Here For You Hospitality Limited - Limited company accounts 23.2

REGISTERED NUMBER: 06026014 (England and Wales)

HERE FOR YOU HOSPITALITY LIMITED

GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2022

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Consolidated Income Statement

8

Consolidated Other Comprehensive Income

9

Consolidated Statement of Financial Position

10

Company Statement of Financial Position

11

Consolidated Statement of Changes in Equity

12

Company Statement of Changes in Equity

13

Consolidated Statement of Cash Flows

14

Notes to the Consolidated Statement of Cash Flows

15

Notes to the Consolidated Financial Statements

16

DIRECTORS:

M Ashdown

P M Raven

REGISTERED OFFICE:

Low Lane

Stainton Village

Middlesbrough

TS17 9LW

REGISTERED NUMBER:

06026014 (England and Wales)

AUDITORS:

DTE Business Advisers Limited

Chartered Accountants

Statutory Auditors

The Exchange

5 Bank Street

Bury

BL9 0DN

The directors present their strategic report of the company and the group for the year ended 31 December 2022.

Review of business

The year ended 31 December 2022 has continued to be a challenging time for the group, as it has for all hospitality businesses within the UK. The continued impact of the effects of the pandemic and the consequent changes in consumer habits has resulted in a more difficult trading landscape which has meant that the business has needed to adapt in terms of pricing, margins and more targeted marketing for the different sectors of the business.

It is pleasing though that, at variance with many other hotels, both hotel properties have operated at high occupancy levels. This was due to smart pricing and improved service levels. It is intended that this will continue in subsequent years.

At the year end the group consisted solely of the 2 hotel properties in Leigh and Middlesbrough, having sold all the remaining pubs in the previous year. Group revenue was £4,697,092 (2021: £3,689,548) an increase of £1,007,544 over the previous year. This strong performance has however been affected by price rises outside our control.

The group has experienced a challenging year of trading and the reported gross profit margin of 10.1% (2021: 14.7%) with the reduction in part being related to increases in energy costs, rates, food and alcohol prices, together with increased labour costs arising from government legislation and the lack of availability of suitable staff at reasonable salary levels. It should be noted that the group is looking to manage the impact of rising energy prices and labour costs and shortages.

The directors continue to consider the impact of the changes in consumer habits and the underlying economic challenges. The directors believe that they have taken all possible steps to mitigate any risks created as a result of this.

Future developments

The directors believe that the quality of offering in Middlesbrough will help mitigate the competition in its local market place, and enable the group to maintain its performance in what continues to be tough market conditions.

Financial risk management

The group has no hire purchase contracts in place at the end of the year.

The group liquidity risk relates to its ability to fund its day to day operations which it does using parent company borrowing.

Key performance indicators

The business continues to manage and maintain its internal control mechanisms and uses standard indicators in its management of business performance. Management has placed particular focus on the group's regulatory compliance and health & safety.

Post balance sheet events

Since the year end the hotel at Leigh has been sold for consideration in excess of its book value.

ON BEHALF OF THE BOARD:

M Ashdown - Director

28 September 2023

The directors present their report with the financial statements of the company and the group for the year ended 31 December 2022.

PRINCIPAL ACTIVITIES

The principal activities of the group and company in the year under review were those of running hotels, restaurants and leisure facilities.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2022.

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2022 to the date of this report.

M Ashdown

P M Raven

DISCLOSURE IN THE STRATEGIC REPORT

Identification of the information for which the company has chosen, in accordance with s414C(11) of the Companies Act, to set out in the company's strategic report which would otherwise be required by Schedule 7 of the 'Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008' to be contained in the directors' report.

DIRECTORS' RESPONSIBILITIES STATEMENT

The directors are responsible for preparing the Group Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are 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 directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group 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 directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director 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 group's auditors are aware of that information.

AUDITORS

DTE Business Advisers Limited has indicated its willingness to be reappointed for another term and appropriate arrangements are being made for them to be reappointed as auditor in the absence of an Annual General Meeting.

ON BEHALF OF THE BOARD:

M Ashdown - Director

28 September 2023

Opinion

We have audited the financial statements of Here For You Hospitality Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2022 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the Consolidated Statement of Cash Flows, 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 group's and of the parent company affairs as at 31 December 2022 and of the group's loss 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 group 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 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 group's and the parent 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

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

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

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

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

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

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

Responsibilities of directors

As explained more fully in the Directors' Responsibilities Statement set out on page three, the directors are 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 directors determine 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 directors are responsible for assessing the group's and the parent 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 directors either intend to liquidate the group or the parent company or to cease operations, or have 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:

As part of our planning process:

.

We enquired of management the systems and controls the group has in place, the areas of the financial statements that are mostly susceptible to the risk of irregularities and fraud, and whether there was any known, suspected or alleged fraud. The group did not inform us of any known, suspected or alleged fraud.

.

We obtained an understanding of the legal and regulatory frameworks applicable to the group. We determined that the following were most relevant: FRS 102, Companies Act 2006, Health & Safety at Work 1974, Employment Act 2008, Food Safety Act 1990, Licensing Act 2003, Gaming Act 2005 and General Data Protection Regulations (GDPR).

.

We considered the incentives and opportunities that exist in the group, including the extent of management bias, which present a potential for irregularities and fraud to be perpetuated, and tailored our risk assessment accordingly.

.

Using our knowledge of the group, together with the discussions held with the group at the planning stage, we formed a conclusion on the risk of misstatement due to irregularities including fraud and tailored our procedures according to this risk assessment.

The key procedures we undertook to detect irregularities including fraud during the course of the audit included:

.

Identifying and testing journal entries, in particular those that were significant and unusual.

.

Reviewing the financial statement disclosures and determining whether accounting policies have been appropriately applied.

.

Reviewing and challenging the assumptions and judgements used by management in their significant accounting estimates, in particular in relation to the valuation of freehold property and the calculation of depreciation on fixed assets.

.

Assessing the extent of compliance, or lack of, with the relevant laws and regulations in particular those that are central to the entities ability to continue in operation.

.

Testing key revenue lines, in particular cut-off, for evidence of management bias.

.

Testing cash sales to ensure the risk of cash misappropriation is minimised.

.

Obtaining third-party confirmation of material bank and loan balances.

.

Documenting and verifying all significant related party balances and transactions.

.

Testing all material consolidation adjustments.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements even though we have properly planned and performed our audit in accordance with auditing standards. The primary responsibility for the prevention and detection of irregularities and fraud rests with the directors.

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.

Richard Taylor (Senior Statutory Auditor)

for and on behalf of DTE Business Advisers Limited

Chartered Accountants

Statutory Auditors

The Exchange

5 Bank Street

Bury

BL9 0DN

29 September 2023

REVENUE

3

4,697,092

3,689,548

Cost of sales

(4,223,503

)

(3,148,437

)

GROSS PROFIT

473,589

541,111

Administrative expenses

(75,004

)

(1,735,889

)

398,585

(1,194,778

)

Other operating income

4

-

205,204

OPERATING PROFIT/(LOSS)

6

398,585

(989,574

)

Impairment of property, plant and equipment

7

(767,451

)

-

(368,866

)

(989,574

)

Interest receivable and similar income

16

27

(368,850

)

(989,547

)

Interest payable and similar expenses

8

(85,841

)

(63,112

)

LOSS BEFORE TAXATION

(454,691

)

(1,052,659

)

Tax on loss

9

(225,298

)

(64,963

)

LOSS FOR THE FINANCIAL YEAR

(679,989

)

(1,117,622

)

Loss attributable to:

Owners of the parent

(679,989

)

(1,117,622

)

LOSS FOR THE YEAR

(679,989

)

(1,117,622

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE LOSS FOR THE YEAR

(679,989

)

(1,117,622

)

Total comprehensive loss attributable to:

Owners of the parent

(679,989

)

(1,117,622

)

FIXED ASSETS

Property, plant and equipment

11

9,973,413

10,732,201

Investments

12

-

-

9,973,413

10,732,201

CURRENT ASSETS

Inventories

13

35,011

28,887

Debtors

14

105,571

331,516

Cash at bank and in hand

65,162

59,401

205,744

419,804

CREDITORS

Amounts falling due within one year

15

(3,128,936

)

(3,468,952

)

NET CURRENT LIABILITIES

(2,923,192

)

(3,049,148

)

TOTAL ASSETS LESS CURRENT LIABILITIES

7,050,221

7,683,053

CREDITORS

Amounts falling due after more than one year

16

(6,317,697

)

(6,271,257

)

PROVISIONS FOR LIABILITIES

19

(717

)

-

NET ASSETS

731,807

1,411,796

CAPITAL AND RESERVES

Called up share capital

20

1,443

1,443

Share premium

21

3,402,892

3,402,892

Other reserves

21

1,570,253

1,570,253

Retained earnings

21

(4,242,781

)

(3,562,792

)

SHAREHOLDERS' FUNDS

731,807

1,411,796

The financial statements were approved by the Board of Directors and authorised for issue on 28 September 2023 and were signed on its behalf by:

M Ashdown - Director

FIXED ASSETS

Property, plant and equipment

11

1,569,654

2,338,370

Investments

12

100

102

1,569,754

2,338,472

CURRENT ASSETS

Inventories

13

10,060

9,569

Debtors

14

9,274,121

9,401,886

Cash at bank and in hand

14,037

28,843

9,298,218

9,440,298

CREDITORS

Amounts falling due within one year

15

(2,269,055

)

(2,953,516

)

NET CURRENT ASSETS

7,029,163

6,486,782

TOTAL ASSETS LESS CURRENT LIABILITIES

8,598,917

8,825,254

CREDITORS

Amounts falling due after more than one year

16

(6,317,697

)

(6,271,257

)

NET ASSETS

2,281,220

2,553,997

CAPITAL AND RESERVES

Called up share capital

20

1,443

1,443

Share premium

21

3,402,892

3,402,892

Retained earnings

21

(1,123,115

)

(850,338

)

SHAREHOLDERS' FUNDS

2,281,220

2,553,997

Company's loss for the financial year

(272,777

)

(1,082,233

)

The financial statements were approved by the Board of Directors and authorised for issue on 28 September 2023 and were signed on its behalf by:

M Ashdown - Director

Called up

share

Retained

Share

Other

Total

capital

earnings

premium

reserves

equity

£

£

£

£

£

Balance at 1 January 2021

1,443

(2,445,170

)

3,402,892

1,570,253

2,529,418

Changes in equity

Total comprehensive loss

-

(1,117,622

)

-

-

(1,117,622

)

Balance at 31 December 2021

1,443

(3,562,792

)

3,402,892

1,570,253

1,411,796

Changes in equity

Total comprehensive loss

-

(679,989

)

-

-

(679,989

)

Balance at 31 December 2022

1,443

(4,242,781

)

3,402,892

1,570,253

731,807

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 January 2021

1,443

231,895

3,402,892

3,636,230

Changes in equity

Total comprehensive loss

-

(1,082,233

)

-

(1,082,233

)

Balance at 31 December 2021

1,443

(850,338

)

3,402,892

2,553,997

Changes in equity

Total comprehensive loss

-

(272,777

)

-

(272,777

)

Balance at 31 December 2022

1,443

(1,123,115

)

3,402,892

2,281,220

Cash flows from operating activities

Cash generated from operations

1

157,526

(128,415

)

Interest paid

(85,841

)

(63,112

)

Government grants received

-

205,204

Net cash from operating activities

71,685

13,677

Cash flows from investing activities

Purchase of property plant and equipment

(14,880

)

(26,777

)

Sale of property plant and equipment

-

749,901

Interest received

16

27

Net cash from investing activities

(14,864

)

723,151

Cash flows from financing activities

New loans in year

-

50,000

Loan repayments in year

(51,060

)

(791,333

)

Net cash from financing activities

(51,060

)

(741,333

)

Increase/(decrease) in cash and cash equivalents

5,761

(4,505

)

Cash and cash equivalents at beginning of year

2

59,401

63,906

Cash and cash equivalents at end of year

2

65,162

59,401

1.	RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2022

2021

£

£

Loss before taxation

(454,691

)

(1,052,659

)

Depreciation charges

6,217

25,328

Loss on disposal of fixed assets

-

849,358

Impairment losses

767,451

-

Government grants

-

(205,204

)

Finance costs

85,841

63,112

Finance income

(16

)

(27

)

404,802

(320,092

)

Increase in inventories

(6,124

)

(724

)

Decrease in trade and other debtors

1,364

51,231

(Decrease)/increase in trade and other creditors

(242,516

)

141,170

Cash generated from operations

157,526

(128,415

)

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Statement of Cash Flows in respect of cash and cash equivalents are in respect of these Statement of Financial Position amounts:

Year ended 31 December 2022

31.12.22

1.1.22

£

£

Cash and cash equivalents

65,162

59,401

Year ended 31 December 2021

31.12.21

1.1.21

£

£

Cash and cash equivalents

59,401

63,906

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.1.22

Cash flow

At 31.12.22

£

£

£

Net cash

Cash at bank and in hand

59,401

5,761

65,162

59,401

5,761

65,162

Debt

Debts falling due within 1 year

(10,000

)

-

(10,000

)

Debts falling due after 1 year

(6,271,257

)

(46,440

)

(6,317,697

)

(6,281,257

)

(46,440

)

(6,327,697

)

Total

(6,221,856

)

(40,679

)

(6,262,535

)

1.	STATUTORY INFORMATION

Here For You Hospitality Limited is a company limited by shares registered in England and Wales, registration number 06026014. The registered office is Low Lane, Stainton Village, Middlesbrough, England, TS17 9LW.

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 as modified by the revaluation of land and buildings and certain financial instruments measured at fair value in accordance with the accounting policies set out below.

Basis of consolidation

The consolidated financial statements include the company and all its subsidiary undertakings.

Subsidiary undertakings acquired are accounted for under the acquisition method and their results included from the acquisition date.

Going Concern

The group's business activities, together with the factors which are likely to affect its future performance are set out in the Strategic Review on page 2.

The group meets its day to day working capital requirements from ongoing trading. It does not maintain any overdrafts facilities with its finance providers. The group has utilised long term borrowing from its parent company to finance the development and maintenance of its portfolio of hotels and pubs and will continue to do so.

The directors have considered the business risks and believe that the group is well placed to manage these risks successfully, thus the going concern basis of accounting has been adopted in preparing these financial statements.

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.

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

Revenue

Revenue is measured at the value of work done for goods and services supplied in the hotel, pub and restaurant industry, excluding value added tax. Revenue is recognised in the accounting period in which the performance of the service has been provided to the customer.