Lyric Hotels Limited - Limited company accounts 18.2

REGISTERED NUMBER: 02565580 (England and Wales)

Lyric Hotels Limited

Strategic Report, Report of the Director and

Financial Statements

for the Year Ended 31 March 2019

Page

Company Information

1

Strategic Report

2

Report of the Director

3

Report of the Independent Auditors

4

Income Statement

6

Other Comprehensive Income

7

Balance Sheet

8

Statement of Changes in Equity

9

Notes to the Financial Statements

10

DIRECTOR:

D Singh

REGISTERED OFFICE:

Sterling House

97 Lichfield Street

Tamworth

Staffordshire

B79 7QF

REGISTERED NUMBER:

02565580 (England and Wales)

AUDITORS:

Haines Watts

Chartered Accountants and Statutory Auditors

Sterling House

97 Lichfield Street

Tamworth

Staffordshire

B79 7QF

The director presents his strategic report for the year ended 31 March 2019.

REVIEW OF BUSINESS

The Director is pleased with the trading performance of the company during the year under review. Turnover growth is

encouraging and, together with robust controls and procedures, will see profitability improve moving forward.

Continued investment in facilities has taken place to support future growth. This has included a significant programme

of spend on communal areas and bedrooms, as well as a complete refurbishment of the spa. The spa became fully

operational from 1 June 2018, which has contributed towards the increase in turnover.

The ongoing investment has further improved the overall quality of the hotel which has resulted in it maintaining its

4-star grading.

PRINCIPAL RISKS AND UNCERTAINTIES

Management actively seeks to manage the uncertainty of future revenue streams by focussing on the quality of service

and ongoing investment in the hotel and leisure facilities.

Key Performance Indicators

2019

2018

Gross Profit Margin

86.5%

84.9%

Net Profit Margin

4.6%

7.9%

ON BEHALF OF THE BOARD:

D Singh - Director

18 December 2019

The director presents his report with the financial statements of the company for the year ended 31 March 2019.

DIVIDENDS

No dividends will be distributed for the year ended 31 March 2019.

DIRECTOR

D Singh held office during the whole of the period from 1 April 2018 to the date of this report.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in

accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director

has 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 director must not

approve the financial statements unless he is 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 director

is required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act

2006) of which the company's auditors are unaware, and he has taken all the steps that he ought to have taken as a

director in order to make himself aware of any relevant audit information and to establish that the company's auditors

are aware of that information.

AUDITORS

The auditors, Haines Watts, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

D Singh - Director

18 December 2019

Opinion

We have audited the financial statements of Lyric Hotels Limited (the 'company') for the year ended 31 March 2019

which comprise the Income Statement, Other 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 March 2019 and of its profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

-	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law.

Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the

financial statements section of our report. We are independent of the company in accordance with the ethical

requirements that are relevant to our audit of the financial statements in the 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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to

you where:

-	the director's use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the director has not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The director is responsible for the other information. The other information comprises the information in the Strategic

Report and the Report of the Director, but does not include the financial statements and our Report of the Auditors

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. We have

nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

-	the information given in the Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Director have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the

audit, we have not identified material misstatements in the Strategic Report or the Report of the Director.

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 director's remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page three, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic

alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from

material misstatement, whether due to fraud or error, and to issue a Report of the Auditors 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.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting

Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the

Companies Act 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 a Report of the Auditors 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.

Darren Barlow (Senior Statutory Auditor)

for and on behalf of Haines Watts

Chartered Accountants and Statutory Auditors

Sterling House

97 Lichfield Street

Tamworth

Staffordshire

B79 7QF

18 December 2019

TURNOVER

3,732,471

3,658,523

Cost of sales

504,284

552,873

GROSS PROFIT

3,228,187

3,105,650

Administrative expenses

2,847,122

2,636,545

OPERATING PROFIT

4

381,065

469,105

Interest receivable and similar income

95

19

381,160

469,124

Interest payable and similar expenses

5

209,556

179,022

PROFIT BEFORE TAXATION

171,604

290,102

Tax on profit

6

41,960

59,594

PROFIT FOR THE FINANCIAL YEAR

129,644

230,508

PROFIT FOR THE YEAR

129,644

230,508

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

129,644

230,508

FIXED ASSETS

Tangible assets

8

4,924,484

4,732,103

CURRENT ASSETS

Stocks

9

43,069

21,936

Debtors

10

819,979

428,154

Cash at bank and in hand

484,270

915,958

1,347,318

1,366,048

CREDITORS

Amounts falling due within one year

11

1,489,046

1,303,131

NET CURRENT (LIABILITIES)/ASSETS

(141,728

)

62,917

TOTAL ASSETS LESS CURRENT LIABILITIES

4,782,756

4,795,020

CREDITORS

Amounts falling due after more than one year

12

(3,011,903

)

(3,163,813

)

PROVISIONS FOR LIABILITIES

15

(130,249

)

(120,247

)

NET ASSETS

1,640,604

1,510,960

CAPITAL AND RESERVES

Called up share capital

16

100

100

Capital redemption reserve

17

510

510

Retained earnings

17

1,639,994

1,510,350

SHAREHOLDERS' FUNDS

1,640,604

1,510,960

The financial statements were approved by the director on 18 December 2019 and were signed by:

D Singh - Director

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 April 2017

100

1,354,842

510

1,355,452

Changes in equity

Dividends

-

(75,000

)

-

(75,000

)

Total comprehensive income

-

230,508

-

230,508

Balance at 31 March 2018

100

1,510,350

510

1,510,960

Changes in equity

Total comprehensive income

-

129,644

-

129,644

Balance at 31 March 2019

100

1,639,994

510

1,640,604

1.	STATUTORY INFORMATION

Lyric Hotels 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

Basis of preparing the financial statements

These financial statements have been prepared 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 have been prepared under the historical cost convention.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial

statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of

Ireland":

•

the requirements of Section 7 Statement of Cash Flows;

•

the requirement of Section 33 Related Party Disclosures paragraph 33.7.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates,

value added tax and other sales taxes.

Tangible fixed assets

Depreciation is provided at rates calculated to write off the cost less residual value of each asset over

its expected useful life, as follows:

Land & buildings 2% - 4% per annum

Plant & machinery 6.67% per annum

Fixtures, fittings and equipment 10% -33.33% per annum

Investments in subsidiaries

Investments in subsidiary undertakings are recognised at cost.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and

slow moving items.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, 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.

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.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the

lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's

pension scheme are charged to profit or loss in the period to which they relate.

3.	EMPLOYEES AND DIRECTORS

2019

2018

£

£

Wages and salaries

1,584,486

1,554,726

Social security costs

91,280

62,329

Other pension costs

15,188

7,281

1,690,954

1,624,336

The average number of employees during the year was as follows:

2019

2018

All staff

123

119

2019

2018

£

£

Director's remuneration

-

-

4.	OPERATING PROFIT

The operating profit is stated after charging:

2019

2018

£

£

Hire of plant and machinery

40,311

34,016

Depreciation - owned assets

239,527

219,099

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

2019

2018

£

£

Bank interest

209,556

179,022

6.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2019

2018

£

£

Current tax:

UK corporation tax

31,958

33,309

Deferred tax

10,002

26,285

Tax on profit

41,960

59,594

7.

DIVIDENDS

2019

2018

£

£

Ordinary shares of £0.01 each

Final

-

75,000

8.	TANGIBLE FIXED ASSETS

Fixtures

Freehold

Plant and

and

Motor

property

machinery

fittings

vehicles

Totals

£

£

£

£

£

COST

At 1 April 2018

4,058,442

539,816

3,343,042

7,500

7,948,800

Additions

272,592

-

159,316

-

431,908

At 31 March 2019

4,331,034

539,816

3,502,358

7,500

8,380,708

DEPRECIATION

At 1 April 2018

434,046

137,995

2,637,156

7,500

3,216,697

Charge for year

47,386

26,754

165,387

-

239,527

At 31 March 2019

481,432

164,749

2,802,543

7,500

3,456,224

NET BOOK VALUE

At 31 March 2019

3,849,602

375,067

699,815

-

4,924,484

At 31 March 2018

3,624,396

401,821

705,886

-

4,732,103

9.

STOCKS

2019

2018

£

£

Valuation

43,069

21,936

10.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

£

£

Trade debtors

52,426

26,676

Amounts owed by group undertakings

758,319

379,319

Prepayments

9,234

22,159

819,979

428,154

11.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

£

£

Bank loans and overdrafts (see note 13)

149,080

145,922

Trade creditors

957,597

875,447

Tax

31,958

33,309

Social security and other taxes

23,761

19,070

VAT

138,675

40,090

Other creditors

35,261

32,581

Pensions

13,319

4,062

Accruals and deferred income

139,395

152,650

1,489,046

1,303,131

12.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2019

2018

£

£

Bank loans (see note 13)

3,011,903

3,163,813

13.

LOANS

An analysis of the maturity of loans is given below:

2019

2018

£

£

Amounts falling due within one year or on demand:

Bank loans

149,080

145,922

Amounts falling due between one and two years:

Bank loans - 1-2 years

152,306

149,080

Amounts falling due between two and five years:

Bank loans - 2-5 years

476,982

466,878

Amounts falling due in more than five years:

Repayable by instalments

Bank loans more 5 yr by instal

2,382,615

2,547,855

14.	SECURED DEBTS

The following secured debts are included within creditors:

2019

2018

£

£

Bank loans

3,160,983

3,309,735

Bank loans and overdrafts are secured by way of a fixed and floating charge over the assets of the Company,

both present and future.

15.	PROVISIONS FOR LIABILITIES

2019

2018

£

£

Deferred tax

130,249

120,247

Deferred

tax

£

Balance at 1 April 2018

120,247

Charge to Income Statement during year

10,002

Balance at 31 March 2019

130,249

16.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2019

2018

value:

£

£

10,000

Ordinary

£0.01

100

100

17.

RESERVES

Capital

Retained

redemption

earnings

reserve

Totals

£

£

£

At 1 April 2018

1,510,350

510

1,510,860

Profit for the year

129,644

129,644

At 31 March 2019

1,639,994

510

1,640,504

18.	RELATED PARTY DISCLOSURES

During the year, a total of key management personnel compensation of £ 124,934 (2018 - £ 128,492 ) was

paid.

19.	ULTIMATE CONTROLLING PARTY

The company is a wholly owned subsidiary of Ringwood Hall Investments Limited, a company incorporated in

England & Wales. Group financial statements are prepared by the parent company and copies may be obtained

from the Registrar of Companies, Companies House, Crown Way, Cardiff, CF4 3UZ.