54 Queen's Gate Hotel Limited - Accounts to registrar (filleted) - small 23.2.5

REGISTERED NUMBER: 04501688 (England and Wales)

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2022

FOR

54 QUEEN'S GATE HOTEL LIMITED

Page

Company Information

1

Statement of Financial Position

2

Notes to the Financial Statements

3

DIRECTORS:

M M I Mohamed

S Locke

SECRETARY:

S Locke

REGISTERED OFFICE:

54 Queen's Gate

London

SW7 5JW

REGISTERED NUMBER:

04501688 (England and Wales)

AUDITORS:

Sage & Co

Chartered Accountants

& Statutory Auditors

38A High Street

Northwood

Middlesex

HA6 1BN

FIXED ASSETS

Intangible assets

4

-

2,521

Tangible assets

5

1,242,448

1,329,862

1,242,448

1,332,383

CURRENT ASSETS

Stocks

3,045

2,620

Debtors

6

507,497

487,667

Cash in hand

1,082

935

511,624

491,222

CREDITORS

Amounts falling due within one year

7

1,636,641

1,573,881

NET CURRENT LIABILITIES

(1,125,017

)

(1,082,659

)

TOTAL ASSETS LESS CURRENT LIABILITIES

117,431

249,724

CREDITORS

Amounts falling due after more than one year

8

222,199

498,201

NET LIABILITIES

(104,768

)

(248,477

)

CAPITAL AND RESERVES

Called up share capital

10

2

2

Retained earnings

(104,770

)

(248,479

)

SHAREHOLDERS' FUNDS

(104,768

)

(248,477

)

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 29 September 2023 and were signed on its behalf by:

S Locke - Director

1.	STATUTORY INFORMATION

54 Queen's Gate Hotel 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 (£).

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.

Going concern

The Covid-19 pandemic since March 2020 had resulted in temporary closures of the company's key operations in its hotel, resulting in a detrimental effect on the company's financial performance. In accordance with government requirements, the company's hotel temporarily closed its doors until May 2021, only reopening when permitted by the government. During the pandemic, the management took steps to minimise and mitigate the interruption of business and its costs. This included use of the Job Retention Furlough Scheme, rates grants and optimisation of available financing sources including arrangement of an overdraft from its bank.

The directors believe that the following are positive factors regarding the company's future:

- Trading has improved and the company has been trading profitably in 2022 and 2023.

- Trading in 2024 is expected to continue to be profitable.

- The company is currently in advanced discussions to re-finance its bank loans and overdraft on a longer term basis.

- The company has been partly funded by an interest free loan of £948,033, which is included in current liabilities. There are no fixed repayment terms and the loan provider has agreed that the company need only make repayments when its cash flow allows.

The directors therefore have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future and believe it is appropriate to continue preparing the financial statements on a going concern basis.

Related party exemption

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.

Turnover

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

Revenue is recognised when rooms are occupied and food and beverages are sold.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2002, is being amortised evenly over its estimated useful life of twenty years.

Tangible fixed assets

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

Improvements to property

-

over period of lease

Fixtures and fittings

-

10% on cost

Equipment

-

20% on cost

Tangible fixed assets are stated at cost less accumulated depreciation and accumulated impairment losses. Cost includes expenditure directly attributable to making the asset capable of operating as intended.

Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. A grant received before the performance criteria are satisfied is recognised as a liability. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable.

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 statement of financial position date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the statement of financial position 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.

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.

Operating lease agreements

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged against profits on a straight line basis over the period of the lease.

Impairment

Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit and loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.

Debtors and creditors receivable/payable within one year

Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account.

Loans and borrowings

Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 13 (2021 - 11 ) .

4.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 January 2022

and 31 December 2022

55,000

AMORTISATION

At 1 January 2022

52,479

Amortisation for year

2,521

At 31 December 2022

55,000

NET BOOK VALUE

At 31 December 2022

-

At 31 December 2021

2,521

5.	TANGIBLE FIXED ASSETS

Improvements

Fixtures

to

and

property

fittings

Equipment

Totals

£

£

£

£

COST

At 1 January 2022

1,477,632

1,103,497

80,301

2,661,430

Additions

-

8,120

1,166

9,286

At 31 December 2022

1,477,632

1,111,617

81,467

2,670,716

DEPRECIATION

At 1 January 2022

292,859

961,586

77,123

1,331,568

Charge for year

73,881

20,499

2,320

96,700

At 31 December 2022

366,740

982,085

79,443

1,428,268

NET BOOK VALUE

At 31 December 2022

1,110,892

129,532

2,024

1,242,448

At 31 December 2021

1,184,773

141,911

3,178

1,329,862

6.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Trade debtors

(2,361

)

(2,006

)

Amounts owed by group undertakings

493,677

478,283

Other debtors

3,328

4,054

Prepayments

12,853

7,336

507,497

487,667

7.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2022

2021

£

£

Bank loans and overdrafts

491,947

622,668

Trade creditors

28,049

18,609

VAT

47,121

21,293

Other creditors

954,736

820,393

Accruals and deferred income

114,788

90,918

1,636,641

1,573,881

8.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2022

2021

£

£

Bank loans - 1-2 years

177,632

292,279

Bank loans - 2-5 years

44,567

205,922

222,199

498,201

9.	SECURED DEBTS

The following secured debts are included within creditors:

2022

2021

£

£

Bank overdrafts

208,182

338,583

Bank loans

505,964

782,286

714,146

1,120,869

The bank loans and overdrafts are secured by a mortgage debenture over all assets of the company.

The group companies of 54 Queen's Gate Hotel Limited have provided an unlimited company guarantee on these bank loans and overdrafts, together with a first legal charge over the hotel property.

10.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2022

2021

value:

£

£

2

Ordinary

£1

2

2

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

The Report of the Auditors was unqualified.

Sunil Sangani FCA (Senior Statutory Auditor)

for and on behalf of Sage & Co

12.	OTHER FINANCIAL COMMITMENTS

A fellow group company has granted a lease to the company for its use of the hotel property. Due to the adverse impact of the Covid-19 pandemic on the company's operations, no rent was charged to the company for the year. The lessor, which is a fellow group company, has confirmed that no rent will be charged for the foreseeable future.

At the year end, the company had total commitments under operating leases over the remaining life of those leases of approximately £7,027 (2021: £11,891).