Axcel Hospitality (Gatwick) Limited - Accounts to registrar (filleted) - small 23.2.5

REGISTERED NUMBER: 12085405 (England and Wales)

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2022

FOR

AXCEL HOSPITALITY (GATWICK) LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

Sunil Patel

Shamir Patel

REGISTERED OFFICE:

2nd Floor, 29 Dingwall Road

Croydon

CR0 2NB

REGISTERED NUMBER:

12085405 (England and Wales)

SENIOR STATUTORY AUDITOR:

Paul Davies FCA

AUDITORS:

Xeinadin Auditing

Beckett House

36 Old Jewry

LONDON

EC2R 8DD

FIXED ASSETS

Tangible assets

4

11,300,000

11,300,000

CURRENT ASSETS

Stocks

1,914

3,562

Debtors

5

334,951

242,895

Cash at bank and in hand

1,347,868

747,489

1,684,733

993,946

CREDITORS

Amounts falling due within one year

6

(1,917,355

)

(1,573,340

)

NET CURRENT LIABILITIES

(232,622

)

(579,394

)

TOTAL ASSETS LESS CURRENT LIABILITIES

11,067,378

10,720,606

CREDITORS

Amounts falling due after more than one year

7

(10,380,920

)

(12,358,637

)

PROVISIONS FOR LIABILITIES

9

(2,267,915

)

(2,267,915

)

NET LIABILITIES

(1,581,457

)

(3,905,946

)

CAPITAL AND RESERVES

Called up share capital

10

100

100

Revaluation reserve

11

287,426

287,426

Retained earnings

11

(1,868,983

)

(4,193,472

)

SHAREHOLDERS' FUNDS

(1,581,457

)

(3,905,946

)

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 25th September 2023 and were signed on its behalf by:

Sunil Patel - Director

Shamir Patel - Director

1.	STATUTORY INFORMATION

Axcel Hospitality (Gatwick) 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 (£).

The principal place of business is 1-2 Church Road, Low Field Heath, Crawley, RH11 0PQ.

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" including the provisions of Section 1A "Small Entities" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

Tangible fixed assets

Long leasehold property includes a leasehold hotel which is carried at its revalued amount, being fair value at the date of valuation. Revaluations are performed by professional qualified valuers with sufficient regularity to ensure that the carrying amounts do not differ materially from those that would be determined using fair values at the end of each reporting period.

Any revaluation increase in the carrying amount of long leasehold property is recognised in other comprehensive income and included in a revaluation reserve in equity, except to the extent that it reverses a revaluation decrease of the same asset previously recognised in profit or loss, in which case the increase is credited to profit and loss to the extent of the decrease previously expended.

Decreases that offset previous increases of the same asset are charged in other comprehensive income and debited against revaluation reserve in equity; decreases exceeding the balance in revaluation reserve relating to an asset are recognised in profit or loss. The use of a policy of revaluation provided more relevant and reliable information about the value of the property owned by the company.

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.

Going concern

The company is reliant on the continued support of its shareholder and directors to continue trading. On this basis the financial statements have been prepared on a going concern basis.The financial statements do not include any adjustments that may be required from a withdrawal of such financial support.

Significant accounting estimates

The preparation of the financial statements in accordance with UK GAAP requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of revision and future periods if the revision affects both current and future periods.

Significant estimates and assumptions are made in particular with regard to determining the valuation of the company's hotel included in Tangible Fixed Assets. In line with many other company's in the industry, the hotel value is derived from assumed future trading results which are discounted using interest rates provided by commercial property experts

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 10 (2021 - 12 ) .

4.	TANGIBLE FIXED ASSETS

Long

leasehold

£

COST OR VALUATION

At 1st January 2022

and 31st December 2022

11,300,000

NET BOOK VALUE

At 31st December 2022

11,300,000

At 31st December 2021

11,300,000

Cost or valuation at 31st December 2022 is represented by:

Long

leasehold

£

Valuation in 2022

2,471,660

Cost

8,828,340

11,300,000

If Long leasehold property had not been revalued they would have been included at the following historical cost:

2022

2021

as restated

£

£

Cost

8,828,340

8,828,340

Long leasehold property were valued on an open market basis on 31st December 2022 by Sunil Patel,Director .

5.

DEBTORS

2022

2021

as restated

£

£

Amounts falling due within one year:

Trade debtors

-

136,095

Amounts owed by group undertakings

-

51,881

Other debtors

99,743

54,919

99,743

242,895

Amounts falling due after more than one year:

Amounts owed by group undertakings

235,208

-

Aggregate amounts

334,951

242,895

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

as restated

£

£

Bank loans and overdrafts

796,479

319,498

Other loans

600,000

606,263

Trade creditors

175,226

221,824

Finance lease

14,255

4,897

VAT

108,596

314,445

Other creditors and accruals

32,989

106,413

Accruals and deferred income

189,810

-

1,917,355

1,573,340

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2022

2021

as restated

£

£

Bank loans - 2-5 years

3,500,000

4,493,872

Other loans

308,341

299,417

Finance leases

6,561,477

6,586,629

Amounts owed to group undertakings

11,102

978,719

10,380,920

12,358,637

Amounts falling due in more than five years:

Repayable by instalments

Finance leases

6,561,477

6,586,629

8.	SECURED DEBTS

The following secured debts are included within creditors:

2022

2021

as restated

£

£

Bank loans

4,294,614

4,500,000

Metro Bank Plc holds fixed and floating charges over the company's assets.

9.	PROVISIONS FOR LIABILITIES

2022

2021

as restated

£

£

Deferred tax

2,267,915

2,267,915

Deferred

tax

£

Balance at 1st January 2022

As previously reported

63,598

Prior year adjustment

2,204,317

As restated

2,267,915

Balance at 31st December 2022

2,267,915

10.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2022

2021

value:

as restated

£

£

100

Ordinary

1

100

100

11.

RESERVES

Retained

Revaluation

earnings

reserve

Totals

£

£

£

At 1st January 2022

(4,173,388

)

2,471,660

(1,701,728

)

Prior year adjustment

(20,084

)

(20,084

)

(4,193,472

)

(1,721,812

)

Profit for the year

2,324,489

2,324,489

Prior year adjustment

-

(2,184,234

)

(2,184,234

)

At 31st December 2022

(1,868,983

)

287,426

(1,581,557

)

The prior year adjustment of £2,184,234 is for the underprovision of deferred tax in the 2021 year arising from an increase in Corporation tax rates on revaluation gains.

12.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Report of the Auditors was unqualified.

Paul Davies FCA (Senior Statutory Auditor)

for and on behalf of Xeinadin Auditing

13.	RELATED PARTY DISCLOSURES

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

Within other loans of £600,000 are payable to Axcel Hospitality (Exmouth) Limited ,a company controlled by the directors.