Company Registration No. 01790857 (England and Wales)
FAIRHAVEN HOTELS LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2018
PAGES FOR FILING WITH REGISTRAR
FAIRHAVEN HOTELS LIMITED
CONTENTS
Page
Balance sheet
1 - 2
Notes to the financial statements
3 - 10
FAIRHAVEN HOTELS LIMITED
BALANCE SHEET
AS AT
30 NOVEMBER 2018
30 November 2018
- 1 -
2018
2017
Notes
£
£
£
£
Fixed assets
Intangible assets
4
5,584
-
Tangible assets
5
4,196,702
4,125,145
Investments
6
1,105
1,005
4,203,391
4,126,150
Current assets
Debtors
8
503,692
467,922
Cash at bank and in hand
29,119
150,407
532,811
618,329
Creditors: amounts falling due within one year
9
(441,199)
(434,796)
Net current assets
91,612
183,533
Total assets less current liabilities
4,295,003
4,309,683
Creditors: amounts falling due after more than one year
10
(790,000)
(1,030,000)
Provisions for liabilities
(40,282)
(32,290)
Net assets
3,464,721
3,247,393
Capital and reserves
Called up share capital
11
171
171
Share premium account
49,599
49,599
Revaluation reserve
12
1,944,764
1,939,040
Capital redemption reserve
330
330
Profit and loss reserves
1,469,857
1,258,253
Total equity
3,464,721
3,247,393
FAIRHAVEN HOTELS LIMITED
BALANCE SHEET (CONTINUED)
AS AT
30 NOVEMBER 2018
30 November 2018
- 2 -
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
For the financial year ended 30 November 2018 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
T
he members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476
.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime.
The financial statements were approved by the board of directors and authorised for issue on 30 August 2019 and are signed on its behalf by:
C C Webb
Director
Company Registration No. 01790857
FAIRHAVEN HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 NOVEMBER 2018
- 3 -
1
Accounting policies
Company information
Fairhaven Hotels Limited is a
private
company
limited by shares
incorporated in England and Wales.
The registered office is
Bank House, 9 Dicconson Terrace, Lytham St Annes, FY8 5JY.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention modified to include the revaluation of freehold properties. The principal accounting policies adopted are set out below.
The company has taken advantage of the exemption under section
399
of the
Companies Act 2006 not to prepare consolidated accounts
, on the basis that the group of which this is the parent qualifies as a small group
. The financial statements present information about the company as an individual entity and not about its group
.
1.2
Turnover
Turnover is recognised at the fair value of the consideration received or receivable
for management fees and rental income and
is shown net of VAT and other sales related taxes
.
The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates
and is recognised in relation to the period to which the management fee or rental income relates.
1.3
Intangible fixed assets other than goodwill
Intangible assets acquired separately from a business are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Website
5 years straight line
1.4
Tangible fixed assets
Tangible fixed assets
are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:
Leasehold land & buildings
None
Leasehold improvements
20% straight line
Fixtures, fittings & equipment
20% straight line
FAIRHAVEN HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2018
1
Accounting policies
(Continued)
- 4 -
No depreciation is provided on freehold hotel properties or hotel properties with leases of twenty years or more to run at the balance sheet date. It is the company's practice and that of the operating companies to maintain these assets in a continual state of sound repair and to extend and make improvements thereto from time to time and accordingly the directors consider that the lives of these assets are so long, and residual values (based on prices prevailing at the time of acquisition or subsequent valuation) are so high, that their depreciation is insignificant. Moreover, whilst the initial costs incurred on extensive repair and refurbishment programmes are capitalised, those in respect of items subsequently replaced are written off to the profit and loss account as incurred. In accordance with Section 17 of FRS 102 the directors perform an annual impairment review. Any deficits are charged in the profit and loss account except where the asset has been revalued, the deficit is charged to the revaluation reserve.
This accounting policy is a departure from the Companies Act 2006, which requires all fixed assets to be depreciated. In the opinion of the directors this departure is necessary for the accounts to give a true and fair view.
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
1.5
Fixed asset investments
Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.
The investments are assessed for impairment at each reporting date
and
any
impairment
losses or reversals of impairment losses are recognised immediately in profit or loss.
1.6
Impairment of fixed assets
At each reporting
period
end date, the
company
reviews the carrying amounts of its tangible
and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company
estimates the recoverable amount of the cash-generating unit to which the asset belongs.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.
Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit)
in
prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.
FAIRHAVEN HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2018
1
Accounting policies
(Continued)
- 5 -
1.7
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 the contractual provisions of the instrument.
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 assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at
cost less impairment. 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
paymen
ts 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 rate method.
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.9
Taxation
The tax expense represents the sum of the tax currently payable and deferred tax.
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The
company’s
liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.
FAIRHAVEN HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2018
1
Accounting policies
(Continued)
- 6 -
Deferred tax
Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.
The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the
company
has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.
1.10
Employee benefits
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are receive
d.
1.11
Retirement benefits
Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.
2
Employees
The average monthly number of persons (including directors) employed by the company during the year was 3 (2017 - 3).
3
Taxation
2018
2017
£
£
Current tax
UK corporation tax on profits for the current period
26,560
41,901
Deferred tax
Origination and reversal of timing differences
13,716
3,405
Adjustment in respect of prior periods
-
(18,480)
Total deferred tax
13,716
(15,075)
Total tax charge
40,276
26,826
FAIRHAVEN HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2018
3
Taxation
(Continued)
- 7 -
In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:
2018
2017
£
£
Deferred tax arising on:
Revaluation of property
(5,724)
(28,971)
4
Intangible fixed assets
Website
£
Cost
At 1 December 2017
-
Additions
5,940
At 30 November 2018
5,940
Amortisation and impairment
At 1 December 2017
-
Amortisation charged for the year
356
At 30 November 2018
356
Carrying amount
At 30 November 2018
5,584
At 30 November 2017
-
FAIRHAVEN HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2018
- 8 -
5
Tangible fixed assets
Leasehold land & buildings
Leasehold improvements
Fixtures, fittings & equipment
Total
£
£
£
£
Cost
At 1 December 2017
4,011,739
20,742
431,298
4,463,779
Additions
-
86,647
38,053
124,700
At 30 November 2018
4,011,739
107,389
469,351
4,588,479
Depreciation and impairment
At 1 December 2017
-
698
337,936
338,634
Depreciation charged in the year
-
16,481
36,662
53,143
At 30 November 2018
-
17,179
374,598
391,777
Carrying amount
At 30 November 2018
4,011,739
90,210
94,753
4,196,702
At 30 November 2017
4,011,739
20,044
93,362
4,125,145
6
Fixed asset investments
2018
2017
£
£
Investments
1,105
1,005
Investments represent the cost of the company's investment in its subsidiary and is measured at cost less accumulated impairment.
Movements in fixed asset investments
Shares in group undertakings
£
Cost or valuation
At 1 December 2017
1,005
Additions
100
At 30 November 2018
1,105
Carrying amount
At 30 November 2018
1,105
At 30 November 2017
1,005
On 1st December 2017 the company acquired a new subsidiary, Clifton Arms Hotel (2017) Limited.
FAIRHAVEN HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2018
- 9 -
7
Subsidiaries
Details of the company's subsidiaries at 30 November 2018 are as follows:
Name of undertaking
Registered
Nature of business
Class of
% Held
office
shares held
Direct
Indirect
Clifton Arms Hotel Limited
UK
Hotelier
Ordinary
100.00
Clifton Arms Hotel (2017) Limited
UK
Hotelier
Ordinary
100.00
8
Debtors
2018
2017
Amounts falling due within one year:
£
£
Amounts owed by group undertakings
210,496
141,089
Other debtors
293,196
326,833
503,692
467,922
9
Creditors: amounts falling due within one year
2018
2017
£
£
Bank loans and overdrafts
240,000
230,000
Amounts due to group undertakings
123,610
149,010
Corporation tax
26,559
41,900
Other taxation and social security
7,955
4,241
Other creditors
43,075
9,645
441,199
434,796
10
Creditors: amounts falling due after more than one year
2018
2017
£
£
Bank loans and overdrafts
790,000
1,030,000
11
Called up share capital
2018
2017
£
£
Ordinary share capital
Issued and fully paid
342 A Ordinary shares of 50p each
171
171
171
171
FAIRHAVEN HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 NOVEMBER 2018
- 10 -
12
Revaluation reserve
2018
2017
£
£
At beginning of year
1,939,040
1,910,069
Deferred tax on revaluation of tangible assets
5,724
28,971
At end of year
1,944,764
1,939,040
13
Financial commitments, guarantees and contingent liabilities
The company is party to a group banking arrangement. At the balance sheet date the potential liability relating to cross guarantees given in respect of borrowings by other group companies and the related company Fresh Tracks Holdings Limited £521,838 (2017 - £333,757). These amounts are secured on the group's and related undertaking's land and buildings.
At the balance sheet date the company was party to an interest rate swap arrangement, The maximum unprovided for liability in respect of this arrangement at 30 November 2018 was £8,035.
14
Related party transactions
The company has taken advantage of the available exemptions in section 33.1A of FRS 102 not to disclose transactions between two or more wholly owned members of the group.
15
Directors' transactions
At the balance sheet date an amount of £8,983 (2017 - £13,983) remains due from corporate director Fresh Tracks Holdings Limited. Interest of £1,600 was charged during the year. A further amount of £94,167 (2017 - £104,167) is due from Fresh Tracks Holdings Limited. Both these balance are repayable on demand and are included within Other debtors.
Fresh Tracks Holdings Limited also charged Fairhaven Hotels Limited management fees of £36,000 (2017 - £36,000) which are included in fixed asset additions.
16
Parent company
The parent company of Fairhaven Hotels Limited is Greyland Holding Co Limited and its registered office is Bank House, 9 Dicconson Terrace, Lytham St. Annes, Lancashire, FY8 5JY.
2018-11-30
2017-12-01
false
CCH Software
CCH Accounts Production 2019.100
No description of principal activity
30 August 2019
Mrs C C Webb
Fresh Tracks Holdings Limited
Saint Annes-on-the-Sea Land and Building Company Limited
Velswood Ltd
C Christou
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