The Augustus Hotel (Bham) Limited - Accounts to registrar - small 17.2

REGISTERED NUMBER: 05708474 (England and Wales)

FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 OCTOBER 2016

FOR

THE AUGUSTUS HOTEL (BHAM) LIMITED

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

4

DIRECTORS:

R S Sandhar

J S Pahal

REGISTERED OFFICE:

Harpal House

14 Holyhead Road

Handsworth

Birmingham

West Midlands

B21 0LT

REGISTERED NUMBER:

05708474 (England and Wales)

FIXED ASSETS

Intangible assets

2

120,000

123,000

Tangible assets

3

3,112,259

3,124,850

3,232,259

3,247,850

CURRENT ASSETS

Stocks

4

9,606

11,477

Debtors

5

36,453

29,317

Cash at bank and in hand

54,093

18,425

100,152

59,219

CREDITORS

Amounts falling due within one year

6

1,309,175

1,545,594

NET CURRENT LIABILITIES

(1,209,023

)

(1,486,375

)

TOTAL ASSETS LESS CURRENT LIABILITIES

2,023,236

1,761,475

CREDITORS

Amounts falling due after more than one year

7

1,333,742

1,183,469

NET ASSETS

689,494

578,006

CAPITAL AND RESERVES

Called up share capital

11

1,000

1,000

Revaluation reserve

12

43,561

43,561

Profit and loss account

12

644,933

533,445

SHAREHOLDERS' FUNDS

689,494

578,006

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 October 2016.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 October 2016 in accordance with Section 476 of the Companies Act 2006.

The directors acknowledge their responsibilities for:

(a)	ensuring that the company keeps accounting records which comply with Sections 386 and 387 of the Companies Act 2006 and

(b)

preparing financial statements which give a true and fair view of the state of affairs of the company as at the end of each financial year and of its profit or loss for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the company.

The financial statements have been prepared and delivered in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

The financial statements were approved by the Board of Directors on 31 July 2017 and were signed on its behalf by:

R S Sandhar - Director

1.	ACCOUNTING POLICIES

Accounting convention

The financial statements have been prepared under the historical cost convention as modified by the revaluation

of certain assets and in accordance with the Financial Reporting Standard for Smaller Entities (effective January

2015).

Turnover

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

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2007, is being amortised evenly over its estimated useful life of fifty years.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Improvements to property

-

2% on cost

Fixtures and fittings

-

10% on reducing balance

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow

moving items.

Deferred tax

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

sheet date.

Hire purchase and leasing commitments

Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held

under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases

are depreciated over their estimated useful lives or the lease term, whichever is the shorter.

The interest element of these obligations is charged to the profit and loss account over the relevant period. The

capital element of the future payments is treated as a liability.

Rentals paid under operating leases are charged to the profit and loss account on a straight line basis over the

period of the lease.

2.	INTANGIBLE FIXED ASSETS

Goodwill

£

COST

At 1 November 2015

and 31 October 2016

150,000

AMORTISATION

At 1 November 2015

27,000

Amortisation for year

3,000

At 31 October 2016

30,000

NET BOOK VALUE

At 31 October 2016

120,000

At 31 October 2015

123,000

3.	TANGIBLE FIXED ASSETS

Improvements

Fixtures

Freehold

to

and

property

property

fittings

Totals

£

£

£

£

COST OR VALUATION

At 1 November 2015

2,068,142

764,997

790,764

3,623,903

Additions

-

-

43,369

43,369

At 31 October 2016

2,068,142

764,997

834,133

3,667,272

DEPRECIATION

At 1 November 2015

-

71,533

427,520

499,053

Charge for year

-

15,300

40,660

55,960

At 31 October 2016

-

86,833

468,180

555,013

NET BOOK VALUE

At 31 October 2016

2,068,142

678,164

365,953

3,112,259

At 31 October 2015

2,068,142

693,464

363,244

3,124,850

Cost or valuation at 31 October 2016 is represented by:

Improvements

Fixtures

Freehold

to

and

property

property

fittings

Totals

£

£

£

£

Valuation in 2010

43,561

-

-

43,561

Cost

2,024,581

764,997

834,133

3,623,711

2,068,142

764,997

834,133

3,667,272

If freehold land and buildings had not been revalued they would have been included at the following historical

cost:

31/10/16

31/10/15

£

£

Cost

2,024,581

2,024,581

Value of land in freehold land and buildings

2,024,581

2,024,581

Freehold land and buildings were valued on open market basis on 17 February 2010 by Taylors Business Surveyors & Valuers Ltd

.

Fixed assets, included in the above, which are held under hire purchase contracts are as follows:

Fixtures

and

fittings

£

COST OR VALUATION

At 1 November 2015

36,168

Reclassification/transfer

(36,168

)

At 31 October 2016

-

DEPRECIATION

At 1 November 2015

6,872

Charge for year

2,929

Reclassification/transfer

(9,801

)

At 31 October 2016

-

NET BOOK VALUE

At 31 October 2016

-

At 31 October 2015

29,296

4.

STOCKS

31/10/16

31/10/15

£

£

Stocks

9,606

11,477

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31/10/16

31/10/15

£

£

Trade debtors

22,590

18,173

Other debtors

3,000

-

Prepayments

10,863

11,144

36,453

29,317

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31/10/16

31/10/15

£

£

Bank loans and overdrafts

-

79,328

Trade creditors

129,691

224,415

Tax

12,135

48,411

Social security and other taxes

30,691

22,823

VAT

71,608

81,530

Deferred income and advances

8,020

6,950

Shareholders loan accounts

585,360

560,068

Wages Control

68,505

64,112

Directors' current accounts

400,114

454,906

Accrued expenses

3,051

3,051

1,309,175

1,545,594

7.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31/10/16

31/10/15

£

£

HSBC - Commercial Mortgage

-

809,824

Commercial first - loan

-

352,701

RBS Loan

1,333,742

-

Hire purchase contracts

-

20,944

1,333,742

1,183,469

8.	PREFERENCE SHARES

Details of preference shares are as follows:

9.	OPERATING LEASE COMMITMENTS

10.	SECURED DEBTS

The following secured debts are included within creditors:

31/10/16

31/10/15

£

£

Bank loans

1,333,742

1,241,853

The bank borrowing is secured by:

1. 1st Legal charge -Granted by Augustus Hotel (BHAM) Limited -is secured against the Edgbaston Palace

Hotel, 198-200 Hagley Road, Birmingham and its associated assets.(Freehold Property)

2. 1st Legal charge -Granted by Augustus Hotel (BHAM) Limited- is secured against the Edgbaston Palace

Hotel, 202 Hagley Road, Birmingham and its associated assets.

3. Debentures -Granted by Augustus Hotel (BHAM) Limited .

11.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

31/10/16

31/10/15

value:

£

£

1,000

Ordinary

£1

1,000

1,000

12.

RESERVES

Profit

and loss

Revaluation

account

reserve

Totals

£

£

£

At 1 November 2015

533,445

43,561

577,006

Profit for the year

111,488

111,488

At 31 October 2016

644,933

43,561

688,494