54 Queen's Gate Hotel Limited - Accounts to registrar (filleted) - small 18.2

REGISTERED NUMBER: 04501688 (England and Wales)

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2020

FOR

54 QUEEN'S GATE HOTEL LIMITED

Page

Company Information

1

Statement of Financial Position

2

Notes to the Financial Statements

4

DIRECTORS:

M M M Ismail

S Locke

SECRETARY:

S Locke

REGISTERED OFFICE:

54 Queen's Gate

London

SW7 5JW

REGISTERED NUMBER:

04501688 (England and Wales)

AUDITORS:

Sage & Co

Chartered Accountants

& Statutory Auditors

38A High Street

Northwood

Middlesex

HA6 1BN

FIXED ASSETS

Intangible assets

4

5,271

8,021

Tangible assets

5

1,343,860

1,424,608

1,349,131

1,432,629

CURRENT ASSETS

Stocks

1,385

1,914

Debtors

6

502,789

477,354

Cash at bank and in hand

1,314

254,889

505,488

734,157

CREDITORS

Amounts falling due within one year

7

1,214,082

1,223,685

NET CURRENT LIABILITIES

(708,594

)

(489,528

)

TOTAL ASSETS LESS CURRENT LIABILITIES

640,537

943,101

CREDITORS

Amounts falling due after more than one year

8

(782,234

)

(882,120

)

PROVISIONS FOR LIABILITIES

-

(5,141

)

NET (LIABILITIES)/ASSETS

(141,697

)

55,840

CAPITAL AND RESERVES

Called up share capital

10

2

2

Retained earnings

(141,699

)

55,838

SHAREHOLDERS' FUNDS

(141,697

)

55,840

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 and authorised for issue on 30 September 2021 and were signed on its behalf by:

S Locke - Director

1.	STATUTORY INFORMATION

54 Queen's Gate Hotel 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.

The presentation currency of the financial statements is the Pound Sterling (£).

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.

The company has been funded by an interest free loan of £768,033, which is included in current liabilities. There are no fixed repayment terms and the loan provider has agreed that the company can make repayments when its cash flow allows. Due to this support from the loan provider, the directors believe it is appropriate to continue preparing the financial statements on a going concern basis.

Related party exemption

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Revenue is recognised when rooms are occupied and food and beverages are sold.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2002, is being amortised evenly over its estimated useful life of twenty years.

Tangible fixed assets

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

Improvements to property

-

over period of lease

Fixtures and fittings

-

10% on cost

Equipment

-

20% on cost

Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes expenditure directly attributable to making the asset capable of operating as intended.

Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. A grant received before the performance criteria are satisfied is recognised as a liability. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable.

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 statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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.

Operating lease agreements

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight line basis over the period of the lease.

Impairment

Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit and loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.

Debtors and creditors receivable/payable within one year

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 profit and loss account.

Loans and borrowings

Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 12 (2019 - 14 ) .

4.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 January 2020

and 31 December 2020

55,000

AMORTISATION

At 1 January 2020

46,979

Amortisation for year

2,750

At 31 December 2020

49,729

NET BOOK VALUE

At 31 December 2020

5,271

At 31 December 2019

8,021

5.	TANGIBLE FIXED ASSETS

Improvements

Fixtures

to

and

property

fittings

Equipment

Totals

£

£

£

£

COST

At 1 January 2020

1,469,879

1,019,479

75,946

2,565,304

Additions

4,657

5,597

-

10,254

At 31 December 2020

1,474,536

1,025,076

75,946

2,575,558

DEPRECIATION

At 1 January 2020

145,250

930,054

65,392

1,140,696

Charge for year

73,727

11,845

5,430

91,002

At 31 December 2020

218,977

941,899

70,822

1,231,698

NET BOOK VALUE

At 31 December 2020

1,255,559

83,177

5,124

1,343,860

At 31 December 2019

1,324,629

89,425

10,554

1,424,608

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Trade debtors

744

730

Amounts owed by group undertakings

473,697

432,993

Other debtors

9,727

4,160

Prepayments

4,059

24,909

Tax

14,562

14,562

502,789

477,354

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2020

2019

£

£

Bank loans and overdrafts

305,345

233,551

Trade creditors

4,765

18,009

VAT

25,499

49,908

Other creditors

770,939

811,150

Accruals and deferred income

107,534

111,067

1,214,082

1,223,685

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2020

2019

£

£

Bank loans - 1-2 years

284,140

241,594

Bank loans - 2-5 years

476,327

640,526

Bank loans more 5 yr by instal

21,767

-

782,234

882,120

Amounts falling due in more than five years:

Repayable by instalments

Bank loans more 5 yr by instal

21,767

-

9.	SECURED DEBTS

The following secured debts are included within creditors:

2020

2019

£

£

Bank overdraft

46,700

-

Bank loans

1,040,879

1,115,671

1,087,579

1,115,671

The bank loans and overdrafts are secured by a mortgage debenture over all assets of the company.

The group companies of 54 Queen's Gate Hotel Limited have provided an unlimited company guarantee on these bank loans and overdrafts, together with a first legal charge over the hotel property.

10.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2020

2019

value:

£

£

2

Ordinary

£1

2

2

11.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Sunil Sangani FCA (Senior Statutory Auditor)

for and on behalf of Sage & Co

12.	OTHER FINANCIAL COMMITMENTS

The company pays rent of £75,000 per annum on an ongoing basis to a group company. Due to the adverse impact of the Covid-19 pandemic on the company's operations in 2020, no rent was paid.

At the year end, the company had total commitments under operating leases over the remaining life of those leases of approximately £18,378 (2019: £24,864).

13.

COVID-19

The current Covid-19 pandemic has resulted in temporary closures of the company's key operations in its hotel. In accordance with government requirements, the company's hotel temporarily closed its doors to guests on 23 March 2020 only reopening when permitted by the government. Accordingly, the company's results have been severely affected by the temporary closures of its hotel.

The management is doing everything possible to minimise and mitigate the interruption of business and its costs. This includes an emergency cash management plan to ensure the liquidity position of the company, through a detailed prioritisation of all payments and the optimisation of available financing sources. Also, a Job Retention Scheme has been introduced help facilitate the ongoing employment of staff and minimise staff costs during the period in which the hotel is closed to the public.

The hotel is open at the date the directors have authorised these financial statements and are hopeful that normal trading levels will return provided no further government restrictions are mandated and the UK economy recovers.