|
Sleeperz Newcastle Limited
Registered number: 06407916
Annual Report
For the 10-month period ended 31 December 2022
|
|
SLEEPERZ NEWCASTLE LIMITED
COMPANY INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
5th Floor 13 Charles II Street
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Chartered Accountants & Statutory Auditor
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SLEEPERZ NEWCASTLE LIMITED
CONTENTS
|
|
|
|
|
|
Directors' Responsibilities Statement
|
|
Independent Auditor's Report
|
|
Statement of Comprehensive Income
|
|
Statement of Financial Position
|
|
Statement of Changes in Equity
|
|
Notes to the Financial Statements
|
|
|
|
SLEEPERZ NEWCASTLE LIMITED
DIRECTORS' REPORT
FOR THE 10-MONTH PERIOD ENDED 31 DECEMBER 2022
The directors present their annual report and the audited financial statements for Sleeperz Newcastle Limited (the 'Company') for the 10-month period (the 'period') ended 31 December 2022.
As permitted by section 414B of the Companies Act 2006, the Company is entitled to the small companies' exemption in relation to the Strategic Report.
During the period the Company changed the address of its registered office from 5th Floor, 112 Jermyn Street, London, SW1Y 6LS to 5th Floor 13 Charles Ii Street, London, United Kingdom, SW1Y 4QU.
On 15 August 2023, the Company shortened its accounting reference date from 28 February 2023 to 31 December 2022 to bring it in line with fellow group companies. Therefore the prior period results are not directly comparable.
The principal activity of the Company is the operation of a 98 room hotel next to Newcastle Central Station which opened in January 2012.
The profit for the 10-month period, after taxation, amounted to £164,844 (year ended 28 February 2022: profit of £319,981).
The directors do not recommend the payment of a dividend for the period (year ended 28 February 2022: £nil).
The directors who served during the period and to the date of this report were:
D E Myers
W K D Laxton (appointed 18 May 2022)
|
N D Gillis (appointed 28 March 2023)
D Lyko Edwards (resigned 18 May 2022)
- 1 -
|
|
SLEEPERZ NEWCASTLE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE 10-MONTH PERIOD ENDED 31 DECEMBER 2022
Principal risks and uncertainties
|
a. Treasury operations
There is a group facility in place in which the Company uses bank loans and cash balances as its principal instruments for financing. In addition, the Company has various other financial assets and liabilities such as trade debtors and trade creditors arising directly from the operations of the business.
b. Liquidity risk
Liquidity risk is managed through an assessment of working capital requirements to ensure the Company has sufficient funds available for operations and planned expansions.
c. Interest rate risk
There is a group facility in place in which the Company can utilise and the Company is exposed to fair value interest rate risk as its bank loan facility is 3 month SONIA + Bank fee.
d. Foreign currency risk
The Company does not have any foreign currency risk as all the sales and purchases are made within the UK.
e. Credit risk
Investments of cash surpluses are made with the Company's main bankers. Receivable balances are monitored on an ongoing basis and provision is made for doubtful debts where necessary.
Creditor payment policy
The Company's current policy concerning the payment of trade creditors is to:
• settle the terms of payment with suppliers when agreeing the terms of each transaction;
• ensure that suppliers are made aware of the terms of payment by inclusion of the relevant terms in
contracts; and
• pay in accordance with the Company's contractual and other legal obligations.
Qualifying third party indemnity provisions
|
The directors benefit from a third party qualifying indemnity provision in the form permitted by Section 234 of the Companies Act 2006 in respect of certain third party actions against directors. No claim or notice of claim in respect of these indemnities has been received in the period. The qualifying indemnity provision was in force from July 2023 and up to the date of approval of the Directors' Report.
- 2 -
|
|
SLEEPERZ NEWCASTLE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE 10-MONTH PERIOD ENDED 31 DECEMBER 2022
Economic impact of global events
|
UK businesses are facing many uncertainties and challenges caused by political, economic, social, technological, legal and environmental factors. These uncertainties have contributed to an environment where there exists a range of issues and risks, including inflation, rising interest rates, labour shortages, disrupted supply chains and new ways of working.
The directors have carried out an assessment of the potential impact of these uncertainties on the business, including the impact of mitigation measures, and have concluded that these are non-adjusting events with the greatest impact on the business expected to be from the economic ripple effect on the global economy. The directors have taken account of these potential impacts in their going concern assessment.
Going concern
These financial statements have been prepared on the going concern basis as the parent company, Mactaggart Hotel Holdings Limited, has confirmed that it is willing to continue to provide financial support for at least 12 months from the date of signing these financial statements.
The directors have considered the ongoing impact of the Russian invasion of Ukraine in making their going concern assessment based on the current situation and the impact on the company and consider the going concern assessment to be appropriate. The Company have completed detailed cash flow projections in order to complete their assessment and conclusion.
Post balance sheet events
|
Since the period end, on 30 June 2023, the Company refinanced the loans with Coutts & Company and the CBILS loans. The CBILS loans have since been repaid in full and the Company has taken out a new loan of £11m with Coutts & Company.
Provision of information to the auditor
|
Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
∙so far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware; and
∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.
The auditor, Mazars LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
- 3 -
|
|
SLEEPERZ NEWCASTLE LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE 10-MONTH PERIOD ENDED 31 DECEMBER 2022
In preparing this report, the directors have taken advantage of the small companies exemptions provided by section 415A of the Companies Act 2006.
This report was approved by the board and signed on its behalf by:
- 4 -
|
|
SLEEPERZ NEWCASTLE LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE 10-MONTH PERIOD ENDED 31 DECEMBER 2022
The directors are responsible for preparing the Directors' Report 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), 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 of the profit or loss of the Company for that period.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent; and
∙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 transactions and disclose with reasonable accuracy at any time the financial position of the Company and to 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
- 5 -
|
|
SLEEPERZ NEWCASTLE LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SLEEPERZ NEWCASTLE LIMITED
Opinion
We have audited the financial statements of Sleeperz Newcastle Limited (the ‘Company’) for the 10-month period ended 31 December 2022 which comprise the Statement of Comprehensive Income, the Statement of Financial Position, the Statement of Changes in Equity and 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 FRS 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 Company’s affairs as at 31 December 2022 and of its profit for the 10-month period 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 Auditor’s responsibilities for the audit of the financial statements section of our report. We are independent of the Company 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 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 other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information contained within the annual report. 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.
- 6 -
|
|
SLEEPERZ NEWCASTLE LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SLEEPERZ NEWCASTLE LIMITED
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 course of 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Directors' Report has been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Directors' Report.
We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:
∙adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
∙the 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.
- 7 -
|
|
SLEEPERZ NEWCASTLE LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SLEEPERZ NEWCASTLE LIMITED
Responsibilities of Directors
As explained more fully in the Directors' Responsibilities Statement set out on page 5, 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 is 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 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 intend either to liquidate the Company or to cease operations, or have no realistic alternative but to do so.
Auditor's 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 an auditor’s report 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 the financial statements.
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud.
Based on our understanding of the Company and its industry, we considered that non-compliance with the following laws and regulations might have a material effect on the financial statements: employment regulation, health and safety regulation, anti-money laundering regulation, non-compliance with implementation of government support schemes relating to COVID-19.
To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing the risks of material misstatement in respect to non-compliance, our procedures included, but were not limited to:
∙Inquiring of management and, where appropriate, those charged with governance, as to whether the Company is in compliance with laws and regulations, and discussing their policies and procedures regarding compliance with laws and regulations;
∙Inspecting correspondence, if any, with relevant licensing or regulatory authorities;
∙Communicating identified laws and regulations to the engagement team and remaining alert to any indications of non-compliance throughout our audit; and
∙Considering the risk of acts by the Company which were contrary to applicable laws and regulations, including fraud.
We also considered those laws and regulations that have a direct effect on the preparation of the financial statements, such as tax legislation, pension legislation, the Companies Act 2006.
- 8 -
|
|
SLEEPERZ NEWCASTLE LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF SLEEPERZ NEWCASTLE LIMITED
In addition, we evaluated the directors' and management’s incentives and opportunities for fraudulent manipulation of the financial statements, including the risk of override of controls, and determined that the principal risks were related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, in particular in relation to revenue recognition (which we pinpointed to the cut-off assertion) and significant one-off or unusual transactions.
Our audit procedures in relation to fraud included but were not limited to:
∙Making enquiries of the directors and management on whether they had knowledge of any actual, suspected or alleged fraud;
∙Gaining an understanding of the internal controls established to mitigate risks related to fraud;
∙Discussing amongst the engagement team the risks of fraud; and
∙Addressing the risks of fraud through management override of controls by performing journal entry testing.
There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls.
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 auditor’s report.
Use of the audit 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 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.
Gareth Jones (Senior statutory auditor)
for and on behalf of Mazars LLP
Chartered Accountants and Statutory Auditor
30 Old Bailey
London
EC4M 7AU
7 December 2023
- 9 -
|
|
SLEEPERZ NEWCASTLE LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE 10-MONTH PERIOD ENDED 31 DECEMBER 2022
|
|
10-month period ended 31 December 2022
|
Year ended 28 February 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Surplus in property revaluation
|
|
|
|
|
|
|
|
|
Interest payable and similar expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Profit for the period/year
|
|
|
|
Other comprehensive income
|
|
|
|
Total comprehensive income for the period/year
|
|
|
|
The Statement of Comprehensive Income has been prepared on the basis that all operations are continuing operations.
|
The notes on pages 14 to 25 form part of these financial statements.
|
- 10 -
|
|
SLEEPERZ NEWCASTLE LIMITED
REGISTERED NUMBER: 06407916
STATEMENT OF FINANCIAL POSITION
AS AT 31 DECEMBER 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debtors: Amounts falling due within one year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Creditors: Amounts falling due within one year
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets less current liabilities
|
|
|
|
|
|
Creditors: Amounts falling due after more than one year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- 11 -
|
|
SLEEPERZ NEWCASTLE LIMITED
REGISTERED NUMBER: 06407916
STATEMENT OF FINANCIAL POSITION (CONTINUED)
AS AT 31 DECEMBER 2022
The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime and in accordance with the provisions of FRS 102 Section 1A - small entities.
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 14 to 25 form part of these financial statements.
- 12 -
|
|
SLEEPERZ NEWCASTLE LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE 10-MONTH PERIOD ENDED 31 DECEMBER 2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income for the year
|
|
|
|
|
|
|
|
|
Other comprehensive income for the year
|
|
|
|
Total comprehensive income for the year
|
|
|
|
Shares issued during the year
|
|
|
|
Total transactions with owners
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income for the 10-month period
|
|
|
|
Profit for the 10-month period
|
|
|
|
Other comprehensive income for the 10-month period
|
|
|
|
Total comprehensive income for the 10-month period
|
|
|
|
Total transactions with owners
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The notes on pages 14 to 25 form part of these financial statements.
|
- 13 -
|
|
SLEEPERZ NEWCASTLE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 10-MONTH PERIOD ENDED 31 DECEMBER 2022
Sleeperz Newcastle Limited is a private company limited by shares, incorporated in England and Wales. The Company's registered number is 06407916. Its registered office address is 5th Floor 13 Charlies II Street, London, United Kingdom, SW1Y 4QU.
During the period the Company changed the address of its registered office from 5th Floor, 112 Jermyn Street, London SW1Y 6LS to 5th Floor 13 Charles Ii Street, London, United Kingdom, SW1Y 4QU.
On 15 August 2023, the Company shortened its accounting reference date from 28 February 2023 to 31 December 2022 to bring it in line with fellow group companies. Therefore the prior period results are not directly comparable.
2.Accounting policies
|
|
|
Basis of preparation of financial statements
|
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Section 1A of Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 3).
The financial statements have been prepared in Pound Sterling as this is the currency of the primary economic environment in which the Company operates and is rounded to the nearest pound.
The following principal accounting policies have been applied:
These financial statements have been prepared on the going concern basis as the parent company, Mactaggart Hotel Holdings Limited, has confirmed that it is willing to continue to provide financial support for at least 12 months from the date of signing these financial statements.
The directors have considered the ongoing impact of the Russian invasion of Ukraine in making their going concern assessment based on the current situation and the impact on the company and consider the going concern assessment to be appropriate. The Company have completed detailed cash flow projections in order to complete their assessment and conclusion.
- 14 -
|
|
SLEEPERZ NEWCASTLE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 10-MONTH PERIOD ENDED 31 DECEMBER 2022
2.Accounting policies (continued)
|
|
|
Foreign currency translation
|
Functional and presentation currency
The Company's functional and presentation currency is GBP.
Transactions and balances
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions.
At each period end foreign currency monetary items are translated using the closing rate. Non-monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined.
Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss.
All other foreign exchange gains and losses are presented in the Statement of Comprehensive Income within 'administrative expenses'.
Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.
Turnover from accommodation, food and beverages and other ancilliary services is recognised on the date of delivery of the service, as this is the date on which risk and reward transfers from the Company to the customer. Any amounts received before the end of the reporting period in respect of the provision of accommodation and services after the reporting period are treated accordingly as deferred turnover.
|
|
|
Finance and operating leases
|
Costs in respect of operating leases are charged against income on a straight line basis over the lease term.
Leasing agreements which transfer to the Company substantially all the benefits and risks of ownership of an asset are treated as if the asset had been purchased outright. The assets are included in fixed assets and the capital element of the leasing commitments is shown as obligations under finance leases. The lease rentals are treated as consisting of capital and interest elements. The capital element is applied to reduce the outstanding obligations and the interest element is charged against profit in proportion to the reducing capital element outstanding. Assets held under finance leases are depreciated over the useful lives of equivalent owned assets.
- 15 -
|
|
SLEEPERZ NEWCASTLE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 10-MONTH PERIOD ENDED 31 DECEMBER 2022
2.Accounting policies (continued)
The UK government offered a range of financial support packages to help companies, including government backed financing arrangements, furlough schemes, deferment of VAT payments and, for some sectors, business rates holidays. Of the offered schemes, the Company used the furlough scheme in the prior year. The income from the furlough scheme is recognised as Other Operating Income. The amounts are recognised when the entity has reasonable assurance that they will comply with the conditions attaching the grant, and that the grant will be received.
|
|
|
Interest payable and similar expenses
|
Interest payable and similar expenses are charged to the Statement of Comprehensive Income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.
Defined contribution pension plan
The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.
The contributions are recognised as an expense in the Statement of Comprehensive Income when they fall due. Amounts not paid are shown in other creditors as a liability in the Statement of Financial Position. The assets of the plan are held separately from the Company in independently administered funds.
- 16 -
|
|
SLEEPERZ NEWCASTLE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 10-MONTH PERIOD ENDED 31 DECEMBER 2022
2.Accounting policies (continued)
|
|
|
Current and deferred taxation
|
The tax expense for the 10-month period comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.
The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income.
Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.
Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.
Leasehold property is stated at its open market valuation.
Surpluses and deficits arising on revaluation of properties are recognised within the Statement of Comprehensive Income.
Depreciation is charged to administrative expenses in the Statement of Comprehensive Income.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in administrative expenses in the Statement of Comprehensive Income.
- 17 -
|
|
SLEEPERZ NEWCASTLE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 10-MONTH PERIOD ENDED 31 DECEMBER 2022
2.Accounting policies (continued)
At each reporting date, the Company reviews the carrying value of its assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss.
The recoverable amount of an asset is the higher of fair value less costs to sell and value in use. Value in use is the present value of the future cash flows expected to be derived from the asset. The present value calculation involves estimating the future cash inflows and outflows to be derived from continuing use of the asset, and from its ultimate disposal, applying an appropriate discount rate to those future cash flows.
When the recoverable amount of an asset is less than the carrying amount an impairment loss is recognised immediately in profit or loss. An impairment loss recognised for all assets is reversed in a subsequent year if, and only if, the reasons for the impairment loss have ceased to apply.
Financial assets and liabilities are recognised when the Company becomes party to the contractual provisions of the financial instrument. The Company holds basic financial instruments, which comprise cash at bank and in hand, trade and other debtors, and trade and other creditors. The Company has chosen to apply the measurement and recognition provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' in full.
Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis.
At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the Statement of Comprehensive Income.
|
|
|
Debtors: Amounts falling due within one year
|
Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
|
|
|
Cash and cash equivalents
|
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.
- 18 -
|
|
SLEEPERZ NEWCASTLE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 10-MONTH PERIOD ENDED 31 DECEMBER 2022
2.Accounting policies (continued)
|
|
|
Provisions for liabilities
|
Provisions are made where an event has taken place that gives the Company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.
Provisions are charged as an expense to profit or loss in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the reporting date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.
When payments are eventually made, they are charged to the provision carried in the Statement of Financial Position.
Financial assets and liabilities are recognised when the Company becomes party to the contractual provisions of the financial instrument. The Company holds basic financial instruments, which comprise cash at bank and in hand, trade and other debtors, and trade and other creditors. The Company has chosen to apply the measurement and recognition provisions of Section 11 'Basic Financial Instruments' and Section 12 'Other Financial Instruments Issues' in full.
Financial assets - classified as basic financial instruments
(i) Trade and other debtors
Trade and other debtors are initially recognised at the transaction price, including any transaction costs, and are subsequently measured at amortised cost using the effective interest method, less any provision for impairment.
Amounts that are receivables within one year are measured at the undiscounted amount of the amount expected to be receivable, net of any impairment.
Where a financial asset constitutes a financing transaction it is initially measured at the present value of the future payments, discounted at a market rate of interest.
At the end of each reporting year, the Company assesses whether there is objective evidence that any financial asset amount may be impaired. A provision for impairment is established when there is objective evidence that the Company will not be able to collect all amounts due according to the original terms of the financial assets. The amount of the provision is the difference between the asset's carrying amount and the present value of the estimated future cash flows. The amount of the provision is recognised immediately in profit or loss.
Financial liabilities - classified as basic financial instruments
(ii) Trade and other creditors
Trade and other creditors are initially measured at the transaction price, including any transaction costs, and are subsequently measured at amortised cost using the effective interest method.
- 19 -
|
|
SLEEPERZ NEWCASTLE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 10-MONTH PERIOD ENDED 31 DECEMBER 2022
2.Accounting policies (continued)
|
|
|
Financial instruments (continued)
|
Amounts that are payable within one year are measured at the undiscounted amount of the amount expected to be payable.
Where the financial liability constitutes a financing transaction it is initially and subsequently measured at the present value of the future payments, discounted at a market rate of interest.
|
|
Judgements in applying accounting policies and key sources of estimation uncertainty
|
In applying the Company's accounting policies, the directors are required to make judgements, estimates and assumptions in determining the carrying amounts of assets and liabilities. The directors' judgements, estimates and assumption are based on the best and most reliable evidence available at the time when the decisions are made, and are based on historical experience and other factors that are considered to be applicable. Due to the inherent subjectivity involved in making such judgements, estimates and assumptions, the actual results and outcomes may differ.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the year in which the estimate is revised, if the revision affects only that year, or in the year of the revision and future years, if the revision affects both current and future years.
3.1 Critical judgements in applying the accounting policies
(i) Valuation of Properties
The company owns a leasehold property that is carried at fair value in the statement of financial position. The fair value of the properties is determined by the directors based on the income approach, which involves multiplying the net operating income of the hotel by a capitalisation rate. The capitalisation rate is derived from the external valuation report that was obtained in the previous year, and is adjusted for any significant changes in the market conditions and the performance of the hotel.
3.2 Key sources of estimation uncertainty
There are no key assumptions concerning the future, and other key sources of estimation uncertainty, that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year.
|
|
The average monthly number of employees, including directors, during the period was 28 (year ended 28 February 2022: 22).
|
- 20 -
|
|
SLEEPERZ NEWCASTLE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 10-MONTH PERIOD ENDED 31 DECEMBER 2022
|
|
The Company's leasehold property was valued at 31 December 2022 on the basis of an open market value for existing use by a qualified valuer. The valuation of the property was performed by Savills. The valuation amounted to £5,500,000, which gave rise to a revaluation increase of £400,000, which has been included in the costs in the year due to impairment on the property from the original cost.
As at 31 December 2022, fixed and floating charges exist registered by Western Heritable Limited and Coutts & Company over the Company's leasehold property interests.
|
|
|
The net book value of land and buildings may be further analysed as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- 21 -
|
|
SLEEPERZ NEWCASTLE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 10-MONTH PERIOD ENDED 31 DECEMBER 2022
|
|
Finished goods and goods for resale
|
|
|
|
|
|
|
|
|
|
There is no material difference between the carrying value of the stock and its replacement value.
|
|
|
Debtors: Amounts falling due within one year
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts owed by group undertakings
|
|
|
|
|
|
|
|
|
|
Prepayments and accrued income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts owed by group undertakings are unsecured, interest free and repayable on demand.
|
|
|
Creditors: Amounts falling due within one year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts owed to group undertakings (note 9)
|
|
|
|
|
Other taxation and social security
|
|
|
|
|
|
|
|
|
|
Accruals and deferred income
|
|
|
|
|
|
|
|
|
|
|
|
|
- 22 -
|
|
SLEEPERZ NEWCASTLE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 10-MONTH PERIOD ENDED 31 DECEMBER 2022
|
|
Creditors: Amounts falling due after more than one year
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts owed to group undertakings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts owed to group undertakings incurs interest at the rate on which the parent bears interest, being 2.5% above 3 month LIBOR (28 February 2022: 2.5% above 3 month LIBOR), which at period end was a rate of 7% (28 February 2022: 3.0526%). The interest charge is recharged from Sleeperz Hotels Limited to the subsidiaries and is included within interest payable.
|
|
|
Included above are the following amounts repayable by instalments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Charged)/credited to profit or loss
|
|
|
|
Adjustments in respect of prior years
|
|
|
|
|
|
|
- 23 -
|
|
SLEEPERZ NEWCASTLE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 10-MONTH PERIOD ENDED 31 DECEMBER 2022
10.Deferred tax asset (continued)
|
|
The deferred tax asset is made up as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed asset timing differences
|
|
|
|
|
|
|
|
|
|
Losses and other deductions
|
|
|
|
|
|
|
|
|
|
|
Allotted, called up and fully paid
|
|
|
|
|
|
|
|
|
|
|
|
1 (year ended 28 February 2022: 1) ordinary shares of £1 each
|
|
|
|
|
Fully paid ordinary shares carry one vote and carry a right to dividends as and when declared by the Company.
|
The Company has a lease in which the rent varies according to the turnover achieved at a percentage of 5.5%. There is no minimum payment due in relation to the rental agreement with Network Rail and the rent will cease if the hotel is not trading. Therefore a commitment of £nil (year ended 28 February 2022: £nil) is disclosed in these financial statements.
The Company operates a defined contribution pension plan for its employees. Contributions made into this plan are paid by the Company at the rates specified in the rules of the schemes. At the reporting date £4,930 (year ended 28 February 2022: £7,600) was payable to the plan and included in other creditors.
- 24 -
|
|
SLEEPERZ NEWCASTLE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE 10-MONTH PERIOD ENDED 31 DECEMBER 2022
|
|
Related party transactions
|
|
|
The Company is a wholly owned subsidiary of Sleeperz Limited, and as such has taken advantage of the exemption permitted by FRS 102 section 33 'Related party disclosures' not to provide disclosures of transactions entered into with wholly owned members of the group. The Company and its subsidiary undertakings are included within the consolidated financial statements of Mactaggart Hotel Holdings Limited, which are publicly available and can be obtained from Companies House.
|
|
|
Post balance sheet events
|
Since the period end, on 30 June 2023, the Company refinanced the loans with Coutts & Company and the CBILS loans. The CBILS loans have since been repaid in full and the Company has taken out a new loan of £11m with Coutts & Company.
The immediate parent company is Sleeperz Limited, a company incorporated in the United Kingdom.
The ultimate parent company as at 31 December 2022 was Sleeperz Hotels Limited, a company incorporated in England and Wales. As at the date of signing, the ultimate parent company is Mactaggart Hotel Holdings Limited, a company incorporated in England and Wales. Group financial statements are available from Companies House. Mactaggart Hotel Holdings Limited group is both the smallest and the largest group into which the group's financial statements are consolidated. The registered office of Sleeperz Hotels Limited is 2 Babmaes Street, London, SW1Y 6HD.
- 25 -
|
