Brayford Hotels Holdings Limited - Limited company accounts 18.2

REGISTERED NUMBER: 07216055 (England and Wales)

BRAYFORD HOTELS HOLDINGS LIMITED

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2017

Page

Company Information

1

Group Strategic Report

2

to

3

Report of the Directors

4

Report of the Independent Auditors

5

to

6

Consolidated Income Statement

7

Consolidated Other Comprehensive Income

8

Consolidated Statement of Financial Position

9

Company Statement of Financial Position

10

Consolidated Statement of Changes in Equity

11

Company Statement of Changes in Equity

12

Consolidated Statement of Cash Flows

13

Notes to the Consolidated Statement of Cash Flows

14

Notes to the Consolidated Financial Statements

15

to

26

DIRECTORS:

L M Hall

D A Wann

SECRETARY:

L M Hall

REGISTERED OFFICE:

27-29 Lumley Avenue

Skegness

Lincolnshire

PE25 2AT

BUSINESS ADDRESS:

c/o Manor Crest Homes Limited

The Circus, Belton Park Road

Lumley Fields

Skegness

Lincolnshire

PE25 1GU

REGISTERED NUMBER:

07216055 (England and Wales)

SENIOR STATUTORY AUDITOR:

Damon Brain FCA FMAAT

AUDITORS:

Duncan & Toplis Limited, Statutory Auditor

27-29 Lumley Avenue

Skegness

Lincolnshire

PE25 2AT

BANKERS:

Natwest Bank PLC

225 High Street

Lincoln

Lincolnshire

LN2 1AZ

The directors present their strategic report of the company and the group for the year ended 31 December 2017.

REVIEW OF BUSINESS

The results for the year and financial position of the group are as shown in the annexed financial statements.

31.12.17

31.12.16

31.12.15

31.12.14

31.12.13

£

£

£

£

£

Turnover

5,410,627

5,286,005

5,191,755

4,465,800

4,569,452

Cost of sales

2,228,911

1,963,458

1,974,976

1,615,398

1,540,789

Gross Profit

3,181,716

3,322,547

3,216,779

2,850,402

3,028,663

Gross profit margin %

58.81

62.86

61.96

63.82

66.28

Profit / (Loss) on ordinary activities before taxation

249,858

911,277

943,992

998,070

707,212

Profit % on ordinary activities before taxation

4.62

17.24

18.18

22.35

15.47

The group's operations and assets are well diversified and as such the levels of operational and other risks are considered by the

Directors to be acceptable. The group does not have any material exposure to any high risk market or geographical areas.

Position at the financial reporting date

The directors consider the financial reporting position of the group to be strong, with a comfortable net asset and working capital

position. Management remains mindful of the competitive environment in which the group operates and the need to maintain

close control over the company's working capital and financial position.

Borrowings and Risk Management

The group's principal financial instruments comprise bank balances, bank loans, trade creditors and trade debtors. The main

purpose of these instruments is to raise funds for the group operations. The group's approach to managing other risks applicable to

the financial instruments minimised the risk to a level that the Directors consider acceptable.

Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the

regular monitoring of amounts outstanding for both time and credit limits.

Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

PRINCIPAL RISKS AND UNCERTAINTIES

The group is affected by a number of factors, the principal ones of which are:

- The group is exposed to the risk of negative developments in financial markets and the sectors in which it operates, either directly

or through the impact on the group's bankers, suppliers or customers. These developments can result in recession, inflation,

deflation, restrictions in the availability of credit, impact on demand from customers, problems in the supplier base, increases in

financing costs or in the cost of utilities and finished products. Such developments might increase operating costs, reduce revenues,

lower asset values or result in the businesses being unable to meet in full its strategic objectives.

- The group operates in a competitive market, and failure to compete effectively in terms of price and quality can have an adverse

effect on demand and / or margins.

The group mitigates risk in several ways:

- The group has in place an organisational structure with clearly defined lines of responsibility and delegation of authority. There

are established policies and procedures for the setting of corporate strategies; financial planning and budgeting; for information

and reporting systems; for systems of operational and financial internal control; for assessment of risk; and for monitoring

operations and performance.

- Management and staff at all levels work closely with customers and suppliers to operate as effectively and efficiently as possible,

whilst maintaining long term working relationships, innovation and good lines of communication.

- The group operates a recruitment and selection process to ensure employees are experienced and competent in their work. The

workforce is trained to be alert, responsive to customer needs, and to operate in line with the group's corporate objectives.

ON BEHALF OF THE BOARD:

L M Hall - Director

20 September 2018

The directors present their report with the financial statements of the company and the group for the year ended

31 December 2017.

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of hotel management.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2017.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2017 to the date of this report.

L M Hall

D A Wann

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group 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 the group and of the profit or loss of

the group 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 and

the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group'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 group's auditors are aware of that information.

ON BEHALF OF THE BOARD:

L M Hall - Director

20 September 2018

Opinion

We have audited the financial statements of Brayford Hotels Holdings Limited (the 'parent company') and its subsidiaries (the

'group') for the year ended 31 December 2017 which comprise the Consolidated Income Statement, Consolidated Other

Comprehensive Income, Consolidated Statement of Financial Position, Company Statement of Financial Position, Consolidated

Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Statement of Cash Flows and Notes to the

Consolidated Statement of Cash Flows, 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 group's and of the parent company affairs as at 31 December 2017 and of the group's profit 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 group 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

We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:

-	the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or

-

the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the group's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.

Other information

The directors are responsible for the other information. The other information comprises the information in the Group 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 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, 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.

Opinion 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 Group 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 Group 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 group and the parent company and its environment obtained in the course

of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company 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 four, 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 group's and the parent 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 group or the parent 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.

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.

Damon Brain FCA FMAAT (Senior Statutory Auditor)

for and on behalf of Duncan & Toplis Limited, Statutory Auditor

27-29 Lumley Avenue

Skegness

Lincolnshire

PE25 2AT

21 September 2018

TURNOVER

3

5,410,627

5,286,005

Cost of sales

2,228,911

1,963,458

GROSS PROFIT

3,181,716

3,322,547

Administrative expenses

2,373,762

2,076,412

807,954

1,246,135

Other operating income

23

-

OPERATING PROFIT

5

807,977

1,246,135

Interest receivable and similar income

5,038

-

813,015

1,246,135

Interest payable and similar expenses

6

563,157

334,858

PROFIT BEFORE TAXATION

249,858

911,277

Tax on profit

7

80,929

104,355

PROFIT FOR THE FINANCIAL YEAR

168,929

806,922

Profit attributable to:

Owners of the parent

252,582

810,307

Non-controlling interests

(83,653

)

(3,385

)

168,929

806,922

PROFIT FOR THE YEAR

168,929

806,922

OTHER COMPREHENSIVE LOSS

Purchase of own shares

(193,000

)

(757,000

)

Capital redemption reserve

30

(499,100

)

Deferred tax change on revaluation of

-

70

freehold property

151,886

-

Income tax relating to components of other comprehensive loss

-

-

OTHER COMPREHENSIVE LOSS FOR THE YEAR, NET OF INCOME TAX

(41,084

)

(1,256,030

)

TOTAL COMPREHENSIVE INCOME/(LOSS) FOR THE YEAR

127,845

(449,108

)

Total comprehensive income attributable to:

Owners of the parent

211,358

(445,863

)

Non-controlling interests

(83,513

)

(3,245

)

127,845

(449,108

)

FIXED ASSETS

Intangible assets

9

338,187

366,766

Tangible assets

10

37,430,977

19,641,627

Investments

11

-

-

37,769,164

20,008,393

CURRENT ASSETS

Stocks

12

118,440

47,040

Debtors

13

10,166,581

2,388,406

Cash at bank and in hand

1,355,936

4,084,936

11,640,957

6,520,382

CREDITORS

Amounts falling due within one year

14

9,783,409

1,926,619

NET CURRENT ASSETS

1,857,548

4,593,763

TOTAL ASSETS LESS CURRENT LIABILITIES

39,626,712

24,602,156

CREDITORS

Amounts falling due after more than one year

15

(30,505,872

)

(15,485,965

)

PROVISIONS FOR LIABILITIES

20

(1,554,583

)

(1,677,749

)

NET ASSETS

7,566,257

7,438,442

CAPITAL AND RESERVES

Called up share capital

21

900

930

Revaluation reserve

22

6,227,296

6,075,410

Capital redemption reserve

22

100

70

Retained earnings

22

1,424,859

1,365,277

SHAREHOLDERS' FUNDS

7,653,155

7,441,687

NON-CONTROLLING INTERESTS

(86,898

)

(3,245

)

TOTAL EQUITY

7,566,257

7,438,442

The financial statements were approved by the Board of Directors on 20 September 2018 and were signed on its behalf by:

L M Hall - Director

FIXED ASSETS

Intangible assets

9

-

-

Tangible assets

10

-

-

Investments

11

500,960

500,960

500,960

500,960

CURRENT ASSETS

Debtors

13

16,541,333

13,655,727

Cash at bank

457,991

-

16,999,324

13,655,727

CREDITORS

Amounts falling due within one year

14

554,308

425,645

NET CURRENT ASSETS

16,445,016

13,230,082

TOTAL ASSETS LESS CURRENT LIABILITIES

16,945,976

13,731,042

CREDITORS

Amounts falling due after more than one year

15

16,590,618

13,584,895

NET ASSETS

355,358

146,147

CAPITAL AND RESERVES

Called up share capital

21

900

930

Capital redemption reserve

100

70

Retained earnings

354,358

145,147

SHAREHOLDERS' FUNDS

355,358

146,147

Company's profit for the financial year

402,211

401,086

The financial statements have been prepared 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 20 September 2018 and were signed on its behalf by:

L M Hall - Director

Called up

Capital

share

Retained

Revaluation

redemption

capital

earnings

reserve

reserve

£

£

£

£

Balance at 1 January 2016

1,000

1,311,970

6,075,410

-

Changes in equity

Issue of share capital

(70

)

-

-

-

Total comprehensive loss

-

53,307

-

70

Balance at 31 December 2016

930

1,365,277

6,075,410

70

Changes in equity

Issue of share capital

(30

)

-

-

-

Total comprehensive income

-

59,582

151,886

30

Balance at 31 December 2017

900

1,424,859

6,227,296

100

Other

Non-controlling

Total

reserves

Total

interests

equity

£

£

£

£

Balance at 1 January 2016

499,100

7,887,480

-

7,887,480

Changes in equity

Issue of share capital

-

(70

)

-

(70

)

Total comprehensive loss

(499,100

)

(445,723

)

(3,245

)

(448,968

)

Balance at 31 December 2016

-

7,441,687

(3,245

)

7,438,442

Changes in equity

Issue of share capital

-

(30

)

-

(30

)

Total comprehensive income

-

211,498

(83,513

)

127,985

Balance at 31 December 2017

-

7,653,155

(86,758

)

7,566,397

Called up

Capital

share

Retained

redemption

Other

Total

capital

earnings

reserve

reserves

equity

£

£

£

£

£

Balance at 1 January 2016

1,000

501,061

-

499,100

1,001,161

Changes in equity

Issue of share capital

(70

)

-

-

-

(70

)

Total comprehensive loss

-

(355,914

)

70

(499,100

)

(854,944

)

Balance at 31 December 2016

930

145,147

70

-

146,147

Changes in equity

Issue of share capital

(30

)

-

-

-

(30

)

Total comprehensive income

-

209,211

30

-

209,241

Balance at 31 December 2017

900

354,358

100

-

355,358

Cash flows from operating activities

Cash generated from operations

1

92,237

2,515,334

Interest paid

(563,157

)

(334,858

)

Tax paid

(123,677

)

1,047

Net cash from operating activities

(594,597

)

2,181,523

Cash flows from investing activities

Purchase of tangible fixed assets

(17,944,117

)

(2,399,449

)

Interest received

5,038

-

Net cash from investing activities

(17,939,079

)

(2,399,449

)

Cash flows from financing activities

New loans in year

18,936,325

5,235,294

Loan repayments in year

(3,286,931

)

(134,983

)

Amount introduced by directors

458,282

998,338

Amount withdrawn by directors

(110,000

)

(1,288,238

)

Share buyback

(193,000

)

(757,000

)

Merger reserve

-

(499,100

)

Net cash from financing activities

15,804,676

3,554,311

(Decrease)/increase in cash and cash equivalents

(2,729,000

)

3,336,385

Cash and cash equivalents at beginning of year

2

4,084,936

748,551

Cash and cash equivalents at end of year

2

1,355,936

4,084,936