Platinum One Hotels Limited - Limited company accounts 23.2

REGISTERED NUMBER: 04649411 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2023

FOR

PLATINUM ONE HOTELS LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Statement of Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Cash Flow Statement

12

Notes to the Cash Flow Statement

13

Notes to the Financial Statements

15

DIRECTORS:

C M Bradfield

T C Lloyd

R J Morgan

S Ross

R J Wilson

REGISTERED OFFICE:

Captains Club Hotel

Wick Ferry

Wick Lane

Christchurch

Dorset

BH23 1HU

REGISTERED NUMBER:

04649411 (England and Wales)

AUDITORS:

Carter & Coley Limited

Chartered Accountants and Statutory Auditor

3 Durrant Road

Bournemouth

Dorset

BH2 6NE

The directors present their strategic report for the year ended 31 March 2023.

REVIEW OF BUSINESS

The company's principal activity is the ownership and operation of The Captains Club Hotel.

The company's turnover for the year was £4,305,204 (2022 £4,581,530). The operating loss was £138,414 following a post covid record profit of £850,935 in 2022.

During the year the company bought back five apartments from the directors for £2,200,000, funded by a new bank loan. Net assets reduced by £138,414.

The directors consider the financial position and future prospects at 31 March 2023 to be satisfactory.

PRINCIPAL RISKS AND UNCERTAINTIES

The key business risks and uncertainties affecting the company are considered to relate to the highly competitive market place and price and employment costs increases in the hospitality industry caused by the current economic conditions. Interest rate rises are being closely monitored and budgeted accordingly.

The company is managed on a day to day basis by the executive directors in line with the board of directors strategies. Further key performances indicators for the company are not considered necessary by the Directors for understanding the development or performance of the Company.

Budgets and trading to the date of this report are profitable. The company is forecasting ongoing compliance with the bank covenants for the bank loans.

The directors continue to adopt the going concern basis of preparing the financial statements.

ON BEHALF OF THE BOARD:

T C Lloyd - Director

20 November 2023

The directors present their report with the financial statements of the company for the year ended 31 March 2023.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of hoteliers trading as The Captains Club Hotel.

DIVIDENDS

No dividends will be distributed for the year ended 31 March 2023.

DIRECTORS

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

C M Bradfield

T C Lloyd

R J Morgan

S Ross

R J Wilson

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the 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). 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 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 transactions and disclose with reasonable accuracy at any time the financial position of the company 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 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 company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Carter & Coley Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

T C Lloyd - Director

20 November 2023

Opinion

We have audited the financial statements of Platinum One Hotels Limited (the 'company') for the year ended 31 March 2023 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 company's affairs as at 31 March 2023 and of its 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 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 directors are responsible for the other information. The other information comprises the information in the 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 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 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the 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, 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.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities 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 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 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:

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities to detect material misstatements in respect of irregularities, including fraud. He extend to which our procedures are capable of detecting irregularities is detailed below,

In identifying and assessing risks of material misstatement in respect of irregularities including fraud and non-compliance, we considered the following.

" The nature of the industry and sector, control environment and business performance.

" Identifying, evaluating and complying with laws and regulations and whether management were aware of any instances of non-compliance.

" Detecting and responding to the risks of fraud and whether management had any knowledge of any actual, suspected or alleged fraud.

" The internal controls established to mitigate risks of fraud and non-compliance with laws and regulations;

The matters discussed among the audit engagement team considered where fraud might occur in the financial statements and any potential indicators of fraud.

We obtained an understanding of the legal and regulatory framework that the company operates in, focussing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations were the Companies Act 2006 and UK taxation.

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.

Other matters which we are required to address

The prior period accounts were not audited. We were not appointed as auditors until after the balance sheet date and accordingly we did not attend the stocktake.

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.

Anthony Cooke (Senior Statutory Auditor)

for and on behalf of Carter & Coley Limited

Chartered Accountants and Statutory Auditor

3 Durrant Road

Bournemouth

Dorset

BH2 6NE

20 November 2023

TURNOVER

4,305,204

4,581,530

Cost of sales

1,131,196

958,207

GROSS PROFIT

3,174,008

3,623,323

Administrative expenses

3,173,655

2,799,173

353

824,150

Other operating income

-

104,886

OPERATING PROFIT

4

353

929,036

Interest receivable and similar income

3,141

38

3,494

929,074

Interest payable and similar expenses

5

141,908

78,139

(LOSS)/PROFIT BEFORE TAXATION

(138,414

)

850,935

Tax on (loss)/profit

6

-

-

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(138,414

)

850,935

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(138,414

)

Prior year adjustment

110,947

TOTAL COMPREHENSIVE INCOME SINCE LAST ANNUAL REPORT

961,882

FIXED ASSETS

Tangible assets

8

6,397,827

4,199,025

CURRENT ASSETS

Stocks

9

40,122

36,381

Debtors

10

68,987

189,145

Cash at bank and in hand

968,788

999,094

1,077,897

1,224,620

CREDITORS

Amounts falling due within one year

11

1,062,425

866,216

NET CURRENT ASSETS

15,472

358,404

TOTAL ASSETS LESS CURRENT LIABILITIES

6,413,299

4,557,429

CREDITORS

Amounts falling due after more than one year

12

4,073,521

2,079,237

NET ASSETS

2,339,778

2,478,192

CAPITAL AND RESERVES

Called up share capital

16

150

150

Share premium

2,239,950

2,239,950

Retained earnings

99,678

238,092

SHAREHOLDERS' FUNDS

2,339,778

2,478,192

The financial statements were approved by the Board of Directors and authorised for issue on 20 November 2023 and were signed on its behalf by:

T C Lloyd - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 April 2021

150

(723,790

)

2,239,950

1,516,310

Prior year adjustment

-

110,947

-

110,947

As restated

150

(612,843

)

2,239,950

1,627,257

Changes in equity

Total comprehensive income

-

850,935

-

850,935

Balance at 31 March 2022

150

238,092

2,239,950

2,478,192

Changes in equity

Total comprehensive income

-

(138,414

)

-

(138,414

)

Balance at 31 March 2023

150

99,678

2,239,950

2,339,778

Cash flows from operating activities

Cash generated from operations

1

310,016

1,206,608

Interest paid

(141,908

)

(78,013

)

Interest element of hire purchase or finance lease rental payments paid

-

(126

)

Net cash from operating activities

168,108

1,128,469

Cash flows from investing activities

Purchase of tangible fixed assets

(2,364,556

)

(25,756

)

Sale of tangible fixed assets

-

2,576

Interest received

3,141

38

Net cash from investing activities

(2,361,415

)

(23,142

)

Cash flows from financing activities

New loans in year

2,686,000

-

Loan repayments in year

(1,892,228

)

(281,100

)

Capital repayments in year

-

(3,070

)

Amount introduced by directors

1,369,229

9,915

Amount withdrawn by directors

-

(89,056

)

Net cash from financing activities

2,163,001

(363,311

)

(Decrease)/increase in cash and cash equivalents

(30,306

)

742,016

Cash and cash equivalents at beginning of year

2

999,094

257,078

Cash and cash equivalents at end of year

2

968,788

999,094

1.	RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2023

2022

as restated

£

£

(Loss)/profit before taxation

(138,414

)

850,935

Depreciation charges

165,754

127,841

Profit on disposal of fixed assets

-

(2,576

)

Finance costs

141,908

78,139

Finance income

(3,141

)

(38

)

166,107

1,054,301

Increase in stocks

(3,741

)

(8,122

)

Decrease/(increase) in trade and other debtors

120,158

(152,628

)

Increase in trade and other creditors

27,492

313,057

Cash generated from operations

310,016

1,206,608

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 March 2023

31/3/23

1/4/22

£

£

Cash and cash equivalents

968,788

999,094

Year ended 31 March 2022

31/3/22

1/4/21

as restated

£

£

Cash and cash equivalents

999,094

257,078

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1/4/22

Cash flow

At 31/3/23

£

£

£

Net cash

Cash at bank and in hand

999,094

(30,306

)

968,788

999,094

(30,306

)

968,788

Debt

Debts falling due within 1 year

(183,200

)

121,368

(61,832

)

Debts falling due after 1 year

(2,079,237

)

(915,140

)

(2,994,377

)

(2,262,437

)

(793,772

)

(3,056,209

)

Total

(1,263,343

)

(824,078

)

(2,087,421

)

1.	STATUTORY INFORMATION

Platinum One Hotels 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.

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.

Turnover

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

Tangible fixed assets

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

Freehold property

-

2% on buildings and nil on land

Plant and machinery

-

33% on cost and 25% on cost

Fixtures and fittings

-

25% on cost

Computer equipment

-

33% on cost

Tangible fixed assets are initially recorded at cost.

Government grants

Government grants are recognised in the profit and loss account in an appropriate manner that matches them with the expenditure towards which they are intended to contribute.

Grants for immediate financial support or to cover costs already incurred are recognised immediately in the profit and loss account. Grants towards general activities of the entity over a specific period are recognised in the profit and loss account over that period.

Grants towards fixed assets are recognised over the expected useful lives of the related assets and are treated as deferred income and released to the profit and loss account over the useful life of the asset concerned.

All grants in the profit and loss account are recognised when all conditions for receipt have been complied with.

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 Statement of Comprehensive Income, 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 balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet 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.

Hire purchase and leasing commitments

Assets obtained under finance leases are capitalised as tangible fixed assets. Assets acquired under finance leases are depreciated over the shorter of the lease term and their useful lives. Assets acquired under hire purchase contracts are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in the creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to profit and loss account as incurred.

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.

3.	EMPLOYEES AND DIRECTORS

2023

2022

as restated

£

£

Wages and salaries

1,792,620

1,543,777

Social security costs

122,522

104,688

Other pension costs

35,392

30,804

1,950,534

1,679,269

The average number of employees during the year was as follows:

2023

2022

as restated

Office and administration

23

23

Sales, marketing and distribution

86

62

109

85

2023

2022

as restated

£

£

Directors' remuneration

96,000

116,973

Directors' pension contributions to money purchase schemes

2,880

2,870

4.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2023

2022

as restated

£

£

Other operating leases

46,452

44,389

Depreciation - owned assets

165,754

127,841

Profit on disposal of fixed assets

-

(2,576

)

Auditors' remuneration

6,500

-

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

2023

2022

as restated

£

£

Bank interest

35

13

Bank loan interest

141,873

78,000

Hire purchase

-

126

141,908

78,139

6.

TAXATION

Analysis of the tax charge

No liability to UK corporation tax arose for the year ended 31 March 2023 nor for the year ended 31 March 2022.

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2023

2022

as restated

£

£

(Loss)/profit before tax

(138,414

)

850,935

(Loss)/profit multiplied by the standard rate of corporation tax in the UK of 19% (2022 - 19%)

(26,299

)

161,678

Effects of:

Expenses not deductible for tax purposes

1,201

-

Depreciation in excess of capital allowances

15,323

14,827

Utilisation of tax losses

-

(176,505

)

Unrelieved losses carried forward

9,775

-

Total tax charge

-

-

7.	PRIOR YEAR ADJUSTMENT

A prior year adjustment has been made in respect of depreciation previously provided on the land element of freehold property. The effect of the adjustment is an increase in retained earnings as at 1 April 2021 of £110,947 and an increase to profits previously reported for the year end 31 March 2022 of £7,758. The overall increase in retained earnings as previously reported as at 31 March 2022 is £118,705.

In addition, the previous period financial statements have been restated as a result of the recategorisation of debtors and creditors which has no impact on profits previously reported.