Here For You Hospitality Limited - Limited company accounts 20.1

REGISTERED NUMBER: 06026014 (England and Wales)

HERE FOR YOU HOSPITALITY LIMITED

GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2020

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Consolidated Income Statement

9

Consolidated Other Comprehensive Income

10

Consolidated Statement of Financial Position

11

Company Statement of Financial Position

12

Consolidated Statement of Changes in Equity

13

Company Statement of Changes in Equity

14

Consolidated Statement of Cash Flows

15

Notes to the Consolidated Statement of Cash Flows

16

Notes to the Consolidated Financial Statements

17

DIRECTORS:

M Ashdown

P M Raven

REGISTERED OFFICE:

Unit 11, Lowton Business Park

Newton Road

Lowton St Mary's

Warrington

WA3 2AP

REGISTERED NUMBER:

06026014 (England and Wales)

AUDITORS:

DTE Business Advisers Limited

Chartered Accountants

Statutory Auditors

The Exchange

5 Bank Street

Bury

BL9 0DN

The directors present their strategic report of the company and the group for the year ended 31 December 2020.

Review of business

The year ended 31 December 2020 has been, as it has for all areas of hospitality, extremely challenging due to the COVID-19 pandemic. All UK hotels and pubs have suffered significant loss of business due to the various lockdowns, and Here For You Hospitality Limited has been no different. However, where possible, the directors and senior management have tried to continue trading, including using the hotels to support local vulnerable people and certain NHS workers. From the summer of 2021, since partial lifting of restrictions the position has started to improve and the hotels are operating fully and now returning a profit.

During the year, as well as dealing with the pandemic, the group has also continued its policy to focus on building on its strategy of trading profitable parts of the business while looking to dispose of non-core operations. Group turnover was £2,612,820 (2019: £4,617,081) a decrease of £2,004,261 over the previous year. As set out above this was caused by the pandemic.Where appropriate the group has taken advantage of the government furlough grants for employees unable to work.

The group has experienced a challenging year of trading and the reported gross profit margin dropped from 16.7% to a gross loss margin of 6.0%. However, this is not considered a true picture by the directors, due to the fact that as required by UK reporting, the furlough money from the government is shown as other income, whereas salary costs are accounted for in cost of sales. This does not necessarily show the underlying performance and if these furlough receipts had been netted off against costs the margin would have been 9.7% rather than as shown above.

The COVID-19 pandemic developed rapidly during 2020 and has continued throughout 2021, and at the time of writing this report, both the UK and the world are still facing huge challenges fighting the pandemic and the economic uncertainty that has been created.

The directors continue to consider the impact of the COVID-19 pandemic and while they recognise that they cannot be expected to predict what will happen in the future with COVID-19, the directors have taken all possible steps to mitigate any risks created as a result of this. They also believe that steps they are taking at the locations will ensure that in 2022 the performance bounces back strongly.

Like all companies within the hospitality sector the group has suffered during 2020 from the COVID-19 pandemic, but by looking after staff and customers ensuring they can operate in a safe environment has been key. Where possible the group have stayed operating while ensuring a safe working relationship for staff and customers. The Group closely monitors any change to Government guidelines and ensures that they are communicated to relevant staff and acted on.

Future developments

The directors believe that the quality of offering in certain locations will help mitigate the competition in its local market place, and enable the group to maintain its performance in what continues to be tough market conditions. That being said the directors will continue to look to dispose of underperforming sites at market values. At the end of 2020 contract negotiations were ongoing for the sale of one of the hotel sites.

Financial risk management

The group has no hire purchase contracts in place at the end of the year.

The group liquidity risk relates to its ability to fund its day to day operations which it does using a combination of parent company borrowing and private equity finance.

Key performance indicators

The business continues to manage and maintain its internal control mechanisms and uses standard indicators in its management of business performance. Management has placed particular focus on the group's regulatory compliance and health & safety, and this has been supported by third party specialists.

ON BEHALF OF THE BOARD:

P M Raven - Director

13 December 2021

The directors present their report with the financial statements of the company and the group for the year ended 31 December 2020.

PRINCIPAL ACTIVITY

The principal activities of the group and company in the year under review were those of running hotels, restaurants, pubs and leisure facilities.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2020.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2020 to the date of this report.

M Ashdown

P M Raven

DISCLOSURE IN THE STRATEGIC REPORT

Identification of the information for which the company has chosen, in accordance with s414C(11) of the Companies Act, to set out in the company's strategic report which would otherwise be required by Schedule 7 of the 'Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008' to be contained in the directors' report.

DIRECTORS' RESPONSIBILITIES STATEMENT

The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), 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 the group and of the profit or loss of 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 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director 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 auditors are aware of that information.

AUDITORS

DTE Business Advisers Limited has indicated its willingness to be reappointed for another term and appropriate arrangements are being made for them to be reappointed as auditor in the absence of an Annual General Meeting.

ON BEHALF OF THE BOARD:

P M Raven - Director

13 December 2021

Opinion

We have audited the financial statements of Here For You Hospitality Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2020 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, Notes to the Financial Statements, 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 group's and of the parent company affairs as at 31 December 2020 and of the group's loss for the year 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.

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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 group's and the parent 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 directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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 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 Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Directors 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company 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 set out on page four, 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 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 group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so.

Auditors' 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 a Report of the Auditors 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:

As part of our planning process:

- We enquired of management the systems and controls the group has in place, the areas of the financial statements that are mostly susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud. The group did not inform us of any known, suspected or alleged fraud.

- We obtained an understanding of the legal and regulatory frameworks applicable to the group. We determined that the following were most relevant: FRS 102, Companies Act 2006, Health & Safety at Work 1974, Employment Act 2008, Food Safety Act 1990, Licensing Act 2003, Gaming Act 2005 and GDPR.

- We considered the incentives and opportunities that exist in the group, including the extent of management bias, which present a potential for irregularities and fraud to be perpetuated, and tailored our risk assessment accordingly.

- Using our knowledge of the company, together with the discussions held with the company at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment.

The key procedures we undertook to detect irregularities including fraud during the course of the audit included:

- Identifying and testing journal entries, in particular those that were significant and unusual.

- Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied.

- Reviewing and challenging the assumptions and judgements used by management in their significant accounting estimates, in particular in relation to the valuation of freehold property and the calculation of depreciation on fixed assets.

- Assessing the extent of compliance, or lack of, with the relevant laws and regulations in particular those that are central to the entities ability to continue in operation.

- Testing key revenue lines, in particular cut-off, for evidence of management bias.

- Testing cash sales to ensure the risk of cash misappropriation is minimised.

- Obtaining third-party confirmation of material bank and loan balances.

- Documenting and verifying all significant related party and consolidated balances and transactions.

- Testing all material consolidation adjustments.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have properly planned and performed our audit in accordance with auditing standards. The primary responsibility for the prevention and detection of irregularities and fraud rests with the directors.

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 Report of the Auditors.

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 a Report of the Auditors 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.

Richard Taylor (Senior Statutory Auditor)

for and on behalf of DTE Business Advisers Limited

Chartered Accountants

Statutory Auditors

The Exchange

5 Bank Street

Bury

BL9 0DN

13 December 2021

REVENUE

3

2,612,820

4,617,081

Cost of sales

(2,770,091

)

(3,844,540

)

GROSS (LOSS)/PROFIT

(157,271

)

772,541

Administrative expenses

(728,435

)

(940,378

)

(885,706

)

(167,837

)

Other operating income

4

488,866

1,333

OPERATING LOSS

6

(396,840

)

(166,504

)

Interest receivable and similar income

4

10

(396,836

)

(166,494

)

Interest payable and similar expenses

7

(88,527

)

(103,270

)

LOSS BEFORE TAXATION

(485,363

)

(269,764

)

Tax on loss

8

39,149

-

LOSS FOR THE FINANCIAL YEAR

(446,214

)

(269,764

)

Loss attributable to:

Owners of the parent

(446,214

)

(269,764

)

LOSS FOR THE YEAR

(446,214

)

(269,764

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE LOSS FOR THE YEAR

(446,214

)

(269,764

)

Total comprehensive income attributable to:

Owners of the parent

(446,214

)

(269,764

)

FIXED ASSETS

Property, plant and equipment

10

12,330,011

12,309,585

Investments

11

-

-

12,330,011

12,309,585

CURRENT ASSETS

Inventories

12

28,163

47,439

Debtors

13

444,386

441,385

Cash at bank and in hand

63,906

187,744

536,455

676,568

CREDITORS

Amounts falling due within one year

14

(4,056,623

)

(3,560,379

)

NET CURRENT LIABILITIES

(3,520,168

)

(2,883,811

)

TOTAL ASSETS LESS CURRENT LIABILITIES

8,809,843

9,425,774

CREDITORS

Amounts falling due after more than one year

15

(6,280,423

)

(6,450,140

)

NET ASSETS

2,529,420

2,975,634

CAPITAL AND RESERVES

Called up share capital

18

1,443

1,443

Share premium

19

3,402,892

3,402,892

Other reserves

19

1,570,253

1,570,253

Retained earnings

19

(2,445,168

)

(1,998,954

)

SHAREHOLDERS' FUNDS

2,529,420

2,975,634

The financial statements were approved by the Board of Directors and authorised for issue on 13 December 2021 and were signed on its behalf by:

P M Raven - Director

FIXED ASSETS

Property, plant and equipment

10

3,939,034

3,929,105

Investments

11

102

102

3,939,136

3,929,207

CURRENT ASSETS

Inventories

12

19,130

33,024

Debtors

13

9,538,136

9,509,693

Cash at bank and in hand

43,977

79,653

9,601,243

9,622,370

CREDITORS

Amounts falling due within one year

14

(3,623,726

)

(3,198,472

)

NET CURRENT ASSETS

5,977,517

6,423,898

TOTAL ASSETS LESS CURRENT LIABILITIES

9,916,653

10,353,105

CREDITORS

Amounts falling due after more than one year

15

(6,280,423

)

(6,450,140

)

NET ASSETS

3,636,230

3,902,965

CAPITAL AND RESERVES

Called up share capital

18

1,443

1,443

Share premium

19

3,402,892

3,402,892

Retained earnings

19

231,895

498,630

SHAREHOLDERS' FUNDS

3,636,230

3,902,965

Company's loss for the financial year

(266,735

)

(220,531

)

The financial statements were approved by the Board of Directors and authorised for issue on 13 December 2021 and were signed on its behalf by:

P M Raven - Director

Called up

share

Retained

Share

Other

Total

capital

earnings

premium

reserves

equity

£

£

£

£

£

Balance at 1 January 2019

1,443

(1,729,190

)

3,402,892

1,570,253

3,245,398

Changes in equity

Total comprehensive loss

-

(269,764

)

-

-

(269,764

)

Balance at 31 December 2019

1,443

(1,998,954

)

3,402,892

1,570,253

2,975,634

Changes in equity

Total comprehensive loss

-

(446,214

)

-

-

(446,214

)

Balance at 31 December 2020

1,443

(2,445,168

)

3,402,892

1,570,253

2,529,420

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 January 2019

1,443

719,161

3,402,892

4,123,496

Changes in equity

Total comprehensive loss

-

(220,531

)

-

(220,531

)

Balance at 31 December 2019

1,443

498,630

3,402,892

3,902,965

Changes in equity

Total comprehensive loss

-

(266,735

)

-

(266,735

)

Balance at 31 December 2020

1,443

231,895

3,402,892

3,636,230

Cash flows from operating activities

Cash generated from operations

1

54,990

(51,046

)

Interest paid

(88,527

)

(103,270

)

Tax paid

-

(19,742

)

Government grants received

484,866

-

Net cash from operating activities

451,329

(174,058

)

Cash flows from investing activities

Purchase of tangible fixed assets

(44,121

)

(26,673

)

Sale of tangible fixed assets

-

175,700

Interest received

4

10

Net cash from investing activities

(44,117

)

149,037

Cash flows from financing activities

New loans in year

150,000

2,025,988

Loan repayments in year

(681,050

)

(2,106,216

)

Net cash from financing activities

(531,050

)

(80,228

)

Decrease in cash and cash equivalents

(123,838

)

(105,249

)

Cash and cash equivalents at beginning of year

2

187,744

292,993

Cash and cash equivalents at end of year

2

63,906

187,744

1.	RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2020

2019

£

£

Loss before taxation

(485,363

)

(269,764

)

Depreciation charges

23,695

119,121

Profit on disposal of fixed assets

-

(5,700

)

Government grants

(484,866

)

-

Finance costs

88,527

103,270

Finance income

(4

)

(10

)

(858,011

)

(53,083

)

Decrease/(increase) in inventories

19,276

(3,171

)

Decrease in trade and other debtors

16,659

39,482

Increase/(decrease) in trade and other creditors

877,066

(34,274

)

Cash generated from operations

54,990

(51,046

)

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 December 2020

31.12.20

1.1.20

£

£

Cash and cash equivalents

63,906

187,744

Year ended 31 December 2019

31.12.19

1.1.19

£

£

Cash and cash equivalents

187,744

292,993

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.1.20

Cash flow

At 31.12.20

£

£

£

Net cash

Cash at bank and in hand

187,744

(123,838

)

63,906

187,744

(123,838

)

63,906

Debt

Debts falling due within 1 year

-

(4,167

)

(4,167

)

Debts falling due after 1 year

(6,450,140

)

169,717

(6,280,423

)

(6,450,140

)

165,550

(6,284,590

)

Total

(6,262,396

)

41,712

(6,220,684

)

1.	STATUTORY INFORMATION

Here For You Hospitality Limited is a company limited by shares registered in England and Wales, registration number 06026014. The registered office is Unit 11, Lowton Business Park Newton Road, Lowton St Mary's, Warrington, England, WA3 2AP.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

The financial statements have been prepared under the historical cost convention as modified by the revaluation of land and buildings and certain financial instruments measured at fair value in accordance with the accounting policies set out below.

Basis of consolidation

The consolidated financial statements include the company and all its subsidiary undertakings.

Subsidiary undertakings acquired are accounted for under the acquisition method and their results included from the acquisition date.

Going Concern

The group's business activities, together with the factors which are likely to affect its future performance are set out in the Strategic Review on page 2.

The group meets its day to day working capital requirements from ongoing trading. It does not maintain any overdrafts facilities with its finance providers. The group has utilised long term borrowing from its parent company to finance the development and maintenance of its portfolio of hotels and pubs and will continue to do so.

The directors have considered the impact of the global COVID-19 pandemic on the group and recognise that the future cannot be predicted with certainty. However, the directors expect the group to continue trading and believe that the group can manage the risks at these challenging times.

The directors have considered the business risks and believe that the group is well placed to manage these risks successfully, thus the going concern basis of accounting has been adopted in preparing these financial statements.

Related party exemption

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

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

Revenue

Revenue is measured at the value of work done for goods and services supplied in the hotel, pub and restaurant industry, excluding value added tax. Revenue is recognised in the accounting period in which the performance of the service has been provided to the customer.