Atlantic Hotels (Chelmsford) Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 03344437 (England and Wales)

Unaudited Financial Statements for the Year Ended 31 August 2019

for

Atlantic Hotels (Chelmsford) Limited

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

D S Obhrai

T S Obhrai

SECRETARY:

T S Obhrai

REGISTERED OFFICE:

173 Cleveland Street

London

W1T 6QR

REGISTERED NUMBER:

03344437 (England and Wales)

ACCOUNTANTS:

Shah Dodhia & Co

173 Cleveland Street

London

W1T 6QR

FIXED ASSETS

Tangible assets

4

4,139,630

4,194,335

CURRENT ASSETS

Stocks

5

5,940

5,996

Debtors

6

912,117

550,310

Cash at bank and in hand

125,541

134,439

1,043,598

690,745

CREDITORS

Amounts falling due within one year

7

344,208

250,419

NET CURRENT ASSETS

699,390

440,326

TOTAL ASSETS LESS CURRENT LIABILITIES

4,839,020

4,634,661

PROVISIONS FOR LIABILITIES

8

196,762

200,162

NET ASSETS

4,642,258

4,434,499

CAPITAL AND RESERVES

Called up share capital

9

101

101

Revaluation reserve

10

2,608,042

2,608,042

Equity contribution reserve

(268,229

)

(266,036

)

Retained earnings

2,302,344

2,092,392

SHAREHOLDERS' FUNDS

4,642,258

4,434,499

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 August 2019.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 August 2019 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors on 26 February 2020 and were signed on its behalf by:

T S Obhrai - Director

1.	STATUTORY INFORMATION

Atlantic Hotels (Chelmsford) 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" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

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 the following annual rates in order to write off each asset over its estimated useful life.

Freehold property

-

4% on cost

Fixtures and fittings

-

25% on reducing balance

Motor vehicles

-

25% on cost

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation

and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the

date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment

losses.

An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive

income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset

previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation,

is recognised in other comprehensive income to the extent of any previously recognised revaluation increase

accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated

revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.

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.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 16 (2018 - 18 ) .

4.	TANGIBLE FIXED ASSETS

Fixtures

Freehold

and

Motor

Computer

property

fittings

vehicles

equipment

Totals

£

£

£

£

£

COST

At 1 September 2018

4,577,124

1,558,941

14,890

-

6,150,955

Additions

-

20,016

-

1,175

21,191

At 31 August 2019

4,577,124

1,578,957

14,890

1,175

6,172,146

DEPRECIATION

At 1 September 2018

542,261

1,399,470

14,889

-

1,956,620

Charge for year

30,731

45,165

-

-

75,896

At 31 August 2019

572,992

1,444,635

14,889

-

2,032,516

NET BOOK VALUE

At 31 August 2019

4,004,132

134,322

1

1,175

4,139,630

At 31 August 2018

4,034,863

159,471

1

-

4,194,335

Tangible assets held at valuation

The hotel was professionally valued at £4.25 million in April 2017 carried out by Christie & Co on the basis of

Existing Use Value, as licensed operating hotel, inclusive of the trade furniture, furnishings and equipment in

accordance with RICS Valuation - Professional Standards January 2014 (the 'Red Book'), incorporating the

International Valuation Standards 2013 ('IVS') The hotel is carried forward at this professional valuation together

with additions thereafter at cost.

The historical cost of land and buildings is £1,777,669 (2018: £1,777,669).

5.

STOCKS

2019

2018

£

£

Stocks

5,940

5,996

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

£

£

Trade debtors

40,462

26,988

Guest Ledger

-

8,708

Amounts owed by group undertakings

750,801

346,147

Other debtors

904

421

Directors' current accounts

15,202

4,409

Prepayments and accrued income

104,748

163,637

912,117

550,310

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2019

2018

£

£

Trade creditors

67,735

68,156

Amounts owed to group undertakings

36,002

11,123

Amounts owed to participating interests

44,736

-

Tax

68,015

39,074

Social security and other taxes

3,066

3,810

Net wages

-

1,030

VAT

46,822

38,145

Other creditors

29,020

25,549

Pension Obligation

851

1,374

Accruals and deferred income

47,961

62,158

344,208

250,419

8.	PROVISIONS FOR LIABILITIES

2019

2018

£

£

Deferred tax

Deferred tax brought forward

200,162

238,249

Deferred Tax Additions

(3,400

)

(38,087

)

196,762

200,162

Deferred

tax

£

Balance at 1 September 2018

200,162

Credit to Income Statement during year

(3,400

)

Balance at 31 August 2019

196,762

9.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2019

2018

value:

£

£

100

A Ordinary

£1

100

100

100

B Ordinary

USD0.

01

1

1

101

101

10.

RESERVES

Revaluation

reserve

£

At 1 September 2018

and 31 August 2019

2,608,042

11.	DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The following advances and credits to directors subsisted during the years ended 31 August 2019 and

31 August 2018:

2019

2018

£

£

T S Obhrai

Balance outstanding at start of year

2,637

(2,696

)

Amounts advanced

10,793

5,333

Amounts repaid

-

-

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

13,430

2,637

D S Obhrai

Balance outstanding at start of year

1,771

1,771

Amounts repaid

-

-

Amounts written off

-

-

Amounts waived

-

-

Balance outstanding at end of year

1,771

1,771

12.	RELATED PARTY DISCLOSURES

The company has given interest free loans of £2,400 in April 2007 and £13,800 in March 2009 which are

outstanding as at 31 August 2019 (2018: £16,200) to Rowandale Ltd, a company under common control.

The company has also given interest free loans of £416,945 (2018: £329,947) to a related undertaking. The

loans are available until August 2020.The loan balance is stated at its Net Present Value using a discount rate of

4.065% p.a. which is considered to be the market rate of interest. The total loan outstanding at the Balance

Sheet date was £441,717 (2018: £364,696).

The company has received an interest free loan of £44,736 (2018: Nil) from a related undertaking. It is an

interest free loan repayable on demand.

As the company is a wholly owned subsidiary of Cool Inn Limited, a company incorporated in England and

Wales and its ultimate parent and controlling company is Sycamore Limited, a company registered in Isle of

Man, the company has taken advantage of the exemption contained in FRS 102.33 and has therefore not

disclosed transactions on balances with entities which form part of the group headed by Sycamore Ltd.

13.	ULTIMATE CONTROLLING PARTY

The immediate parent undertaking is Cool Inn Ltd, a company incorporated in England and Wales. The ultimate

controlling party is Sycamore Limited, a company registered in Isle of Man.

14.	CONTINGENCIES

The company has given an unlimited guarantee in respect of the bank borrowings of certain group undertakings.

This is in addition to a first legal charge over the freehold property, over the group undertakings land and

buildings and debenture in favour of the bank. At the balance sheet date the bank borrowing of these group

undertakings was £4.66m (2018: £4.78m).