Rare Bird Hotels Limited - Period Ending 2021-01-31

Rare Bird Hotels Limited

Contents

Balance Sheet	1
Notes to the Financial Statements	2 to 9

Rare Bird Hotels Limited

(Registration number: 08258851)
Balance Sheet as at 31 January 2021

	Note	2021 £	2020 £
Fixed assets
Tangible assets	4	-	314,371
Current assets
Stocks	7	-	13,271
Debtors	8	120,949	642,648
Other financial assets	6	6,619,047	-
Cash at bank and in hand		366,198	102,479
		7,106,194	758,398
Creditors: Amounts falling due within one year	9	(5,813,724)	(6,515,994)
Net current assets/(liabilities)		1,292,470	(5,757,596)
Total assets less current liabilities		1,292,470	(5,443,225)
Creditors: Amounts falling due after more than one year	9	(510,000)	-
Net assets/(liabilities)		782,470	(5,443,225)
Capital and reserves
Called up share capital		10,000	10,000
Other reserves		(333,334)	-
Profit and loss account		1,105,804	(5,453,225)
Shareholders' funds/(deficit)		782,470	(5,443,225)

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 21 October 2021 and signed on its behalf by:
 

.........................................

A P Bradshaw
Company secretary and director

Rare Bird Hotels Limited

Notes to the Financial Statements for the Year Ended 31 January 2021

1	General information

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

The address of its registered office is:
23 Beaumont Mews
First Floor
London
W1G 6EN
England

2	Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Going concern

After making enquiries, the Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence and meet its liabilities as they fall due for the forseeable future, being a period of at least twelve months from the date these financial statements were approved. The Company had made losses for a number of years: as a result of which it has been reliant on the support of other group companies.

The sale of the hotel business concluded in September 2020 for a sum in excess of £6.9 million, which should ensure the company's ability to continue as a going concern. Consequently, the financial statements have been prepared on that basis.

Audit report

The Independent Auditor's Report was unqualified. The name of the Senior Statutory Auditor who signed the audit report on 29 October 2021 was Dean Blunden BFP FCA, who signed for and on behalf of UHY Ross Brooke.

Key sources of estimation uncertainty

Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

Revenue recognition

Revenue from accommodation and related services is recognised at the point at which the services are provided and when the amount of revenue can be measured reliably and it is probable that the Company will receive the consideration due under the contract. Revenue is shown net of sales/value added tax, returns, rebates and discounts.

Rare Bird Hotels Limited

Notes to the Financial Statements for the Year Ended 31 January 2021

Tax

Taxation expense for the period comprises current and deferred tax recognised in the reporting period. Tax is recognised in the profit and loss account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case tax is also recognised in other comprehensive income or directly in equity respectively.

Current tax is the amount of income tax payable in respect of the taxable profit for the year or prior years. Tax is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the period end.

Deferred tax araises from timing differences that are differences between taxable profits and total comprehensive income as stated in the financial statements. These 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 recognised on all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are only recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other taxable profits.

Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Plant and machinery	20% straight line
Fixtures and fittings	20% straight line
Computer equipment	20% and 33% straight line

Business combinations

Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.

Investments

Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.


Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.

Rare Bird Hotels Limited

Notes to the Financial Statements for the Year Ended 31 January 2021

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers.

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Rare Bird Hotels Limited

Notes to the Financial Statements for the Year Ended 31 January 2021

Financial instruments

Classification
The Company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties and investments in ordinary shares. They are classified according to the substance of the contractual arrangements entered into.

 Recognition and measurement
Basic financial assets and liabilities including trade and other receivables, cash and bank balances, trade and other payables and loans from other group companies are initially measured at transaction price (including transaction costs) unless the arrangement constitutes a financing arrangement. If an arrangement constitutes a financing transaction, the financial asset or financial liability is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Financial assets and liabilities are only offset in the Balance Sheet when, and only when there exists a legally enforceable right to set off the recognised amounts and the Group intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Debt instruments which meet the conditions of being 'basic' financial instruments as defined in FRS 102.11.9 are subsequently measured at amortised cost using the effective interest method.

Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled; or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party; or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

 Impairment
For financial assets carried at amortised cost, the amount of an impairment is the difference between the asset's carrying amount and the present value of estimated future cash flows, discounted at the financial asset's original effective interest rate.

For financial assets carried at cost less impairment, the impairment loss is the difference between the asset's carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date. The impairment loss is recognised in profit and loss.


 

3	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 37 (2020 - 40).

Rare Bird Hotels Limited

Notes to the Financial Statements for the Year Ended 31 January 2021

4	Tangible assets

	Fixtures and fittings £	Plant and machinery £	Office equipment £	Total £
Cost or valuation
At 1 February 2020	691,118	143,143	91,120	925,381
Additions	7,760	-	-	7,760
Disposals	(698,878)	(143,143)	(91,120)	(933,141)
At 31 January 2021	-	-	-	-
Depreciation
At 1 February 2020	404,497	121,940	84,573	611,010
Eliminated on disposal	(404,497)	(121,940)	(84,573)	(611,010)
At 31 January 2021	-	-	-	-
Carrying amount
At 31 January 2021	-	-	-	-
At 31 January 2020	286,621	21,203	6,547	314,371

5	Investments

2021 £

2020 £

Subsidiaries	£
Cost or valuation
Additions	1
Disposals	(1)
At 31 January 2021	-
Provision
Carrying amount
At 31 January 2021	-

Rare Bird Hotels Limited

Notes to the Financial Statements for the Year Ended 31 January 2021

6	Other financial assets (current and non-current)

	Financial assets at fair value through profit and loss £	Total £
Current financial assets
Cost or valuation
Additions	6,952,381	6,952,381
Fair value adjustments	(333,334)	(333,334)
At 31 January 2021	6,619,047	6,619,047
Impairment
Carrying amount
At 31 January 2021	6,619,047	6,619,047

Rare Bird Hotels Limited

Notes to the Financial Statements for the Year Ended 31 January 2021

7

Stocks

	2021 £	2020 £
Other inventories	-	13,271

8

Debtors

	2021 £	2020 £
Trade debtors	-	106,384
Prepayments	-	44,384
Other debtors	120,949	491,880
	120,949	642,648

9

Creditors

Creditors: amounts falling due within one year

	2021 £	2020 £
Due within one year
Loans and borrowings	90,000	-
Trade creditors	12,919	32,875
Amounts owed to group undertakings	5,684,742	5,568,662
Taxation and social security	-	19,551
Other creditors	26,063	894,906
	5,813,724	6,515,994

Creditors include bank loans and overdrafts and net obligations under finance lease and hire purchase contracts which are secured of £90,000 (2020 - £nil).

Creditors: amounts falling due after more than one year

	Note	2021 £	2020 £
Due after one year
Loans and borrowings	10	510,000	-

Creditors include bank loans and overdrafts and net obligations under finance lease and hire purchase contracts which are secured of £510,000 (2020 - £nil).

Creditors include bank loans repayable by instalments of £60,000 (2020 - £nil) due after more than five years.

Rare Bird Hotels Limited

Notes to the Financial Statements for the Year Ended 31 January 2021

10	Loans and borrowings

	2021 £	2020 £
Current loans and borrowings
Bank borrowings	90,000	-

	2021 £	2020 £
Non-current loans and borrowings
Bank borrowings	510,000	-

The liabilities are secured on the freehold property at Streatley.

11	Financial commitments, guarantees and contingencies

Amounts not provided for in the balance sheet

The total amount of financial commitments not included in the balance sheet is £Nil (2020 - £225,000).

12	Related party transactions

Under FRS 102 Section 33, the Company is exempt from disclosing related party transactions with its Parent Company and fellow wholly owned subsidiaries, as 100% of the voting rights are controlled by CCO Trading Limited.

Summary of transactions with other related parties

Included within creditors is £5,684,742 (2020: £5,568,662) owed to CCO Cygnet Limited, a fellow subsidiary of CCO Trading Limited. This loan is interest free, unsecured and repayable on demand. During the year, the company was charged rent of £193,253 (2020: £337,500).

Included within other debtors is a balance of £14,989 (2020: £166,799) owed by The Great House at Sonning Limited. Transactions included within this balance relate solely to recharged expenses. The company is a related party by virtue of being under the common control of a director. During the year expenses of £Nil (2020: £129,000) were recharged. At the year end, there was also a balance of £Nil (2020: £8,032) included within accruals.

During the year, the company invoiced £157,598 (2020: £226,496) for services rendered and incurred expenses of £59,098 (2020: £301,086) to Various Eateries Limited, a company under the common control of a director. At the year end, there was a debtor of £370,558 (2020: £370,558) and a creditor of £Nil (2020: £200,372).