AIKMO Hotels Limited - Period Ending 2020-03-31

AIKMO Hotels Limited

Annual Report and Unaudited Financial Statements
Year Ended 31 March 2020

Registration number: 09554041

AIKMO Hotels Limited

Contents

Balance Sheet	1 to 2
Notes to the Unaudited Financial Statements	3 to 9

AIKMO Hotels Limited

Balance Sheet

31 March 2020

	Note	2020 £	(As restated) 2019 £
Fixed assets
Intangible assets	4	2	2
Tangible assets	5	2,745,060	2,703,136
		2,745,062	2,703,138
Current assets
Stocks		28,116	18,819
Debtors	6	54,002	54,708
Cash at bank and in hand		11,373	48,134
		93,491	121,661
Creditors: Amounts falling due within one year	7	(1,618,731)	(1,503,476)
Net current liabilities		(1,525,240)	(1,381,815)
Total assets less current liabilities		1,219,822	1,321,323
Creditors: Amounts falling due after more than one year	7	(1,308,455)	(1,387,277)
Provisions for liabilities		(37,297)	(35,286)
Net liabilities		(125,930)	(101,240)
Capital and reserves
Called up share capital	9	100	100
Profit and loss account		(126,030)	(101,340)
Total equity		(125,930)	(101,240)

The notes on pages 3 to 9 form an integral part of these financial statements.

Page 1

AIKMO Hotels Limited

Balance Sheet

31 March 2020

For the financial year ending 31 March 2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

•	The members have not required the company to obtain an audit of its accounts for the year in question in accordance with section 476; and
•	The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of accounts.

These financial statements have been prepared and delivered in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006 and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 22 July 2020 and signed on its behalf by:
 

......................................... Dr K M O'Sullivan Director

Company Registration Number: 09554041

The notes on pages 3 to 9 form an integral part of these financial statements.

Page 2

AIKMO Hotels Limited

Notes to the Unaudited Financial Statements

Year Ended 31 March 2020

1	General information

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

The address of its registered office is:
Francis Clark LLP
North Quay House
Suton Harbour
Plymouth
PL4 0RA

The principal place of business is:
Talland Bay Hotel
Porthallow
Looe
Cornwall
PL13 2JB

These financial statements were authorised for issue by the Board on 22 July 2020.

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 have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK 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.

Going concern

The financial statements have been prepared on a going concern basis, which assumes that the company will continue in operational existence for the foreseeable future. This depends on the continued financial support of the company's directors (and bankers).

The directors have prepared the financial statements on a going concern basis, on the understanding that they will continue to provide financial support if it is required and, accordingly, the financial statements do not include any adjustments that would result if this support were not forthcoming.

Page 3

AIKMO Hotels Limited

Notes to the Unaudited Financial Statements

Year Ended 31 March 2020

Prior period errors

The net book value of freehold properties has been amended to reflect the reversal of depreciation previously charged on freehold land. The profit and loss reserve has been amended for these adjustments.

The table below illustrates the increase/(decrease) in each financial statement line:

	Relating to the prior period disclosed in these financial statements £	Relating to periods before the prior period disclosed in these financial statements £
Administrative expenses	(25,000)	(75,000)
Tangible assets	25,000	75,000
Profit and loss reserve (cumulative)	100,000	75,000

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the receipt of rents and provision of services in the ordinary course of the company’s activities. Turnover is shown net of value added tax, returns, rebates and discounts and after eliminating sales within the company.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

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 corporation 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 tax is recognised on all timing differences at the balance sheet date unless indicated below. Timing differences are differences between taxable profits and the results as stated in the profit and loss account and other comprehensive income. Deferred 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.

Page 4

AIKMO Hotels Limited

Notes to the Unaudited Financial Statements

Year Ended 31 March 2020

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.

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
Freehold buildings	2% straight line
Freehold land	Not depreciated
Fixtures, fittings and equipment	20-33% straight line
Motor vehicles	25% straight line
Plant and machinery	10% straight line

Goodwill

Goodwill is amortised over its useful life, which shall not exceed ten years if a reliable estimate of the useful life cannot be made.

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.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

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.

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.

Page 5

AIKMO Hotels Limited

Notes to the Unaudited Financial Statements

Year Ended 31 March 2020

Financial instruments

Classification
The company holds the following financial instruments:

• Short term trade and other debtors and creditors;
• Bank loans; and
• Cash and bank balances.

All financial instruments are classified as basic.

 Recognition and measurement
The company has chosen to apply the recognition and measurement principles in FRS102.

Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are cancelled.

Except for bank loans, such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.

Bank loans are initially measured at transaction price, including transaction costs, and are subsequently carried at amortised cost using the effective interest method.


 

3	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 30 (2019 - 36).

Page 6

AIKMO Hotels Limited

Notes to the Unaudited Financial Statements

Year Ended 31 March 2020

4	Intangible assets

	Goodwill  £
Cost or valuation
At 1 April 2019	2
At 31 March 2020	2
Amortisation
At 1 April 2019	-
At 31 March 2020	-
Carrying amount
At 31 March 2020	2
At 31 March 2019	2

5	Tangible assets

	Land and buildings £	Furniture, fittings and equipment  £	Motor vehicles  £	Other property, plant and equipment  £	Total £
Cost or valuation
At 1 April 2019	2,586,634	323,722	33,891	6,824	2,951,071
Additions	116,204	21,634	-	445	138,283
At 31 March 2020	2,702,838	345,356	33,891	7,269	3,089,354
Depreciation
At 1 April 2019	79,436	157,921	8,851	1,727	247,935
Charge for the year	21,960	65,216	8,473	710	96,359
At 31 March 2020	101,396	223,137	17,324	2,437	344,294
Carrying amount
At 31 March 2020	2,601,442	122,219	16,567	4,832	2,745,060
At 31 March 2019	2,507,198	165,801	25,040	5,097	2,703,136

Included within the net book value of land and buildings above is £2,601,442 (2019 - £2,507,198) in respect of freehold land and buildings.
 

Page 7

AIKMO Hotels Limited

Notes to the Unaudited Financial Statements

Year Ended 31 March 2020

6

Debtors

	2020 £	2019 £
Trade debtors	-	19,284
Amounts due from group undertakings	1,159	-
Other debtors	46,217	27,848
Prepayments	6,626	7,576
	54,002	54,708

7

Creditors

	Note	2020 £	2019  £
Due within one year
Loans and borrowings	8	64,335	64,335
Trade creditors		23,788	53,963
Amounts due to group undertakings and participating interests		1,351,402	1,133,812
Corporation tax		2,420	9,390
Social security and other taxes		27,626	35,306
Other creditors		144,492	203,402
Accrued expenses		4,668	3,268
		1,618,731	1,503,476

	Note	2020 £	2019 £
Due after one year
Loans and borrowings	8	1,308,455	1,387,277

Page 8

AIKMO Hotels Limited

Notes to the Unaudited Financial Statements

Year Ended 31 March 2020

8	Loans and borrowings

	2020 £	2019 £
Loans and borrowings due after one year
Bank borrowings	1,308,455	1,387,277

	2020 £	2019 £
Current loans and borrowings
Bank borrowings	64,335	64,335

The bank loan is secured on the property and by a cross guaranteee with AIKMO Medical Limited.

9	Share capital

Allotted, called up and fully paid shares

	2020		2019
	No.	£	No.	£
Ordinary shares of £1 each	100	100	100	100

10	Related party transactions

2020	At 1 April 2019 £	Advances to director £	Repayments by director £	At 31 March 2020 £
Director 1
Repayable on demand, interest free loan account	(3,569)	-	3,569	-

2019	At 1 April 2018 £	Advances to director £	Repayments by director £	At 31 March 2019 £
Director 1
Repayable on demand, interest free loan account	(3,169)	(400)	-	(3,569)

Page 9