Burgh Island Holdings Limited Company accounts

BURGH ISLAND HOLDINGS LIMITED - Company Information

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COMPANY REGISTRATION NUMBER: 07111467

Burgh Island Holdings Limited

Financial Statements

30 September 2021

Burgh Island Holdings Limited

Financial Statements

Year ended 30 September 2021

Contents	Page

Officers and professional advisers	1

Strategic report	2

Directors' report	5

Independent auditor's report to the members	7

Statement of income and retained earnings	11

Statement of financial position	12

Statement of cash flows	13

Notes to the financial statements	14

Burgh Island Holdings Limited

Officers and Professional Advisers

The board of directors	Mr P Booth-Clibborn
	Mr G Fuchs
	Ms J Ward

Registered office	10 Canberra House
	Corbygate Business Park
	Corby
	Northamptonshire
	England
	NN17 5JG

Trading address:

Burgh Island Hotel

Burgh Island

Bigbury on Sea

Kingsbridge

Devon

TQ7 4BG

Auditor	DNG Dove Naish LLP
	Chartered accountants & statutory auditor
	Eagle House
	28 Billing Road
	Northampton
	NN1 5AJ

Bankers	Coutts & Co
	440 Strand
	London
	WC2R 0QS

Burgh Island Holdings Limited

Strategic Report

Year ended 30 September 2021

The directors present their Strategic Report and Audited Financial Statements for the year ended 30 September 2021. Principle activity The principal activity of the company is as the holding company of Burgh Island Limited which owns, manages and develops Burgh Island Hotel and The Pilchard Inn and Café just off the south Devon coast near Bigbury on Sea. With panoramic views overlooking Bigbury on Sea and Batham beaches, Burgh Island Hotel is situated on a 26 acres private island in South Devon. The property is a 1930s grade 2 listed art deco hotel which allows its guests to retreat from the realities of 21st century living and experience an ambience more reminiscent of the 1930s. The hotel has 24 bedrooms and suites as well as The Beach House where Agatha Christie wrote 2 novels. The company also includes an original Smugglers Inn, dating from 1336. The Pilchard, which takes its name from the pilchard fishing that was common in the area at that time, offers drinks and seasonal food throughout the year. Business Review The year from 1 October 2020 to 30 September 2021 was challenging for the hotel and The Pilchard as the Coronavirus pandemic forced the closure of the hotel between 4 November to 3 December 2020 and 31 December 2020 to 17 May 2021. Despite these enforced closures, whilst open the hotel traded strongly with high levels of occupancy and achieving budgeted room rates. Results The company had an operating loss for the year of £34,511 (2020: loss of £59,526). In the year to 30 September 2021 Burgh Island Limited were able to vote a dividend to the holding company of £2m. As a result of this distribution, Burgh Island Limited's investment value in the holding company dropped by £1.93m. The loss before taxation was £480,711. There is no Corporation Tax liability in Burgh Island Holdings Limited . The dividend was not paid but credited to an outstanding loan account between the holding company and subsidiary. Cashflow remained positive throughout the year and the company was able to comfortably service its debts. The directors take a very prudent view of cash reserves and monitor discretionary spending very closely.

Principal Risks and Uncertainties The principal risks the company faces are common with Burgh Island Limited and include: - Competition from other hotels both locally and nationally - Events which curtail or restrict travel - Economic uncertainties which reduce customers' discretionary spending - Shortage of trained and generally suitable candidates for open positions and reliance upon contract staff Conversely however, the company can take advantage of the problems and costs associated with foreign travel which encourage customers to holiday within UK. Strategy The directors continue to work to enhancing Burgh Island as a "must go to" destination hotel on a par with other luxury branded hotels worldwide. To achieve this an investment program has been identified and includes the following: - Continuous improvement and refurbishment of the existing buildings with an emphasis on protecting the Art Deco experience - Maintaining Burgh Island's position as one of the most iconic hotels in the UK as it was nearly 100 years ago when the hotel was known as the "best hotel west of The Ritz" - Ensuring the exceptional Burgh guest experience is maintained - Maximising summer trade in The Pilchard Inn and café - Developing more extensive staff accommodation to enhance the wellbeing of all employees - Creating a programme to offer first class training and staff development which will both enhance employees CVs and improve the service the company can offer to guests and visitors - The submission of a planning application in December 2021 which looks to sympathetically develop the hotel by increasing the number of bedrooms and suites, increasing dining facilities within the hotel, adding a restaurant onto the Pilchard, increasing staff accommodation, and developing more services for guests - Searching for the most cost effective and environmentally beneficial solutions to energy consumption, waste disposal, light pollution - Maximising the number of local suppliers and reducing the hotel's carbon transport footprint - Working with the local community to create quality, long term employment opportunities and developing the businesses to benefit local people as well as guests from other areas Key Performance Indicators The success of Burgh Island Holdings Limited is wholly dependent upon the success of trading within Burgh Island Limited. Therefore, the key performance indicators are common with the subsidiary: - For the hotel the KPIs are room rates, percentage occupancy, REVPAR, gross margins, EBITDA and cashflow forecasts. For the Pilchard the KPIs are gross margin and EBITDA. - KPIs are measured monthly by business and reported to local management.

This report was approved by the board of directors on 29 September 2022 and signed on behalf of the board by:

Mr G Fuchs

Director

Registered office:

10 Canberra House

Corbygate Business Park

Corby

Northamptonshire

England

NN17 5JG

Burgh Island Holdings Limited

Directors' Report

Year ended 30 September 2021

The directors present their report and the financial statements of the company for the year ended 30 September 2021 .

Directors

The directors who served the company during the year were as follows:

Mr P Booth-Clibborn
Mr G Fuchs
Ms J Ward

Dividends

The directors do not recommend the payment of a dividend.

Disclosure of information in the strategic report

In line with section 414C (11) of Companies Act 2006 disclosures relating to future developments and business relationships have been made in the Strategic Report.

Directors' responsibilities statement

The directors are responsible for preparing the strategic report, directors' report and the financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have 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 directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: - select suitable accounting policies and then apply them consistently; - make judgments 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 directors are 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 them to ensure that the financial statements comply with the Companies Act 2006. They are 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. Auditor

Each of the persons who is a director at the date of approval of this report confirms that:

- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.

This report was approved by the board of directors on 29 September 2022 and signed on behalf of the board by:

Mr G Fuchs

Director

Registered office:

10 Canberra House

Corbygate Business Park

Corby

Northamptonshire

England

NN17 5JG

Burgh Island Holdings Limited

Independent Auditor's Report to the Members of Burgh Island Holdings Limited

Year ended 30 September 2021

Opinion

We have audited the financial statements of Burgh Island Holdings Limited (the 'company') for the year ended 30 September 2021 which comprise the statement of income and retained earnings, statement of financial position, statement of cash flows 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 FRS 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 30 September 2021 and of its loss for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - 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 auditor's 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

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information. 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 directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

- the strategic report and the directors' report 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 directors' 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, 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 directors' 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

As explained more fully in the directors' responsibilities statement, the directors are 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 directors determine 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 directors are 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 directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's 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 an auditor’s 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. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: We obtained an understanding of the legal and regulatory frameworks within which the company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, United Kingdom Generally Accepted Accounting Practice and relevant Taxation legislation. We identified the greatest risk of material impact on the financial statements from irregularities, including fraud, to be the override of controls by management, going concern and the valuation of the investment in subsidiary. Our audit procedures to respond to these risks included enquiries of management about their own identification and assessment of the risks of irregularities, sample testing on the posting of journals, reviewing regulatory correspondence and professional fees, proof in total testing on the completeness of income, reviewing accounting estimates for biases and calculating NAV of the subsidiary company to test the valuation. Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations. These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations. As part of an audit in accordance with ISAs (UK), we exercise professional judgment 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 on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' 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 auditor’s 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 auditor’s 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. 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. 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 an auditor's 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.

Robyn Liddell

(Senior Statutory Auditor)

For and on behalf of

DNG Dove Naish LLP

Chartered accountants & statutory auditor

Eagle House

28 Billing Road

Northampton

NN1 5AJ

29 September 2022

Burgh Island Holdings Limited

Statement of Income and Retained Earnings

Year ended 30 September 2021

		2021	2020
Note		£	£
Turnover	4	12,000	12,000

Cost of sales	4,019	4,520
	--------	--------
Gross profit	7,981	7,480

Administrative expenses		42,492	67,006
		--------	--------
Operating loss	5	( 34,511)	( 59,526)

Loss on financial assets at fair value through profit or loss		( 1,936,371)	–
Income from other fixed asset investments	10	2,000,000	–
Other interest receivable and similar income	11	84,370	73,293
Interest payable and similar expenses	12	594,199	574,481
		------------	---------
Loss before taxation		( 480,711)	( 560,714)

Tax on loss	13	–	–
		---------	---------
Loss for the financial year and total comprehensive income		( 480,711)	( 560,714)
		---------	---------

Retained losses at the start of the year	( 2,068,706)	( 1,507,992)
	------------	------------
Retained losses at the end of the year	( 2,549,417)	( 2,068,706)
	------------	------------

All the activities of the company are from continuing operations.

Burgh Island Holdings Limited

Statement of Financial Position

30 September 2021

	2021	2020
Note	£	£

Fixed assets

Tangible assets	14	17,455	20,073
Investment in subsidiaries	15	4,781,581	6,717,952
		------------	------------
		4,799,036	6,738,025

Current assets

Debtors	16	4,086,483	2,315,018
Cash at bank and in hand		119,928	64,835
		------------	------------
		4,206,411	2,379,853

Creditors: amounts falling due within one year	17	606,911	119,406
		------------	------------
Net current assets		3,599,500	2,260,447
		------------	------------
Total assets less current liabilities		8,398,536	8,998,472

Creditors: amounts falling due after more than one year	18	10,681,953	10,801,178
		-------------	-------------
Net liabilities		( 2,283,417)	( 1,802,706)
		-------------	-------------

Capital and reserves

Called up share capital	19	266,000	266,000
Profit and loss account	20	( 2,549,417)	( 2,068,706)
		------------	------------
Shareholders deficit		( 2,283,417)	( 1,802,706)
		------------	------------

These financial statements were approved by the board of directors and authorised for issue on 29 September 2022 , and are signed on behalf of the board by:

Mr G Fuchs

Director

Company registration number: 07111467

Burgh Island Holdings Limited

Statement of Cash Flows

Year ended 30 September 2021

	2021	2020
	£	£

Cash flows from operating activities

Loss for the financial year	( 480,711)	( 560,714)

Adjustments for:
Depreciation of tangible assets	2,618	2,618
Loss on financial assets at fair value through profit or loss	1,936,371	–
Income from other fixed asset investments	( 2,000,000)	–
Other interest receivable and similar income	( 84,370)	( 73,293)
Interest payable and similar expenses	594,199	574,481

Changes in:
Trade and other debtors	12,906	27,027
Trade and other creditors	( 20,562)	9,599
	------------	---------
Cash generated from operations	( 39,549)	( 20,282)

Interest paid	( 150,358)	( 180,621)
	---------	---------
Net cash used in operating activities	( 189,907)	( 200,903)
	---------	---------

Cash flows from financing activities

Proceeds from borrowings	( 55,000)	( 165,000)
Proceeds from loans from group undertakings	300,000	326,786
	---------	---------
Net cash from financing activities	245,000	161,786
	---------	---------

Net increase/(decrease) in cash and cash equivalents	55,093	( 39,117)
Cash and cash equivalents at beginning of year	64,835	103,952
	---------	---------
Cash and cash equivalents at end of year	119,928	64,835
	---------	---------

Burgh Island Holdings Limited

Notes to the Financial Statements

Year ended 30 September 2021

1. General information

The Company is a private Company limited by shares, registered in England and Wales. The address of the registered office is 10 Canberra House, Corbygate Business Park, Corby, Northamptonshire, NN17 5JG, England.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

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.

Consolidation

The entity has taken advantage of the option not to prepare consolidated financial statements contained in Section S400/S401 para C of the Companies Act 2006 on the basis that the entity is consolidated further up the group structure. A copy of the group accounts can be obtained from Office Space in Town Limited, whose registered office is 10 Canberra House, Corbygate Business Park, Corby, Northants, NN17 5JG.

Going concern

These accounts have been prepared on the going concern basis, on the understanding that the shareholders will continue to financially support the company.

Significant judgements and estimates

The preparation of financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the company accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements are disclosed within the individual accounting policies below.

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods supplied and services rendered, stated net of discounts and of Value Added Tax. Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that expenses recognised are recoverable. Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that it is probable the expenses recognised will be recovered.

Tangible assets

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.

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:

	Plant and machinery	-	10% straight line

Investments

Fixed asset Investments accounted for in accordance with the fair value model are initially recorded at the transaction price. At each reporting date, the investments are measured at fair value, with changes in fair value recognised in the profit or loss.

The fair value of the investments are based upon the underlying assets of the subsidiaries. The assets are valued on a regular basis by an external, independent and professionally qualified valuer having recent experience in the location and category of the assets being valued. The valuation comprises of the physical assets along with an assessment of their value in use within the business. As a result, the net assets of the subsidiary are believed to have an accurate reflection on the fair value of the underlying investment.

Financial instruments

Cash and cash equivalents in the balance sheet comprise cash at banks and in hand and short term deposits with an original maturity date of three months or less. Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the statement of comprehensive income under administrative expenses. Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the entity after deducting all of its financial liabilities. Where the contractual obligations of financial instruments (including share capital) are equivalent to a similar debt instrument, those financial instruments are classed as financial liabilities. Financial liabilities are presented as such in the balance sheet. Finance costs and gains or losses relating to financial liabilities are included in the profit and loss account. Finance costs are calculated so as to produce a constant rate of return on the outstanding liability. Where the contractual terms of share capital do not have any terms meeting the definition of a financial liability then this is classed as an equity instrument. Dividends and distributions relating to equity instruments are debited direct to equity. 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.

4. Turnover

Turnover arises from:

	2021	2020
	£	£
Rendering of services	12,000	12,000
	--------	--------

The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.

5. Operating profit

Operating profit or loss is stated after charging:

	2021	2020
	£	£
Depreciation of tangible assets	2,618	2,618
	-------	-------

6. Auditor's remuneration

	2021	2020
	£	£
Fees payable for the audit of the financial statements	3,600	3,000
	-------	-------

7. Staff costs

The average number of persons employed by the company during the year, including the directors, amounted to:

	2021	2020
	No.	No.
Management staff	3	3
	----	----

The aggregate payroll costs incurred during the year, relating to the above, were:

	2021	2020
	£	£
Wages and salaries	7,410	15,000
	-------	--------

8. Directors' remuneration

The directors' aggregate remuneration in respect of qualifying services was:

	2021	2020
	£	£
Remuneration	7,410	15,000
	-------	--------

9. Key management personnel

The combined remuneration package of Key Management Personnel is deemed to be that of the directors remuneration packaged detailed in note 8.

10. Income from other fixed asset investments

	2021	2020
	£	£
Dividends from other fixed asset investments	2,000,000	–
	------------	----

11. Other interest receivable and similar income

	2021	2020
	£	£
Interest on loans and receivables	84,370	73,293
	--------	--------

12. Interest payable and similar expenses

	2021	2020
	£	£
Interest on banks loans and overdrafts	150,358	180,621
Other interest payable and similar charges	443,841	393,860
	---------	---------
	594,199	574,481
	---------	---------

13. Tax on loss

Reconciliation of tax income

The tax assessed on the loss on ordinary activities for the year is higher than (2020: higher than) the standard rate of corporation tax in the UK of 19 % (2020: 19 %).

	2021	2020
	£	£
Loss on ordinary activities before taxation	( 480,711)	( 560,714)
	---------	---------
Loss on ordinary activities by rate of tax	( 91,335)	( 106,536)
Effect of expenses not deductible for tax purposes	84,615	74,833
Effect of capital allowances and depreciation	498	498
Effect of revenue exempt from tax	( 12,090)	–
Utilisation of tax losses	–	31,205
Unused tax losses	18,312	–
	---------	---------
Tax on loss	–	–
	---------	---------

14. Tangible assets

	Plant and machinery
	£
Cost
At 1 October 2020 and 30 September 2021	26,182
	--------
Depreciation
At 1 October 2020	6,109
Charge for the year	2,618
	--------
At 30 September 2021	8,727
	--------
Carrying amount
At 30 September 2021	17,455
	--------
At 30 September 2020	20,073
	--------

15. Investment in subsidiaries

	Shares in group undertakings
	£
Valuation
At 1 October 2020 and 30 September 2021	6,717,952
	------------
Impairment
At 1 October 2020	–
Revaluations	1,936,371
	------------
At 30 September 2021	1,936,371
	------------

Carrying amount
At 30 September 2021	4,781,581
	------------
At 30 September 2020	6,717,952
	------------

Burgh Island Holdings Limited owns 4 £1 ordinary shares of Burgh Island Limited making it a wholly owned subsidiary. Burgh Island Limited was incorporated in England and Wales. The address of the registered office is 10 Canberra House, Corbygate Business Park, Corby, Northamptonshire, NN17 5JG, England.

Subsidiaries, associates and other investments

	Registered office	Class of share	Percentage of shares held
Subsidiary undertakings
Burgh Island Limited	10 Canberra House	Ordinary	100
	Corbygate Business Park
	Corby
	Northamptonshire
	NN17 5JG

16. Debtors

	2021	2020
	£	£
Amounts owed by group undertakings	3,964,284	2,178,714
Called up share capital not paid	100,000	100,000
Prepayments and accrued income	22,160	35,922
Other debtors	39	382
	------------	------------
	4,086,483	2,315,018
	------------	------------

17. Creditors: amounts falling due within one year

	2021	2020
	£	£
Bank loans and overdrafts	220,000	55,000
Trade creditors	2,658	5,936
Accruals and deferred income	41,178	58,462
Other creditors	343,075	8
	---------	---------
	606,911	119,406
	---------	---------

18. Creditors: amounts falling due after more than one year

	2021	2020
	£	£
Bank loans and overdrafts	4,905,000	5,125,000
Preference shares - Loan	5,776,953	5,676,178
	-------------	-------------
	10,681,953	10,801,178
	-------------	-------------

Included within creditors: amounts falling due after more than one year is an amount of £5,776,953 (2020: £5,676,178) in respect of liabilities payable or repayable otherwise than by instalments which fall due for payment after more than five years from the reporting date.

The preference shares do not entitle the holder to receive notice of or to attend or vote at any general meeting of the Company. The preference shares will provide a cumulative fixed preferential dividend of 12% per annum. Part of the fixed dividend, 5% per annum, is payable annually in arrears with the balance of the 12% per annum dividend payable upon redemption.

Coutts & Company hold a fixed charge and negative pledge over all the assets of the Company in relation to a facility agreement granted on 11 April 2018.

19. Called up share capital

Issued, called up and fully paid

	2021		2020
	No.	£	No.	£
Ordinary shares of £ 1 each	266,000	266,000	266,000	266,000
	---------	---------	---------	---------

Ordinary class shares have full rights to vote and rights to dividend distribution.

20. Reserves

Profit and loss account - This reserve records retained earnings and accumulated losses. Fair Value reserve - This reserve records the Fair Value movements on investments recognised in the profit and loss.

21. Analysis of changes in net debt

	At 1 Oct 2020	Cash flows	At 30 Sep 2021
	£	£	£
Cash at bank and in hand	64,835	55,093	119,928
Debt due within one year	(55,000)	(165,000)	(220,000)
Debt due after one year	(5,125,000)	220,000	(4,905,000)
	------------	---------	------------
	( 5,115,165)	110,093	( 5,005,072)
	------------	---------	------------

22. Related party transactions

The company has availed itself of the exemption contained within FRS 102 Section 33 Related Party Disclosures not to disclose details of transactions with fellow group entities.

23. Controlling party

Office Space in Town Limited is the ultimate controlling party. A copy of the group accounts can be obtained from Office Space in Town Limited, whose registered office is 10 Canberra House, Corbygate Business Park, Corby, Northants, NN17 5JG.