Park Avenue Hotel Limited - Accounts to registrar - small 17.2

REGISTERED NUMBER: NI006459 (Northern Ireland)

Unaudited Financial Statements for the Year Ended 31 March 2017

for

Park Avenue Hotel Limited

Page

Company Information

1

Chartered Accountants' Report

2

Balance Sheet

3

to

4

Notes to the Financial Statements

5

to

10

DIRECTORS:

Amanda Patrick

William Stephens

SECRETARY:

Paul Frame

REGISTERED OFFICE:

158 Holywood Road

Belfast

Co. Antrim

BT4 1PB

REGISTERED NUMBER:

NI006459 (Northern Ireland)

ACCOUNTANTS:

Lynn, Drake & Co Ltd

Chartered Accountants

1st Floor

34 B-D Main Street

Moira

Co. Armagh

BT67 0LE

The following reproduces the text of the report prepared for the directors and members in respect of

the company's annual unaudited financial statements. In accordance with the Companies Act 2006,

the company is only required to file a Balance Sheet. Readers are cautioned that the Income Statement

and certain other primary statements and the Report of the Directors are not required to be filed with

the Registrar of Companies.

In accordance with our terms of engagement and in order to assist you to fulfil your duties under the Companies Act 2006, we have compiled the financial statements of the company for the year ended 31 March 2017 which comprise the Income Statement, Balance Sheet and the related notes from the accounting records and information and explanations you have given to us.

This report is made to the company's Board of Directors, as a body, in accordance with the terms of our

engagement. Our work has been undertaken so that we might compile the financial statements that we have

been engaged to compile, report to the company's Board of Directors that we have done so, and state those

matters that we have agreed to state to them in this 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 Board of Directors, as a body, for our work or for this report.

We have carried out this engagement in accordance with guidance issued by the Institute of Chartered

Accountants in Ireland and have complied with the ethical guidance laid down by the Institute relating to

members undertaking the compilation of financial statements.

You have acknowledged on the Balance Sheet as at 31 March 2017 your duty to ensure that the company has kept proper accounting records and to prepare financial statements that give a true and fair view under the Companies Act 2006. You consider that the company is exempt from the statutory requirement for an audit for the year.

We have not been instructed to carry out an audit of the financial statements. For this reason, we have not verified the accuracy or completeness of the accounting records or information and explanations you have given to us and we do not, therefore, express any opinion on the financial statements.

Lynn, Drake & Co Ltd

Chartered Accountants

1st Floor

34 B-D Main Street

Moira

Co. Armagh

BT67 0LE

29 September 2017

FIXED ASSETS

Intangible assets

5

35,000

45,000

Tangible assets

6

2,618,269

2,696,436

Investments

7

34,000

34,000

2,687,269

2,775,436

CURRENT ASSETS

Stocks

21,328

31,072

Debtors

8

59,345

51,121

Cash in hand

114,768

41,479

195,441

123,672

CREDITORS

Amounts falling due within one year

9

733,564

1,385,700

NET CURRENT LIABILITIES

(538,123

)

(1,262,028

)

TOTAL ASSETS LESS CURRENT LIABILITIES

2,149,146

1,513,408

CREDITORS

Amounts falling due after more than one year

10

2,415,478

1,808,540

NET LIABILITIES

(266,332

)

(295,132

)

CAPITAL AND RESERVES

Called up share capital

14,998

14,998

Capital redemption reserve

5,002

5,002

Other reserves

45,248

45,248

Retained earnings

(331,580

)

(360,380

)

SHAREHOLDERS' FUNDS

(266,332

)

(295,132

)

The company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the year ended 31 March 2017.

The members have not required the company to obtain an audit of its financial statements for the year ended 31 March 2017 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.

In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered.

The financial statements were approved by the Board of Directors on 29 September 2017 and were signed on its behalf by:

Amanda Patrick - Director

1.	STATUTORY INFORMATION

Park Avenue Hotel Limited is a private company, limited by shares , registered in Northern Ireland.

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 (£).

2.	STATEMENT OF COMPLIANCE

These financial statements have been prepared in accordance with the provisions of Section 1A "Small Entities" of Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006.

3.	ACCOUNTING POLICIES

Basis of preparing the financial statements

The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

Turnover

Turnover is measured at the fair value of the consideration received or receivable, excluding

discounts, rebates, value added tax and other sales taxes.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are

measured at cost less any accumulated amortisation and any accumulated impairment losses.

MPW Franchise Fee are being amortised evenly over their estimated useful life of nil years.

Franchise fee

The Company entered into a Franchise Agreement with Marco Pierre White. The franchise term is for

5 years and the initial franchise fee is being amortised over this 5 year period.

Tangible fixed assets

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

Hotel property

-

2% on cost and not provided

Fixtures and fittings

-

25% 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.

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.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at

the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of

exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at

the operating result.

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.

Going concern

The accounts have been prepared on a going concern basis, despite the fact that liabilities exceed

assets.

Since the date to which the accounts are prepared (31 March 2017) the directors have sought advice in

respect of its trading position to establish if it could trade out of the financial difficulties;

It was agreed that a Company Voluntary Arrangement (CVA) would be the optimum solution for the

creditors and the Company;

The CVA is based on a restructuring of the Company's cost base together with a re-profiling of

secured debt;

In preparing the CVA the Directors considered future financial projections and cash-flow

requirements and are confident that the Company will continue trading for the foreseeable future.

The financial statements do not reflect the potential reduction in the liabilities of the Company as a

result of the CVA.

4.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 73 .

5.	INTANGIBLE FIXED ASSETS

MPW

Franchise

Fee

£

COST

At 1 April 2016

and 31 March 2017

50,000

AMORTISATION

At 1 April 2016

5,000

Amortisation for year

10,000

At 31 March 2017

15,000

NET BOOK VALUE

At 31 March 2017

35,000

At 31 March 2016

45,000

6.	TANGIBLE FIXED ASSETS

Fixtures

Hotel

and

property

fittings

Totals

£

£

£

COST OR VALUATION

At 1 April 2016

2,825,000

2,839,478

5,664,478

Additions

-

3,400

3,400

At 31 March 2017

2,825,000

2,842,878

5,667,878

DEPRECIATION

At 1 April 2016

226,000

2,742,042

2,968,042

Charge for year

56,500

25,067

81,567

At 31 March 2017

282,500

2,767,109

3,049,609

NET BOOK VALUE

At 31 March 2017

2,542,500

75,769

2,618,269

At 31 March 2016

2,599,000

97,436

2,696,436

Cost or valuation at 31 March 2017 is represented by:

Fixtures

Hotel

and

property

fittings

Totals

£

£

£

Valuation in 2009

4,022,534

-

4,022,534

Valuation in 2011

(5,308,433

)

-

(5,308,433

)

Cost

4,110,899

2,842,878

6,953,777

2,825,000

2,842,878

5,667,878

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

31.3.17

31.3.16

£

£

Cost

4,110,899

4,110,899

Aggregate depreciation

1,597,637

1,539,189

Value of land in freehold land and buildings

500,000

500,000

Hotel property was valued on an open market basis on 19 December 2011 by Savills (NI) Limited .

7.	FIXED ASSET INVESTMENTS

Investments (neither listed nor unlisted) were as follows:

31.3.17

31.3.16

£

£

Paintings and Artwork

34,000

34,000

8.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.17

31.3.16

£

£

Trade debtors

53,737

49,449

Trade Federation Investment

1,000

1,000

Directors' current accounts

4,608

-

Prepayments and accrued income

-

672

59,345

51,121

9.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.3.17

31.3.16

£

£

Bank loans and overdrafts

523,254

539,181

Trade creditors

104,667

344,693

Social security and other taxes

10,648

134,762

VAT

48,014

196,428

Diageo interest subsidy

-

8,333

Carbon Trust Loan

-

11,772

Directors' current accounts

-

57,681

Accrued expenses

46,981

92,850

733,564

1,385,700

10.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

31.3.17

31.3.16

£

£

Bank loans - 1-2 years

146,621

178,298

Bank loans - 2-5 years

409,722

531,484

Bank loans more 5 yr by instal

533,744

493,661

Bank loans more 5 yrs non-inst

601,173

601,173

Carbon Trust Loan - 1-2 years

-

3,924

Other creditors

724,218

-

2,415,478

1,808,540

Amounts falling due in more than five years:

Repayable otherwise than by instalments

Bank loans more 5 yrs non-inst

601,173

601,173

Repayable by instalments

Bank loans more 5 yr by instal

533,744

493,661

11.	SECURED DEBTS

The following secured debts are included within creditors:

31.3.17

31.3.16

£

£

Bank overdrafts

378,543

362,619

Bank loans

1,835,971

1,981,178

2,214,514

2,343,797

Danske Bank hold the following charges on the company's assets

a) Fixed charge over book debts.

b) Floating charge.

c) Legal mortgage over Park Avenue Hotel.