Brilliant Hospitality Management Ltd Filleted accounts for Companies House (small and micro)

BRILLIANT HOSPITALITY MANAGEMENT LTD - Company Information

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COMPANY REGISTRATION NUMBER: 08993851

Brilliant Hospitality Management Ltd

Filleted Unaudited Financial Statements

For the period ended

31 March 2020

Brilliant Hospitality Management Ltd

Financial Statements

Period from 1 May 2019 to 31 March 2020

Contents	Page

Officers and professional advisers	1

Statement of financial position	2

Notes to the financial statements	4

Brilliant Hospitality Management Ltd

Officers and Professional Advisers

Director	Mr Syed Abdul Anoob Saban

Registered office	Trafford Hall Hotel
	23 Talbot Road
	Old Trafford
	Manchester
	England
	M16 0PE

Accountants	Xaviers Accountants Limited
	Chartered Certified Accountants
	Suite 3O
	Recycling Lives Centre
	1A Essex Street
	Preston
	PR1 1QE

Brilliant Hospitality Management Ltd

Statement of Financial Position

31 March 2020

	31 Mar 20	30 Apr 19
Note	£	£

Fixed assets

Tangible assets	5	1,155,353	422

Current assets

Debtors	6	663,012	17,563
Cash at bank and in hand		433,703	1,226
		------------	--------
		1,096,715	18,789

Creditors: amounts falling due within one year	7	( 162,216)	( 615)
		------------	--------
Net current assets		934,499	18,174
		------------	--------
Total assets less current liabilities		2,089,852	18,596

Creditors: amounts falling due after more than one year	8	( 2,469,530)	–
		------------	--------
Net (liabilities)/assets		( 379,678)	18,596
		------------	--------

Capital and reserves

Called up share capital	100	100
Profit and loss account	( 379,778)	18,496
	---------	--------
Shareholders (deficit)/funds	( 379,678)	18,596
	---------	--------

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In accordance with section 444 of the Companies Act 2006, the statement of income and retained earnings has not been delivered.

For the period ending 31 March 2020 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Director's responsibilities:

- The members have not required the company to obtain an audit of its financial statements for the period in question in accordance with section 476 ;

- The director acknowledges his responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements .

Brilliant Hospitality Management Ltd

Statement of Financial Position (continued)

31 March 2020

These financial statements were approved by the board of directors and authorised for issue on 24 November 2021 , and are signed on behalf of the board by:

Mr Syed Abdul Anoob Saban
Director

Company registration number: 08993851

Brilliant Hospitality Management Ltd

Notes to the Financial Statements

Period from 1 May 2019 to 31 March 2020

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Trafford Hall Hotel, 23 Talbot Road, Old Trafford, Manchester, M16 0PE, England.

2. Statement of compliance

These financial statements have been prepared in compliance with Section 1A of FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Going concern

At the time of approving the financial statements, the director is unable to determine a realisable estimate of the full long-term impact of the coronavirus pandemic on the company's profitability, liquidity and financial position. The director is monitoring the situation and continues to evaluate the company's ability to continue to trade for the foreseeable future, this includes discussions with the company's suppliers, bankers and continued support from the group companies. Based on the directors' consideration of all relevant information, the director has a reasonable expectation that the company has adequate resources and will be able to continue as a going concern. Thus the director is satisfied to continue to adopt the going concern basis of accounting in preparing the financial statements.

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. Key sources of estimation uncertainty Hotel rooms leases It is the belief of the management of the group that the risks and rewards of the ownership do not pass to the lessees of the hotel rooms, as the group maintains control over the rooms operation, maintenance and insurance. In addition, the lessee receives fixed annual rental income and there is a fixed price for the Group to buyback the room in the future. As such the transaction is treated as an operating lease for the Group as lessor.

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.

Income tax

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised 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 that are expected to apply to the reversal of the timing difference.

Operating leases

Leases in which substantially all the risks and rewards of the ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit and loss on straight-line basis over the period of leases. The company leases hotel rooms to investors on a 150 year long leasehold basis. The company has a call option in place allowing them to buy back room at the original price plus an agreed increase. This can be exercised at any point in the first 5-year period. The investor has a put option on the same terms. The sale price of the room is kept on the balance sheet as a liability as the director expects the call option at year 5 to repurchase the rooms.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses.

Depreciation

Depreciation is calculated so as to write off the cost, less its residual value, over the useful economic life of that asset as follows:

Lease premium	-	Over 150 years
Plant and machinery	-	20% straight line
Fixtures, fittings and equipment	-	20% straight line

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.

Financial instruments

A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

4. Employee numbers

The average number of persons employed by the company during the period amounted to 3 (2019: 2 ).

5. Tangible assets

	Long leasehold property	Plant and machinery	Fixtures and fittings	Total
	£	£	£	£
Cost
At 1 May 2019	–	1,289	–	1,289
Additions	849,229	–	342,900	1,192,129
	---------	-------	---------	------------
At 31 March 2020	849,229	1,289	342,900	1,193,418
	---------	-------	---------	------------
Depreciation
At 1 May 2019	–	867	–	867
Charge for the period	2,831	77	34,290	37,198
	---------	-------	---------	------------
At 31 March 2020	2,831	944	34,290	38,065
	---------	-------	---------	------------
Carrying amount
At 31 March 2020	846,398	345	308,610	1,155,353
	---------	-------	---------	------------
At 30 April 2019	–	422	–	422
	---------	-------	---------	------------

6. Debtors

	31 Mar 20	30 Apr 19
	£	£
Trade debtors	51,219	8,019
Amounts owed by group undertakings and undertakings in which the company has a participating interest	169,601	–
Other debtors	442,192	9,544
	---------	--------
	663,012	17,563
	---------	--------

7. Creditors: amounts falling due within one year

	31 Mar 20	30 Apr 19
	£	£
Trade creditors	127,258	–
Corporation tax	615	615
Social security and other taxes	2,868	–
Other creditors	31,475	–
	---------	----
	162,216	615
	---------	----

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

	31 Mar 20	30 Apr 19
	£	£
Other creditors	2,469,530	–
	------------	----

Other creditors relate to funds raised from the sale of hotel rooms via long lease. Management expect that the loans will be repaid over a 5-year term. The loans are secured by legal title over the assets to which they relate. Rooms are rented from investors at 10% of selling price per annum by Kent Hotels Limited and a agreed premium of selling price is repayable at the end of the term by the company. Kent Hotels Limited and Brilliant Hospitality Management Limited are wholly owned subsidiaries of Kent Hotels Holdings Limited.

9. Operating leases

The total future minimum lease payments under non-cancellable operating leases are as follows:

	31 Mar 20	30 Apr 19
	£	£
Not later than 1 year	144,000	–
Later than 1 year and not later than 5 years	576,000	–
Later than 5 years	20,736,000	–
	-------------	----
	21,456,000	–
	-------------	----

10. Events after the end of the reporting period

On 23rd March 2020, the UK entered a government imposed lockdown to prevent further spread of the coronavirus and the hospitality sector is forced to come to a virtual standstill. Whilst these events started to occur within the financial year, the impact within the period has been minimal due to such government measures being imposed within the final week of trade, although it may have severely impacted the company's business after year end. The company has utilised government support measures in place, namely the furloughing of the majority of staff members. At the time of approving the financial statements, the director is unable to determine a realisable estimate of the full long-term impact of the Corona virus pandemic on the company's profitability, liquidity and financial position. Based on the director's consideration of all relevant information, the director has a reasonable expectation that the company will be able to continue as a going concern.

11. Related party transactions

As a subsidiary undertaking of Kent Hotels Holdings Limited, the company has taken advantage of exemption in section 33 of FRS 102, from disclosing transactions with the other wholly owned subsidiaries of Kent Hotels Holdings Limited. Amounts due to and due from the group undertakings are interest free, repayable on demand and unsecured. The director has given personal guarantees in respect of specific credit arrangements. During the year the company paid consultancy charges amounting to £22,000 (2019: £nil) to the director. Included within creditors due within one year is a balance of director's current account of £1,902 (2019:£nil). The balance to the director is unsecured, interest free and repayable on demand.

12. Controlling party

Brilliant Hospitality Management Ltd is wholly owned subsidiary of Kent Hotels Holdings Limited, a company incorporated in England and Wales. The ultimate controlling party is Mr Syed Abdul Anoob Saban , who owns entire share capital in Kent Hotels Holdings Limited.