Company No: 04681206 (England and Wales)

Contents

• Balance Sheet
• Notes to the Financial Statements

	Note	2022		2021
		£		£
Fixed assets
Intangible assets	3	4,254		12,782
Tangible assets	4	589,953		611,086
		594,207		623,868
Current assets
Stocks	5	15,000		12,000
Debtors	6	99,461		131,264
Cash at bank and in hand		58,334		188,510
		172,795		331,774
Creditors: amounts falling due within one year	7	( 229,835)		( 278,639)
Net current (liabilities)/assets		(57,040)		53,135
Total assets less current liabilities		537,167		677,003
Creditors: amounts falling due after more than one year	8	( 315,315)		( 355,829)
Provision for liabilities	9	( 25,561)		( 26,722)
Net assets		196,291		294,452
Capital and reserves
Called-up share capital		13,156		13,156
Profit and loss account		183,135		281,296
Total shareholders' funds		196,291		294,452

For the financial year ending 31 December 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 financial year in accordance with section 476;
• The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements; and
• These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime and a copy of the Profit and Loss Account has not been delivered.

The financial statements of The Cleve Hotel Limited (registered number: 04681206) were approved and authorised for issue by the Director on 22 September 2023. They were signed on its behalf by:

R J Clarke Director

1. Accounting policies

The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial year, unless otherwise stated.

General information and basis of accounting

The Cleve Hotel Limited (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The address of the Company's registered office is Mantle Street, Wellington, Somerset, TA21 8SN, United Kingdom.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain items at fair value, and in accordance with Section 1A of Financial Reporting Standard 102 (FRS 102) ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ issued by the Financial Reporting Council and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.

The financial statements are presented in pounds sterling which is the functional currency of the Company and rounded to the nearest £.

Turnover

Turnover is recognised at the fair value of the consideration received or receivable for the provision of hotel accommodation and related services including food and bar sales provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Turnover is recognised when the significant risks and rewards are considered to have been transferred to the customer.

Employee benefits

Defined contribution schemes
The Company operates a defined contribution scheme. The amount charged to the Profit and Loss Account in respect of pension costs and other post-retirement benefits is the contributions payable in the financial year. Differences between contributions payable in the financial year and contributions actually paid are included as either accruals or prepayments in the Balance Sheet.

Taxation

Current tax
Current tax is provided at amounts expected to be paid (or recoverable) using the tax rates and laws that have been enacted or substantively enacted at the Balance Sheet date. Tax is recognised in the profit and loss account, 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 tax
Deferred tax arises as a result of including items of income and expenditure in taxation computations in periods different from those in which they are included in the Company's financial statements. Deferred tax is provided in full on timing differences which result in an obligation to pay more or less tax at a future date, at the tax rates and laws that have been enacted or substantively enacted by the Balance Sheet date that are expected to apply when the timing differences reverse. Deferred tax assets and liabilities are not discounted.

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. Deferred tax liabilities are presented within provisions for liabilities on the balance sheet.

Intangible assets

Intangible assets are stated at cost or valuation, net of amortisation and any provision for impairment. Amortisation is provided on all intangible assets at rates to write off the cost or valuation of each asset over its expected useful life as follows:

Goodwill

20 years straight line

Goodwill

Goodwill arises on business combinations and represents any excess of consideration given over the fair value of the identifiable assets and liabilities acquired. Goodwill is initially recognised as an intangible asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses.

Tangible fixed assets

Tangible fixed assets are stated at cost or valuation, net of depreciation and any provision for impairment. The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation. Depreciation is provided on all tangible fixed assets, other than investment property and freehold land, at rates calculated to write off the cost or valuation, less estimated residual value, of each asset on a straight-line or reducing balance basis over its expected useful life, as follows:

Land and buildings	50 years straight line
Leasehold improvements	20 years straight line
Vehicles	5 years straight line
Fixtures and fittings	not depreciated
Computer equipment	3 years straight line

Residual value represents the estimated amount which would currently be obtained from disposal of an asset, after deducting estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

The company has adopted the renewals basis in relation to furniture, fixtures and equipment. The asset value is maintained by a policy of continuous repair or replacement, the cost of which is debited to the profit and loss account. No depreciation is provided and the asset value will increase by the cost of any new items acquired to augment the existing inventory.

Where tangible fixed assets are constantly being replaced and their value is not material in assessing the company's state of affairs and their quantity, value and composition are not subject to material variation, FRS 102 allows the assets to be included at a fixed quantity and value.

The directors acknowledge that a user of the accounts may consider the value of fixtures and fittings to be material to the company's balance sheet, in which case the accounting treatment adopted would be a departure from the requirements of FRS 102, however the accounting policy adopted is considered to be necessary in order for the financial statements to give a true and fair view.

Borrowing costs

Borrowing costs that are directly attributable to acquisition, construction or production of qualifying assets, are capitalised as part of the cost of those assets. Capitalisation begins when both finance costs and expenditures for the asset are being incurred and activities that are necessary to get the asset ready for use are in progress. Capitalisation ceases when substantially all the activities that are necessary to get the asset ready for use are complete.

All other borrowing costs are recognised in profit or loss in the period in which they are incurred.

Impairment of assets

Assets, other than those measured at fair value, are assessed for indicators of impairment at each Balance Sheet date. If there is objective evidence of impairment, an impairment loss is recognised in the Profit and Loss Account as described below.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to sell, which is equivalent to the net realisable value. Cost includes materials, direct labour and an attributable proportion of manufacturing overheads based on normal levels of activity. Cost is calculated using the FIFO (first-in, first-out) method. Provision is made for obsolete, slow-moving or defective items where appropriate.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Trade and other debtors

Trade and other debtors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method less impairment losses for bad and doubtful debts, except where the effect of discounting would be immaterial. In such cases the receivables are stated at cost less impairment losses for bad and doubtful debts.

Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in creditors: amounts falling due within one year.

Trade and other creditors

Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest rate method, unless the effect of discounting would be immaterial, in which case they are stated at cost. 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.

Government grants

Government grants are recognised based on the accrual model and are measured at the fair value of the asset received or receivable. Grants are classified as relating either to revenue or to assets. Grants relating to revenue are recognised in other operating income over the period in which the related costs are recognised, and timing differences are presented as other debtors or deferred income within the balance sheet. Grants relating to assets are recognised over the expected useful life of the asset. Where part of a grant relating to an asset is deferred, it is recognised as deferred income.

Provisions

Provisions are recognised when the Company has a present obligation (legal or constructive) as a result of a past event, it is probable that the Company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the Balance Sheet date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows (when the effect of the time value of money is material).

When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable can be measured reliably.

Ordinary share capital

The ordinary share capital of the Company is presented as equity.

Dividends

Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting.

2. Employees

	2022		2021
	Number		Number
Monthly average number of persons employed by the Company during the year, including directors	12		21

3. Intangible assets

	Goodwill		Total
	£		£
Cost
At 01 January 2022	170,550		170,550
At 31 December 2022	170,550		170,550
Accumulated amortisation
At 01 January 2022	157,768		157,768
Charge for the financial year	8,528		8,528
At 31 December 2022	166,296		166,296
Net book value
At 31 December 2022	4,254		4,254
At 31 December 2021	12,782		12,782

4. Tangible assets

	Land and buildings		Leasehold improve- ments		Vehicles		Fixtures and fittings		Computer equipment		Total
	£		£		£		£		£		£
Cost
At 01 January 2022	626,538		62,360		27,420		84,134		3,984		804,436
At 31 December 2022	626,538		62,360		27,420		84,134		3,984		804,436
Accumulated depreciation
At 01 January 2022	136,026		53,340		0		0		3,984		193,350
Charge for the financial year	12,531		3,118		5,484		0		0		21,133
At 31 December 2022	148,557		56,458		5,484		0		3,984		214,483
Net book value
At 31 December 2022	477,981		5,902		21,936		84,134		0		589,953
At 31 December 2021	490,512		9,020		27,420		84,134		0		611,086

5. Stocks

	2022		2021
	£		£
Stocks	15,000		12,000

6. Debtors

	2022		2021
	£		£
Trade debtors	5,000		15,673
Corporation tax	8,093		0
Other debtors	86,368		115,591
	99,461		131,264

7. Creditors: amounts falling due within one year

	2022		2021
	£		£
Bank loans	42,820		44,667
Trade creditors	3,834		4,836
Corporation tax	0		31,203
Other taxation and social security	12,322		10,561
Other creditors	170,859		187,372
	229,835		278,639

8. Creditors: amounts falling due after more than one year

	2022		2021
	£		£
Bank loans (secured)	315,315		355,829

The company holds a mortgage charge, which is secured against the company asset that it relates to, of which is a property.

The company also holds a debenture fixed and floating charge, which is secured against the company assets.

Amounts repayable after more than 5 years are included in creditors falling due over one year:

	2022		2021
	£		£
Bank loans (secured / repayable by instalments)	124,045		160,496

9. Provision for liabilities

	2022		2021
	£		£
Deferred tax	25,561		26,722

10. Related party transactions

Other related party transactions

	2022		2021
	£		£
Bodywise Health and Fitness Limited	79,887		109,780

Bodywise Health & Fitness Limited is a company whose director and shareholder is R J Clarke. The Company maintained an interest free current account with Bodywise Health & Fitness Limited which is repayable on demand and included in other debtors.