Car Park Limited, That Bournemouth Street Bar Limited and That Bournemouth H2 Limited. The maximum group exposure is £32,000,000.
Page 9
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THAT BOURNEMOUTH LITTLE HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2025
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Related party transactions
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The company has taken advantage of the exemption available in FRS 102 whereby it has not disclosed transactions with the parent company or any wholly owned subsidiary undertaking of the group.
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Post balance sheet events
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As noted in notes 2.2 and 8, sale and leaseback agreements were completed by this company relating to its hotel, and by a group company relating to that company’s car park property, that realised combined proceeds of £18.5m. The proceeds were used to repay this company’s HSBC loan and the relevant group company’s HSBC loan in full. The balance was used to reduce a fellow subsidiary's residual net loan with HSBC to £10m.
The immediate parent company is That Bournemouth H2 Limited, a company registered in England and Wales.
At the year end, the ultimate parent company, which is also the parent for the largest and smallest group of undertakings for which the group financial statements are drawn up for and of which the company is a member is That Bournemouth Company Limited, a company whose registered office is 18 Albert Road, Bournemouth, England, BH1 1BZ.
The ultimate controlling party is R S Kelvin CBE, director and majority shareholder of the ultimate parent company.
The auditors' report on the financial statements for the year ended 31 July 2025 was unqualified.
The audit report was signed on 29 July 2026 by James Maxwell (Senior statutory auditor) on behalf of Cooper Parry Group Limited.
Page 10
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