Sandy Park Hotel Limited - Period Ending 2022-06-30

SANDY PARK HOTEL LIMITED - Company Information

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Registration number: 10667155

Sandy Park Hotel Limited

Filleted Financial Statements

for the Year Ended 30 June 2022

Sandy Park Hotel Limited
(Registration number: 10667155)

Contents

Company Information	1
Balance Sheet	2
Notes to the Financial Statements	3 to 11

Sandy Park Hotel Limited
(Registration number: 10667155)

Company Information

Directors

C J Over LLB

A G E Rowe Hon LLD

B Lodge

Registered office

Sandy Park Stadium
Sandy Park Way
Exeter
Devon
EX2 8WA

Auditors

Thompson Jenner LLP
Statutory Auditors
1 Colleton Crescent
Exeter
Devon
EX2 4DG

Sandy Park Hotel Limited
(Registration number: 10667155)

Balance Sheet as at 30 June 2022

	Note	30 June 2022 £	30 June 2021 £
Fixed assets
Tangible assets	4	38,821,369	24,233,274
Current assets
Stocks	5	29,184	-
Debtors	6	891,766	1,491,915
Cash at bank and in hand		771,794	1,822,619
		1,692,744	3,314,534
Creditors: Amounts falling due within one year	7	(4,583,827)	(20,997,502)
Net current liabilities		(2,891,083)	(17,682,968)
Total assets less current liabilities		35,930,286	6,550,306
Creditors: Amounts falling due after more than one year	7	(20,715,097)	(6,614,214)
Net assets/(liabilities)		15,215,189	(63,908)
Capital and reserves
Called up share capital		400	400
Capital contribution reserve		15,869,568	-
Profit and loss account		(654,779)	(64,308)
Total equity		15,215,189	(63,908)

These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.

These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 14 December 2022 and signed on its behalf by:

.........................................
A G E Rowe Hon LLD
Director

Sandy Park Hotel Limited
(Registration number: 10667155)

Notes to the Financial Statements for the Year Ended 30 June 2022

1	General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Sandy Park Stadium
Sandy Park Way
Exeter
Devon
EX2 8WA

2	Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Going concern

The directors are pleased to see that after delays caused by the covid pandemic the hotel successfully opened in April 2022. The directors work closely with Marriott Hotels Ltd who manage the hotel, and Marriott Hotels Ltd have produced forecasted projections that demonstrate the growth of the hotel as the hotel matures, and these forecasts are based on Marriott Hotels Ltd's experience in developing and running hotels across the country.

In addition to the above, the shareholders of Sandy Park Hotel Limited have confirmed that they will provide financial support when needed as the hotel continues to strive towards maturity status.

Based on this, the directors consider it appropriate that the financial statements are prepared on a going concern basis.

Audit report

The Independent Auditors' Report was unqualified. The name of the Senior Statutory Auditor who signed the audit report on 22 December 2022 was Mr David Tucker, who signed for and on behalf of Thompson Jenner LLP.

Sandy Park Hotel Limited
(Registration number: 10667155)

Notes to the Financial Statements for the Year Ended 30 June 2022

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of goods and provision of services in the ordinary course of the company’s activities. Turnover is shown net of sales/value added tax, returns, rebates and discounts.

The company recognises revenue when:
The amount of revenue can be reliably measured;
it is probable that future economic benefits will flow to the entity;
and specific criteria have been met for each of the company's activities.

Foreign currency transactions and balances

Transactions in foreign currencies are initially recorded at the functional currency rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are retranslated into the respective functional currency of the entity at the rates prevailing on the reporting period date. Non-monetary items carried at fair value that are denominated in foreign currencies are retranslated at the rate on the date when the fair value is re-measured.

Non-monetary items measured in terms of historical cost in a foreign currency are not retranslated.

Tax

The tax expense for the period comprises deferred tax. Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

Deferred income tax is recognised on temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements and on unused tax losses or tax credits in the company. Deferred income tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Borrowing costs are capitalised where they are directly attributable to the acquisition, contrsuction or production of a qualifying asset.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Freehold land	Not depreciated
Freehold buildings	2% on cost
Plant and machinery	15% on cost
Fixtures and fittings	15% on cost

Sandy Park Hotel Limited
(Registration number: 10667155)

Notes to the Financial Statements for the Year Ended 30 June 2022

Computer equipment

25% on cost

Cash and cash equivalents

Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.

Trade debtors

Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.

Trade debtors are recognised initially at the transaction price. They are subsequently measured at amortised cost using the effective interest method, less provision for impairment. A provision for the impairment of trade debtors is established when there is objective evidence that the company will not be able to collect all amounts due according to the original terms of the receivables.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

The cost of finished goods and work in progress comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the inventories to their present location and condition. At each reporting date, stocks are assessed for impairment. If stocks are impaired, the carrying amount is reduced to its selling price less costs to complete and sell; the impairment loss is recognised immediately in profit or loss.

Trade creditors

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Accounts payable are classified as current liabilities if the company does not have an unconditional right, at the end of the reporting period, to defer settlement of the creditor for at least twelve months after the reporting date. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Trade creditors are recognised initially at the transaction price and subsequently measured at amortised cost using the effective interest method.

Sandy Park Hotel Limited
(Registration number: 10667155)

Notes to the Financial Statements for the Year Ended 30 June 2022

Borrowings

Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.

Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.

Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Share capital

Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

3	Staff numbers

The average number of persons employed by the company (including directors) during the year, was 16 (2021 - 1).

Sandy Park Hotel Limited
(Registration number: 10667155)

Notes to the Financial Statements for the Year Ended 30 June 2022

4	Tangible assets

	Land and buildings £	Furniture, fittings and equipment £	Properties under construction £	Other tangible assets £	Total £
Cost or valuation
At 1 July 2021	-	-	24,233,274	-	24,233,274
Additions	57,939	2,084,664	11,983,965	703,027	14,829,595
Disposals	-	-	-	(51,100)	(51,100)
Transfers	36,166,139	-	(36,217,239)	51,100	-
At 30 June 2022	36,224,078	2,084,664	-	703,027	39,011,769
Depreciation
Charge for the year	119,281	53,543	-	17,576	190,400
At 30 June 2022	119,281	53,543	-	17,576	190,400
Carrying amount
At 30 June 2022	36,104,797	2,031,121	-	685,451	38,821,369
At 30 June 2021	-	-	24,233,274	-	24,233,274

Stocks

	30 June 2022 £	30 June 2021 £
Other stocks	29,184	-

Debtors

	30 June 2022 £	30 June 2021 £
Trade debtors	80,017	-
Amounts owed by group undertakings and connected entities	195,075	1,149,678
Other debtors	537,476	21,075
Prepayments and accrued income	79,198	321,162
	891,766	1,491,915
Less non-current portion	(376,581)	(20,774)
Total current trade and other debtors	515,185	1,471,141

Details of non-current trade and other debtors

£376,581 (2021 - £20,774) of Other debtors is classified as non current. This balance is in relation to the deferred tax asset.

Sandy Park Hotel Limited
(Registration number: 10667155)

Notes to the Financial Statements for the Year Ended 30 June 2022

Creditors

	Note	30 June 2022 £	30 June 2021 £
Due within one year
Loans and borrowings	9	464,539	-
Trade creditors		2,988,096	3,864,869
Amounts owed to group undertakings and connected entities		-	15,869,567
Taxation and social security		25,973	1,988
Other creditors		731,890	410,668
Accrued expenses		373,329	850,410
		4,583,827	20,997,502

Other creditors include a loan from a director of £610,668 (2021 - £410,668) which is secured by way of a fixed and floating charge over the freehold property of the company.

Amount owed to group undertaking are secured by way of a fixed and floating charge over the freehold property of the company.

	Note	30 June 2022 £	30 June 2021 £
Due after one year
Loans and borrowings	9	20,715,097	6,614,214

Creditors include bank loans which are secured of £19,215,097 (2021 - £6,614,214). Bank loans are secured by a fixed and floating charge over the assets of the company.

Creditors include bank loans repayable by instalments of £15,004,711 (2021 - £5,702,160) due after more than five years.

Reserves

Capital contribution reserve
The capital contribution reserve represents the classification of a parent company capital contribution as equity in line with the requirement of FRS102.

Sandy Park Hotel Limited
(Registration number: 10667155)

Notes to the Financial Statements for the Year Ended 30 June 2022

9	Loans and borrowings

	30 June 2022 £	30 June 2021 £
Current loans and borrowings
Bank borrowings	464,539	-

	30 June 2022 £	30 June 2021 £
Non-current loans and borrowings
Bank borrowings	19,215,097	6,614,214
Other borrowings	1,500,000	-
	20,715,097	6,614,214

10	Related party transactions

Expenditure with and payables to related parties

2022	Parent £	Other group entities £
Rendering of services	-	9,827
Amounts payable to related party	2,106,266	1,993

2021	Parent £	Other group entities £
Amounts payable to related party	2,106,266	1,993

Loans to related parties

2022	Other group entities £	Total £
At start of period	1,149,678	1,149,678
Advanced	2,997,324	2,997,324
Repaid	(3,951,927)	(3,951,927)
At end of period	195,075	195,075

Sandy Park Hotel Limited
(Registration number: 10667155)

Notes to the Financial Statements for the Year Ended 30 June 2022

2021	Other group entities £	Total £
At start of period	149,931	149,931
Advanced	3,406,627	3,406,627
Repaid	(2,406,880)	(2,406,880)
At end of period	1,149,678	1,149,678

Terms of loans to related parties

The loan to other group entities is interest free with repayments made on such dates as are agreed from time to time between the Lender and Borrower.

Loans from related parties

2022	Parent £	Key management £	Total £
At start of period	15,869,567	410,668	16,280,235
Advanced	-	200,000	200,000
Reclassification	(15,869,567)	-	(15,869,567)
At end of period	-	610,668	610,668

2021	Parent £	Key management £	Total £
At start of period	11,531,789	410,668	11,942,457
Advanced	6,837,778	-	6,837,778
Repaid	(2,500,000)	-	(2,500,000)
At end of period	15,869,567	410,668	16,280,235

Sandy Park Hotel Limited
(Registration number: 10667155)

Notes to the Financial Statements for the Year Ended 30 June 2022

Terms of agreements with related parties

The loan from key management is interest free and repayable on demand. The loan is secured by way of a fixed and floating charge over the freehold property of the company.

Summary of transactions with parent

Exeter Rugby Group Plc
During the year, the company continued to receive a capital contribution from the parent Exeter Rugby Group Plc. At the year end, the balance due to Exeter Rugby Group Plc was £17,975,833 consisting of a capital contribution of £15,869,567 and a trade creditor balance of £2,106,266 (2021: £17,975,833). No interest is payable on these amounts. The capital contribution is classed as equity, due to the terms of the contribution which require repayment only on sale of the hotel by Sandy Park Hotel Limited. The capital contribution is secured against a charge over all freehold land and leasehold property owned by Sandy Park Hotel Limited.

11	Relationship between entity and parents

The parent of the smallest group in which these financial statements are consolidated is Exeter Rugby Group Plc, incorporated in England and Wales.

The address of Exeter Rugby Group Plc is:
Sandy Park Stadium, Sandy Park Way, Exeter, Devon, EX2 7NN

12	Non adjusting events after the financial period

On 30 November 2022, the members of Exeter Rugby Group Plc passed a resolution that enabled Sandy Park Hotel Limited to enter into a share transaction that will increase the issued share capital of the company along with the accompanying subscription of preference shares. The share transaction is subject to completion. At completion, the ultimate controlling party will change from the members of Exeter Rugby Group Plc to Mr A G E Rowe OBE.