REGISTERED NUMBER: 05112997 (England and Wales) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023 |
FOR |
HLW229 LIMITED |
REGISTERED NUMBER: 05112997 (England and Wales) |
GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2023 |
FOR |
HLW229 LIMITED |
HLW229 LIMITED (REGISTERED NUMBER: 05112997) |
CONTENTS OF THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2023 |
Page |
Company Information | 1 |
Group Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 5 |
Consolidated Income Statement | 8 |
Consolidated Other Comprehensive Income | 9 |
Consolidated Balance Sheet | 10 |
Company Balance Sheet | 11 |
Consolidated Statement of Changes in Equity | 12 |
Company Statement of Changes in Equity | 13 |
Consolidated Cash Flow Statement | 14 |
Notes to the Consolidated Cash Flow Statement | 15 |
Notes to the Consolidated Financial Statements | 16 |
HLW229 LIMITED |
COMPANY INFORMATION |
FOR THE YEAR ENDED 30 JUNE 2023 |
DIRECTORS: |
SECRETARY: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
Statutory Auditor |
35 Wilkinson Street |
Sheffield |
South Yorkshire |
S10 2GB |
HLW229 LIMITED (REGISTERED NUMBER: 05112997) |
GROUP STRATEGIC REPORT |
FOR THE YEAR ENDED 30 JUNE 2023 |
The directors present their strategic report of the company and the group for the year ended 30 June 2023. |
REVIEW OF BUSINESS |
The results of the company for the year and its financial position are shown in the annexed financial statements. |
For the year ended 30 June 2023, the company achieved a profit before tax of £284,029 (2022: £566,085).on turnover of £4,032,916 (2022; £3,631,481). |
In the last twelve months we have continued to upgrade the hotel with the addition of more facilities and services with a view to diversifying the trade. The adoption of a robust pricing policy will result in future weddings being more profitable. |
Bookings in general were much slower during this period. Having researched competitors pricing policies, we concluded that this was solely due to external financial factors. The results for the third quarter were very weak, partly due to fewer weddings. During this period we had to carry many staff in preparation for a sharp uplift in trade after March 2023. |
Prices in general were stronger during this period having recovered from the impact of Covid and its aftermath. |
The gross profit margin is weaker due to the impact of inflation, and wages are higher due to many personnel leaving the industry and consequently we are having to pay higher hourly wage rates to compensate. |
Overall, the directors are satisfied with the performance for the year. |
PRINCIPAL RISKS AND UNCERTAINTIES |
Financing and interest rates |
The group's primary cash inflows are generated from the subsidiary trading company, Whitley Hall Hotel Limited. That company has a small overdraft facility, but there is rarely a need to use this. There is an interest rate risk attaching to the bank overdraft, but this is minimal. |
The group continues to be financed by long term bank loans, which have a further 6 years to run. |
The group does not trade in financial instruments and has no other form of derivatives. |
Cashflows |
The primary cash inflows are derived from the groups trading company, Whitley Hall Hotel Limited. Under the current economic climate, maintaining cashflow is paramount and this will be monitored closely to ensure cashflows are sufficient to enable the group to meet its obligations. |
Competition |
Competitive risk exists in all business and customers in the hotel sector are very price sensitive and the sector is exceptionally competitive. The group's objective is to be able to identify such risks at an early stage so that an appropriate strategy can be implemented to reduce that risk sufficient to enable the group to meet its obligations. |
ON BEHALF OF THE BOARD: |
HLW229 LIMITED (REGISTERED NUMBER: 05112997) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 JUNE 2023 |
The directors present their report with the financial statements of the company and the group for the year ended 30 June 2023. |
DIVIDENDS |
The total distribution of dividends for the year ended 30 June 2023 amounts to £155,820. |
FUTURE DEVELOPMENTS |
The directors will continue to focus on upgrading the hotel, expanding the services and facilities to diversify the trade. Efforts will also continue towards increasing the core business and expanding the social media profile. |
DIRECTORS |
The directors shown below have held office during the whole of the period from 1 July 2022 to the date of this report. |
DISCLOSURE IN THE STRATEGIC REPORT |
Certain items required under Schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports Regulations) 2008 to be disclosed in the directors' report are set out in the Strategic Report in accordance with S414C(11) Companies Act 2006. |
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). 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. |
HLW229 LIMITED (REGISTERED NUMBER: 05112997) |
REPORT OF THE DIRECTORS |
FOR THE YEAR ENDED 30 JUNE 2023 |
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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the group's auditors are aware of that information. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
HLW229 LIMITED |
Opinion |
We have audited the financial statements of HLW229 Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 30 June 2023 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, 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 30 June 2023 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 |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
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, except to the extent otherwise explicitly stated in our report, 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 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. |
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 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. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
HLW229 LIMITED |
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 three, 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. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
- Enquiry of management, those charged with governance and the entity's in-house legal team around actual and potential litigation and claims; |
- Enquiry of entity staff in tax and compliance functions to identify any instances of non-compliance with laws and regulations; |
- Reviewing minutes of meetings of those charged with governance; |
- Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations. |
- Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for bias. |
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the further that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation. |
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 |
HLW229 LIMITED |
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. |
for and on behalf of |
Chartered Accountants |
Statutory Auditor |
35 Wilkinson Street |
Sheffield |
South Yorkshire |
S10 2GB |
HLW229 LIMITED (REGISTERED NUMBER: 05112997) |
CONSOLIDATED INCOME STATEMENT |
FOR THE YEAR ENDED 30 JUNE 2023 |
2023 | 2022 |
Notes | £ | £ |
TURNOVER | 4 | 4,032,916 | 3,631,481 |
Cost of sales | 2,489,763 | 2,148,207 |
GROSS PROFIT | 1,543,153 | 1,483,274 |
Administrative expenses | 1,237,929 | 991,812 |
305,224 | 491,462 |
Other operating income | 5 | 41,282 | 90,446 |
OPERATING PROFIT | 7 | 346,506 | 581,908 |
Interest receivable and similar income | 9,928 | 11,987 |
356,434 | 593,895 |
Interest payable and similar expenses | 8 | 72,405 | 27,810 |
PROFIT BEFORE TAXATION | 284,029 | 566,085 |
Tax on profit | 9 | 41,307 | 96,772 |
PROFIT FOR THE FINANCIAL YEAR |
Profit attributable to: |
Owners of the parent | 242,722 | 469,313 |
HLW229 LIMITED (REGISTERED NUMBER: 05112997) |
CONSOLIDATED OTHER COMPREHENSIVE INCOME |
FOR THE YEAR ENDED 30 JUNE 2023 |
2023 | 2022 |
Notes | £ | £ |
PROFIT FOR THE YEAR | 242,722 | 469,313 |
OTHER COMPREHENSIVE INCOME |
Deferred tax on revaluation reserve | 2,872 | (2,774 | ) |
Income tax relating to other comprehensive income |
- |
- |
OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX |
2,872 |
(2,774 |
) |
TOTAL COMPREHENSIVE INCOME FOR THE YEAR |
245,594 |
466,539 |
Total comprehensive income attributable to: |
Owners of the parent | 245,594 | 466,539 |
HLW229 LIMITED (REGISTERED NUMBER: 05112997) |
CONSOLIDATED BALANCE SHEET |
30 JUNE 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 12 | 6,000,383 | 5,914,810 |
Investments | 13 | - | - |
6,000,383 | 5,914,810 |
CURRENT ASSETS |
Stocks | 14 | 29,377 | 40,335 |
Debtors | 15 | 178,705 | 247,710 |
Cash at bank and in hand | 1,711,137 | 1,664,743 |
1,919,219 | 1,952,788 |
CREDITORS |
Amounts falling due within one year | 16 | 2,368,021 | 2,149,506 |
NET CURRENT LIABILITIES | (448,802 | ) | (196,718 | ) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
5,551,581 |
5,718,092 |
CREDITORS |
Amounts falling due after more than one year |
17 |
(1,243,665 |
) |
(1,497,078 |
) |
PROVISIONS FOR LIABILITIES | 21 | (232,407 | ) | (235,279 | ) |
NET ASSETS | 4,075,509 | 3,985,735 |
CAPITAL AND RESERVES |
Called up share capital | 22 | 800 | 800 |
Share premium | 23 | 249,000 | 249,000 |
Revaluation reserve | 23 | 1,636,106 | 1,633,234 |
Capital redemption reserve | 23 | 200 | 200 |
Retained earnings | 23 | 2,189,403 | 2,102,501 |
SHAREHOLDERS' FUNDS | 4,075,509 | 3,985,735 |
The financial statements were approved by the Board of Directors and authorised for issue on 27 March 2024 and were signed on its behalf by: |
R D V Broadbent - Director |
HLW229 LIMITED (REGISTERED NUMBER: 05112997) |
COMPANY BALANCE SHEET |
30 JUNE 2023 |
2023 | 2022 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Tangible assets | 12 |
Investments | 13 |
CURRENT ASSETS |
Debtors | 15 |
Cash at bank |
CREDITORS |
Amounts falling due within one year | 16 |
NET CURRENT ASSETS |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
17 |
NET ASSETS |
CAPITAL AND RESERVES |
Called up share capital | 22 |
Share premium | 23 |
Capital redemption reserve | 23 |
Retained earnings | 23 |
SHAREHOLDERS' FUNDS |
Company's profit for the financial year | 389,298 | 44,148 |
The financial statements were approved by the Board of Directors and authorised for issue on |
HLW229 LIMITED (REGISTERED NUMBER: 05112997) |
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30 JUNE 2023 |
Called up |
share | Retained | Share |
capital | earnings | premium |
£ | £ | £ |
Balance at 1 July 2021 | 800 | 1,780,483 | 249,000 |
Changes in equity |
Dividends | - | (147,295 | ) | - |
Total comprehensive income | - | 469,313 | - |
Balance at 30 June 2022 | 800 | 2,102,501 | 249,000 |
Changes in equity |
Dividends | - | (155,820 | ) | - |
Total comprehensive income | - | 242,722 | - |
Balance at 30 June 2023 | 800 | 2,189,403 | 249,000 |
Capital |
Revaluation | redemption | Total |
reserve | reserve | equity |
£ | £ | £ |
Balance at 1 July 2021 | 1,636,008 | 200 | 3,666,491 |
Changes in equity |
Dividends | - | - | (147,295 | ) |
Total comprehensive income | (2,774 | ) | - | 466,539 |
Balance at 30 June 2022 | 1,633,234 | 200 | 3,985,735 |
Changes in equity |
Dividends | - | - | (155,820 | ) |
Total comprehensive income | 2,872 | - | 245,594 |
Balance at 30 June 2023 | 1,636,106 | 200 | 4,075,509 |
HLW229 LIMITED (REGISTERED NUMBER: 05112997) |
COMPANY STATEMENT OF CHANGES IN EQUITY |
FOR THE YEAR ENDED 30 JUNE 2023 |
Called up | Capital |
share | Retained | Share | redemption | Total |
capital | earnings | premium | reserve | equity |
£ | £ | £ | £ | £ |
Balance at 1 July 2021 |
Changes in equity |
Dividends | - | ( |
) | - | - | ( |
) |
Total comprehensive income | - | - |
Balance at 30 June 2022 |
Changes in equity |
Dividends | - | ( |
) | - | - | ( |
) |
Total comprehensive income | - | - |
Balance at 30 June 2023 |
HLW229 LIMITED (REGISTERED NUMBER: 05112997) |
CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 JUNE 2023 |
2023 | 2022 |
Notes | £ | £ |
Cash flows from operating activities |
Cash generated from operations | 1 | 699,869 | 953,506 |
Interest paid | (71,672 | ) | (27,810 | ) |
Interest element of hire purchase payments paid |
(733 |
) |
- |
Tax paid | (67,111 | ) | (1,481 | ) |
Net cash from operating activities | 560,353 | 924,215 |
Cash flows from investing activities |
Purchase of tangible fixed assets | (131,090 | ) | (195,858 | ) |
Sale of tangible fixed assets | 2,150 | - |
Interest received | 9,928 | 11,987 |
Net cash from investing activities | (119,012 | ) | (183,871 | ) |
Cash flows from financing activities |
Loan repayments in year | (235,977 | ) | (256,439 | ) |
Amount withdrawn by directors | (3,150 | ) | (571 | ) |
Grants released | - | 23,386 |
Equity dividends paid | (155,820 | ) | (147,295 | ) |
Net cash from financing activities | (394,947 | ) | (380,919 | ) |
Increase in cash and cash equivalents | 46,394 | 359,425 |
Cash and cash equivalents at beginning of year |
2 |
1,664,743 |
1,305,318 |
Cash and cash equivalents at end of year | 2 | 1,711,137 | 1,664,743 |
HLW229 LIMITED (REGISTERED NUMBER: 05112997) |
NOTES TO THE CONSOLIDATED CASH FLOW STATEMENT |
FOR THE YEAR ENDED 30 JUNE 2023 |
1. | RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS |
2023 | 2022 |
£ | £ |
Profit before taxation | 284,029 | 566,085 |
Depreciation charges | 45,518 | 35,176 |
Profit on disposal of fixed assets | (2,150 | ) | - |
Government grants | - | (23,386 | ) |
Finance costs | 72,405 | 27,810 |
Finance income | (9,928 | ) | (11,987 | ) |
389,874 | 593,698 |
Decrease/(increase) in stocks | 10,958 | (17,285 | ) |
Decrease in trade and other debtors | 42,882 | 53,131 |
Increase in trade and other creditors | 256,155 | 323,962 |
Cash generated from operations | 699,869 | 953,506 |
2. | CASH AND CASH EQUIVALENTS |
The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts: |
Year ended 30 June 2023 |
30/6/23 | 1/7/22 |
£ | £ |
Cash and cash equivalents | 1,711,137 | 1,664,743 |
Year ended 30 June 2022 |
30/6/22 | 1/7/21 |
£ | £ |
Cash and cash equivalents | 1,664,743 | 1,305,318 |
3. | ANALYSIS OF CHANGES IN NET (DEBT)/FUNDS |
At 1/7/22 | Cash flow | At 30/6/23 |
£ | £ | £ |
Net cash |
Cash at bank and in hand | 1,664,743 | 46,394 | 1,711,137 |
1,664,743 | 46,394 | 1,711,137 |
Debt |
Finance leases | - | (17,395 | ) | (17,395 | ) |
Debts falling due within 1 year | (289,298 | ) | (14,607 | ) | (303,905 | ) |
Debts falling due after 1 year | (1,497,078 | ) | 267,979 | (1,229,099 | ) |
(1,786,376 | ) | 235,977 | (1,550,399 | ) |
Total | (121,633 | ) | 282,371 | 160,738 |
HLW229 LIMITED (REGISTERED NUMBER: 05112997) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 JUNE 2023 |
1. | STATUTORY INFORMATION |
HLW229 Limited is a |
The presentation currency of the financial statements is the Pound Sterling (£). |
The figures in the financial statements are rounded to the nearest £. |
2. | STATEMENT OF COMPLIANCE |
These financial statements have been prepared in accordance with 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 |
Basis of consolidation |
The Group financial statements consolidate the financial statements of HLW 229 Limited and its subsidiary undertaking. The Group profit and loss account includes the results of HLW 229 Limited and its subsidiary after intra group trading and profits have been eliminated. |
Significant judgements and estimates |
- Key sources of estimation uncertainty. |
The Group believes that there are no areas of material estimation uncertainty which affect the financial statements. |
- Critical accounting judgements in applying the Group's accounting policies. |
The Group believes that the major judgements applied are: the use of the going concern principle which is based on the belief that the group will have adequate resources to continue in operational existence for the foreseeable future. |
Turnover |
Turnover represents net invoiced sales of services provided, excluding value added tax. |
HLW229 LIMITED (REGISTERED NUMBER: 05112997) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2023 |
3. | ACCOUNTING POLICIES - continued |
Tangible fixed assets |
Freehold property | - |
Fixtures and fittings | - |
Motor vehicles | - |
Computer equipment | - |
Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses. |
As stated above, the depreciation policy for freehold property is straight line over 99 years. As the estimated residual value of the hotel land and buildings is considered not to be materially different from its current carrying value, no depreciation has been charged. Depreciation is being charged on a separate freehold property. |
Depreciation of assets only commences when the asset is brought into use. |
A formal valuation of the group's freehold interest in Whitley Hall Hotel was last undertaken in July 2013 by Messrs Edward Symmons LLP who valued the hotel on an existing use basis at £5.2m. |
The provisions of Financial Reporting Standard 102 require that a revaluation exercise be carried out with sufficient regularity to ensure that the carrying value of the revalued asset at the reporting date does not differ materially from that which would be determined using fair value at the reporting date. Whilst a formal valuation has not been undertaken in recent years, the directors have had informal discussions with Chartered Surveyors, valuers and agents to ascertain the current market value. Based on those discussions, combined with a review of the current trading position and future trading forecasts produced by the company, the directors have concluded that the current carrying value of the hotel is not materially different from its fair value. In recent years the company has invested heavily in the refurbishment and maintenance of the hotel and its facilities which supports the carrying value of the investment. |
Stocks |
Stocks are stated at the lower of cost, using the first in first out method, and net realisable value, after making due allowance for obsolete and slow moving items. |
Financial instruments |
Financial Liabilities |
The group's bank loans payable meet the definition of a basic financial instrument, so they are originally recognised at the transaction price. |
Taxation |
Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated 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. |
HLW229 LIMITED (REGISTERED NUMBER: 05112997) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2023 |
3. | ACCOUNTING POLICIES - continued |
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. |
Pension costs and other post-retirement benefits |
The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate. |
Investments |
Investments are included at the lower of cost or net recoverable amount. |
Government grants |
Government grants received which are of a capital nature, are recognised as deferred income in the balance sheet and then credited to the profit and loss account at the same rate as the depreciation charge of the relevant asset. |
Government grants received which are of a revenue nature are credited directly to the profit and loss account. |
4. | TURNOVER |
The turnover and profit before taxation are attributable to the one principal activity of the group. |
An analysis of turnover by class of business is given below: |
2023 | 2022 |
£ | £ |
Operation of a hotel | 4,032,916 | 3,631,481 |
4,032,916 | 3,631,481 |
All turnover arose in the United Kingdom. |
5. | OTHER OPERATING INCOME |
2023 | 2022 |
£ | £ |
Sundry receipts | 41,282 | 67,060 |
Government COVID-19 grants | - | 23,386 |
41,282 | 90,446 |
HLW229 LIMITED (REGISTERED NUMBER: 05112997) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2023 |
6. | EMPLOYEES AND DIRECTORS |
2023 | 2022 |
£ | £ |
Wages and salaries | 1,603,125 | 1,383,611 |
Social security costs | 120,940 | 97,374 |
Other pension costs | 28,821 | 26,290 |
1,752,886 | 1,507,275 |
The average number of employees during the year was as follows: |
2023 | 2022 |
Staff in hotel operations | 86 | 92 |
Directors and administration | 2 | 2 |
The average number of employees by undertakings that were proportionately consolidated during the year was 94 (2022 - 94 ) . |
2023 | 2022 |
£ | £ |
Directors' remuneration | 6,141 | 10,073 |
Directors' pension contributions to money purchase schemes | - | 141 |
The number of directors to whom retirement benefits were accruing was as follows: |
Money purchase schemes | - | 1 |
7. | OPERATING PROFIT |
The operating profit is stated after charging/(crediting): |
2023 | 2022 |
£ | £ |
Depreciation - owned assets | 45,517 | 35,176 |
Profit on disposal of fixed assets | (2,150 | ) | - |
Auditors' remuneration | 2,500 | 2,500 |
Operating lease payments - plant and machinery | 14,100 | 14,110 |
8. | INTEREST PAYABLE AND SIMILAR EXPENSES |
2023 | 2022 |
£ | £ |
Bank loan interest | 3,844 | 2,023 |
Loan | 67,828 | 25,787 |
Hire purchase | 733 | - |
72,405 | 27,810 |
HLW229 LIMITED (REGISTERED NUMBER: 05112997) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2023 |
9. | TAXATION |
Analysis of the tax charge |
The tax charge on the profit for the year was as follows: |
2023 | 2022 |
£ | £ |
Current tax: |
UK corporation tax | 41,307 | 96,772 |
Tax on profit | 41,307 | 96,772 |
Reconciliation of total tax charge included in profit and loss |
The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below: |
2023 | 2022 |
£ | £ |
Profit before tax | 284,029 | 566,085 |
Profit multiplied by the standard rate of corporation tax in the UK of 20.495 % (2022 - 19 %) |
58,212 |
107,556 |
Effects of: |
Income not taxable for tax purposes | (441 | ) | - |
Utilisation of tax losses | (13,690 | ) | - |
Depreciation in excess of capital allowances | (2,774 | ) | (11,896 | ) |
Tax losses carried forward | - | 1,112 |
Total tax charge | 41,307 | 96,772 |
Tax effects relating to effects of other comprehensive income |
2023 |
Gross | Tax | Net |
£ | £ | £ |
Deferred tax on revaluation reserve | 2,872 | - | 2,872 |
2022 |
Gross | Tax | Net |
£ | £ | £ |
Deferred tax on revaluation reserve | (2,774 | ) | - | (2,774 | ) |
10. | INDIVIDUAL INCOME STATEMENT |
As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements. |
11. | DIVIDENDS |
Dividends were paid on A ordinary shares of £60,000, B ordinary shares of £8,570, C ordinary shares of £27,000, D ordinary shares of £22,750 and E ordinary shares of £37,500. |
HLW229 LIMITED (REGISTERED NUMBER: 05112997) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2023 |
12. | TANGIBLE FIXED ASSETS |
Group |
Improvements | Fixtures |
Freehold | to | and |
property | property | fittings |
£ | £ | £ |
COST OR VALUATION |
At 1 July 2022 | 5,835,403 | 91,584 | 162,902 |
Additions | 78,299 | 5,360 | 10,165 |
Disposals | - | - | - |
At 30 June 2023 | 5,913,702 | 96,944 | 173,067 |
DEPRECIATION |
At 1 July 2022 | 9,938 | 77,099 | 109,665 |
Charge for year | 8,818 | 5,994 | 16,487 |
Eliminated on disposal | - | - | - |
At 30 June 2023 | 18,756 | 83,093 | 126,152 |
NET BOOK VALUE |
At 30 June 2023 | 5,894,946 | 13,851 | 46,915 |
At 30 June 2022 | 5,825,465 | 14,485 | 53,237 |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
COST OR VALUATION |
At 1 July 2022 | 13,800 | 73,798 | 6,177,487 |
Additions | 21,902 | 15,364 | 131,090 |
Disposals | (13,000 | ) | - | (13,000 | ) |
At 30 June 2023 | 22,702 | 89,162 | 6,295,577 |
DEPRECIATION |
At 1 July 2022 | 13,800 | 52,175 | 262,677 |
Charge for year | 3,186 | 11,032 | 45,517 |
Eliminated on disposal | (13,000 | ) | - | (13,000 | ) |
At 30 June 2023 | 3,986 | 63,207 | 295,194 |
NET BOOK VALUE |
At 30 June 2023 | 18,716 | 25,955 | 6,000,383 |
At 30 June 2022 | - | 21,623 | 5,914,810 |
HLW229 LIMITED (REGISTERED NUMBER: 05112997) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2023 |
12. | TANGIBLE FIXED ASSETS - continued |
Group |
Cost or valuation at 30 June 2023 is represented by: |
Improvements | Fixtures |
Freehold | to | and |
property | property | fittings |
£ | £ | £ |
Valuation in 2008 | 5,000,000 | 500,000 | 500,000 |
Valuation in 2013 | 112,086 | (460,150 | ) | (451,936 | ) |
Cost | 801,616 | 57,094 | 125,003 |
5,913,702 | 96,944 | 173,067 |
Motor | Computer |
vehicles | equipment | Totals |
£ | £ | £ |
Valuation in 2008 | - | - | 6,000,000 |
Valuation in 2013 | - | - | (800,000 | ) |
Cost | 22,702 | 89,162 | 1,095,577 |
22,702 | 89,162 | 6,295,577 |
If property and fixtures had not been revalued they would have been included at the following historical cost: |
2023 | 2022 |
£ | £ |
Cost | 4,550,656 | 4,550,656 |
Aggregate depreciation | 1,525,299 | 1,525,299 |
A formal valuation of the group's freehold interest in Whitley Hall Hotel was undertaken in July 2013 by Messrs Edward Symmons LLP who valued the hotel on an existing use basis at £5.2m. |
In accordance with the requirements of FRS 102, provision for deferred taxation has been made in full on the revaluation of fixed assets. |
13. | FIXED ASSET INVESTMENTS |
Company |
Shares in |
group |
undertakings |
£ |
COST |
At 1 July 2022 |
and 30 June 2023 |
NET BOOK VALUE |
At 30 June 2023 |
At 30 June 2022 |
HLW229 LIMITED (REGISTERED NUMBER: 05112997) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2023 |
13. | FIXED ASSET INVESTMENTS - continued |
The group or the company's investments at the Balance Sheet date in the share capital of companies include the following: |
Subsidiary |
Registered office: Whitley Hall, Elliott Lane, Grenoside, Sheffield, S35 8NR |
Nature of business: |
% |
Class of shares: | holding |
14. | STOCKS |
Group |
2023 | 2022 |
£ | £ |
Stocks | 29,377 | 40,335 |
Stock recognised in cost of sales during the year as an expense was £739,477 (2022 £651,086), |
The total carrying amount of stock is pledged as security for the group's bank borrowings. |
15. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Trade debtors | 20,081 | 49,945 |
Other debtors | 26,651 | 19,102 |
Directors' current accounts | 68,768 | 65,618 | 45,619 | 45,619 |
Tax | 22,878 | 52,151 |
VAT | 19,281 | 21,903 |
Prepayments | 21,046 | 38,991 |
178,705 | 247,710 |
16. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans and overdrafts (see note 18) | 303,905 | 289,298 |
Hire purchase contracts (see note 19) | 2,829 | - |
Trade creditors | 228,959 | 153,218 |
Amounts owed to group undertakings | - | - |
Tax | 42,370 | 97,447 |
Social security and other taxes | 33,769 | 48,597 |
VAT | - | - | 422 | 650 |
Other creditors | 54,097 | 39,679 |
Accruals and deferred income | 1,702,092 | 1,521,267 |
2,368,021 | 2,149,506 |
HLW229 LIMITED (REGISTERED NUMBER: 05112997) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2023 |
17. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans (see note 18) | 1,229,099 | 1,497,078 |
Hire purchase contracts (see note 19) | 14,566 | - |
1,243,665 | 1,497,078 |
18. | LOANS |
An analysis of the maturity of loans is given below: |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Amounts falling due within one year or on | demand: |
Bank loans | 303,905 | 289,298 |
Amounts falling due between one and two | years: |
Bank loans - 1-2 years | 308,814 | 298,033 |
Amounts falling due between two and five | years: |
Bank loans - 2-5 years | 774,611 | 828,360 |
Amounts falling due in more than five years: |
Repayable by instalments |
Bank loans more 5 yr by instal | 145,674 | 370,685 | 145,674 | 341,913 |
The bank loan have maturity dates of June 2026, February 2027 and December 2028. Interest is charged at 3% and 0.9% over the Bank's Sterling Base Rate. |
19. | LEASING AGREEMENTS |
Minimum lease payments fall due as follows: |
Group |
Hire purchase contracts |
2023 | 2022 |
£ | £ |
Net obligations repayable: |
Within one year | 2,829 | - |
Between one and five years | 14,566 | - |
17,395 | - |
HLW229 LIMITED (REGISTERED NUMBER: 05112997) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2023 |
19. | LEASING AGREEMENTS - continued |
Group |
Non-cancellable operating | leases |
2023 | 2022 |
£ | £ |
Within one year | 14,110 | 15,392 |
Between one and five years | - | 14,110 |
14,110 | 29,502 |
20. | SECURED DEBTS |
The following secured debts are included within creditors: |
Group | Company |
2023 | 2022 | 2023 | 2022 |
£ | £ | £ | £ |
Bank loans | 1,533,004 | 1,786,376 |
Hire purchase contracts | 17,395 | - | - | - |
1,550,399 | 1,786,376 |
The group has given an Unlimited Multilateral Guarantee dated 3 September 2004 to HSBC Bank plc to secure all liabilities.There is a legal right of set off over all balances owed to or by the bank by the group. |
In addition the bank has a debenture dated 3 September 2004 which includes a Fixed Charge over all present freehold and leasehold property; First Fixed Charge over book and other debts, chattels, goodwill and uncalled capital, both present and future; and First Floating Charge over all assets and undertaking both present and future. |
The groups net indebtedness to HSBC Bank plc at 30 June 2023 amounted to £217,158. |
21. | PROVISIONS FOR LIABILITIES |
Group |
2023 | 2022 |
£ | £ |
Deferred tax |
Revaluation of property | 232,407 | 235,279 |
Group |
Deferred |
tax |
£ |
Balance at 1 July 2022 | 235,279 |
Credit to Income Statement during year | (2,872 | ) |
Balance at 30 June 2023 | 232,407 |
HLW229 LIMITED (REGISTERED NUMBER: 05112997) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2023 |
22. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 2023 | 2022 |
value: | £ | £ |
A Ordinary | 0.01 | 700 | 700 |
B Ordinary | 0.01 | 100 | 100 |
C, D and E Ordinary | 0.01 | - | - |
800 | 800 |
Except as otherwise provided in the Articles of Association, the A shares, B shares, C shares, D shares and E shares shall rank pari passu in all respects but constitute separate classes of shares. |
The company has an Enterprise Management Incentives Scheme. The scheme allows EMI options to be granted to eligible employees. The company will satisfy the exercise of the options by issuing new shares. Each eligible employee has been granted the option to acquire 4,443 shares at an exercise price of £2.41 or such higher value as may be agreed by the company with HMRC on or after the date of this agreement. |
23. | RESERVES |
Group |
Capital |
Retained | Share | Revaluation | redemption |
earnings | premium | reserve | reserve | Totals |
£ | £ | £ | £ | £ |
At 1 July 2022 | 2,102,501 | 249,000 | 1,633,234 | 200 | 3,984,935 |
Profit for the year | 242,722 | 242,722 |
Dividends | (155,820 | ) | (155,820 | ) |
Deferred tax release | - | - | 2,872 | - | 2,872 |
At 30 June 2023 | 2,189,403 | 249,000 | 1,636,106 | 200 | 4,074,709 |
Company |
Capital |
Retained | Share | redemption |
earnings | premium | reserve | Totals |
£ | £ | £ | £ |
At 1 July 2022 | 1,364,896 |
Profit for the year |
Dividends | ( |
) | ( |
) |
At 30 June 2023 | 1,598,374 |
HLW229 LIMITED (REGISTERED NUMBER: 05112997) |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 JUNE 2023 |
24. | DIRECTORS' ADVANCES, CREDITS AND GUARANTEES |
The following advances and credits to a director subsisted during the years ended 30 June 2023 and 30 June 2022: |
2023 | 2022 |
£ | £ |
R D V Broadbent |
Balance outstanding at start of year | 45,619 | 47,048 |
Amounts repaid | - | (1,429 | ) |
Amounts written off | - | - |
Amounts waived | - | - |
Balance outstanding at end of year | 45,619 | 45,619 |
The advance is interest free and there is no fixed repayment term. The amount is included within other debtors. |
25. | RELATED PARTY DISCLOSURES |
Invoiced management charges to Whitley Hall Hotel Limited amounted to £42,00 (2022:£40,550). The amount owed by Whitley Hall Hotel Limited at the year end of £2,600 (2022: £12,600) is disclosed within trade debtors. |
During the year, a total of key management personnel compensation of £ 115,417 (2022 - £ 128,193 ) was paid. |
26. | ULTIMATE CONTROLLING PARTY |
The ultimate controlling party is Mr R D V Broadbent, a director and majority shareholder of HLW229 Limited |