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Registered number: 03252288
ROWTON HALL HOTEL LIMITED
FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 1 OCTOBER 2020
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ROWTON HALL HOTEL LIMITED
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COMPANY INFORMATION
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Chartered Accountants & Statutory Auditors
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ROWTON HALL HOTEL LIMITED
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CONTENTS
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Independent auditors' report
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Statement of comprehensive income
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Statement of financial position
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Statement of changes in equity
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Notes to the financial statements
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ROWTON HALL HOTEL LIMITED
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STRATEGIC REPORT
FOR THE PERIOD ENDED 1 OCTOBER 2020
The company operates one hotel, Rowton Hall, two miles from the centre of Chester.
The Company loss for the period, before corporation tax and deferred tax movement was £377,198. The turnover for the year was £1,365,106.
Business performance in the year was devastated by the Covid 19 pandemic. Quarter 1 showed promising signs of recovery in trading following the extensive reparations of the previous year and management’s brand building efforts. However, in March 2020 the business was closed in common with most of UK industry as the pandemic took hold.
The business benefitted from Government measures introduced at the time – Business Rates were suspended, a staff furlough scheme was put into effect and VAT repayment cycles were extended. In July 2020 the business took a £50,000 “Bounce Back” loan from its bankers – Santander.
The economy opened up again in August and September. Trading over that period was extremely strong helped by the pent -up demand of the public for “staycation” holidays and the Government “ Eat Out” scheme. The Government had also reduced VAT on food and soft drinks which increased profitability in those months. During the year every effort was made to reduce costs. Consequently there were no new capital spends.
Nonetheless given the stop/start nature of trading during the year a financial loss was inevitable.
Principal risks and uncertainties
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There is still the possibility of trading hiccups caused by localised virus outbreaks or by restrictions to trading, imposed by Government, continuing longer than first thought. Shortages of staff and increasing costs are the other key risks the business faces going forward.
Financial key performance indicators
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The sustainability of the company will be determined significantly by the ability to continue to grow revenues in excess of its costs. Therefore, the level of sales and year on year growth, are key performance indicators (KPIs)
This report was approved by the board on 15 September 2021 and signed on its behalf.
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ROWTON HALL HOTEL LIMITED
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DIRECTORS' REPORT
FOR THE PERIOD ENDED 1 OCTOBER 2020
The directors present their report and the financial statements for the period ended 1 October 2020.
The directors who served during the period were:
The loss for the period, after taxation, amounted to £336,042 (2019 - loss £374,396).
Directors' responsibilities statement
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The directors are responsible for preparing the Strategic report, the 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 of the profit or loss of the company for that period.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the company's financial statements 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 to 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.
There are no plans which will significantly change the activities and risks of the company.
Qualifying third party indemnity provisions
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The Group has granted an indemnity to the directors against liability in respect of proceedings brought by third parties, subject to the conditions set out in the Companies Act 2006. Such qualifying third party indemnity provision remains in force as at the date of approving the directors' report.
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ROWTON HALL HOTEL LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE PERIOD ENDED 1 OCTOBER 2020
Disclosure of information to auditors
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Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
∙so far as the director is aware, there is no relevant audit information of which the company's auditors are unaware, and
∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the company's auditors are aware of that information.
Please refer to note 26 in the financial statements.
Sopher + Co LLP will be deemed to have been reappointed as auditors 28 days after these financial statements were sent to members or 28 days after the latest date prescribed for filing the accounts with the registrar, whichever is earlier.
This report was approved by the board on 15 September 2021 and signed on its behalf.
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ROWTON HALL HOTEL LIMITED
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INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ROWTON HALL HOTEL LIMITED
We have audited the financial statements of Rowton Hall Hotel Limited (the 'company') for the period ended 1 October 2020, which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of cash flows, the Statement of changes in equity 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 Financial Reporting Standard 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 1 October 2020 and of its loss for the period then ended;
∙have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
∙have been prepared in accordance with the requirements of the Companies Act 2006.
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 Auditors' 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 United Kingdom, including the Financial Reporting Council'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.
Material uncertainty related to going concern
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We draw attention to note 2.2 in the financial statements concerning the company's ability to continue as a going concern. The company made a loss for the financial period and at the reporting date it has net current liabilities. These conditions, along with the matters explained in note 2.2, indicate that a material uncertainty exists that may cast significant doubt on the company's ability to continue as a going concern. Our opinion is not modified in respect of this matter.
The directors are responsible for the other information. The other information comprises the information included in the Annual Report, other than the financial statements and our Auditors' report thereon. 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.
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ROWTON HALL HOTEL LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ROWTON HALL HOTEL LIMITED (CONTINUED)
Opinion on other matters prescribed by the Companies Act 2006
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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 period 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
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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
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As explained more fully in the Directors' responsibilities statement set out on page 2, 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.
Auditors' responsibilities for the audit of the financial statements
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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 Auditors' 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.
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 Auditors' report.
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ROWTON HALL HOTEL LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF ROWTON HALL HOTEL LIMITED (CONTINUED)
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 Auditors' 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.
Martyn Atkinson FCA (Senior statutory auditor)
for and on behalf of
Sopher + Co LLP
Chartered Accountants
Statutory Auditors
5 Elstree Gate
Elstree Way
Borehamwood
Hertfordshire
WD6 1JD
15 September 2021
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ROWTON HALL HOTEL LIMITED
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STATEMENT OF COMPREHENSIVE INCOME
FOR THE PERIOD ENDED 1 OCTOBER 2020
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Period ended 1 October 2020
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Period ended 26 September 2019
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Interest payable and similar expenses
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Loss for the financial period
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Other comprehensive income for the period
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Deferred tax on revaluation of land and buildings
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Total comprehensive income for the period
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The notes on pages 12 to 27 form part of these financial statements.
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ROWTON HALL HOTEL LIMITED
REGISTERED NUMBER:03252288
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STATEMENT OF FINANCIAL POSITION
AS AT 1 OCTOBER 2020
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Debtors: amounts falling due within one year
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Creditors: amounts falling due within one year
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Total assets less current liabilities
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Creditors: amounts falling due after more than one year
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Provisions for liabilities
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Capital redemption reserve
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The financial statements were approved and authorised for issue by the board and were signed on its behalf on 15 September 2021.
The notes on pages 12 to 27 form part of these financial statements.
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ROWTON HALL HOTEL LIMITED
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STATEMENT OF CHANGES IN EQUITY
FOR THE PERIOD ENDED 1 OCTOBER 2020
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Capital redemption reserve
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Deferred tax movement on property valuation
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Difference between historical cost depreciation charge and the actual depreciation charge for the period calculated ont he revalued amount
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Deferred tax movement on property valuation
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Difference between historical cost depreciation charge and the actual depreciation charge for the period calculated on the revalued amount
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The notes on pages 12 to 27 form part of these financial statements.
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ROWTON HALL HOTEL LIMITED
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STATEMENT OF CASH FLOWS
FOR THE PERIOD ENDED 1 OCTOBER 2020
Cash flows from operating activities
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Loss for the financial period
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Depreciation of tangible assets
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Loss on disposal of tangible assets
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Decrease/(increase) in stocks
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Decrease/(increase) in debtors
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Increase in amounts owed to groups
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Net cash (used in)/generated from operating activities
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Cash flows from investing activities
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Purchase of tangible fixed assets
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Sale of tangible fixed assets
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Government grants received
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Net cash from/(for) investing activities
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ROWTON HALL HOTEL LIMITED
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STATEMENT OF CASH FLOWS (CONTINUED)
FOR THE PERIOD ENDED 1 OCTOBER 2020
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Cash flows from financing activities
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Repayment of/new finance leases
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Net cash generated from/(used in) financing activities
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Net increase in cash and cash equivalents
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Cash and cash equivalents at beginning of period
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Cash and cash equivalents at the end of period
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Cash and cash equivalents at the end of period comprise:
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The notes on pages 12 to 27 form part of these financial statements.
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ROWTON HALL HOTEL LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 1 OCTOBER 2020
Rowton Hall Hotel Limited is a private limited liability company registered in England and Wales. Its registered office address is at No. 1 London Bridge, London, SE1 9BG and its business address is at Rowton Hall Hotel and Spa, Rowton Lane, Chester, CH3 6AD.
The principal activity of the company during the period was that of a hotel operator.
The company's functional and presentational currency is £ Sterling.
2.Accounting policies
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Basis of preparation of financial statements
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The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the company's accounting policies (see note 3).
The following principal accounting policies have been applied:
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ROWTON HALL HOTEL LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 1 OCTOBER 2020
2.Accounting policies (continued)
The budget set for the year 2019/20 showed a break even position for the Company. The first quarter of the financial year was above budget. The Directors had every reason to believe the full year budget would be achieved. The outbreak of Covid -19 and the cessation of business in March that followed the outbreak will result in a trading loss for 2020/21.The pandemic is unprecedented and has serious consequences for the UK economy as a whole.
Trading could not recommence until late July 2020. August and September were strong trading months though insufficient to make the Company profitable for the year. The Company took advantage of Government furlough schemes, business rates relief, VAT relief, staged payments of VAT agreed by HMRC and received a loan of £50,000 from Santander Bank. Some of the reliefs received will continue into the financial year 2021/22.
The full impact of Covid-19 is not quantifiable at this point in time. The Government vaccination programme has brought the pandemic under control though it remains possible that sporadic outbreaks of the virus could hamper trading recovery. Trading in the early part of 2019/20 was interrupted by Government interventions to control the spread of the virus. Trading only recommenced fully, on a staged basis, from April 2021.
Since April 2021 trading has been extremely strong though it will not be enough to bring the business into profit for the financial year 2020/21. Forecasts for business in the following year are promising as the trading environment looks to normalize. Brand recognition of the hotel has improved considerably and most reparations at the hotel have been completed. There are plans to add in four new bedrooms in early 2021/22.
The immediate parent has confirmed that it will financially support the Company as and when required for the foreseeable future.
After considering all the above the directors believe that the Company will have sufficient funds to be able to meet its financial obligations as and when they arise for at least twelve months from the date of these accounts. Based on this assumption the financial statements have been prepared on a going concern basis.
Turnover comprises revenue recognised by the company in respect of goods and services supplied during the period, exclusive of Value Added Tax and trade discounts.
Turnover consists mainly of room rentals, conferences and banqueting, food and beverage sales. Revenue is recognised when rooms are occupied, conferences and banqueting events take place and food and beverages are sold.
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Leased assets: the company as lessee
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Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.
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ROWTON HALL HOTEL LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 1 OCTOBER 2020
2.Accounting policies (continued)
Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.
Grants of a revenue nature are recognised in the Statement of comprehensive income in the same period as the related expenditure.
Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.
At each reporting date the company assesses whether there is any indication of impairment. If such indication exists, the recoverable amount of the asset is determined which is the higher of its fair value less costs to sell and its value in use. An impairment loss is recognised where the carrying amount exceeds the recoverable amount.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, on the following basis:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the Statement of comprehensive income.
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Revaluation of tangible fixed assets
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Individual freehold properties are carried at the revalued amount less any accumulated depreciation and accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from fair value.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.
Revaluation gains and losses are recognised in other comprehensive income and accumulated in equity.
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ROWTON HALL HOTEL LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 1 OCTOBER 2020
2.Accounting policies (continued)
Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving items.
At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the Statement of Comprehensive Income.
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Basic financial instruments
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The company only enters into transactions that result in basic financial instruments such as trade and other debtors, trade and other creditors, cash and cash equivalents, and loans with related parties.
Trade debtors, other debtors and loans to related parties are recognised initially at the transaction price less attributable transaction costs. Trade creditors, other creditors and loans from related parties are recognised initially at transaction price plus attributable transaction costs. Subsequent to initial recognition they are measured at amortised cost using the effective interest method, less any impairment losses in the case of trade debtors, other debtors and loans to related parties.
Interest bearing borrowings classified as basic financial instruments are recognised initially at the present value of future payments discounted at a market rate of interest. Subsequent to initial recognition, they are stated at amortised cost using the effective interest method.
Cash and cash equivalents comprise cash balances, call deposits and bank overdrafts that are repayable on demand and form an integral part of the company's cash management.
The company contributes to a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the company pays fixed contributions into a separate entity. Once the contributions have been paid the company has no further payment obligations.
The contributions are recognised as an expense in the Statement of comprehensive income when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the company in independently administered funds.
A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the Statement of financial position date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the Statement of financial position date.
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ROWTON HALL HOTEL LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 1 OCTOBER 2020
2.Accounting policies (continued)
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Current and deferred taxation
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The tax expense for the period comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
1) The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
2) Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
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ROWTON HALL HOTEL LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 1 OCTOBER 2020
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Judgments in applying accounting policies and key sources of estimation uncertainty
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In the application of accounting policies management is required to make judgments, estimates and assumptions about the carrying values of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
The critical judgments made by management and sources of estimation uncertainty that have a significant effect on the amounts recognised in the financial statements are described below.
a) Determining whether there are indicators of impairment of company's tangible assets. Factors taken into consideration include the economic viability and expected future financial performance of the assets. 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 and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and estimated disposal values.
b) Determining whether the fair values of the freehold property is materially different from the carrying value. The directors consider changes in property market conditions and any known changes in the local market values where the properties are located in determining whether a formal revaluation is required. As a policy the company will undertake professional valuation of all properties with sufficient regularity to ensure that the carrying amount does not differ materially from their fair values.
The directors acknowledge that these are uncertain times and the Company is operating under abnormal market conditions. Since the gradual lifting of restrictions the Company has seen bookings increase and, assuming no further restrictions, anticipate trading to go back to pre-Covid levels. There is no intention to sell and the property will be used as a fully equipped operational hotel for the foreseeable future. After having regards to all the relevant factors, the directors are of the opinion that the value in use of the property is not materially different from their book value.
In the opinion of the directors, the analysis of turnover by class of business would be seriously prejudicial to the interests of the company.
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All turnover arose within the United Kingdom.
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Government grants receivable
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ROWTON HALL HOTEL LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 1 OCTOBER 2020
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The operating loss is stated after charging:
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Period ended 1 October 2020
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Period ended 26 September 2019
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Depreciation of tangible fixed assets
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Defined pension contributions
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The audit fee is borne by the parent company Anderbury Limited.
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Staff costs were as follows:
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Period ended 1 October 2020
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Period ended 26 September 2019
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Cost of defined contribution scheme
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The average monthly number of employees, including the directors, during the period was as follows:
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Period ended 1 October 2020
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Period ended 26 September 2019
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ROWTON HALL HOTEL LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 1 OCTOBER 2020
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Interest payable and similar expenses
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Period ended 1 October 2020
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Period ended 26 September 2019
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Finance leases and hire purchase contracts
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Period ended 1 October 2020
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Period ended 26 September 2019
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Current tax on profits for the year
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Origination and reversal of timing differences
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Taxation on loss on ordinary activities
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ROWTON HALL HOTEL LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 1 OCTOBER 2020
10.Taxation (continued)
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Factors affecting tax charge for the period
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The tax assessed for the period is higher than (2019 - higher than) the standard rate of corporation tax in the UK of 19% (2019 - 19%). The differences are explained below:
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Period ended 1 October 2020
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Period ended 26 September 2019
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Loss on ordinary activities before tax
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Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 19% (2019 - 19%)
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Expenses not deductible for tax purposes
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Depreciation for the period in excess of capital allowances
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Other differences leading to an decrease in taxation
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Unrelieved tax losses carried forward
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Tax credit on property remediation
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Total tax charge for the period
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ROWTON HALL HOTEL LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 1 OCTOBER 2020
10.Taxation (continued)
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Factors that may affect future tax charges
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At the reporting date, the company had estimated tax losses of £1,119,282 (2019 - £713,683) available to carry forward and use against future taxable profits.
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Charge for the period on owned assets
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Charge for the period on financed assets
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ROWTON HALL HOTEL LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 1 OCTOBER 2020
11.Tangible fixed assets (continued)
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The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:
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Furniture, fittings and equipment
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The directors have reassessed the fair value of the property and improvements at the reporting date and in their opinion the fair value is not materially different from the net book value.
If the freehold property had not been included at valuation they would have been included under the historic cost convention, including the improvements, with a cost of £2,459,909 (2019 - £2,455,194) and accumulated depreciation of £1,123,698 (2019 - £1,075,649) resulting in a net asset value of £1,336,211 (2019 - £1,379,545).
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Finished goods and goods for resale
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Prepayments and accrued income
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ROWTON HALL HOTEL LIMITED
|
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 1 OCTOBER 2020
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Creditors: Amounts falling due within one year
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Amounts owed to group undertakings
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Other taxation and social security
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Obligations under finance lease and hire purchase contracts
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Accruals and deferred income
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Obligations under finance leases and hire purchase contracts are secured on the assets concerned.
The £50,000 unsecured bank loan is repayable by installments and will be fully satisfied on 15 June 2026. The interest rate on the loan during the period was 2.5%.
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Creditors: Amounts falling due after more than one year
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Net obligations under finance leases and hire purchase contracts
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Obligations under finance leases and hire purchase contracts are secured on the assets concerned.
The aggregate amount of liabilities repayable wholly or in part more than five years after the reporting date is disclosed in note 16.
The £50,000 unsecured bank loan is repayable by installments and will be fully satisfied on 15 June 2026. The interest rate on the loan during the period was 2.5%.
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ROWTON HALL HOTEL LIMITED
|
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 1 OCTOBER 2020
|
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Analysis of the maturity of loans is given below:
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Amounts falling due within one year
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Amounts falling due 1-2 years
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Amounts falling due 2-5 years
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Amounts falling due after more than 5 years
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Basic financial instruments
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The company only enters into transactions that result in the recognition of basic financial assets and basic financial liabilities. It does not have financial assets and liabilities measured at fair value.
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Minimum lease payments under finance leases fall due as follows:
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|
ROWTON HALL HOTEL LIMITED
|
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 1 OCTOBER 2020
|
|
|
|
|
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|
|
Deferred tax asset/(liability)
|
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Charged to other comprehensive income
|
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Charged to profit or loss
|
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The deferred taxation balance is made up as follows:
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Accelerated capital allowances
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Allotted, called up and fully paid
|
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807,929 (2019 - 807,929) Ordinary shares of £0.01 each
|
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|
ROWTON HALL HOTEL LIMITED
|
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 1 OCTOBER 2020
Share premium account
The share premium account represents the amounts received by the company from the issue of shares over and above the par value of the shares. It is net of transaction costs associated with the issuing of shares.
Revaluation reserve
The revaluation reserve represents the cumulative of revaluation gains and losses on the freehold property, net of deferred tax, at the reporting date.
Capital redemption reserve
The capital redemption reserve represents amounts following the repurchase by the company of its own shares. This is a non-distributable reserve.
Profit and loss account
The profit and loss reserve represents the cumulative balance of retained profits and losses since the company started trading. It is a distributable reserve.
The company contributes to a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension charges represent contributions payable by the company to the fund and amount to £11,517 (2019 - £13,648). £5,671 (2019 - £4,961) was due to the fund at the Statement of Financial Position date.
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|
ROWTON HALL HOTEL LIMITED
|
NOTES TO THE FINANCIAL STATEMENTS
FOR THE PERIOD ENDED 1 OCTOBER 2020
|
|
Related party transactions
|
|
|
The company is a wholly owned subsidiary of Anderbury Limited. It has taken advantage of the exemption available under FRS 102 and has not disclosed transactions with entities which are wholly owned within the group.
Key management personnel include the directors and key staff who together have authority and responsibility for planning, directing and controlling the activities of the company. The total compensation paid to key management personnel for services provided to the company was £82,073 (2019 - £55,166).
|
The immediate parent undertaking is Anderbury Limited, whose registered office is at No. 1 London Bridge, London, SE1 9BG. The ultimate parent undertaking is St George's Group of Hotels Limited, a company incorporated in the Turks and Caicos Islands.
The economic impact of Covid 19 has continued into the 2020/21 financial year. The first half of the year has seen several stops and starts to trading as Government restrictions were put in place to try to contain the spread of the virus. The hospitality industry was allowed to open up gradually from April 2021. Government support measures have remained in place including the provision of financial grants to mitigate to some extent the effect of periods of closure.
Now that the business is open bookings have grown strongly. The pent up demand for UK based holidays suggests the hotel will perform well in the period May to September 2021. This is despite the continuing restrictions on numbers that could attend functions up until 19 July 2021. But a financial loss for the year as a whole is again inevitable. Cash to continue the business has been provided by Anderbury Ltd whose shareholders have said they will provide funds to enable trading to continue.
|
