| Verve Hotels Ltd |
| Notes to the Accounts |
| for the year ended 30 June 2023 |
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| 1 |
Accounting policies |
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Basis of preparation |
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The accounts have been prepared under the historical cost convention and in accordance with FRS 102, The Financial Reporting Standard applicable in the UK and Republic of Ireland (as applied to small entities by section 1A of the standard). |
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Turnover |
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Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have transferred to the buyer. Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. |
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Intangible fixed assets |
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Intangible fixed assets are measured at cost less accumulative amortisation and any accumulative impairment losses. |
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Tangible fixed assets |
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Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows: |
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Building improvements and refurbishments |
15% reducing balance |
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Fixtures, fittings, tools and equipment |
15% reducing balance |
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Stocks |
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Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised. |
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Debtors |
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Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts. |
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Creditors |
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Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method. |
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Taxation |
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A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted. |
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Pensions |
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Contributions to defined contribution plans are expensed in the period to which they relate. |
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| 2 |
Employees |
2023 |
|
2022 |
| Number |
Number |
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Average number of persons employed by the company |
13 |
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8 |
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| 3 |
Intangible fixed assets |
£ |
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Goodwill: |
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Cost |
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At 1 July 2022 |
100,000 |
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At 30 June 2023 |
100,000 |
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Amortisation |
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At 1 July 2022 |
90,000 |
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Provided during the year |
10,000 |
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At 30 June 2023 |
100,000 |
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Net book value |
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At 30 June 2023 |
- |
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At 30 June 2022 |
10,000 |
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Goodwill is being written off in equal annual instalments over its estimated economic life of 10 years. |
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| 4 |
Tangible fixed assets |
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Land and buildings |
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Fixtures & fittings |
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Computer equipment |
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Total |
| £ |
£ |
£ |
£ |
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Cost |
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At 1 July 2022 |
2,043,740 |
|
133,820 |
|
3,010 |
|
2,180,570 |
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Additions |
51,488 |
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- |
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- |
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51,488 |
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At 30 June 2023 |
2,095,228 |
|
133,820 |
|
3,010 |
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2,232,058 |
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Depreciation |
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At 1 July 2022 |
249,529 |
|
77,492 |
|
2,761 |
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329,782 |
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Charge for the year |
51,855 |
|
8,449 |
|
167 |
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60,471 |
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At 30 June 2023 |
301,384 |
|
85,941 |
|
2,928 |
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390,253 |
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Net book value |
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At 30 June 2023 |
1,793,844 |
|
47,879 |
|
82 |
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1,841,805 |
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At 30 June 2022 |
1,794,211 |
|
56,328 |
|
249 |
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1,850,788 |
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Freehold land and buildings: |
2023 |
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2022 |
| £ |
£ |
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Historical cost |
1,478,740 |
|
1,478,740 |
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Cumulative depreciation based on historical cost |
301,384 |
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249,529 |
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1,177,356 |
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1,229,211 |
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| 5 |
Debtors |
2023 |
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2022 |
| £ |
£ |
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Other debtors |
4,200 |
|
18,609 |
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| 6 |
Creditors: amounts falling due within one year |
2023 |
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2022 |
| £ |
£ |
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Bounce back loan |
13,244 |
|
18,000 |
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Bank loans and overdrafts |
- |
|
133,959 |
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Trade creditors |
51,134 |
|
32,544 |
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Taxation and social security costs |
49,186 |
|
22,480 |
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Other creditors |
231,510 |
|
253,103 |
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345,074 |
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460,086 |
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| 7 |
Creditors: amounts falling due after one year |
2023 |
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2022 |
| £ |
£ |
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Bank loans |
- |
|
11,244 |
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Other creditors |
1,000,000 |
|
1,000,000 |
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1,000,000 |
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1,011,244 |
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| 8 |
Revaluation reserve |
2023 |
|
2022 |
| £ |
£ |
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At 1 July 2022 |
429,524 |
|
- |
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Gain on revaluation of land and buildings |
- |
|
565,000 |
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Deferred taxation arising on the revaluation of land and buildings |
- |
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(135,476) |
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At 30 June 2023 |
429,524 |
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429,524 |
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| 9 |
Reserves |
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Profit and loss account |
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At the balance sheet date, included in reserves carried forward are: |
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Unrealised gains of £984,781 (2022 £984,781) relating to the revaluation of investment properties |
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Deferred tax provided in respect of these gains totalling £176,536 (2022 £176,536) |
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Retained trading losses carried forward of £873,856 (2022 £780,076) |
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Accordingly there are no distributable reserves included in the carried forward reserves balance |
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| 10 |
Pension commitments |
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The Compoany operates a defined contributions pension scheme. The assets of the scheme |
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are held separately from those of the Company in an independently administered fund. The |
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pension cost charge represents contributions payable by the Company to the fund and |
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amounted to £1,301 (2022 £116). Contributions totalling £2,053 (2022 £3,514) were payable to |
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the fund at the reporting date and are included in creditors. |
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| 11 |
Related party transactions |
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M Reuben, the director of the Comoany has provided an interest free loan to the Company. At |
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the reporting date, the Company owed M Reuben £1,167,798 (2022 £1,157,815). |
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| 12 |
Other information |
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Verve Hotels Ltd is a private company limited by shares and incorporated in England. Its registered office is: |
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Devonshire House |
|
582 Honeypot Lane |
|
Stanmore |
|
HA7 1JS |
