Burgh Island Holdings Limited Company accounts
Burgh Island Holdings Limited Company accounts
COMPANY REGISTRATION NUMBER:
07111467
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Financial Statements |
Year ended 30 September 2022
Contents |
Page |
Officers and professional advisers |
1 |
Strategic report |
2 |
Directors' report |
4 |
Independent auditor's report to the members |
6 |
Statement of income and retained earnings |
10 |
Statement of financial position |
11 |
Statement of cash flows |
12 |
Notes to the financial statements |
13 |
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Officers and Professional Advisers |
The board of directors |
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Registered office |
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England |
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Trading address:
Burgh Island Hotel
Burgh Island
Bigbury on Sea
Kingsbridge
Devon
TQ7 4BG
Auditor |
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Chartered accountants & statutory auditor |
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Eagle House |
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28 Billing Road |
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Northampton |
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NN1 5AJ |
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Bankers |
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440 Strand |
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London |
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WC2R 0QS |
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Strategic Report |
Year ended 30 September 2022
The directors present their Strategic Report and Audited Financial Statements for the year ended 30 September 2022. Principle activity The principal activity of the company remains the operation of Burgh Island Hotel and The Pilchard Inn and café, just off the south coast of Devon near Bigbury on Sea. The hotel has panoramic views overlooking Bigbury on Sea and Batham beaches. The hotel was developed by Archie Nettlefold in the 1930's after he purchased the island from George Chirgwin. Despite some turbulent periods the hotel has evolved into a classic example of Art Deco architecture containing one of the most comprehensive collections of Art Deco furnishings and accessories in the UK. As current custodians of the hotel the Directors' objective is to maintain the ambiance of the 1930s whilst utilising 21st century technology in an unintrusive way to enhance the guest experience. The hotel is situated on a tidal island which reinforces the guests experience of leaving the 21st century behind but increases the operational challenges with bringing staff and supplies to and from the island on a timely basis. The Pilchard Inn, a 14th century original smugglers inn, named after the pilchard fishing that took place when fishermen occupied the island, offers food and beverages to eat in and takeaway. Although the actual pub is cosy, the surrounding area has been developed to allow many more visitors to sit outside and enjoy the food and drinks on offer either from the pub or from the takeaway café below the actual Inn. Business Review Managing the dichotomy of a 24-bedroom hotel in a 1930's building in the 21st century led the Directors to investigate development plans for the hotel in particular. A comprehensive planning application was formulated with the assistance and support of various experts in the fields of historical buildings (Burgh Island Hotel is a grade 2 listed building), flora & fauna, transport, ecology, marine environment together with a planning and architectural group that knew the hotel and island and its regional importance very well. The full planning application to increase the number of hotel bedrooms and restaurants in addition to developing additional staff accommodation and creating a restaurant outside The Pilchard was formally agreed with South Hams council in December 2022. The operational challenges faced by the hotel are the management and development of a hotel on a tidal island. A particular emphasis has been placed in 2022 onwards on the care and well-being of all staff. One of the key decisions in 2022 was the decision by Giles Fuchs, as a director of an associated company, to purchase a large care home in Bigbury on Sea with the objective of creating a 22 bedroom "hotel" for the exclusive use of Burgh Island staff. This purchase took place in November 2022 and refurbishment work commenced immediately with occupation by staff in June 2023. Results Results for the year were: profit before tax £115,873 (2021: - £480,711). Cashflow remained positive throughout the year and the company was able to comfortably service its debts. The directors take a very prudent view of cash reserves and monitor discretionary spending very closely.
Principal Risks and Uncertainties As in previous years these risks remain common with other hospitality businesses, both nationally and locally. Specifically the directors have identified the following: - The inflationary pressure on family incomes is now a risk mitigated in the case of Burgh island by the proportion of business from repeat customers. In addition the uniqueness of Burgh Island allows the hotel to benefit from extensive PR and successfully obtaining prime time TV exposure on a number of different TV travel shows. This linked with local advertising and social media marketing has been very successful. - The costs of supplies has impacted all hospitality businesses. Cost management is therefore a key focus for the local management team and the Directors. The company retains a commitment to use local suppliers, and develop long term relationships wherever possible, to improve quality and reduce delivery times, cost and the carbon footprint. - Competition from other hospitality businesses both in UK and wider afield. Now that travel restrictions have been lifted more customers will be looking at the options available by travelling overseas. Management review forward bookings and trends on a regular basis. Key Performance Indicators The Directors use a number of key performance indicators to manage and control the hotel and Pilchard. For the hotel the KPIs are room rates, percentage occupancy, PEVPAR, TREVPAR, gross margins, EBITDA and cashflow. For the Pilchard the KPIs are gross margin and EBITDA. All KPIs are measured and reported on a monthly basis.
This report was approved by the board of directors on 21 September 2023 and signed on behalf of the board by:
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Director |
Registered office: |
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England |
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Directors' Report |
Year ended 30 September 2022
The directors present their report and the financial statements of the company for the year ended
30 September 2022
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Directors
The directors who served the company during the year were as follows:
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Dividends
The directors do not recommend the payment of a dividend.
Disclosure of information in the strategic report
Directors' responsibilities statement
Each of the persons who is a director at the date of approval of this report confirms that:
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so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.
This report was approved by the board of directors on
21 September 2023
and signed on behalf of the board by:
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Director |
Registered office: |
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England |
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Independent Auditor's Report to the Members of
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Year ended 30 September 2022
Opinion
Basis for opinion
Conclusions relating to going concern
In auditing the financial statements, we have concluded that the directors' 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 directors with respect to going concern are described in the relevant sections of this report.
Other information
Opinions on other matters prescribed by the Companies Act 2006
In our opinion, based on the work undertaken in the course of the audit:
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the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
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the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
Responsibilities of directors
Auditor's responsibilities for the audit of the financial statements
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 an auditor's report 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.
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(Senior Statutory Auditor) |
For and on behalf of |
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Chartered accountants & statutory auditor |
Eagle House |
28 Billing Road |
Northampton |
NN1 5AJ |
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Statement of Income and Retained Earnings |
Year ended 30 September 2022
2022 |
2021 |
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Note |
£ |
£ |
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Turnover |
4 |
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Cost of sales |
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------- |
-------- |
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Gross profit |
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Administrative expenses |
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-------- |
-------- |
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Operating loss |
5 |
(
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(
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Gain/(loss) on financial assets at fair value through profit or loss |
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(
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Income from other fixed asset investments |
10 |
– |
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Other interest receivable and similar income |
11 |
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Interest payable and similar expenses |
12 |
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--------- |
------------ |
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Profit/(loss) before taxation |
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(
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Tax on profit/(loss) |
13 |
– |
– |
--------- |
--------- |
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Profit/(loss) for the financial year and total comprehensive income |
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(
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--------- |
--------- |
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Retained losses at the start of the year |
(
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(
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Retained losses at the end of the year |
(
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(
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All the activities of the company are from continuing operations.
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Statement of Financial Position |
2022 |
2021 |
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Note |
£ |
£ |
Fixed assets
Tangible assets |
14 |
– |
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Investment in subsidiaries |
15 |
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Current assets
Debtors |
16 |
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Cash at bank and in hand |
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Creditors: amounts falling due within one year |
17 |
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Net current assets |
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Total assets less current liabilities |
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Creditors: amounts falling due after more than one year |
18 |
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Net liabilities |
(
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(
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Capital and reserves
Called up share capital |
19 |
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Profit and loss account |
20 |
(
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(
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Shareholders deficit |
(
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(
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These financial statements were approved by the
board of directors
and authorised for issue on
21 September 2023
, and are signed on behalf of the board by:
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Director |
Company registration number:
07111467
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Statement of Cash Flows |
Year ended 30 September 2022
2022 |
2021 |
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£ |
£ |
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Cash flows from operating activities
Profit/(loss) for the financial year |
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(
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Adjustments for: |
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Depreciation of tangible assets |
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(Gain)/loss on financial assets at fair value through profit or loss |
(727,419) |
1,936,371 |
Income from other fixed asset investments |
– |
(
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Other interest receivable and similar income |
(
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(
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Interest payable and similar expenses |
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Changes in: |
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Trade and other debtors |
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Trade and other creditors |
(
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(
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Cash generated from operations |
(
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(
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Interest paid |
(
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(
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Net cash used in operating activities |
(
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(
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Cash flows from financing activities
Bank loans repaid |
(
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(
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Repayment of loan from BIL |
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--------- |
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Net cash from financing activities |
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Net (decrease)/increase in cash and cash equivalents |
(
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Cash and cash equivalents at beginning of year |
119,928 |
64,835 |
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Cash and cash equivalents at end of year |
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Notes to the Financial Statements |
Year ended 30 September 2022
1.
General information
The Company is a private Company limited by shares, registered in England and Wales. The address of the registered office is 10 Canberra House, Corbygate Business Park, Corby, Northamptonshire, NN17 5JG, England.
2.
Statement of compliance
3.
Accounting policies
Basis of preparation
Consolidation
The entity has taken advantage of the option not to prepare consolidated financial statements contained in Section S400/S401 para C of the Companies Act 2006 on the basis that the entity is consolidated further up the group structure. A copy of the group accounts can be obtained from Office Space in Town Limited, whose registered office is 10 Canberra House, Corbygate Business Park, Corby, Northants, NN17 5JG.
Going concern
Significant judgements and estimates
Revenue recognition
Tangible assets
Depreciation
Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:
Plant and machinery |
- |
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Investments
Fixed asset Investments accounted for in accordance with the fair value model are initially recorded at the transaction price. At each reporting date, the investments are measured at fair value, with changes in fair value recognised in the profit or loss.
The fair value of the investments are based upon the underlying assets of the subsidiaries. The assets are valued on a regular basis by an external, independent and professionally qualified valuer having recent experience in the location and category of the assets being valued. The valuation comprises of the physical assets along with an assessment of their value in use within the business. As a result, the net assets of the subsidiary are believed to have an accurate reflection on the fair value of the underlying investment.
Financial instruments
4.
Turnover
Turnover arises from:
2022 |
2021 |
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£ |
£ |
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Rendering of services |
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The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.
5.
Operating loss
Operating profit or loss is stated after charging:
2022 |
2021 |
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£ |
£ |
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Depreciation of tangible assets |
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------- |
------- |
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6.
Auditor's remuneration
2022 |
2021 |
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£ |
£ |
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Fees payable for the audit of the financial statements |
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------- |
------- |
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7.
Staff costs
The average number of persons employed by the company during the year, including the directors, amounted to:
2022 |
2021 |
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No. |
No. |
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Management staff |
4 |
3 |
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The aggregate payroll costs incurred during the year, relating to the above, were:
2022 |
2021 |
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£ |
£ |
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Wages and salaries |
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Social security costs |
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– |
-------- |
------- |
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------- |
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8.
Directors' remuneration
The directors' aggregate remuneration in respect of qualifying services was:
2022 |
2021 |
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£ |
£ |
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Remuneration |
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------- |
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9.
Key management personnel
The combined remuneration package of Key Management Personnel is deemed to be that of the directors remuneration packaged detailed in note 8.
10.
Income from other fixed asset investments
2022 |
2021 |
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£ |
£ |
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Dividends from other fixed asset investments |
– |
2,000,000 |
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11.
Other interest receivable and similar income
2022 |
2021 |
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£ |
£ |
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Interest on loans and receivables |
114,504 |
84,370 |
--------- |
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12.
Interest payable and similar expenses
2022 |
2021 |
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£ |
£ |
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Interest on banks loans and overdrafts |
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Other interest payable and similar charges |
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--------- |
--------- |
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13.
Tax on profit/(loss)
Reconciliation of tax income
The tax assessed on the profit/(loss) on ordinary activities for the year is lower than (2021: higher than) the
standard rate of corporation tax in the UK
of
19
% (2021:
19
%).
2022 |
2021 |
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£ |
£ |
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Profit/(loss) on ordinary activities before taxation |
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(
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--------- |
--------- |
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Profit/(loss) on ordinary activities by rate of tax |
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(
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Effect of expenses not deductible for tax purposes |
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Effect of capital allowances and depreciation |
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Effect of revenue exempt from tax |
(
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(
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Unused tax losses |
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--------- |
--------- |
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Tax on profit/(loss) |
– |
– |
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--------- |
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14.
Tangible assets
Plant and machinery |
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£ |
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Cost |
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At 1 October 2021 |
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Disposals |
(
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-------- |
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At 30 September 2022 |
– |
-------- |
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Depreciation |
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At 1 October 2021 |
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Charge for the year |
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Disposals |
(
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-------- |
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At 30 September 2022 |
– |
-------- |
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Carrying amount |
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At 30 September 2022 |
– |
-------- |
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At 30 September 2021 |
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-------- |
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15.
Investment in subsidiaries
Shares in group undertakings |
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£ |
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Valuation |
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At 1 October 2021 and 30 September 2022 |
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------------ |
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Impairment |
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At 1 October 2021 |
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Revaluations |
(
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------------ |
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At 30 September 2022 |
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------------ |
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Carrying amount |
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At 30 September 2022 |
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------------ |
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At 30 September 2021 |
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Subsidiaries, associates and other investments
Registered office |
Class of share |
Percentage of shares held |
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Subsidiary undertakings |
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10 Canberra House |
Ordinary |
100 |
Corbygate Business Park |
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Corby |
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Northamptonshire |
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NN17 5JG |
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16.
Debtors
2022 |
2021 |
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£ |
£ |
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Amounts owed by group undertakings |
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Called up share capital not paid |
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Prepayments and accrued income |
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Other debtors |
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------------ |
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17.
Creditors:
amounts falling due within one year
2022 |
2021 |
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£ |
£ |
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Bank loans and overdrafts |
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Trade creditors |
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Accruals and deferred income |
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Other creditors |
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--------- |
--------- |
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18.
Creditors:
amounts falling due after more than one year
2022 |
2021 |
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£ |
£ |
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Bank loans and overdrafts |
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Preference shares - Loan |
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Included within creditors: amounts falling due after more than one year is an amount of £6,005,506 (2021: £5,776,953) in respect of liabilities payable or repayable otherwise than by instalments which fall due for payment after more than five years from the reporting date.
The preference shares do not entitle the holder to receive notice of or to attend or vote at any general meeting of the Company. The preference shares will provide a cumulative fixed preferential dividend of 12% per annum. Part of the fixed dividend, 5% per annum, is payable annually in arrears with the balance of the 12% per annum dividend payable upon redemption.
Coutts & Company hold a fixed charge and negative pledge over all the assets of the Company in relation to a facility agreement granted on 11 April 2018.
19.
Called up share capital
Issued, called up and fully paid
2022 |
2021 |
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No. |
£ |
No. |
£ |
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266,000 |
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266,000 |
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Ordinary class shares have full rights to vote and rights to dividend distribution.
20.
Reserves
21.
Analysis of changes in net debt
At 1 Oct 2021 |
Cash flows |
At 30 Sep 2022 |
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£ |
£ |
£ |
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Cash at bank and in hand |
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(59,849) |
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Debt due within one year |
(220,000) |
– |
(220,000) |
Debt due after one year |
(4,905,000) |
220,000 |
(4,685,000) |
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(
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(
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22.
Related party transactions
The company has availed itself of the exemption contained within FRS 102 Section 33 Related Party Disclosures not to disclose details of transactions with fellow group entities.
23.
Controlling party
Office Space in Town Limited is the ultimate controlling party. A copy of the group accounts can be obtained from Office Space in Town Limited, whose registered office is 10 Canberra House, Corbygate Business Park, Corby, Northants, NN17 5JG.