Caradog Hotels Limited Filleted accounts for Companies House (small and micro)

CARADOG HOTELS LIMITED - Company Information

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COMPANY REGISTRATION NUMBER: 04397063

Caradog Hotels Limited

Filleted Unaudited Financial Statements

30 June 2022

Caradog Hotels Limited

Financial Statements

Year ended 30 June 2022

CONTENTS	PAGE

Officers and professional advisers	1

Statement of financial position	2

Notes to the financial statements	4

Caradog Hotels Limited

Officers and Professional Advisers

The board of directors	Mr A Griffiths
	Mr W Griffiths

Company secretary	Mrs P E Griffiths

Registered office	15 Cross Street
	Abergavenny
	Gwent
	NP7 5EN

Accountants	James & Uzzell Ltd
	Chartered Certified Accountants
	Axis 15, Axis Court
	Mallard Way
	Riverside Business Park
	Swansea
	SA7 0AJ

Caradog Hotels Limited

Statement of Financial Position

30 June 2022

	2022	2021
Note	£	£

FIXED ASSETS

Tangible assets	5	3,721,530	3,796,877

CURRENT ASSETS

Stocks	6	56,901	52,837
Debtors	7	1,051,422	976,188
Cash at bank and in hand		530,581	336,933
		------------	------------
		1,638,904	1,365,958

CREDITORS: amounts falling due within one year	8	2,038,171	1,880,910
		------------	------------
NET CURRENT LIABILITIES		399,267	514,952
		------------	------------
TOTAL ASSETS LESS CURRENT LIABILITIES		3,322,263	3,281,925

CREDITORS: amounts falling due after more than one year	9	272,492	365,452

PROVISIONS

Taxation including deferred tax	54,785	45,744
	------------	------------
NET ASSETS	2,994,986	2,870,729
	------------	------------

CAPITAL AND RESERVES

Called up share capital	10	310,009	310,009
Profit and loss account		2,684,977	2,560,720
		------------	------------
SHAREHOLDERS FUNDS		2,994,986	2,870,729
		------------	------------

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 comprehensive income has not been delivered.

For the year ending 30 June 2022 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

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

- The directors acknowledge their responsibilities for complying with the requirements of the Act with respect to accounting records and the preparation of financial statements .

Caradog Hotels Limited

Statement of Financial Position (continued)

30 June 2022

These financial statements were approved by the board of directors and authorised for issue on 27 March 2023 , and are signed on behalf of the board by:

Mr W Griffiths

Director

Company registration number: 04397063

Caradog Hotels Limited

Notes to the Financial Statements

Year ended 30 June 2022

1. GENERAL INFORMATION

Caradog Hotels Limited is a private company limited by shares incorporated in England & Wales, United Kingdom. The address of the registered office is given in the company information on page 1 of these financial statements. The nature of the company's operations and principal activities are that of a hotel and restaurant services.

2. STATEMENT OF COMPLIANCE

The financial statements have been prepared in accordance with applicable accounting standards including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS102) and the Companies Act 2006.

3. ACCOUNTING POLICIES

Basis of preparation

The financial statements have been prepared on a going concern basis under the historical cost convention, modified to include certain items at fair value. The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £1. The reporting period of these financial statements and its comparative period is 12 months. These financial statements only include the results of the individual entity made up to 30 June 2022. The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

Going concern

The company meets its day-to-day working capital requirements through its bank facilities. The company's forecasts and projections, taking into account reasonably possible changes in trading performance, showing that the company should be able to operate within the level of its current facilities. Therefore the company continues to adopt the going concern basis in preparing its financial statements. After making enquiries, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future despite the impact of COVID-19.

Investment properties

Investment properties are measured at fair value at each reporting date with changes in fair value recognised in profit or loss.

Debtors and creditors receivable

Debtors and creditors with no stated interest rate and receivable or payable within one year recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses.

Loans and borrowings

Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. If an arrangement constitutes a finance transaction it is measured at present value.

Critical accounting judgements and estimation uncertainty

The company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are addressed below. i) Useful economic lives of tangible assets The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical conditions of the assets. ii) Impairment of debtors The company makes an estimate of the recoverable value of trade and other debtors. When assessing impairment of trade and other debtors, management considers factors including the current credit rating of the debtor, the ageing profile of debtors and historical experience. iii) Stock provision The company sells food and beverage. As a result it is necessary to consider the recoverability of the cost of stock and the associated provisioning required. When calculating the stock provision, management considers the nature and condition of the stock, as well as applying assumptions around anticipated saleability.

Revenue recognition

Turnover is measured at the fair value of the consideration received or receivable and represents amounts receivable for goods supplied and services rendered, stated net of discounts and of Value Added Tax. i) Sale of goods Turnover is recognised on the hotels primary operations when rooms are occupied and when food and beverages are sold. ii)Interest receivable Interest income is recognised using the effective interest rate method. iii)Other revenue sources When a voucher is purchased from the company, the figures are held in the balance sheet until the voucher is used. Revenue is recognised when the voucher has been redeemed. When a deposit is placed in relation to a function, the deposits held are kept in the balance sheet until the date of the function. Revenue is recognised on the date of the function. iv)Rental income Income from rentals is recognised in accordance with the terms of the relevant lease.

Taxation

Current tax represents the amount of tax payable or receivable in respect of the taxable profit (or loss) for the current or past reporting periods. It is measured at the amount expected to be paid or recovered using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. Deferred tax represents the future tax consequences of transactions and events recognised in the financial statements of current and previous periods. It is recognised in respect of all timing differences, with certain exceptions. Timing differences are differences between taxable profits and total comprehensive income as stated in the financial statements that arise from the inclusion of income and expense in tax assessments in periods different from those in which they are recognised in the financial statements. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date that are expected to apply to the reversal of timing differences. Deferred tax on revalued non-depreciable tangible fixed assets and investment properties is measured using the rates and allowances that apply to the sale of the asset.

Tangible assets

Tangible fixed assets are stated at cost (or deemed cost) or valuation less accumulated depreciation and accumulated impairment losses. Cost includes costs directly attributable to making the asset capable of operating as intended.

Depreciation

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

Freehold property & Assets in course of construction	-	2% Straight Line & 0% until brought into use
Plant and machinery	-	15% straight line
Fixtures and fittings	-	10% straight line
Motor vehicles	-	20% straight line

Impairment

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

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing stock to its present location and condition. Cost is calculated using the first-in, first-out formula. Provision is made for damaged, obsolete and slow-moving stock where appropriate.

Leases

Assets acquired under finance leases are capitalised and depreciated over the shorter of the lease term and the expected useful life of the asset. Minimum lease payments are apportioned between the finance charge and the reduction of the outstanding lease liability using the effective interest method. The related obligations, net of future finance charges, are included in creditors. Where goods are sold using finance leases, the entity recognises turnover from the sale of goods and the rights to receive future lease payments as a debtor. Minimum lease payments are apportioned between finance income and the reduction of the lease debtor with finance income allocated so as to produce a constant periodic rate of interest on the net investment in the finance lease. Rentals payable and receivable under operating leases are charged to the profit and loss account on a straight line basis over the period of the lease.

Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the company will comply with conditions attaching to them and the grants will be received using the accrual model.

Provisions

Provisions are recognised when the company has an obligation at the balance sheet date as a result of a past event, it is probable that an outflow of economic benefits will be required in settlement and the amount can be reliably estimated.

Employee benefits

When employees have rendered service to the company, short-term employee benefits to which the employees are entitled are recognised at the undiscounted amount expected to be paid in exchange for that service. The company operates a defined contribution plan for the benefit of its employees. Contributions are expensed as they become payable.

4. EMPLOYEE NUMBERS

The average number of persons employed by the company during the year amounted to 2 (2021: 2 ).

5. TANGIBLE ASSETS

	Land and buildings	Plant and machinery	Fixtures and fittings	Motor vehicles	Total
	£	£	£	£	£
Cost
At 1 July 2021	4,094,519	757,686	1,220,949	139,790	6,212,944
Additions	–	33,364	44,839	17,733	95,936
	------------	---------	------------	---------	------------
At 30 June 2022	4,094,519	791,050	1,265,788	157,523	6,308,880
	------------	---------	------------	---------	------------
Depreciation
At 1 July 2021	683,491	638,198	961,250	133,128	2,416,067
Charge for the year	61,836	44,173	58,869	6,405	171,283
	------------	---------	------------	---------	------------
At 30 June 2022	745,327	682,371	1,020,119	139,533	2,587,350
	------------	---------	------------	---------	------------
Carrying amount
At 30 June 2022	3,349,192	108,679	245,669	17,990	3,721,530
	------------	---------	------------	---------	------------
At 30 June 2021	3,411,028	119,488	259,699	6,662	3,796,877
	------------	---------	------------	---------	------------

Net book value of land & buildings comprised:

		2022
		£
	Freehold investment properties	755,057
	Freehold land & buildings	2,201,957
	Property Improvements	–
	Assets in the course of construction	392,179
		------------
		3,349,193
		------------

Cost of valuation of land and buildings comprises:

		2022
		£
	Cost	4,955,168
	Valuation	(860,649)
		------------
		4,094,519
		------------

The comparable amounts determined according to the historical cost convention are as follows:

		2022
		£
	Cost	4,955,168
	Valuation	(860,649)
	Accumulated Depreciation	(745,326)
		------------
	Net Book Value at 30.06.22	3,349,193
		------------

		2021
		£
	Net Book Value at 30.06.21	3,411,028
		------------

Freehold properties have been valued using the fair value model under FRS102. The valuation during the year was undertaken by the director, Mr Griffiths, although he is not professionally qualified, he has extensive knowledge of properties in the relevant areas and has built up a property portfolio over many years. The methods and significant assumptions used to ascertain the fair value of these assets are as follows: There has not been significant movement in the property values, within these locations, since the latest professional valuations. Expenditure has been incurred to maintain the properties at their current standard. The properties are still in use and no physical damage is evident.

6. STOCKS

	2022	2021
	£	£
Goods for resale	56,901	52,837
	--------	--------

7. DEBTORS

	2022	2021
	£	£
Trade debtors	42,297	77,227
Amounts owed by group undertakings and undertakings in which the company has a participating interest	280,535	286,535
Other debtors	728,590	612,426
	------------	---------
	1,051,422	976,188
	------------	---------

8. CREDITORS: amounts falling due within one year

	2022	2021
	£	£
Bank loans and overdrafts	92,442	59,495
Trade creditors	488,190	445,161
Amounts owed to group undertakings and undertakings in which the company has a participating interest	546,564	551,964
Social security and other taxes	69,919	–
Other creditors	841,056	824,290
	------------	------------
	2,038,171	1,880,910
	------------	------------

The total amount of secured liabilities for creditors falling due within one year is £14,520 (2021: £14,040). Bank loans and overdrafts are secured by a legal charge over the property to which it relates. Hire purchase contracts are secured over the asset to which they relate

9. CREDITORS: amounts falling due after more than one year

	2022	2021
	£	£
Bank loans and overdrafts	272,492	365,452
	---------	---------

The total amount of secured liabilities for creditors falling due after more than one year is £172,384 (2021: £187,422). Bank loans and overdrafts are secured by a legal charge over the property to which it relates. Hire purchase contracts are secured over the asset to which they relate The amount due on bank loans and overdrafts which fall after 5 years is £114,304 (2021: £131,262).

10. CALLED UP SHARE CAPITAL

Issued, called up and fully paid

	2022		2021
	No.	£	No.	£
Ordinary shares of £ 1 each	–	–	310,009	310,009
Ordinary 'A' shares of £ 1 each	6	6	–	–
Ordinary 'B' shares of £ 1 each	310,000	310,000	–	–
Ordinary 'C' shares of £ 1 each	1	1	–	–
Ordinary 'D' shares of £ 1 each	1	1	–	–
Ordinary 'E' shares of £1 each	1	1	–	–
	---------	---------	---------	---------
	310,009	310,009	310,009	310,009
	---------	---------	---------	---------

On 1st March 2022, the 310,009 Ordinary Shares of £1 each were reclassified.

11. FINANCIAL COMMITMENTS

Total financial commitments which are not included in the balance sheet amount to £1,650 (2021: £2,310).

12. DIRECTORS' ADVANCES, CREDITS AND GUARANTEES

The total amount outstanding to the company from the directors at the year end amounted to £206,597 (2021: £133,395). No interest has been charged on this balance.

13. RELATED PARTY TRANSACTIONS

During the year the company entered into the following transactions: Other related parties

	2022	2021
	£	£
Balance due (to) other related parties	–	–
Balance due from other related parties	419,158	403,717
Trade Debtor balances with other related parties	5,637	4,383
Trade Creditor balances with other related parties	145,692	294,592

No interest has been charged on these balances. Exemption under Section 33.1A has been claimed to not disclose transactions for 100% group companies.

14. PARENT COMPANY

The ultimate parent company is Treffgarne Properties Limited, a company incorporated in England & Wales. Its registered office is 21 Nevill Street, Abergavenny, Monmouthshire, NP7 5AA.

The immediate parent company is Mainunit Limited, a company incorporated in England & Wales. Its registered office is the same as the ultimate parent company.