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Registered number: 03805273
LESTER HOTELS MANAGEMENT SERVICES LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022
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LESTER HOTELS MANAGEMENT SERVICES LIMITED
REGISTERED NUMBER:03805273
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STATEMENT OF FINANCIAL POSITION
AS AT 30 SEPTEMBER 2022
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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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The Company's financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The Company has opted not to file the statement of comprehensive income in accordance with provisions applicable to companies subject to the small companies' regime.
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 30 June 2023.
The notes on pages 2 to 7 form part of these financial statements.
Page 1
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LESTER HOTELS MANAGEMENT SERVICES LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022
Lester Hotels Management Services Limited is a private limited company (registered number: 03805273) incorporated and domiciled in England and Wales. Its regidtered office address is St John House, The Walk, Potters Bar, Hertfordshire, EN6 1QQ.
The principal activity is that of a management company.
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 following principal accounting policies have been applied:
The economical position of the UK has caused significant price increases and client spending
restrictions which have had an impact on the Group in which this Company sits.
The directors have decided to sell one of its assets, being the investment property in Gibraltar in
order to fully pay down all its bank borrowings to ensure the Group is in a more secure position
moving forward. The Group loans came to term in March-23, however the Group's bank has agreed
to extend the term to Sep-23, in the knowledge that the asset sale has exchanged with completion
due in mid July 2023.
As at the date of signing these financial statements, completion on this sale has not yet been
finalised. The repayment of the bank debt, and the debt held as investments, is highly dependant on
this sale and therefore there is currently significant uncertainty surrounding the repayment of these
bank loans causing material uncertainty surrounding the going concern basis. We do however note
that the directors expect the completion of this sale to be imminent.
Turnover includes fees for the provision of management services and are recognised once the service is rendered. Management fees are measured excuding value added tax.
Grants of a revenue nature are recognised in the Statement of Comprehensive Income in the same period as the related expenditure.
Interest income is recognised in profit or loss using the effective interest method.
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
Page 2
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LESTER HOTELS MANAGEMENT SERVICES LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022
2.Accounting policies (continued)
Defined contribution pension plan
The Company operates 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 profit or loss 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.
Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.
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.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the following method.
Depreciation is provided 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 profit or loss.
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
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Cash and cash equivalents
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Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
Page 3
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LESTER HOTELS MANAGEMENT SERVICES LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022
2.Accounting policies (continued)
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
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The average monthly number of employees, including the directors, during the year was as follows:
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Charge for the year on owned assets
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Page 4
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LESTER HOTELS MANAGEMENT SERVICES LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022
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Due after more than one year
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Amounts owed by group undertakings
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Amounts owed by group undertakings
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Prepayments and accrued income
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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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Accruals and deferred income
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Amounts owed to group undertakings are interest free and repayable on demand. See note 9 for further details on the loan balance.
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Creditors: Amounts falling due after more than one year
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Page 5
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LESTER HOTELS MANAGEMENT SERVICES LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022
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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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Included in other loans is a secured loan of £311,760 (2021: £561,530) which is due to be fully repaid by 18 August 2023. The loan is secured by a first charge over the assets of the company. Interest on the loan is at a rate of 4% per annum. The loan is secured by a debenture providing a fixed and floating first charge over the assets of the company. This loan is with a related party. See note 11 for further detail.
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The Company operates a defined contributions pension scheme. The assets of the scheme are held seperately from those of the Company in an independently administered fund. The pension cost charge represents contributions payable by the Company to the fund and amounted to £29,189 (2021: £24,429). Contributions totalling £617 (2021: £611) were payable to the fund at the reporting date and are included in creditors.
Page 6
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LESTER HOTELS MANAGEMENT SERVICES LIMITED
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NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 SEPTEMBER 2022
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Related party transactions
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As permitted by FRS102 paragraphs 1.12e and 33.1a, the company has taken advantage of the exemption from disclosing the transactions entered into between two or more members of a group as all subsidiary undertakings are wholly-owned by a member of that group.
Included in other debtors is a balance of £893,807 (2021: £608,412) due from Citihome Glasgow Limited, a company which S M Lester and M Johnstone are directors.
Included in other debtors is a balance of £65,000 (2021: £nil) due from ZAP Executive Coaching Limited, a company which S M Lester is a director.
Included in other creditors due within one year is a balance of £287,331 (2021: £407,331) from S M Lester, a director of the company. The loan is interest free and repayable on demand.
Included in other creditors due within one year is a balance of £40,565 (2021: £40,565) from M A Johnstone, a director of the company. The loan is interest free and repayable on demand.
Included in other loans is £311,760 (2021: £293,060) from Spring Hotels Directors Pension Fund, of which S M Lester is a trustee. The loan is interest free and repayable on demand.
Included in other creditors are dividends payable recognised within Lester Hotel Group Limited of £84,000 (2021: £72,000) to S M Lester.
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The smallest and largest group in which the results of this Company are consolidated is that headed up
by Lester Hotels Group Limited, incorporated in England and Wales. No other group financial statements
include the results of the Company. The consolidated financial statements of this group are available to
the public and may be obtained from Companies House.
The ultimate controlling party is S M Lester.
The auditors' report on the financial statements for the year ended 30 September 2022 was unqualified.
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In their report, the auditors emphasised the following matter without qualifying their report:
Material uncertainty related to going concern
We draw attention to note 2.2 in the financial statements, which indicates that the uncertainty caused by COVID 19 and the uncertain duration of the effects of the pandemic and its impact on the business and the wider group in meeting existing banking covenants may cast significant doubt on the Company's ability to continue as a going concern. As stated in note 2.2, these events or conditions, along with the other matters as set forth 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.
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The audit report was signed on 30 June 2023 by Andrew Ball (Senior Statutory Auditor) on behalf of Haysmacintyre LLP.
Page 7
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