REGISTERED NUMBER:
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STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
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FINANCIAL STATEMENTS |
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FOR THE YEAR ENDED 31 DECEMBER 2020 |
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STONEHENGE HOTELS LIMITED |
REGISTERED NUMBER:
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STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
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FINANCIAL STATEMENTS |
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FOR THE YEAR ENDED 31 DECEMBER 2020 |
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FOR |
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STONEHENGE HOTELS LIMITED |
STONEHENGE HOTELS LIMITED (REGISTERED NUMBER: 04044477) |
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CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
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Company Information | 1 |
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Strategic Report | 2 |
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Report of the Directors | 4 |
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Report of the Independent Auditors | 5 |
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Income Statement | 8 |
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Other Comprehensive Income | 9 |
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Balance Sheet | 10 |
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Statement of Changes in Equity | 11 |
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Notes to the Financial Statements | 12 |
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STONEHENGE HOTELS LIMITED |
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COMPANY INFORMATION |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
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DIRECTORS: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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AUDITORS: |
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Statutory Auditors and Chartered Accountants |
Rutland House |
90-92 Baxter Avenue |
Southend on Sea |
Essex |
SS2 6HZ |
STONEHENGE HOTELS LIMITED (REGISTERED NUMBER: 04044477) |
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STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
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PRINCIPAL ACTIVITY |
The principal activity of the company during the year under review was a hotel operating under the IHG Holiday Inn franchise. |
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REVIEW OF BUSINESS |
The results for the year show revenues generated of £1,452,513 (2019 - £3,588,600) and a resultant loss before tax of £(657,616) (2019 - profit of £152,013). |
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During March 2020 the spread of Covid-19 (Coronavirus) led to a period of national and local lockdowns, restrictions on the free movement of individuals and enforced closures of premises such as the company's. These restrictions continued throughout the reminder of the year, and into the subsequent year ended 31 December 2021. The effects on the company's business were, of course, severe. |
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Whilst the directors acted quickly to mitigate the damage, the company (and the country) faced unprecedented difficulties. No business can be expected to survive over nine months of disruption, enforced closures and loss of trade without huge losses of revenue, profitability and hence net reserves. |
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Government support was utilised and helped the company maintain some of its workforce in the interim, through the Coronavirus Job Retention Scheme. Reliefs from rates, one of the company's biggest single expenses, was also invaluable and again continues into 2021. However, the directors are also appreciative for the plentiful support they received from their staff, suppliers and financiers without whom navigating the pandemic would have been impossible. |
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Travel was one of the worst affected industries and will be one of the slowest to recover, fully, in due course. The advances in vaccinations, the Government's "Roadmap out of lockdown" (published in February 2021), and the resultant gradual relaxation of restrictions into Summer 2021 have remained encouraging. Trade (both leisure and business) has begun to return and advance bookings have picked up substantially. International travel remains severely affected although that may present further domestic opportunities for the company's business, depending on how the market reacts and how the pandemic continues. |
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Having navigated an extremely difficult 18 months already, the directors remain hopeful of overcoming the final challenges and returning to normal trading, and profitability, as soon as the business can. The directors therefore consider the company remains a going concern - further details of which can be found in the notes to the financial statements. |
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PRINCIPAL RISKS AND UNCERTAINTIES |
The principal risk to the business in inadequate occupancy of its available rooms and therefore an inability to generate sufficient revenues to service operations. The directors closely monitor the company's performance against similar businesses operating in comparable markets and respond accordingly. |
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The company is also susceptible to any loss in key members of operational staff and therefore operates a number of performance reward and incentive programmes to mitigate these risks. |
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As covered above, during the course of the year the company (and the wider economy) was severely affected by the spread of Covid-19 (Coronavirus) and the resultant Government restrictions on the travel industry and the free movement of individuals. This had severely hampered the company's ability to maintain occupancy and resultant revenues, which continued into 2021. The company therefore remains at risk of further restrictions, loss of trade and / or the return of the travel industry. |
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STONEHENGE HOTELS LIMITED (REGISTERED NUMBER: 04044477) |
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STRATEGIC REPORT |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
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SECTION 172(1) STATEMENT |
Stakeholder engagement |
The board of directors have a legal responsibility under section 172 of the Companies Act 2006 to act in the way we consider, in good faith, would be most likely to promote the company's success for the benefit of its members as a whole, and to have regard to the long-term effect of our decisions on the company and its stakeholders. This statement addresses the ways in which we as a board handle this responsibility. |
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Decision making |
Regular operational and strategic meetings are held by the directors and general managers. This ensures the board has access to the key factors affecting all areas of the business' decision making, shorter term or longer. |
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Furthermore, the company is in constant communication with IHG and various industry specific news sources. This enables the directors to keep abreast of, and address, all longer-term shifts in the company's operating markets. |
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Employee engagement |
The company maintains a diverse workforce of local employees spanning all aspects of the hotel delivery, supplemented by outsourced staff and suppliers where necessary. Staff are rewarded in line with comparable local markets, provided with specific training relevant to their needs and have access to wider industry opportunities as a result of the same. |
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Business relationships |
The company actively maintains strong relationships with its key suppliers and support functions, to ensure it has access to the resources it needs to operate effectively. |
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The wider franchise ensures the company has access to a broad array of customers, visiting for various purposes. The company monitors compliance with brand standards to ensure all customers' expectations are satisfied and deliver the best possible service it can achieve. |
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Community and environmental impact |
The directors remain ever conscious of the impact their business has on the local community and environment. As well as being a supportive local employer, the company also complies with all franchise environmental incentives. |
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Business conduct |
The directors closely monitor the company's service delivery to ensure at all times the business is honest, fair and professional in its conduct with all stakeholders. |
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Shareholder engagement |
The company is actively managed by its shareholders, who are all represented on the board of directors. |
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ON BEHALF OF THE BOARD: |
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29 September 2021 |
STONEHENGE HOTELS LIMITED (REGISTERED NUMBER: 04044477) |
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REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
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The directors present their report with the financial statements of the company for the year ended 31 December 2020. |
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DIVIDENDS |
No dividends will be distributed for the year ended 31 December 2020. |
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DIRECTORS |
The directors shown below have held office during the whole of the period from 1 January 2020 to the date of this report. |
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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. |
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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). 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: |
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- | 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. |
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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. |
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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. |
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AUDITORS |
The auditors, Goldwyns Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting. |
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ON BEHALF OF THE BOARD: |
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REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
STONEHENGE HOTELS LIMITED |
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Opinion |
We have audited the financial statements of Stonehenge Hotels Limited (the 'company') for the year ended 31 December 2020 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). |
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In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 31 December 2020 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. |
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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. |
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Material uncertainties related to going concern |
We draw attention to note 21 in the financial statements, which details the uncertainties arising that may cast doubt on the company's ability to continue as a going concern. Our opinion is not modified in respect of this matter. |
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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. |
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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. |
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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. |
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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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
STONEHENGE HOTELS LIMITED |
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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. |
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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. |
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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. |
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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. |
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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. |
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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. In order to address the risks of misstatements in respect of irregularities, including fraud, we have: |
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obtained an understanding of the key laws and regulations applicable to the company, including the
Companies Act 2006, and applicable taxation legislation; |
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assessed the company's own internal controls and systems for the prevention and detection of
irregularities and particularly the control environment within which they operate; |
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determined a materiality level and audit approach sufficient to identify most irregularities, including
fraud, that may occur; |
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considered our own involvement in the preparation of the company's statutory financial statements and
taxation returns; |
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conducted audit verification work, on a sample basis, on the key audit areas and risks we have
identified; and |
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reflected on the outcome of our work, and the likelihood that conclusions drawn may be indicative of
other areas of potential irregularity. |
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We therefore consider our audit approach has been sufficient to detect material irregularities, including fraud. |
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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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
STONEHENGE HOTELS LIMITED |
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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. |
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for and on behalf of
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Statutory Auditors and Chartered Accountants |
Rutland House |
90-92 Baxter Avenue |
Southend on Sea |
Essex |
SS2 6HZ |
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STONEHENGE HOTELS LIMITED (REGISTERED NUMBER: 04044477) |
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INCOME STATEMENT |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
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2020 | 2019 |
Notes | £ | £ |
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TURNOVER |
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Cost of sales |
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GROSS PROFIT |
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Administrative expenses |
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(632,255 | ) | 406,295 |
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Other operating income |
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OPERATING (LOSS)/PROFIT | 4 | ( |
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Interest payable and similar expenses | 5 |
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(LOSS)/PROFIT BEFORE TAXATION | ( |
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Tax on (loss)/profit | 6 | ( |
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(LOSS)/PROFIT FOR THE FINANCIAL
YEAR |
( |
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STONEHENGE HOTELS LIMITED (REGISTERED NUMBER: 04044477) |
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OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
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2020 | 2019 |
Notes | £ | £ |
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(LOSS)/PROFIT FOR THE YEAR | ( |
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OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME
FOR THE YEAR |
( |
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STONEHENGE HOTELS LIMITED (REGISTERED NUMBER: 04044477) |
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BALANCE SHEET |
31 DECEMBER 2020 |
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2020 | 2019 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 8 |
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CURRENT ASSETS |
Stocks | 9 |
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Debtors | 10 |
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Cash at bank and in hand |
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CREDITORS |
Amounts falling due within one year | 11 |
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NET CURRENT ASSETS |
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TOTAL ASSETS LESS CURRENT
LIABILITIES |
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CREDITORS |
Amounts falling due after more than one
year |
12 |
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PROVISIONS FOR LIABILITIES | 16 |
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NET LIABILITIES | ( |
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CAPITAL AND RESERVES |
Called up share capital | 17 |
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Share premium | 18 |
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Retained earnings | 18 | ( |
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SHAREHOLDERS' FUNDS | ( |
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The financial statements were approved by the Board of Directors and authorised for issue on
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STONEHENGE HOTELS LIMITED (REGISTERED NUMBER: 04044477) |
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STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
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Called up |
share | Retained | Share | Total |
capital | earnings | premium | equity |
£ | £ | £ | £ |
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Balance at 1 January 2019 |
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Changes in equity |
Total comprehensive income | - |
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- |
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Balance at 31 December 2019 |
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( |
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Changes in equity |
Issue of share capital |
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- |
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Total comprehensive income | - | ( |
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Balance at 31 December 2020 |
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( |
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STONEHENGE HOTELS LIMITED (REGISTERED NUMBER: 04044477) |
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NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
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1. | STATUTORY INFORMATION |
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Stonehenge Hotels Limited is a
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The company trades from its leased property in Amesbury, Wiltshire. |
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2. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
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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": |
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• | the requirements of Section 7 Statement of Cash Flows. |
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Turnover |
Turnover represents the income receivable by the company from its trading activities as a hotel. Sales encompass room hire, food and beverage income and all other associated ancillary hotel and guest services. Turnover is recognised in the period in which the physical goods are sold, as services are performed or otherwise as entitlement accrues to the company. |
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Tangible fixed assets |
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Leasehold property | - |
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Equipment | - |
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3. | EMPLOYEES AND DIRECTORS |
2020 | 2019 |
£ | £ |
Wages and salaries |
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Social security costs |
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Other pension costs |
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The average number of employees during the year was as follows: |
2020 | 2019 |
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Staff | 66 | 71 |
Directors | 4 | 4 |
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2020 | 2019 |
£ | £ |
Directors' remuneration |
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STONEHENGE HOTELS LIMITED (REGISTERED NUMBER: 04044477) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
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4. | OPERATING (LOSS)/PROFIT |
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The operating loss (2019 - operating profit) is stated after charging: |
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2020 | 2019 |
£ | £ |
Depreciation - owned assets |
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Depreciation - assets on hire purchase contracts and finance leases |
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Auditors' remuneration |
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Auditors' remuneration - other non-audit services |
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5. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2020 | 2019 |
£ | £ |
Leasing interest |
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6. | TAXATION |
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Analysis of the tax (credit)/charge |
The tax (credit)/charge on the loss for the year was as follows: |
2020 | 2019 |
£ | £ |
Deferred tax | ( |
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Tax on (loss)/profit | ( |
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Reconciliation of total tax (credit)/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: |
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2020 | 2019 |
£ | £ |
(Loss)/profit before tax | ( |
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(Loss)/profit multiplied by the standard rate of corporation tax in the
UK of |
( |
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Effects of: |
Expenses not deductible for tax purposes |
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recognised |
Total tax (credit)/charge | (105,400 | ) | 61,220 |
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7. | GOVERNMENT GRANTS |
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During the year, the company was in receipt of government support, specifically in relation to the Covid-19 pandemic. Within other operating income is £230,719 (2019 - £nil) in respect of the Coronavirus Job Retention Scheme. |
STONEHENGE HOTELS LIMITED (REGISTERED NUMBER: 04044477) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
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8. | TANGIBLE FIXED ASSETS |
Leasehold |
property | Equipment | Totals |
£ | £ | £ |
COST |
At 1 January 2020 |
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Additions |
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At 31 December 2020 |
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DEPRECIATION |
At 1 January 2020 |
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Charge for year |
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At 31 December 2020 |
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NET BOOK VALUE |
At 31 December 2020 |
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At 31 December 2019 |
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On 13 December 2017, the company entered into an agreement to lease the property from which it trades for a period of 150 years. This lease therefore amounts to a financing lease, as the company will derive benefit from the property throughout its useful life, and has been recognised accordingly. |
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The property interest is being depreciated over 75 years. |
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Fixed assets, included in the above, which are held under hire purchase contracts and finance leases are as follows: |
Leasehold |
property | Equipment | Totals |
£ | £ | £ |
COST |
At 1 January 2020 |
and 31 December 2020 |
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DEPRECIATION |
At 1 January 2020 | 213,889 |
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Charge for year | 102,667 |
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At 31 December 2020 | 316,556 |
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NET BOOK VALUE |
At 31 December 2020 | 8,383,444 |
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At 31 December 2019 | 8,486,111 |
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9. | STOCKS |
2020 | 2019 |
£ | £ |
Stocks |
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STONEHENGE HOTELS LIMITED (REGISTERED NUMBER: 04044477) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
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10. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2020 | 2019 |
£ | £ |
Trade debtors |
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Amounts owed by group undertakings |
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Other debtors |
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Deferred tax asset |
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Prepayments |
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11. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2020 | 2019 |
£ | £ |
Bank loans and overdrafts (see note 13) |
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Other loans (see note 13) |
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Hire purchase contracts and finance leases (see note 14) |
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Trade creditors |
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Amounts owed to group undertakings |
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Social security and other taxes |
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Other creditors |
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Accrued expenses |
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12. |
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR |
2020 | 2019 |
£ | £ |
Bank loans (see note 13) |
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Other loans (see note 13) |
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Hire purchase contracts and finance leases (see note 14) |
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13. | LOANS |
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An analysis of the maturity of loans is given below: |
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2020 | 2019 |
£ | £ |
Amounts falling due within one year or on demand: |
Bank overdrafts |
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Bank loans |
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Other loans |
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Amounts falling due between one and two years: |
Bank loans |
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Other loans | 66,303 |
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STONEHENGE HOTELS LIMITED (REGISTERED NUMBER: 04044477) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
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13. | LOANS - continued |
2020 | 2019 |
£ | £ |
Amounts falling due between two and five years: |
Bank loans |
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14. | LEASING AGREEMENTS |
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Minimum lease payments fall due as follows: |
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Hire purchase contracts | Finance leases |
2020 | 2019 | 2020 | 2019 |
£ | £ | £ | £ |
Gross obligations repayable: |
Within one year |
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Between one and five years |
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In more than five years |
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Finance charges repayable: |
Within one year |
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Between one and five years |
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In more than five years |
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Net obligations repayable: |
Within one year |
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In more than five years |
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|
|
On 13 December 2017, the company entered into an agreement to lease the property from which it trades for a period of 150 years. This transaction amounts to a finance lease and has been recognised accordingly. The company is liable for an annual rent of £170,000 per annum, subject to an annual increase as determined by any changes in the retail price index but subject to a minimum of 1% and a maximum of 4%. |
|
Throughout the initial period of the lease the annual interest arising will exceed the rental repayments due and therefore the company's recognised finance liability will continue to increase. |
STONEHENGE HOTELS LIMITED (REGISTERED NUMBER: 04044477) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
|
15. | SECURED DEBTS |
|
The following secured debts are included within creditors: |
|
2020 | 2019 |
£ | £ |
Bank overdraft |
|
|
Bank loans |
|
|
Other loans |
|
|
Hire purchase contracts and finance leases | 9,063,669 | 8,824,075 |
|
|
|
The company had also given cross-guarantees in respect of other associated companies' debts. At the balance sheet date, those companies' liabilities to the bank totalled £11,931,908 (2019 - £11,837,125). |
|
The company has given fixed and floating charges over all of its interests in the property (and any proceeds arising therefrom) as security for its bank loans, and its cross-guarantee. |
|
Hire purchase contracts and finance lease liabilities are secured on the assets to which they relate. |
|
Other loans consists of a Coronavirus Business Interruption Loan, which the company drew in November 2020. The loan is backed by a partial guarantee from the UK government. |
|
Bank overdraft is guaranteed by the other associated companies |
|
16. | PROVISIONS FOR LIABILITIES |
2019 |
£ |
Deferred tax | 81,520 |
|
Deferred |
tax |
£ |
Balance at 1 January 2020 |
|
Accelerated capital allowance | (19,304 | ) |
Losses carried forward | (86,717 | ) |
Other movements | 621 |
Balance at 31 December 2020 | ( |
) |
|
Deferred tax provisions primarily represent the timing differences arising on accelerated capital allowance reliefs available in excess of accounting depreciation, less cumulative losses carried forward. |
|
17. | CALLED UP SHARE CAPITAL |
|
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2020 | 2019 |
value: | £ | £ |
|
Ordinary | £1 | 100 | 2 |
|
98 Ordinary shares of £1 were issued during the year
|
|
|
STONEHENGE HOTELS LIMITED (REGISTERED NUMBER: 04044477) |
|
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 31 DECEMBER 2020 |
|
18. | RESERVES |
Retained | Share |
earnings | premium | Totals |
£ | £ | £ |
|
At 1 January 2020 | ( |
) |
|
(154,939 | ) |
Deficit for the year | ( |
) | ( |
) |
Cash share issue | - | 199,901 | 199,901 |
At 31 December 2020 | ( |
) |
|
(507,254 | ) |
|
19. | PENSION COMMITMENTS |
|
The company operates a defined contribution scheme in respect of its eligible employees. During the year, total contributions to this scheme amounted to £15,961 (2019 - £20,745). At the balance sheet date the total contributions outstanding amounted to £3,180 (2019 - £6,448). |
|
20. | RELATED PARTY DISCLOSURES |
|
The company works closely with a portfolio of four other hotels and their respective companies, all under similar (but not identical) control. Further, the whole portfolio is managed by BGAM Limited, a hotel management enterprise, again with ownership similarities and common directors. These close working relationships enables all businesses to access necessary trading expertise when needed, negotiate beneficial relationships with suppliers and leverage various economies of scale for mutual benefit. |
|
During the course of the year, the company incurred management costs totalling £148,109 (2019 - £184,738) to BGAM Limited. |
|
In aggregate at the balance sheet date, the company was owed £427,633 by, and owed £nil to, these associated companies (2019 - £170,000 and £60,000 respectively). |
|
During the year the company's total compensation to key management personnel (including directors) amounted to £75,160 (2019 - £84,721). |
|
BGAM Hotels (SH) Limited is regarded by the directors as being the company's ultimate parent company with 98% of the issued share capital. |
|
The remaining issued share capital was owned by Lilac Limited, a company registered in Guernsey. |
|
21. | GOING CONCERN |
|
As discussed in the strategic report, the Covid-19 pandemic had a substantial adverse effect on the company's trade and profitability for the year ended 31 December 2020. The company's core reserves have been affected by such an extended period of very low trading capacity. Restrictions on opening, reductions in travel and consumer confidence were also factors into the first half of 2021. |
|
However, the gradual relaxation of restrictions, the advances in the national vaccination programme and the continuing support of the company's creditors have all been encouraging. Activity has picked up substantially in recent months and forward projections remain strong. There are currently no intentions of ceasing trading activities and, providing no further restrictions are imposed, the directors anticipate the challenges remain navigable. |
|
These financial statements are therefore still prepared on a going concern basis. |