Company registration number 5256840 (England and Wales)
NORTHUMBERLAND HOUSE LIMITED
FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
PAGES FOR FILING WITH REGISTRAR
NORTHUMBERLAND HOUSE LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 9
NORTHUMBERLAND HOUSE LIMITED
BALANCE SHEET
AS AT
31 DECEMBER 2021
31 December 2021
- 1 -
2021
2020
Notes
£
£
£
£
Fixed assets
Tangible assets
4
30,616,715
31,553,341
Current assets
Stocks
243,685
243,685
Debtors
5
30,910,610
24,627,414
Cash at bank and in hand
7,879,161
5,030,656
39,033,456
29,901,755
Creditors: amounts falling due within one year
6
(1,954,556)
(1,799,955)
Net current assets
37,078,900
28,101,800
Total assets less current liabilities
67,695,615
59,655,141
Creditors: amounts falling due after more than one year
7
(45,318,531)
(37,100,000)
Provisions for liabilities
8
(7,295,009)
(4,912,187)
Net assets
15,082,075
17,642,954
Capital and reserves
Called up share capital
50,000
50,000
Share premium account
10,960,052
10,960,052
Profit and loss reserves
4,072,023
6,632,902
Total equity
15,082,075
17,642,954
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
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 31 August 2022 and are signed on its behalf by:
M T Schuster
Director
Company Registration No. 5256840
NORTHUMBERLAND HOUSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2021
- 2 -
1
Accounting policies
Company information
Northumberland House Limited is a
private
company
limited by shares
incorporated in
England and Wales
.
The registered office is
2nd Floor, 21-22 Great Castle Street, London, W1G OHZ.
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
pound sterling.
The financial statements have been prepared on the historical cost convention. The principal accounting policies adopted are set out below.
This company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares
publicly available consolidated financial statements
, including this company,
which are
intended to give a true and fair view of the assets, liabilities,
financial position and profit or loss
of the group
.
T
he company has
therefore
taken advantage of
e
xemptions from the following disclosure requirements:
-
Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;
-
Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues’
:
Interest
income/expense and net gains/losses for each category of financial instrument;
basis
of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income
;
-
Section 26 ‘Share based Payment’
:
Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements
;
-
Section 33 ‘Related Party Disclosures’
:
Compensation for key management personnel
.
The financial statements of the company are consolidated in the financial statements of
Ludgate Northumberland Holdings Limited
. These consolidated financial statements are available from its registered office,
2nd Floor, 21-22 Great Castle Street, London, W1G 0HZ.
1.2
Going concern
The financial statements have been prepared on the going concern basis which assumes that the company will continue in operational existence for the foreseeable future, which the directors believe to be appropriate for the following reasons:
true
At 31 December 202
1
the company had cash balances of approximately £
7.9
million and in March 2021 the company had the maturity date of the existing bank loan facility of £46 million extended to April 2024.
The directors have considered the potential impact of a continuation of the COVID-19 pandemic on the company and do not believe th
is
will impair the company's ability to continue as a going concern.
NORTHUMBERLAND HOUSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 3 -
1.3
Turnover
Turnover represents amounts receivable for hotel revenues net of value added tax.
Revenue Recognition
Turnover
represents revenue earned from provision of services to hotel guests. Revenue is recognised as earned when, and to the extent that, the company obtains the right to consideration in exchange for the provision of hotel services.
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:
Freehold building
straight line over 50 years
Plant and equipment
straight line over 7 to 15 years
Fixtures and fittings
straight line over 5 to 7 years
Freehold land is not depreciated.
Interest charges incurred on the construction of the hotel are capitalised up to the point of the hotel's official opening.
NORTHUMBERLAND HOUSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 4 -
1.5
Impairment of fixed assets
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.
1.6
Stocks
Stock consists mainly of uniforms and miscellaneous supplies. Initial base stocks are included at cost, while replacement items are expensed upon their purchase and use.
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 amortised cost using the effective interest
method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.
Financial assets classified as receivable within one year are not amortised.
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.
Trade creditors
are obligations to pay for goods or services that have been acquired
in the ordinary course of business from suppliers. A
m
ounts payable are classified as
current liabilities if payment is due within one year or less. If not, they are presented
as non-current liabilities.
Trade creditors
are recognised initially at transaction price
and subsequently measured at amortised cost using the effective interest method.
1.8
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.
NORTHUMBERLAND HOUSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
1
Accounting policies
(Continued)
- 5 -
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.
1.9
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 received.
Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.
1.10
Leases
Rental income from operating leases is recognised on a straight line basis over the term of the relevant lease. Initial direct costs incurred in negotiating and arranging an operating lease are added to the carrying amount of the leased asset and recognised on a straight line basis over the lease term.
1.11
Government grants
Government grants are recognised at the fair value of the asset receive
d
or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.
1.12
Foreign exchange
Transactions in currencies other than
pounds sterling
are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation
in the period
are included in profit or loss.
1.13
Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.
All other borrowing costs are recognised in profit or loss in the period in which they are incurred.
NORTHUMBERLAND HOUSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 6 -
2
Judgements and key sources of estimation uncertainty
In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.
3
Employees
The average monthly number of persons (including directors) employed by the company during the year was:
2021
2020
Number
Number
Total
31
43
4
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 January 2021 and 31 December 2021
41,696,953
15,799,750
57,496,703
Depreciation and impairment
At 1 January 2021
10,339,529
15,603,833
25,943,362
Depreciation charged in the year
740,709
195,917
936,626
At 31 December 2021
11,080,238
15,799,750
26,879,988
Carrying amount
At 31 December 2021
30,616,715
30,616,715
At 31 December 2020
31,357,424
195,917
31,553,341
Included in land and buildings is cost apportioned to land of £4,661,494 (2020:£4,661,494) as valued by the directors.
Land and buildings includes capitalised interest amounting to £2,095,584 (20
20
: £2,095,584).
NORTHUMBERLAND HOUSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 7 -
5
Debtors
2021
2020
Amounts falling due within one year:
£
£
Trade debtors
280,120
186,846
Corporation tax recoverable
36,796
Amounts owed by group undertakings
30,228,099
24,347,221
Other debtors
365,595
93,347
30,910,610
24,627,414
The amounts owed by group undertakings represent amounts owed by companies under common control, which are not part of the group.
6
Creditors: amounts falling due within one year
2021
2020
£
£
Bank loans
400,000
400,000
Trade creditors
594,549
235,232
Amounts owed to group undertakings
195,577
257,348
Corporation tax
18,224
Other taxation and social security
388,050
391,886
Other creditors
376,380
497,265
1,954,556
1,799,955
7
Creditors: amounts falling due after more than one year
2021
2020
Notes
£
£
Bank loans and overdrafts
45,318,531
37,100,000
The bank loan included in creditors is secured by way of a first and legal mortgage on the freehold
property and a fixed and floating charge over the assets of the company.
An additional loan of £2.9 million and £5.7 million were taken in April 2021 and July 2021 and the existing
bank loans were amended and further extended for a 3 year period to April 2024.
The directors believe that, given the collateral and historical and current cash flows, they will be able to extend
the maturity of the loans or obtain new loans from another lender.
NORTHUMBERLAND HOUSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 8 -
8
Deferred taxation
Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:
Liabilities
Liabilities
2021
2020
Balances:
£
£
Accelerated capital allowances
(176,349)
(167,944)
Other differences - rollover relief
7,471,358
5,080,131
7,295,009
4,912,187
2021
Movements in the year:
£
Liability at 1 January 2021
4,912,187
Charge to profit or loss
2,382,822
Liability at 31 December 2021
7,295,009
A provision for deferred tax has been made regarding the rollover relief claimed in 2007 by a fellow subsidiary company against the property additions of the company.
9
Audit report information
As the income statement has been omitted from the filing copy of the financial statements
,
the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006
:
The auditor's report was unqualified.
Senior Statutory Auditor:
Shashi Patel
Statutory Auditor:
Heywards
10
Operating lease commitments
Lessor
At the reporting end date the company had contracted with tenants to receive the following minimum lease payments in respect of non-cancellable operating leases:
2021
2020
£
£
2,965,000
3,685,000
11
Financial commitments, guarantees and contingent liabilities
The
company has a £
5.7
million letter of credit facility with Barclays Bank Plc
provided by the company
.
During the year
the letter of credit facility was
converted as an increase to the Revolving Facility Loan.
NORTHUMBERLAND HOUSE LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2021
- 9 -
12
Related party transactions
During the year the payroll cost recharged to group undertakings under common control were £58
,
900
(2020: £50,716).
A
llocated overhead charged by group undertakings under common control were £565,902
(2020: £968,544).
At the year end, amount
s totalling
£30
,
228
,
099 (2020: £24
,
347,221) were due from group undertakings under common control and amount
s
of £195
,
577
(
2020: £257,348) were due to group undertakings under common control.
13
Parent company
The immediate parent company is Ludgate Northumberland Holdings Limited which has a 100% holding in the company. The controlling party is Financial District Associates L.P., a limited partnership registered in
the State of New York
USA, which has an indirect holding of 80.5% in the company.
These financial statements have been consolidated in the financial statements of Ludgate Northumberland Holdings Limited, which is the only group in which the results of the company are consolidated. The consolidated financial statements can be obtained from 2nd Floor, 21
-
22 Great Castle Street, London W1G 0HZ
.
2021-12-31
2021-01-01
false
31 August 2022
CCH Software
CCH Accounts Production 2022.200
No description of principal activity
This audit opinion is unqualified
J D Horowitz
A L Stevens
T Ertel
M T Schuster
M T Schuster
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