Blue Manchester Limited - Limited company accounts 23.2

REGISTERED NUMBER: 07408603 (England and Wales)

STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2023

FOR

BLUE MANCHESTER LIMITED

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Income Statement

8

Other Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Notes to the Financial Statements

12

DIRECTORS:

C. Christou

L. Hadjiioannou

REGISTERED OFFICE:

4th Floor

Charles House

108-110 Finchley Road

London

NW3 5JJ

REGISTERED NUMBER:

07408603 (England and Wales)

AUDITORS:

Numera Partners LLP

Statutory Auditors

4th Floor

Charles House

108-110 Finchley Road

London

NW3 5JJ

The directors present their strategic report for the year ended 30 April 2023.

REVIEW OF BUSINESS

The principal activity of the company is the operation of a hotel via a management agreement with a third party operator.

The hotels turnover for the year is £17.7m (2022: £13.1m). The full financial year results for the prior year were somewhat affected by the impacted of Covid-19 but it can be seen that the current year turnover and results are moving towards pre covid levels as the hotel starts to ramp up operations to pre covid levels.

PRINCIPAL RISKS AND UNCERTAINTIES

Some risks are excluded because the management considers them not to be material to the company. Additionally there may be risks and uncertainties not presently known to the management team.

MARKET AND HOTEL INDUSTRY RISKS

The hotel operations and results are subject to a number of factors which could affect the business, many of which are common to the hotel industry and beyond the company's control such as a potential global economic downturn; changes in travel patterns; a potential increase in acts of terrorism and the impact of increasing political uncertainty. The impact of any of these factors (or a combination of them) may advisedly affect sustained levels of occupancy, room rates and/or hotel values, however the group tries to minimise the potential impact of these risks through its experienced hotel management team.

Although management seeks to identify risks at the earliest opportunity, many of these risks are beyond the control of the company. The company has in place recovery plans to enable it to respond to major incidents or crises and takes steps to minimise these exposures to the greatest extent possible.

BORROWINGS

The company's bank borrowings are currently with one major lender and the financing arrangements contain security over the assets of the company.

To mitigate against risks the management team meets regularly to review the financial performance of the hotel together with the company's financial commitments.

FIXED OPERATING EXPENSES

The company's operating expenses such as personnel costs, operating leases, information technology and telecommunications are to a large extent fixed. As such, operating results may be vulnerable to short-term changes in revenues.

The company has appropriate management systems in place such as staff outsourcing designed to create flexibility in operating cost base so as to optimise operating profits in volatile trading conditions.

KEY SENIOR PERSONNEL AND MANAGEMENT

The success of the company's business is partially attributable to the efforts and abilities of its senior managers.

The company has appropriate systems in place for recruitment, reward and compensation and performance management.

Development and maintenance of the company's culture also plays a leading role in minimising risk.

The key senior management in the hotel is provided by the hotel Operator and therefore there should be a pool of staff available should key personnel leave.

In addition, the group's internal asset management team possess the skill set to cover any of its investment strategies.

ON BEHALF OF THE BOARD:

L. Hadjiioannou - Director

26 January 2024

The directors present their report with the financial statements of the company for the year ended 30 April 2023.

DIVIDENDS

No dividends will be distributed for the year ended 30 April 2023.

FUTURE DEVELOPMENTS

The directors are expecting the hotel’s performance to continue improving to and beyond the pre-COVID-19 level. The directors are also working with the hotel operator to improve performance and meet expectations.

DIRECTORS

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

C. Christou

L. Hadjiioannou

FINANCIAL INSTRUMENTS

Information on financial instruments and other risks is set out below:

Treasury activities take place under procedures and policies monitored by the directors. They are designed to minimise the financial risks faced by the company which primarily arise from interest rate, currency, credit and liquidity risks. It is not the policy of the company to enter into speculative transactions.

FINANCIAL INSTRUMENTS - RISK MANAGEMENT

The most significant treasury exposures faced by the company are managing interest rate and currency positions. Treasury policies are in a place for managing each of these exposures including the type and use of financial instruments.

The company has no financial instruments to hedge foreign exchange exposure.

The company does not enter into derivative transactions.

The fair values of the receivables, payables and cash balances in the accounts approximate their book value.

The main financial risks faced by the company are funding risk and credit risk. As with any business there remains uncertainty and risk about the ability of the company to achieve its business objectives within its current funding. The director continually reviews the funding status of the company and its exposure to liquidity risk.

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), 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 and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	state whether applicable accounting standards have been followed, subject to any material departures disclosed and explained in the financial statements;

-	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 ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

ON BEHALF OF THE BOARD:

L. Hadjiioannou - Director

26 January 2024

Opinion

We have audited the financial statements of Blue Manchester Limited (the 'company') for the year ended 30 April 2023 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, 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 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 30 April 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, 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, outlined above, to detect material misstatements in respect of irregularities, including fraud.

We consider that our procedures are highly capable of detecting irregularities, including fraud. The engagement team collectively have the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations.

During the planning of the audit, discussions were held with key entity staff to ensure;

- an understanding of the legal and regulatory framework,

- the entity's policies and procedures on compliance with laws and regulations,

- the entity's policies and procedures on fraud risk including knowledge of any actual, suspected or alleged fraud.

Audit procedures to detect material misstatements in respect of irregularities are outlined below:

- Enquiry of management, those charged with governance and the entity's solicitors around actual and potential litigation and claims.

- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.

- Auditing the risk of management override of controls, including sample testing on the posting of journals and reviewing accounting estimates for bias.

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. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations.

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.

Giles Cohen (Senior Statutory Auditor)

for and on behalf of Numera Partners LLP

Statutory Auditors

4th Floor

Charles House

108-110 Finchley Road

London

NW3 5JJ

26 January 2024

Note:

Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

TURNOVER

17,751,074

13,119,067

Cost of sales

1,433,877

828,381

GROSS PROFIT

16,317,197

12,290,686

Administrative expenses

19,272,636

13,623,627

(2,955,439

)

(1,332,941

)

Other operating income

28,874

1,330,694

OPERATING LOSS

4

(2,926,565

)

(2,247

)

Interest payable and similar expenses

5

1,075,303

1,287,719

LOSS BEFORE TAXATION

(4,001,868

)

(1,289,966

)

Tax on loss

6

132,177

56,139

LOSS FOR THE FINANCIAL YEAR

(4,134,045

)

(1,346,105

)

LOSS FOR THE YEAR

(4,134,045

)

(1,346,105

)

OTHER COMPREHENSIVE INCOME

Property revaluation

495,091

1,962,093

Income tax relating to other comprehensive income

7,594

(2,152,131

)

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

502,685

(190,038

)

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(3,631,360

)

(1,536,143

)

FIXED ASSETS

Tangible assets

7

101,500,000

101,500,000

CURRENT ASSETS

Stocks

8

51,074

72,640

Debtors

9

13,614,714

18,340,989

Cash at bank and in hand

6,742,860

5,402,933

20,408,648

23,816,562

CREDITORS

Amounts falling due within one year

10

29,602,276

26,025,973

NET CURRENT LIABILITIES

(9,193,628

)

(2,209,411

)

TOTAL ASSETS LESS CURRENT LIABILITIES

92,306,372

99,290,589

CREDITORS

Amounts falling due after more than one year

11

(46,522,560

)

(50,000,000

)

PROVISIONS FOR LIABILITIES

14

(9,082,954

)

(8,958,371

)

NET ASSETS

36,700,858

40,332,218

CAPITAL AND RESERVES

Called up share capital

15

80,000

80,000

Revaluation reserve

16

43,901,827

43,666,536

Retained earnings

16

(7,280,969

)

(3,414,318

)

SHAREHOLDERS' FUNDS

36,700,858

40,332,218

The financial statements were approved by the Board of Directors and authorised for issue on 26 January 2024 and were signed on its behalf by:

L. Hadjiioannou - Director

Called up

share

Retained

Revaluation

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 May 2021

80,000

(2,325,796

)

44,114,157

41,868,361

Changes in equity

Total comprehensive income

-

(1,346,105

)

(190,038

)

(1,536,143

)

Reserves transfer

-

257,583

(257,583

)

-

Balance at 30 April 2022

80,000

(3,414,318

)

43,666,536

40,332,218

Changes in equity

Total comprehensive income

-

(4,134,045

)

502,685

(3,631,360

)

Reserves transfer

-

267,394

(267,394

)

-

Balance at 30 April 2023

80,000

(7,280,969

)

43,901,827

36,700,858

1.	STATUTORY INFORMATION

Blue Manchester Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£) and rounded to the nearest £.

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 certain assets.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows.

Significant judgements and estimates

In the application of the company's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The items in the financial statements where these judgements and estimate have been made are included in the tangible fixed asset note.

The company reviews on an annual basis the carrying amount of tangible assets in order to determine if there is an indication of impairment. If any such indication exists, an impairment review is carried out in order to determine the extent of the impairment loss.

Valuation of debtors is based upon ongoing assessments of the probable estimated losses inherent in the trade and other debtors portfolio. Assessments are conducted by the board employing a methodology and guidelines, which are continually monitored and improved. The primary component of this methodology comprises specific allowances and collective allowances.

A debtor is subject to impairment test when valid indications exist, at the assessment date, which demonstrate that the customer will not be able to meet his obligations and/or when the flow of receipts decelerates over time. Usually such indications include failure of communication with the customers and indications of significant financial difficulty.

Amounts individually provided for concern claims evaluated individually for impairment based upon management's best estimate of the present value of the cash flows which are expected to be received.

The accuracy of provisions depends on the accuracy of future cash flows or specific allowances and the model assumptions and parameters used in determining collective allowances. While this necessarily involves judgement, management believe that their provisions are reasonable and supportable.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and the future periods where the revision affects both the current and future periods.

Turnover

Turnover represents net invoiced sales of goods and services, excluding value added tax.

Government grants

Grants are accounted under the accruals model as permitted by FRS 102. Grants relating to expenditure on tangible fixed assets are credited to profit or loss at the same rate as the depreciation on the assets to which the grant relates. The deferred element of grants is included in creditors as deferred income.

Grants of a revenue nature are recognised in the Statement of comprehensive income in the same period as the related expenditure.

Tangible fixed assets

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

Long leasehold

-

0.5% on cost

Fixtures and fittings

-

25% on reducing balance

Leasehold properties are classified as operational properties when they are used by the company's business as opposed to being held primarily for rental income. Operational properties are revalued to fair value on a regular basis.

Subsequent expenditure is included in the carrying amount of the property when it is probable that future economic benefit associated with the item will flow to the company and the cost of the item can be measured reliably. All other repairs and maintenance costs are charged to the profit and loss account during the financial period in which they are incurred.

In accordance with Financial Reporting Standard 102 (FRS 102), operational properties are revalued and the surplus or deficit is transferred to the revaluation reserves, and depreciation is provided in respect of freehold investment properties. Deferred tax is provided on these gains at the rate expected to apply when the property is sold.

Valuing the properties in the portfolio is a significant task and there are some subjectivities involved in the process. Not all accounting policies require management to make subjective or complex judgements or estimates. The following is intended to provide further detail relating to this accounting policy that management consider critical because of the level of complexity, judgement or estimation involved in its application and its impact on the financial statements.

Where possible the company obtains external valuations, however this is not considered practical or cost effective for the entire group's property portfolio. Accordingly, the balance of properties, after review by the directors, are valued by the company's own in house surveying team as at 30 April 2023. The in house surveying team use comparable data where available, such as sales prices, rental incomes and market yield information to establish the fair value at the balance sheet date.

Stocks

Stock is valued at the lower of cost and net realisable value. Cost is determined on a first in first out basis. Net realisable value represents estimated selling price less costs to complete and sell. Provision is made for slow moving, obsolete or damaged stock where the net realisable value is less than cost.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the 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

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Financial instruments

The company has elected to apply the provisions of section 11 'basic financial instruments' and section 12 'other financial instruments issues' of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to contractual provisions of the instruments.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial instruments, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest method.

Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Related parties

The company has taken advantage of FRS 102, Section 1AC.35, for the disclosure of transactions entered into between two or more members of a group, provided that any subsidiary which is party to the transaction is wholly owned by such a member. Amounts owed to and from group companies are therefore shown in aggregate.

Going concern

After reviewing the company's forecasts and projections, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. The company, therefore continues to adopt the going concern policy in preparing its financial statements.

Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

3.	EMPLOYEES AND DIRECTORS

30.4.23

30.4.22

£

£

Wages and salaries

6,010,664

3,739,874

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

30.4.23

30.4.22

Operational

252

118

Administration

28

24

280

142

Included within wages and salaries are social security costs amounting to £460,067 (2022: £269,208).

30.4.23

30.4.22

£

£

Directors' remuneration

-

-

4.	OPERATING LOSS

The operating loss is stated after charging:

30.4.23

30.4.22

£

£

Hire of plant and machinery

63,166

42,506

Depreciation - owned assets

845,075

822,649

Auditors' remuneration

97,087

76,136

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

30.4.23

30.4.22

£

£

Bank loan interest

1,075,303

1,287,719

6.

TAXATION

Analysis of the tax charge

The tax charge on the loss for the year was as follows:

30.4.23

30.4.22

£

£

Deferred tax

132,177

56,139

Tax on loss

132,177

56,139

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:

30.4.23

30.4.22

£

£

Loss before tax

(4,001,868

)

(1,289,966

)

Loss multiplied by the standard rate of corporation tax in the UK of 25% (2022 - 19%)

(1,000,467

)

(245,094

)

Effects of:

Capital allowances in excess of depreciation

(24,647

)

(43,520

)

Group relief

1,025,114

288,614

Deferred tax movement

132,177

56,139

Total tax charge

132,177

56,139

Tax effects relating to effects of other comprehensive income

30.4.23

Gross

Tax

Net

£

£

£

Property revaluation

495,091

7,594

502,685

30.4.22

Gross

Tax

Net

£

£

£

Property revaluation

1,962,093

(2,152,131

)

(190,038

)

7.	TANGIBLE FIXED ASSETS

Fixtures

Long

and

leasehold

fittings

Totals

£

£

£

COST OR VALUATION

At 1 May 2022

105,188,951

2,885,223

108,074,174

Additions

-

347,015

347,015

Revaluations

498,060

-

498,060

At 30 April 2023

105,687,011

3,232,238

108,919,249

DEPRECIATION

At 1 May 2022

4,608,495

1,965,679

6,574,174

Charge for year

528,435

316,640

845,075

At 30 April 2023

5,136,930

2,282,319

7,419,249

NET BOOK VALUE

At 30 April 2023

100,550,081

949,919

101,500,000

At 30 April 2022

100,580,456

919,544

101,500,000

Cost or valuation at 30 April 2023 is represented by:

Fixtures

Long

and

leasehold

fittings

Totals

£

£

£

Valuation in 2015

49,092,350

-

49,092,350

Valuation in 2019

1,580,525

-

1,580,525

Valuation in 2020

250,333

-

250,333

Valuation in 2021

593,482

-

593,482

Valuation in 2022

1,962,093

-

1,962,093

Valuation in 2023

498,060

-

498,060

Cost

51,710,168

3,232,238

54,942,406

105,687,011

3,232,238

108,919,249

If leasehold property had not been revalued it would have been included at the following historical cost:

30.4.23

30.4.22

£

£

Cost

51,710,168

51,710,168

Long leasehold property to the sum of £101,500,000 is included at fair value as valued by CBRE in June 2022.

The company after review by the directors, uses valuations performed by its own in house surveying team and external valuations where appropriate to value its own operational property as at 30 April 2023.

The assumptions relevant to the valuation of operational property are outlined in Note 2 above.

8.

STOCKS

30.4.23

30.4.22

£

£

Stocks

51,074

72,640

9.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

30.4.23

30.4.22

£

£

Trade debtors

761,219

485,985

Other debtors

813,142

513,259

Amounts owed by group undertakings

11,230,131

17,035,631

Prepayments

810,222

306,114

13,614,714

18,340,989

10.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

30.4.23

30.4.22

£

£

Trade creditors

1,392,255

1,565,166

Amounts owed to group undertakings

24,305,067

22,090,559

Social security and other taxes

151,959

114,126

VAT

711,202

255,364

Other creditors

49,843

115,792

Advance deposits

288,938

156,031

Accruals and deferred income

2,703,012

1,728,935

29,602,276

26,025,973

11.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

30.4.23

30.4.22

£

£

Bank loans (see note 12)

46,522,560

50,000,000

12.

LOANS

An analysis of the maturity of loans is given below:

30.4.23

30.4.22

£

£

Amounts falling due between one and two years:

Bank loans - 1-2 years

46,522,560

-

Amounts falling due between two and five years:

Bank loans - 2-5 years

-

50,000,000

The bank loan was refinanced with new lenders on 30 July 2019 for a term of five years.