Falcon Hotels Ltd - Accounts

Registered number

06953013

Falcon Hotels Ltd

Report and Financial Statements

31 December 2020

Fairman Harris

Chartered Accountants

1 Landor Road

London

SW9 9RX

Falcon Hotels Ltd
Report and accounts
Contents
Page
Company information	1
Directors' report	2
Strategic report	3
Independent auditor's report	4
Income statement	7
Statement of comprehensive income	8
Statement of financial position	9
Company Balance sheet	10
Statement of changes in equity	11
Company statement of changes in equity	12
Statement of cash flows	13
Notes to the financial statements	14

Falcon Hotels Ltd

Company Information

Directors

D G Bhattessa

H A D Suleman

H L Jaffer

M Jetha

M Raman

Auditors

Fairman Harris

1 Landor Road

London

SW9 9RX

Registered number

06953013

Registered office

Kirkland House

11-15 Peterbrough Road

Harrow

Middlesex

Bankers

Natwest

1 Princes Street

London

EC2R 8BP

Falcon Hotels Ltd
Registered number:				06953013
Directors' Report
The directors present their report and financial statements for the year ended 31 December 2020.
Principal activities
The groups's principal activity during the year continued to be that of hotelier.
Directors
The following persons served as directors during the year:
	D G Bhattessa
	H A D Suleman
	H L Jaffer
	M Jetha
	M Raman
Directors' responsibilities

The directors are responsible for preparing the report and 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 (Financial Reporting Standard 102 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 gourp and of the profit or loss of the company and for the group for that period. In preparing these financial statements, the directors are required to:
●	select suitable accounting policies and then apply them consistently;
●	make judgements and estimates that are reasonable and prudent;
●	state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
●	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company and group will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and and group 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 group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Disclosure of information to auditors

Each person who was a director at the time this report was approved confirms that:
●	so far as he is aware, there is no relevant audit information of which the gourp's auditor is unaware; and
●	he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditor is aware of that information.

This report was approved by the board on 22 September 2021 and signed on its behalf.

H L Jaffer

Director

Falcon Hotels Ltd

Strategic Report

Introduction

Trading this year has been dominated by the impact of the Coronavirus Pandemic. The hotel has been closed for approximately 40% of the trading period due to government restrictions. Furthermore, when allowed to open the hotel has been subject to trading restrictions particularly in the key areas of business and leisure events.

Business Review

The Directors consider the performance of the business this year to be satisfactory given the unprecedented trading restrictions and market conditions facing the business. Due to the pandemic comparisons with prior year are largely rendered meaningless.

Principle Risks and Uncertainties

The Directors consider that the risks that crystallised on the business due to the pandemic could not have reasonably been foreseen. The pandemic has presented liquidity challenges for the business, but these have been mitigated by use of government support schemes and provision of additional liquidity by the company's funders. The future shape and direction of the market remains uncertain post the pandemic, but the directors have sought to mitigate this risk by working closely with its professional advisors to ensure the business is well positioned in the domestic leisure market to benefit from the market recovery.

Financial Key Performance Indicators

The hotel achieved an overall occupancy of 38.7% and an ADR of £62.64. Reliable market comparisons have been challenging due to the pandemic, but the Directors consider that this performance was at or above market. Costs have been mitigated as much as possible but the inherent high degree of operational leverage in a hotel operation and the need to preserve the integrity of the asset means that a level of cost has been incurred at low levels of activity or closed periods. Sales fell by £2.74 million (62%) against prior year but the impact of this was mitigated to an operating profit fall of £0.94 million.

This report was approved by the board on 22 September 2021 and signed on its behalf.

H L Jaffer

Director

Falcon Hotels Ltd

Independent auditor's report

to the members of Falcon Hotels Ltd

Opinion

We have audited the financial statements of Falcon Hotels Ltd (the 'parent company') for the year ended 31 December 2020 which comprise the Consolidated Income Statement, the Consolidated Statement of Comprehensive Income, the Consolidated Statement of Financial Position, Company Statement of Financial Position, the Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, the Consolidated Statement of Cash Flows and notes to the financial statements, including 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 the 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 group's affairs as at 31 December 2020 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 contained within the annual report. 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. 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 course of 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 this gives rise to a material misstatement in the financial statements themselves. 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:
The extent to which the audit was considered capable of detecting irregularities including fraud
Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:
●	the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;
●	we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the industry.
●	we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation, data protection, anti-money-laundering, employment, environmental and health and safety legislation;
●	we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management.
●	identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.
We assessed the susceptibility of the company's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:
●	making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;
●	considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations.
To address the risk of fraud through management bias and override of controls, we:
●	performed analytical procedures to identify any unusual or unexpected relationships;
●	tested journal entries to identify unusual transactions;
●	assessed whether judgements and assumptions made in determining the accounting estimates set out in note 1 were indicative of potential bias; and
●	investigated the rationale behind significant or unusual transactions.
In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:
●	agreeing financial statement disclosures to underlying supporting documentation;
●	reading the minutes of meetings of those charged with governance;
●	enquiring of management as to actual and potential litigation and claims; and
●	reviewing correspondence with HMRC.
There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.
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.
F Meghani
(Senior Statutory Auditor)		Fairman Harris
for and on behalf of		1 Landor Road
Fairman Harris		London
Statutory Auditor		SW9 9RX
23 September 2021

Falcon Hotels Ltd
Consolidated Income Statement
for the year ended 31 December 2020
Notes						2020		2019
£							£
Turnover				2		1,682,191		4,426,374
Cost of sales						(1,403,571)		(2,443,032)
Gross profit						278,620		1,983,342
Administrative expenses						(1,427,463)		(1,831,913)
Other operating income						393,299		80
Operating (loss)/profit				3		(755,544)		151,509
Interest payable				5		(316,240)		(309,592)
Loss on ordinary activities before taxation						(1,071,784)		(158,083)
Tax on loss on ordinary activities				6		-		(14,446)
Loss for the financial year						(1,071,784)		(172,529)

Falcon Hotels Ltd
Consolidated Statement of Comprehensive Income
for the year ended 31 December 2020
Notes					2020		2019
£						£
Loss for the financial year					(1,071,784)		(172,529)
Other comprehensive income
Total comprehensive income for the year					(1,071,784)		(172,529)

Falcon Hotels Ltd
Consolidated Statement of Financial Position
as at 31 December 2020
Notes				2020			2019
£					£
Fixed assets
Intangible assets	8			882,230			1,143,487
Tangible assets	9			6,953,727			6,555,022
				7,835,957			7,698,509
Current assets
Stocks	11		14,857			35,783
Debtors	12		181,512			299,576
Cash at bank and in hand			154,385			19,550
			350,754			354,909
Creditors: amounts falling due within one year	13		(1,364,674)			(1,132,970)
Net current liabilities				(1,013,920)			(778,061)
Total assets less current liabilities				6,822,037			6,920,448
Creditors: amounts falling due after more than one year	14			(7,343,159)			(6,369,786)
Provisions for liabilities
Deferred taxation	15			(318,573)			(318,573)
Net (liabilities)/assets				(839,695)			232,089
Capital and reserves
Called up share capital	16			100			100
Other reserves	17			375,756			375,756
Profit and loss account	18			(1,215,551)			(143,767)
Total equity				(839,695)			232,089
H L Jaffer
Director
Approved by the board on 22 September 2021

Falcon Hotels Ltd
Company Statement of Financial Position
as at 31 December 2020
Notes				2020			2019
£					£
Fixed assets
Investments	10			6,279,180			6,377,580
				6,279,180			6,377,580
Current assets
Debtors	12		-			5,131
Cash at bank and in hand			150,269			3,836
			150,269			8,967
Creditors: amounts falling due within one year	13		(22,567)			(107,372)
Net current liabilities				127,702			98,405
Total assets less current liabilities				6,406,882			6,279,175
Creditors: amounts falling due after more than one year	14			(6,487,021)			(6,316,158)
Net liabilities				(80,139)			(36,983)
Capital and reserves
Called up share capital	16			100			100
Profit and loss account brought forward				(37,084)			(11,677)
Profit and loss account				(43,155)			(25,406)
Total equity				(80,139)			(36,983)
H L Jaffer
Director
Approved by the board on .....................

Falcon Hotels Ltd
Consolidated Statement of Changes in Equity
for the year ended 31 December 2020
Share			Share		Other		Profit		Total
capital			premium		reserves		and loss
account
£			£		£		£		£
At 1 January 2019		100		-		375,756		28,762		404,618
Loss for the financial year								(172,529)		(172,529)
At 31 December 2019		100		-		375,756		(143,767)		232,089
At 1 January 2020		100		-		375,756		(143,767)		232,089
Loss for the financial year								(1,071,784)		(1,071,784)
At 31 December 2020		100		-		375,756		(1,215,551)		(839,695)

Falcon Hotels Ltd
Statement of Changes in Equity
for the year ended 31 December 2020
Share			Share		Other		Profit		Total
capital			premium		reserves		and loss
account
£			£		£		£		£
At 1 January 2019		100		-		-		(11,677)		(11,577)
Profit for the financial year		-		-		-		(25,406)		(25,406)
At 31 December 2019 as restated		100		-		-		(37,083)		(36,983)
At 1 January 2020		100		-		-		(37,084)		(36,984)
Loss for the financial year		-		-		-		(43,155)		(43,155)
At 31 December 2020		100		-		-		(80,239)		(80,139)

Falcon Hotels Ltd
Consolidated Statement of Cash Flows
for the year ended 31 December 2020
Notes			2020		2019
£				£
Operating activities
Loss for the financial year			(1,071,784)		(172,529)
Adjustments for:
Interest payable			316,240		309,592
Tax on loss on ordinary activities			-		14,446
Depreciation			184,900		194,868
Amortisation of goodwill			162,857		172,698
Decrease/(increase) in stocks			20,926		(10,040)
Decrease in debtors			118,064		730,671
Increase/(decrease) in creditors			748,151		(245,159)
			479,354		994,547
Interest paid			(312,758)		(307,851)
Interest element of finance lease payments			(3,482)		(1,741)
Corporation tax paid			(11,759)		(6,000)
Cash generated by operating activities			151,355		678,955
Investing activities
Payments to acquire intangible fixed assets			-		(700,000)
Payments to acquire tangible fixed assets			(583,605)		(203,676)
Cash used in investing activities			(485,205)		(903,676)
Financing activities
Repayment of loans			497,500		(207,025)
Capital element of finance lease payments			(17,356)		78,105
Cash generated by/(used in) financing activities			480,144		(128,920)
Net cash generated/(used)
Cash generated by operating activities			151,355		678,955
Cash used in investing activities			(485,205)		(903,676)
Cash generated by/(used in) financing activities			480,144		(128,920)
Net cash generated/(used)			146,294		(353,641)
Cash and cash equivalents at 1 January			8,091		361,732
Cash and cash equivalents at 31 December			154,385		8,091
Cash and cash equivalents comprise:
Cash at bank			154,385		19,550
Bank overdrafts	13		-		(11,459)
			154,385		8,091

Falcon Hotels Ltd
Notes to the Accounts
for the year ended 31 December 2020
1	Summary of significant accounting policies
	Basis of preparation
	The financial statements have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland.
	Turnover
	Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs.
	Intangible fixed assets
	Intangible fixed assets are measured at cost less accumulative amortisation and any accumulative impairment losses.
	Tangible fixed assets

	Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows:
	Freehold buildings			over 50 years
	Leasehold land and buildings			Over the lease term
	Plant and machinery			Straight line over 3-10 years
	Fixtures, fittings, tools and equipment			Straight line over 3-10 years

	Investments
	Investments in subsidiaries, associates and joint ventures are measured at cost less any accumulated impairment losses. Listed investments are measured at fair value. Unlisted investments are measured at fair value unless the value cannot be measured reliably, in which case they are measured at cost less any accumulated impairment losses. Changes in fair value are included in the profit and loss account.
	Stocks
	Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised.
	Debtors
	Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.
	Creditors
	Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.
	Taxation
	A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.
	Provisions
	Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably.
	Leased assets
	A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term.
	Government grants
	Government grants that becomes receivable as compensation for expenses is recognised as income in the period in which it becomes receivable.
	Pensions
	Contributions to defined contribution plans are expensed in the period to which they relate.
2	Analysis of turnover					2020		2019
£							£
	Sale of goods					1,682,191		4,426,374
	By geographical market:
	UK					1,682,191		4,426,374
3	Operating profit					2020		2019
£							£
	This is stated after charging:
	Depreciation of owned fixed assets					184,900		194,868
	Amortisation of goodwill					162,857		172,698
	Carrying amount of stock sold					174,245		479,908
4	Staff costs					2020		2019
£							£
	Wages and salaries					146,845		161,191
	Social security costs					21,194		15,685
	Other pension costs					-		-
						168,039		176,876
	Average number of employees during the year					Number	Number
						60		62
5	Interest payable					2020		2019
£							£
	Bank loans and overdrafts					118,173		115,701
	Other loans					194,585		192,150
	Finance charges payable under finance leases and hire purchase contracts					3,482		1,741
						316,240		309,592
6	Taxation					2020		2019
£							£
	Analysis of charge in period
	Current tax:
	UK corporation tax on profits of the period					-		14,446
	Tax on profit on ordinary activities					-		14,446
	Factors affecting tax charge for period
	The differences between the tax assessed for the period and the standard rate of corporation tax are explained as follows:
						2020		2019
£							£
	Loss on ordinary activities before tax					(1,071,784)		(158,083)
	Standard rate of corporation tax in the UK					19%		19%
£							£
	Profit on ordinary activities multiplied by the standard rate of corporation tax					(203,639)		(30,036)
	Effects of:
	Expenses not deductible for tax purposes					203,639		44,482
	Current tax charge for period					-		14,446
7	Government Grant
	The group received £393,299 during the year under the Job Retention Scheme from the government which has recognised as government grant income. The grant has been recognised as other income in the financial statements.
8	Intangible fixed assets							£
	Goodwill:
	Cost
	At 1 January 2020							1,726,973
	Additions							-
	Disposals							(98,400)
	At 31 December 2020							1,628,573
	Amortisation
	At 1 January 2020							583,486
	Provided during the year							162,857
	At 31 December 2020							746,343
	Carrying amount
	At 31 December 2020							882,230
	At 31 December 2019							1,143,487
	Goodwill is being written off in equal annual instalments over its estimated economic life of 10 years.
9	Tangible fixed assets
		Land and buildings		Plant and machinery		Fixtures, fittings, tools and equipment		Total
		At cost		At cost		At cost
£			£		£		£
	Cost or valuation
	At 1 January 2020	6,343,707		620,035		1,174,449		8,138,191
	Additions	477,763		-		105,842		583,605
	At 31 December 2020	6,821,470		620,035		1,280,291		8,721,796
	Depreciation
	At 1 January 2020	292,338		599,108		691,723		1,583,169
	Charge for the year	82,996		9,075		92,829		184,900
	At 31 December 2020	375,334		608,183		784,552		1,768,069
	Carrying amount
	At 31 December 2020	6,446,136		11,852		495,739		6,953,727
	At 31 December 2019	6,051,369		20,927		482,726		6,555,022
10	Investments
	Subsidiary undertaking
	The following was a subsidiary undertaking of the company:
	Name	Class of shares		Holding				Principle activity
Operation of
Chilworth Manor,
as a hotel,
conference and
	Chilworth Manor Ltd	Ordinary		100%	Leisure centre.
£
	Cost
	At 1 January 2019							6,377,580
	Additions							-
	Revaluation							-
	Disposals							98,400
	At 31 December 2020							6,279,180
11	Stocks	Group	Group		Company		Company
		2020		2019		2020		2019
£			£		£		£
	Finished goods and goods for resale	14,857		35,783		-		-
12	Debtors	Group	Group		Company		Company
		2020		2019		2020		2019
£			£		£		£
	Trade debtors	(20,232)		108,423		-		5131
	Other debtors	88,224		80,980		-		-
	Prepayments and accrued income	113,520		110,173		-		-
		181,512		299,576		-		5,131
13	Creditors: amounts falling due within one year	Group	Group		Company		Company
		2020		2019		2020		2019
£			£		£		£
	Bank overdrafts	-		11,459
	Bank loans	175,000		87,500
	Obligations under finance lease and hire purchase contracts	17,350		17,350
	Trade creditors	205,373		253,002		5,400		103,800
	Frank Truman Ltd	-		12,856
	Wages Control A/C	-		1,636
	Intercompany loans	107,500		-
	Corporation tax	37,430		49,189
	Other taxes and social security costs	207,934		243,709		12,667
	Other creditors	322,947		248,438				(928)
	Accruals and deferred income	291,140		207,831		4,500		4,500
		1,364,674		1,132,970		22,567		107,372
14	Creditors: amounts falling due after one year	Group	Group		Company		Company
		2020		2019		2020		2019
£			£		£		£
	Bank loans	3,647,500		3,237,500		-		-
	Other loans	2,135,000		2,135,000
	Obligations under finance lease and hire purchase contracts	43,399		60,755		-		-
	Rosebury Capital	1,517,260		936,531		1,517,260		936,531
		7,343,159		6,369,786		1,517,260		936,531
	Within one year	17,350		17,350		-		-
	Within two to five years	43,399		60,755		-		-
		60,749		78,105		-		-
15	Deferred taxation					2020		2019
£							£
	Accelerated capital allowances					318,573		318,573
						2020		2019
£							£
	At 1 January					318,573		318,573
	At 31 December					318,573		318,573
16	Share capital	Nominal		2020		2020		2019
value			Number		£		£
	Allotted, called up and fully paid:
	Ordinary shares	£1 each		100		100		100
17	Other reserves					2020		2019
	Revaluation reserve					£	£
	At 1 January					375,756		375,756
	At 31 December					375,756		375,756
	The revaluation reserve represents the revaluation of the land and buildings fixed assets. The revaluation was completed in 2014.
18	Profit and loss account					2020		2019
£							£
	At 1 January					(143,767)		28,762
	Loss for the financial year					(1,071,784)		(172,529)
	At 31 December					(1,215,551)		(143,767)
19	Related party transactions
	The group has taken advantage of the exemption in the reduced disclosure framework of FRS102 in relation to disclosing transactions with wholly owned members group members. During the year the group made purchases of £76,323 (2019 - £146,038) from Legacy Hotels and Resorts Limited, a company with common directors. At the year end £25,033 (2019 - £36,928) was owed to that company. During the year the group incurred interest payable of £192,150 (2019 - £192,150) to Benson Securities Limited, a company with common directors. At the year end, the group owed to Frank Truman Ltd, a company with common directors, £Nil (2019: £12,856). At the year end, the group owed to Castle Green Kendal Ltd, a company with common directors, £69,000 (2019: Nil). At the year end, the group owed to Trade Bond Limited, a company with common directors, £24,500 (2019: Nil). At the year end, the group owed to The Angel Hotel Limited, a company with common directors, £14,000 (2019: £Nil). At the year end, the group owed £2,135,000 (2019: £2,135,000) in terms of loan to Benson Securities Ltd, a company with common directors. At the year end, the group owed £1,517,260 (2019:£936,531) to Rosebury Capital Limited, the ultimate parent of the group.
20	Controlling party
	The parent of Falcon Hotels Ltd is Rosebury Capital Ltd, a company resident in the British Virgin Islands.
21	Presentation currency
	The financial statements are presented in Sterling.
22	Legal form of entity and country of incorporation
	Falcon Hotels Ltd is a private company limited by shares and incorporated in England ans Wales.
23	Principal place of business
	The address of the company's principal place of business and registered office is: Kirkland House, 11-15 Peterbrough Road Harrow, HA1 2AX