Hollybourne Developments Limited - Limited company accounts 23.1

REGISTERED NUMBER: 01131582 (England and Wales)

Strategic Report, Report of the Director and

Financial Statements for the Year Ended 30 June 2022

for

Hollybourne Developments Limited

Page

Company Information

1

Strategic Report

2

Report of the Director

3

Report of the Independent Auditors

4

Income Statement

7

Other Comprehensive Income

8

Balance Sheet

9

Statement of Changes in Equity

10

Cash Flow Statement

11

Notes to the Cash Flow Statement

12

Notes to the Financial Statements

13

DIRECTOR:

A R Bailey

SECRETARY:

M J Tollow

REGISTERED OFFICE:

Pemberley Alton House Hotel

Normandy Strret

Alton

Hampshire

GU34 1DW

REGISTERED NUMBER:

01131582 (England and Wales)

AUDITORS:

JWR Audit Limited

24 Picton House

Hussar Court

Waterlooville

Hampshire

PO7 7SQ

The director presents his strategic report for the year ended 30 June 2022.

REVIEW OF BUSINESS

The company's key performance indicators are considered to be:

2022 2021

£ £

Turnover 2,403,008 963,879

Gross Profit 1,831,860 837,823

The company sales for the year have recovered following the coronavirus pandemic and the uncertainty of Brexit.

All major refurbishments were completed just as the pandemic lockdown was introduced.

With regards to the performance in the financial year ended 30 June 2023, both the turnover and gross profit indicators have seen an increase when compared with the position shown in these accounts. This continues to support the positive view of the business operations demonstrated in the year ended 30 June 2022.

PRINCIPAL RISKS AND UNCERTAINTIES

The main risk identified is the ongoing cost of living crisis. We will continue to monitor the situation and to amend strategies as necessary. The existing pension fund loan is fixed and controllable.

FUTURE DEVELOPMENTS

Post year end, the company sold land at the back of Alton House Hotel and is currently in the process of gaining planning permission for the land on Farnham House Hotel.

The company continues to actively assess situations to ensure its viability.

ON BEHALF OF THE BOARD:

A R Bailey - Director

1 July 2023

The director presents his report with the financial statements of the company for the year ended 30 June 2022.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of the provision of hotel services.

DIVIDENDS

No dividends will be distributed for the year ended 30 June 2022.

DIRECTOR

A R Bailey held office during the whole of the period from 1 July 2021 to the date of this report.

STATEMENT OF DIRECTOR'S RESPONSIBILITIES

The director is responsible for preparing the Strategic Report, the Report of the Director and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the director is 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 director is responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable him to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company 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 director is aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and he 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 company's auditors are aware of that information.

AUDITORS

The auditors, JWR Audit Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

A R Bailey - Director

1 July 2023

Opinion

We have audited the financial statements of Hollybourne Developments Limited (the 'company') for the year ended 30 June 2022 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 company's affairs as at 30 June 2022 and of its profit 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 company 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 director's 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 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 director with respect to going concern are described in the relevant sections of this report.

Other information

The director is responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Director, 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 Strategic Report and the Report of the Director for the financial year for which the financial statements are prepared is consistent with the financial statements; and

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

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, or returns adequate for our audit have not been received from branches not visited by us; or

-	the financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of director's remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of director

As explained more fully in the Statement of Director's Responsibilities set out on page three, the director is 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 director determines 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 director is responsible for assessing the 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 director either intends to liquidate the company or to cease operations, or has 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Irregularities, including fraud, are instances of non-compliance with laws and regulations.

We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery, misrepresentations or through collusion.

Procedures performed by the audit team included:

- Discussions with management regarding known or suspected instances of non-compliance with laws and regulations;

- Evaluation of controls designed to prevent and detect irregularities; and

- Assessing journals entries as part of our planned audit approach.

There are inherent limitations in the audit procedures described above and the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it.

As in all of our audits we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud.

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.

K S Wood (Senior Statutory Auditor)

for and on behalf of JWR Audit Limited

24 Picton House

Hussar Court

Waterlooville

Hampshire

PO7 7SQ

27 July 2023

TURNOVER

3

2,403,008

963,879

Cost of sales

571,148

126,056

GROSS PROFIT

1,831,860

837,823

Administrative expenses

1,452,609

1,023,320

379,251

(185,497

)

Other operating income

51,721

378,675

OPERATING PROFIT

5

430,972

193,178

Interest receivable and similar income

7

18

430,979

193,196

Interest payable and similar expenses

6

14,843

30,023

PROFIT BEFORE TAXATION

416,136

163,173

Tax on profit

7

100,905

9,114

PROFIT FOR THE FINANCIAL YEAR

315,231

154,059

PROFIT FOR THE YEAR

315,231

154,059

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

315,231

154,059

FIXED ASSETS

Tangible assets

8

7,735,392

7,754,737

CURRENT ASSETS

Stocks

9

22,990

28,644

Debtors

10

39,253

58,910

Cash at bank and in hand

512,675

229,949

574,918

317,503

CREDITORS

Amounts falling due within one year

11

5,375,062

5,605,348

NET CURRENT LIABILITIES

(4,800,144

)

(5,287,845

)

TOTAL ASSETS LESS CURRENT LIABILITIES

2,935,248

2,466,892

CREDITORS

Amounts falling due after more than one year

12

(789,985

)

(646,575

)

PROVISIONS FOR LIABILITIES

16

(9,715

)

-

NET ASSETS

2,135,548

1,820,317

CAPITAL AND RESERVES

Called up share capital

17

4,000

4,000

Retained earnings

18

2,131,548

1,816,317

SHAREHOLDERS' FUNDS

2,135,548

1,820,317

The financial statements were approved by the director and authorised for issue on 1 July 2023 and were signed by:

A R Bailey - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 July 2020

4,000

1,662,258

1,666,258

Changes in equity

Total comprehensive income

-

154,059

154,059

Balance at 30 June 2021

4,000

1,816,317

1,820,317

Changes in equity

Total comprehensive income

-

315,231

315,231

Balance at 30 June 2022

4,000

2,131,548

2,135,548

Cash flows from operating activities

Cash generated from operations

1

547,907

356,085

Interest paid

(14,843

)

(30,023

)

Tax paid

(14,016

)

4,902

Net cash from operating activities

519,048

330,964

Cash flows from investing activities

Sale of tangible fixed assets

20,899

400

Interest received

7

18

Net cash from investing activities

20,906

418

Cash flows from financing activities

New loans in year

472,968

-

Loan repayments in year

(329,690

)

(315,737

)

Amount introduced by directors

5,297

-

Amount withdrawn by directors

(405,803

)

-

Net cash from financing activities

(257,228

)

(315,737

)

Increase in cash and cash equivalents

282,726

15,645

Cash and cash equivalents at beginning of year

2

229,949

214,304

Cash and cash equivalents at end of year

2

512,675

229,949

1.	RECONCILIATION OF PROFIT FOR THE FINANCIAL YEAR TO CASH GENERATED FROM OPERATIONS

30.6.22

30.6.21

£

£

Profit for the financial year

315,231

154,059

Depreciation charges

7,860

30,776

Profit on disposal of fixed assets

(9,414

)

(400

)

Finance costs

14,843

30,023

Finance income

(7

)

(18

)

Taxation

100,905

9,114

429,418

223,554

Decrease in stocks

5,654

7,337

Decrease/(increase) in trade and other debtors

19,657

(7,020

)

Increase in trade and other creditors

93,178

132,214

Cash generated from operations

547,907

356,085

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 30 June 2022

30.6.22

1.7.21

£

£

Cash and cash equivalents

512,675

229,949

Year ended 30 June 2021

30.6.21

1.7.20

£

£

Cash and cash equivalents

229,949

214,304

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.7.21

Cash flow

At 30.6.22

£

£

£

Net cash

Cash at bank and in hand

229,949

282,726

512,675

229,949

282,726

512,675

Debt

Debts falling due within 1 year

(198,585

)

132

(198,453

)

Debts falling due after 1 year

(646,575

)

(143,410

)

(789,985

)

(845,160

)

(143,278

)

(988,438

)

Total

(615,211

)

139,448

(475,763

)

1.	STATUTORY INFORMATION

Hollybourne Developments Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

Accounts are rounded to the nearest pound.

The accounts represent the company as an individual entity.

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.

Turnover

Turnover is measured at the fair value of consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of accommodation and the sale of food and beverage.

Revenue from the sale of accommodation is recognised for each night as it takes place at the room rate for that night. Payments in advance for accommodation services not yet provided are treated as a contract liability and included in amounts of deferred income.

The sale of food and beverage is recognised as and when the items are provided to the customer at the price for the items purchased.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property

-

in accordance with the property

Plant and machinery

-

25% on reducing balance

Fixtures and fittings

-

25% on reducing balance

Motor vehicles

-

25% on reducing balance

Freehold buildings represents three hotel buildings. It is management's intention to maintain the properties in a good state of repair such that the residual value should never significantly fall below cost, hence the depreciation rate is 0%.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

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.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

3.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

30.6.22

30.6.21

£

£

Hotel Services

2,403,008

963,879

2,403,008

963,879

An analysis of turnover by geographical market is given below:

30.6.22

30.6.21

£

£

United Kingdom

2,403,008

963,879

2,403,008

963,879

4.	EMPLOYEES AND DIRECTORS

30.6.22

30.6.21

£

£

Wages and salaries

819,546

674,295

Social security costs

53,390

38,855

Other pension costs

16,470

12,065

889,406

725,215

The average number of employees during the year was as follows:

30.6.22

30.6.21

Administration

3

3

Sales

51

35

54

38

30.6.22

30.6.21

£

£

Director's remuneration

14,986

13,585

5.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

30.6.22

30.6.21

£

£

Hire of plant and machinery

18,468

3,493

Other operating leases

3,833

23,000

Depreciation - owned assets

7,860

30,776

Profit on disposal of fixed assets

(9,414

)

(400

)

Audit Fee

6,000

-

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

30.6.22

30.6.21

£

£

Bank loan interest

14,843

30,023

7.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

30.6.22

30.6.21

£

£

Current tax:

UK corporation tax

91,190

14,016

P/Y Corp Tax Adjustment

-

(4,902

)

Total current tax

91,190

9,114

Deferred tax

9,715

-

Tax on profit

100,905

9,114

8.	TANGIBLE FIXED ASSETS

Fixtures

Freehold

Plant and

and

Motor

property

machinery

fittings

vehicles

Totals

£

£

£

£

£

COST

At 1 July 2021

7,696,533

93,774

119,216

46,266

7,955,789

Disposals

-

(1,537

)

(673

)

(34,921

)

(37,131

)

At 30 June 2022

7,696,533

92,237

118,543

11,345

7,918,658

DEPRECIATION

At 1 July 2021

-

65,376

102,574

33,102

201,052

Charge for year

-

7,043

324

493

7,860

Eliminated on disposal

-

(1,311

)

(608

)

(23,727

)

(25,646

)

At 30 June 2022

-

71,108

102,290

9,868

183,266

NET BOOK VALUE

At 30 June 2022

7,696,533

21,129

16,253

1,477

7,735,392

At 30 June 2021

7,696,533

28,398

16,642

13,164

7,754,737

9.

STOCKS

30.6.22

30.6.21

£

£

Stocks

22,990

13,051

Work-in-progress

-

15,593

22,990

28,644

10.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

30.6.22

30.6.21

£

£

Trade debtors

17,118

36,952

Other debtors

13,656

9,886

Prepayments

8,479

12,072

39,253

58,910

11.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

30.6.22

30.6.21

£

£

Other loans (see note 13)

198,453

198,585

Trade creditors

80,951

18,146

Tax

91,190

14,016

Social security and other taxes

19,692

12,871

VAT

110,695

41,055

Other creditors

15,397

6,466

Directors' loan accounts

4,719,970

5,120,476

Accruals and deferred income

83,338

148,682

Accrued expenses

55,376

45,051

5,375,062

5,605,348