Michels and Taylor (London) Limited 31/03/2020 iXBRL

Michels and Taylor (London) Limited 31/03/2020 iXBRL

MICHELS AND TAYLOR (LONDON) LIMITED - Company Information

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Company registration number: 07886297
Michels and Taylor (London) Limited
Unaudited filleted financial statements
31 March 2020
Michels and Taylor (London) Limited
Contents
Balance sheet
Notes to the financial statements
Michels and Taylor (London) Limited
Balance sheet
31 March 2020
2020 2019
Note £ £ £ £
Fixed assets
Tangible assets 5 67,211 70,689
_______ _______
67,211 70,689
Current assets
Debtors 6 1,585,902 1,132,553
Cash at bank and in hand 796,344 995,207
_______ _______
2,382,246 2,127,760
Creditors: amounts falling due
within one year 7 ( 904,767) ( 1,442,230)
_______ _______
Net current assets 1,477,479 685,530
_______ _______
Total assets less current liabilities 1,544,690 756,219
Provisions for liabilities ( 12,638) ( 12,638)
_______ _______
Net assets 1,532,052 743,581
_______ _______
Capital and reserves
Called up share capital 1,000 1,000
Share premium account 44,950 44,950
Profit and loss account 1,486,102 697,631
_______ _______
Shareholders funds 1,532,052 743,581
_______ _______
For the 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 financial statements for the year in question in accordance with section 476;
- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.
In accordance with section 444 of the Companies Act 2006, the statement of comprehensive income has not been delivered.
These financial statements were approved by the board of directors and authorised for issue on 02 September 2020 , and are signed on behalf of the board by:
Mr Hugh Taylor OBE
Director
Company registration number: 07886297
Michels and Taylor (London) Limited
Notes to the financial statements
Year ended 31 March 2020
1. General information
The company is a private company limited by shares, registered in England. The address of the registered office is Suite 3 Caspian House, The Waterfront, Elstree Road, Elstree, WD6 3BS.
2. Statement of compliance
The only adjustment required on transition is the inclusion of deferred tax liabilities in respect of timing differences arising.
3. Accounting policies
Basis of preparation
The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.
The financial statements are prepared in sterling, which is the functional currency of the entity.
Turnover
Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax.
Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.
Taxation
The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in the statement of comprehensive income, except to the extent that it relates to items recognised in other comprehensive income or directly in capital and reserves. In this case, tax is recognised in other comprehensive income or directly in capital and reserves, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.
Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.
Research and development
Research expenditure is written off in the year in which it is incurred. Development expenditure incurred is capitalised as an intangible asset only when all of the following criteria are met: - It is technically feasible to complete the intangible asset so that it will be available for use or sale; - There is the intention to complete the intangible asset and use or sell it; - There is the ability to use or sell the intangible asset; - The use or sale of the intangible asset will generate probable future economic benefits; - There are adequate technical, financial and other resources available to complete the development and to use or sell the intangible asset; and - The expenditure attributable to the intangible asset during its development can be measured reliably. Expenditure that does not meet the above criteria is expensed as incurred.
Tangible assets
tangible assets are initially recorded at cost, and are 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 capital and reserves, 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 capital and reserves in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in capital and reserves in respect of that asset, the excess shall be recognised in profit or loss.
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
If there is an indication that there has been a significant change in depreciation rate, useful life or residual value of tangible assets, the depreciation is revised prospectively to reflect the new estimates.
Impairment
A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. When it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.
Provisions
Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event; it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the Balance Sheet and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised in finance costs in profit or loss in the period it arises.
Financial instruments
A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.
Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets or either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.
Defined contribution plans
Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised in finance costs in profit or loss in the period in which it arises.
4. Employee numbers
The average number of persons employed by the company during the year amounted to 45 (2019: 37 ).
5. Tangible assets
Fixtures, fittings and equipment Total
£ £
Cost
At 1 April 2019 165,862 165,862
Additions 18,638 18,638
_______ _______
At 31 March 2020 184,500 184,500
_______ _______
Depreciation
At 1 April 2019 95,174 95,174
Charge for the year 22,115 22,115
_______ _______
At 31 March 2020 117,289 117,289
_______ _______
Carrying amount
At 31 March 2020 67,211 67,211
_______ _______
At 31 March 2019 70,688 70,688
_______ _______
6. Debtors
2020 2019
£ £
Trade debtors 1,217,181 599,742
Other debtors 368,721 532,811
_______ _______
1,585,902 1,132,553
_______ _______
7. Creditors: amounts falling due within one year
2020 2019
£ £
Trade creditors 59,208 170,851
Corporation tax 197,023 69,073
Social security and other taxes 450,247 275,137
Other creditors 198,289 927,169
_______ _______
904,767 1,442,230
_______ _______
8. Directors advances, credits and guarantees
During the year the directors entered into the following advances and credits with the company:
2020
Balance brought forward Advances /(credits) to the directors Amounts repaid Balance o/standing
£ £ £ £
Mr Hugh Taylor OBE - 25,771 - 25,771
Sir David Michels - - - -
Mr Ian Noble 110,678 - ( 110,678) -
Ms Kym Kapadia - - - -
_______ _______ _______ _______
110,678 25,771 ( 110,678) 25,771
_______ _______ _______ _______
2019
Balance brought forward Advances /(credits) to the directors Amounts repaid Balance o/standing
£ £ £ £
Mr Hugh Taylor OBE 148,635 - ( 148,635) -
Sir David Michels 70,454 - ( 70,454) -
Mr Ian Noble 120,402 - ( 9,724) 110,678
Ms Kym Kapadia 84,080 - ( 84,080) -
_______ _______ _______ _______
423,571 - ( 312,893) 110,678
_______ _______ _______ _______
9. Related party transactions
During the year the company entered into the following transactions with related parties:
Transaction value Balance owed by/(owed to)
2020 2019 2020 2019
£ £ £ £
Associated companies 1,489,298 543,221 70,785 11,548
_______ _______ _______ _______
During the year, the company received hotel management fees totalling £1,489,298 from companies of which the director Sir David Michels is also a director and shareholder. Of these amounts, the balances owed to this company at the year end totalled £70,785.
10. Change in Shareholders
On 1st April 2019 Freo Hotel Holding SARL acquired 25% of the share capital. On 10th March 2020 Freo Hotel Holding SARL acquired 26% of the share capital.See note 12.
11. Post Balance Sheet Events Review
As shown in note 11 the 26% of the share capital acquired by Freo Hotel Holding SARL was repurchased under the terms of the agreement dated 7th July 2020 by the original shareholders in the same proportion. As a result of the COVID -19 pandemic there has been a significant disruption to businesses worldwide resulting in an economic slowdown. However, all the hotels we are managing have been closed from March and have started to reopen in July/August 2020. This will have a significant impact on the accounts for the year ended 31st March 2021. The company has sufficient reserves to deal with the results of the drop in turnover and profit for the foreseeable future. The Directors have taken all reasonable steps to mitigate the impact.