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Registered number: 02949110
POSTE HOLDINGS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR 52 WEEKS ENDED 27 OCTOBER 2019
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POSTE HOLDINGS LIMITED
COMPANY INFORMATION
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Chartered Accountants & Statutory Auditor
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POSTE HOLDINGS LIMITED
CONTENTS
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Independent Auditors' Report
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Consolidated Statement of Comprehensive Income
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Consolidated Statement of Financial Position
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Company Statement of Financial Position
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Consolidated Statement of Changes in Equity
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Company Statement of Changes in Equity
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Consolidated Statement of Cash Flows
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Notes to the Financial Statements
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POSTE HOLDINGS LIMITED
GROUP STRATEGIC REPORT
FOR THE 52 WEEK PERIOD ENDED 27 OCTOBER 2019
Review of the business and future developments
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The group’s turnover has increased by £264,081 (2018: increase of £140,448) in the 52 week period; a increase of 3% (2018: increase of 2%) on the performance in the prior period.
We have a committed workforce who we encourage to share ideas for improving the business and its processes. We are also conscious of our environmental responsibilities and train our staff in the same policies.
The group has made a profit before tax for the 52 week period of £775,837 (2018: £859,263).
In summary the key performance indicators we use to monitor business performance are as follows:
• Turnover growth; and
• Gross profit margin.
The group has a strong balance sheet with net assets standing at £15,024,192 at 27 October 2019 (2018: £15,104,546).
Aside from the current global Coronavirus pandemic discussed in note 2.3, we do not believe there are any significant risks or uncertainties facing our business, other than those normally encountered within our industry.
The group's policy is to consult and discuss with employees matters likely to affect employees' interests.
Information of matters of concern to employees is given through regular group communication meetings, information memoranda and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the group's performance.
The group's policy is to recruit disabled workers for those vacancies that they are able to fill. All necessary assistance with initial training courses is given. Once employed, a career plan is developed so as to ensure suitable opportunities for each disabled person. Arrangements are made, wherever possible, for retraining employees who become disabled, to enable them to perform work identified as appropriate to their aptitudes and abilities.
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POSTE HOLDINGS LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE 52 WEEK PERIOD ENDED 27 OCTOBER 2019
a.Treasury operations
The group’s finance function is responsible for managing the liquidity and interest risks associated with the activities. The company currently has both a bank loan and overdraft facility. In addition the company has various other financial assets and liabilities such as trade debtors and trade creditors arising directly from the operations of the business.
b. Liquidity risk
The group’s finance function manages liquidity risk to maximise interest income and minimise interest expense, whilst ensuring that the company has sufficient liquid resources to meet the operating needs of its business.
c. Interest rate risk
The group is exposed to fair value interest rate risk on its borrowings and overdraft. The finance function manages this risk by liaising with the company’s bank to agree the best rate available on a frequent basis.
d. Foreign currency risk
The group does not trade with any customers outside of the U.K. and trade with overseas suppliers is minimal and hence the company is not exposed to any foreign currency risk.
e. Credit risk
Investment of cash surpluses are made with the group’s main bankers. Receivable balances are monitored on an on-going basis and provision is made for doubtful debts where necessary.
This report was approved by the board and signed on its behalf.
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POSTE HOLDINGS LIMITED
DIRECTOR'S REPORT
FOR THE 52 WEEK PERIOD ENDED 27 OCTOBER 2019
The director presents his report and the financial statements for the 52 week period ended 27 October 2019.
Director's responsibilities statement
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The director is the Group Strategic Report, the Director's Report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 the Group and of the profit or loss of the Group for that period.
In preparing these financial statements, the director is required to:
∙select suitable accounting policies for the Group's financial statements and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group 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 the Group and to 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 the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The principal activity of the company continued to be that of a holding company for the Poste Hotels Group.
The principal activity of the group continued to be that of hoteliers and restauranteurs, based at The George Hotel of Stamford.
The profit for the 52 week period, after taxation and minority interests, amounted to £369,167 (2018 - £462,534).
An interim dividend of £120,632 (2018: £60,000) was paid during the 52 week period.
The director who served during the 52 week period was:
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POSTE HOLDINGS LIMITED
DIRECTOR'S REPORT (CONTINUED)
FOR THE 52 WEEK PERIOD ENDED 27 OCTOBER 2019
Disclosure of information to auditors
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The director at the time when this Director's Report is approved has confirmed that:
∙so far as he is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and
∙he has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.
Events after the end of the Reporting Period
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Due to the impact of the global pandemic of Covid-19 the Group temporarily closed the hotel on the 21st March 2020 and reopened on 4th July 2020.
The auditors, Berg Kaprow Lewis LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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POSTE HOLDINGS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF POSTE HOLDINGS LIMITED
We have audited the financial statements of Poste Holdings Limited (the 'parent Company') and its subsidiaries (the 'Group') for the 52 week period ended 27 October 2019, which comprise the Group Statement of Comprehensive Income, the Group and Company Statements of Financial Position, the Group Statement of Cash Flows, the Group and Company Statement of Changes in Equity and the related notes, 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 Group's and of the parent Company's affairs as at 27 October 2019 and of the Group's profit for the 52 week period 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.
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 Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council'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
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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 Group's or the parent 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.
The director is responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Auditors' Report 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
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POSTE HOLDINGS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF POSTE HOLDINGS LIMITED (CONTINUED)
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.
Opinion on other matters prescribed by the Companies Act 2006
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In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group Strategic Report and the Director's Report for the financial 52 week period for which the financial statements are prepared is consistent with the financial statements; and
∙the Group Strategic Report and the Director's Report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
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In the light of the knowledge and understanding of the Group and the parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Director's Report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
∙adequate accounting records have not been kept by the parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
∙the parent Company 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 directors
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As explained more fully in the Director's Responsibilities Statement on page 3, 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 is 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 Group's and the parent 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 Group or the parent Company or to cease operations, or have no realistic alternative but to do so.
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POSTE HOLDINGS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF POSTE HOLDINGS LIMITED (CONTINUED)
Auditors' responsibilities for the audit of the financial statements
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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 an Auditors' Report 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.
As part of an audit in accordance with ISAs (UK), we exercise professional judgement and maintain professional scepticism throughout the audit. We also:
∙Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
∙Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion of the effectiveness of the Company's internal control.
∙Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the director.
∙Conclude on the appropriateness of the director's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our Auditors' Report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our Auditors' Report. However, future events or conditions may cause the Company to cease to continue as a going concern.
∙Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
∙Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the Group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
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POSTE HOLDINGS LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF POSTE HOLDINGS LIMITED (CONTINUED)
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 an Auditors' Report 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.
Lee Brook FCA (Senior Statutory Auditor)
for and on behalf of
Berg Kaprow Lewis LLP
Chartered Accountants
Statutory Auditor
London
30 July 2020
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POSTE HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE 52 WEEK PERIOD ENDED 27 OCTOBER 2019
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Interest payable and expenses
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Profit for the financial 52 week period
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Other comprehensive income for the 52 week period
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Total comprehensive income for the 52 week period
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Profit for the 52 week period attributable to:
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Non-controlling interests
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Owners of the parent Company
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Total comprehensive income for the 52 week period attributable to:
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Owners of the parent Company
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The notes on pages 16 to 33 form part of these financial statements.
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POSTE HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 27 OCTOBER 2019
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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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POSTE HOLDINGS LIMITED
REGISTERED NUMBER: 02949110
CONSOLIDATED STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 27 OCTOBER 2019
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Equity attributable to owners of the parent Company
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Non-controlling interests
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The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 16 to 33 form part of these financial statements.
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POSTE HOLDINGS LIMITED
REGISTERED NUMBER: 02949110
COMPANY STATEMENT OF FINANCIAL POSITION
AS AT 27 OCTOBER 2019
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 16 to 33 form part of these financial statements.
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POSTE HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE 52 WEEK PERIOD ENDED 27 OCTOBER 2019
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Equity attributable to owners of parent Company
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Non-controlling interests
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Comprehensive income for the period
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Total comprehensive income for the period
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Dividends: Equity capital
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Comprehensive income for the period
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Total comprehensive income for the period
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Reversal of dividends owed
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Dividends: Equity capital
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The notes on pages 16 to 33 form part of these financial statements.
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POSTE HOLDINGS LIMITED
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE 52 WEEK PERIOD ENDED 27 OCTOBER 2019
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Comprehensive income for the period
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Contributions by and distributions to owners
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Dividends: Equity capital
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Comprehensive income for the period
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Contributions by and distributions to owners
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Reversal of dividends owed
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Dividends: Equity capital
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The notes on pages 16 to 33 form part of these financial statements.
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POSTE HOLDINGS LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE 52 WEEK PERIOD ENDED 27 OCTOBER 2019
Cash flows from operating activities
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Profit for the financial 52 week period
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Depreciation of tangible assets
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Decrease/(increase) in debtors
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Increase/(decrease) in creditors
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Net cash generated from operating activities
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Cash flows from investing activities
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Purchase of tangible fixed assets
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Net cash from investing activities
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Cash flows from financing activities
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Non controlling interest dividends paid
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Net cash used in financing activities
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Net increase/(decrease) in cash and cash equivalents
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Cash and cash equivalents at beginning of 52 week period
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Cash and cash equivalents at the end of 52 week period
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Cash and cash equivalents at the end of 52 week period comprise:
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The notes on pages 16 to 33 form part of these financial statements.
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POSTE HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEK PERIOD ENDED 27 OCTOBER 2019
The principal activity of Poste Holdings Limited ("the Company") continued to be that of a holding company for the Poste Hotels Group.
The principal activity of the group is that of hoteliers and restauranteurs, based at The George Hotel of Stamford.
The company is a private company limited by shares and is incorporated in England and Wales. The address of its Registered Office and Principal Place of Business is The George Hotel, Stamford, Lincolnshire, PE9 2LB.
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 Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgement in applying the Group's accounting policies (see note 3).
The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of Financial Position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated Statement of Comprehensive Income from the date on which control is obtained. They are deconsolidated from the date control ceases.
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POSTE HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEK PERIOD ENDED 27 OCTOBER 2019
2.Accounting policies (continued)
The financial statements have been prepared on the going concern basis, which assumes that the Group will continue to trade for the foreseeable future, being a period of at least twelve months from the date of approval of these financial statements, and will be able to meet its debts as they fall due.
In light of the global Covid-19 pandemic, the Group has made several crucial changes to the business. The Group has reviewed headcount and made redundancies or furloughed employees where appropriate. In addition, salaries of senior staff have been reviewed and reduced until further notice. The Group is taking advantage of HMRC’s time to pay arrangements and is able to speak with shareholders and bankers to secure credit lines should they be required.
The Group closed the hotel temporarily on the 21st March 2020 and reopened on the 4th July. This is disclosed in the post balance sheet events note.
The directors have reviewed forecasts and budgets in light of the above changes and are confident of the company's ability to continue trading as a going concern for the forseeable future.
Positive trading results following the reopening of the hotel corroborate the going concern status of the Group.
Revenue is recognised when the service is provided to the customer. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.
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.
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POSTE HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEK PERIOD ENDED 27 OCTOBER 2019
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 basis:
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15%/20%/25% on reducing balance
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Freehold property comprises land (which is not depreciated in accordance with FRS102) and the trading premises.
The directors believe the residuial values of the trading premises, based on the condition of the property at the end of its useful life, is not materially different to the value recorded in the financial statements. As a result, the trading premises is not depreciated.
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 the Consolidated Statement of Comprehensive Income.
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Revaluation of tangible fixed assets
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Individual freehold and leasehold properties are carried at current year value 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 Statement of Financial Position date.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.
Revaluation gains and losses are recognised in the Statement of 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 the consolidated Statement of Comprehensive Income.
Investments in subsidiaries and limited liability partnerships that the Company is a member of are measured at cost less accumularted impairment.
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POSTE HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEK PERIOD ENDED 27 OCTOBER 2019
2.Accounting policies (continued)
Stocks are stated at the lower of cost and net realisable value.
At each reporting date, stocks are assessed for impairment. If stock is 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.
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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.
In the Consolidated Statement of Cash Flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.
The Group only enters into basic financial instruments transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors and loans to related parties.
(i) Financial assets
Basic financial assets, including trade and other debtors, and amounts due from related companies, are initially recognised at transaction price, 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.
Such assets are subsequently carried at amortised cost using the effective interest method.
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 the consolidated Statement of Comprehensive Income.
(ii) Financial liabilities
Basic financial liabilities, including trade and other creditors and accruals, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.
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POSTE HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEK PERIOD ENDED 27 OCTOBER 2019
2.Accounting policies (continued)
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Financial instruments (continued)
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Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.
Defined contribution pension plan
The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.
The contributions are recognised as an expense in the Consolidated Statement of Comprehensive Income when they fall due. Amounts not paid are shown in accruals as a liability in the Consolidated Statement of Financial Position. The assets of the plan are held separately from the Group in independently administered funds.
All borrowing costs are recognised in the Consolidated Statement of Comprehensive Income in the 52 week period in which they are incurred.
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POSTE HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEK PERIOD ENDED 27 OCTOBER 2019
2.Accounting policies (continued)
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Current and deferred taxation
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The tax expense for the 52 week period comprises current and deferred tax. Tax is recognised in the Consolidated Statement of Comprehensive Income, 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 and the Group operate and generate income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the Statement of Financial Position 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;
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
∙Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.
Deferred tax balances are not recognised in respect of permanent differences. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
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POSTE HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEK PERIOD ENDED 27 OCTOBER 2019
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Judgements in applying accounting policies and key sources of estimation uncertainty
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Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.
The following judgements which also involving estimates have been made in the process of applying the above accounting policies:
The directors have made judgement on the residual value of the trading premises, at the end of its useful life being materially the same as the value in accounts, taking into account the history, reputation and position of the hotel within the town of Stamford and the intention to maintain the property to the same high standard that it is currently maintained at. As a result, the property has not been depreciated.
The key assumptions concerning the future and other key sources of estimation uncertainty at the reporting date that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year include:
(i) Useful economic lives of tangible assets
The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets.
(ii) Valuation of property
The valuation of the property is sensitive to changes in the market and industry. The valuation is undertaken by an independent third party.
The total turnover of the group for the 52 week period has been derived from its principal activity wholly undertaken in the United Kingdom.
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The operating profit is stated after charging:
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Depreciation of tangible assets
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Operating lease rentals - plant and machinery
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Operating lease rentals - land and buildings
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Stock recognised as an expense
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Defined contribution pension cost
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POSTE HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEK PERIOD ENDED 27 OCTOBER 2019
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Fees payable to the Group's auditor and its associates for the audit of the Group's annual financial statements
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Fees payable to the Group's auditor and its associates in respect of:
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Taxation compliance services
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Company secretarial services
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Staff costs, including directors' remuneration, were as follows:
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Costs of defined contribution schemes
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The average monthly number of employees, including the director, during the 52 week period was as follows:
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Reception, chambermaids and maintenance
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POSTE HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEK PERIOD ENDED 27 OCTOBER 2019
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Key management compensation
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Salaries and other short term benefits
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Interest payable and similar expenses
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Other loan interest payable
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Current tax on profits for the 52 week period
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Adjustments in respect of previous periods
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Origination and reversal of timing differences
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Taxation on profit on ordinary activities
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POSTE HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEK PERIOD ENDED 27 OCTOBER 2019
11.Taxation (continued)
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Factors affecting tax charge for the 52 week period
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The tax assessed for the 52 week period is higher than (2018 - higher than) the standard rate of corporation tax in the UK of 19% (2018 - 19%). The differences are explained below:
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Profit on ordinary activities before tax
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Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2018 - 19%)
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Expenses not deductible for tax purposes
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Capital allowances for 52 week period in excess of depreciation
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Adjustments to tax charge in respect of prior periods
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Total tax charge for the 52 week period
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Factors that may affect future tax charges
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There were no factors that may affect future tax charges.
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Parent company profit for the year
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The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of Comprehensive Income in these financial statements. The profit after tax of the parent Company for the 52 week period was £150,000 (2018 - £450,000).
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POSTE HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEK PERIOD ENDED 27 OCTOBER 2019
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Charge for the 52 week period on owned assets
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The Group's freehold land and buildings were valued in 2017 on the basis of an open market value for existing use by Christie & Co. The valuation amounted to £17,000,000, giving rise to a surplus of £6,684,392, which was credited to the revaluation reserve, in the prior period
There are no assets held under finance leases or hire purchase contracts.
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POSTE HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEK PERIOD ENDED 27 OCTOBER 2019
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Other fixed asset investments
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Interests in other investments relates to Big Screen Productions 15 LLP in which Poste Hotels Limited became a partner in 2010. There were no transactions in the current or prior year.
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POSTE HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEK PERIOD ENDED 27 OCTOBER 2019
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Investments in subsidiary companies
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The following was a subsidiary undertaking of the Company:
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Hoteliers and restauranteurs
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Finished goods and goods for resale
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Stock recognised in cost of sales during the year as an expense was £1,775,053 (2018: £1,742,233).
There is no significant difference between the replacement cost of the stock and its carrying amount.
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POSTE HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEK PERIOD ENDED 27 OCTOBER 2019
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Prepayments and accrued income
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Cash and cash equivalents
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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 directors have no fixed date of repayment and are repayable on demand.
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POSTE HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEK PERIOD ENDED 27 OCTOBER 2019
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Creditors: Amounts falling due after more than one year
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Secured loans
The bank loan accrues interest on a monthly basis at 2.15% per annum. The loan is due for repayment by installments by April 2024.
The bank loan and overdraft is secured by a fixed charge over The George Hotel of Stamford.
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Analysis of the maturity of loans is given below:
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Amounts falling due within one year
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Amounts falling due 2-5 years
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Financial assets measured at amortised cost
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Financial liabilities measured at amortised cost
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Financial assets measured at amortised cost comprise trade debtors and other debtors.
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Financial liabilities measured at amortised cost comprise bank loans, trade creditors, other creditors, accruals and deferred income.
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POSTE HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEK PERIOD ENDED 27 OCTOBER 2019
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Charged to profit or loss
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Accelerated capital allowances
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Tax losses carried forward
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POSTE HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEK PERIOD ENDED 27 OCTOBER 2019
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Allotted, called up and fully paid
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1,000 (2018 - 1,000) Ordinary shares of £1.00 each
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Revaluation reserve
The revaluation reserve contains all current and prior period revaluation movements, including deferred tax.
Profit and loss account
The profit and loss account contains all current and prior period profits and losses.
During the year the directors discovered that the classification of the intercompany loan in the prior year was incorrect. These financial statements reflect that the intercompany loan has now been classified as a current liability in the single entity accounts. This is a presentational adjustment and has not affected the profit or net assets of the group in the prior year.
The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group in an independently administered fund. The pension cost charge represents contributions payable by the Group to the fund and amounted to £69,650 (2018: £83,441). Contributions totalling £Nil (2018: £Nil) were payable to the fund at the balance sheet date.
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Related party transactions
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The company leases part of the Mews property from the directors' pension scheme. The annual rent for the property is £6,000. The lease is on a rolling lease basis. Included within other debtors is an amount due from the directors' pension scheme of £Nil (2018: £109,592).
There is a balance due to the director of £1,179,902 (2018: £692,418). Interest is charged on this loan and is included in the accounts £31.523 (2018: £29,373).
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Events after the end of the Reporting Period
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Due to the impact of the global pandemic of Covid-19 the group temporarily closed the hotel on the 21st March and reopened on the 4th July.
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POSTE HOLDINGS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 52 WEEK PERIOD ENDED 27 OCTOBER 2019
L O Hoskins (the director) controls the company by virtue of his interest in the Pension Scheme, which owns 76% of the shares in the company.
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