Company Registration No. 06055959 (England and Wales)
PREMIER CIRCUIT HOTELS LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
PAGES FOR FILING WITH REGISTRAR
PREMIER CIRCUIT HOTELS LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 6
PREMIER CIRCUIT HOTELS LIMITED
BALANCE SHEET
AS AT
31 MARCH 2022
31 March 2022
- 1 -
2022
2021
Notes
£
£
£
£
Fixed assets
Tangible assets
4
9,354,071
9,554,488
Current assets
Stocks
12,646
9,902
Debtors
5
169,332
94,093
Cash at bank and in hand
524,890
53,492
706,868
157,487
Creditors: amounts falling due within one year
6
(7,773,505)
(7,944,291)
Net current liabilities
(7,066,637)
(7,786,804)
Net assets
2,287,434
1,767,684
Capital and reserves
Called up share capital
100
100
Profit and loss reserves
2,287,334
1,767,584
Total equity
2,287,434
1,767,684
The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.
true
For the financial year ended 31 March 2022 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.
The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.
T
he members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476
.
These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.
The financial statements were approved by the board of directors and authorised for issue on 23 December 2022 and are signed on its behalf by:
Mr A Chadha
Director
Company Registration No. 06055959
PREMIER CIRCUIT HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2022
- 2 -
1
Accounting policies
Company information
Premier Circuit Hotels Limited is a
private
company
limited by shares
incorporated in
England and Wales
.
The registered office is
Devonshire House, 1 Devonshire Street, London, W1W 5DR.
The business address is Flat 1, 10 Bourdon Street, Mayfair, London, W1K 3PF.
1.1
Accounting convention
These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.
The financial statements are prepared in
sterling
, which is the functional currency of the company.
Monetary a
mounts
in these financial statements are
rounded to the nearest £.
The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.
1.2
Going concern
A
true
t the time of approving the financial statements
,
t
he directors have a reasonable expectation that the
company
has adequate resources to continue in operational existence for the foreseeable future. Thus
t
he directors continue to adopt the going concern basis of accounting in preparing the financial statements.
1.3
Turnover
Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business
, and
is shown net of VAT and other sales related taxes
.
The fair value of consideration takes into account trade discounts
.
Revenue reflects the accrual of the right to consideration by reference to the value of the services rendered. Turnover not billed is included in debtors and amounts received on account in excess of the relevant amount of revenue are included in creditors.
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 buildings
2% of residual value
Plant and equipment
25% straight line and 10% straight line
The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and
is credited or charged to profit or loss
.
1.5
Stocks
Stocks are stated at the lower of cost and
net realisable value after making due allowance for obsolete and slow moving stock.
PREMIER CIRCUIT HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 3 -
1.6
Cash and cash equivalents
Cash at bank and in hand
are basic financial assets
and
include cash in hand
and
deposits held at call with banks
.
1.7
Financial instruments
The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ 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 measured at transaction price including transaction
. Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities
Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.
Basic financial liabilities
Basic financial liabilities, including
creditors
,
and
loans from
group companies are recognised at transaction price
. 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 at transaction price
.
1.8
Equity instruments
Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.
1.9
Taxation
The tax 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.
PREMIER CIRCUIT HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
1
Accounting policies
(Continued)
- 4 -
1.10
Government grants
Coronavirus Job Retention Scheme
The Coronavirus Job Retention Scheme (CJRS) results in cash payments from the government to compensate employers for part of the wages, associated national insurance contributions (NICs) and employer pension contributions of employees who have been placed on furlough (i.e. placed on a temporary leave of absence from working for the employer).
The CJRS grant is recognised under the accrual model, and is recognised as income on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. As such the income from the grant is recognised on a straight line basis over the furlough period for each relevant employee.
Small Business Grants Fund
The Small Business Grant Fund, represent cash payments from local authorities to eligible businesses. These are government grants for which there are no future performance-related conditions.
The grant is recognised under the accrual model and is recognised as income in the period in which it becomes receivable. This is when the scheme eligibility criteria were first published, or if there was uncertainty around eligibility, when confirmation of entitlement was received from the local authority.
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.
Key sources of estimation uncertainty
The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are
as follows.
Depreciation of freehold buildings
The company estimates the residual value of its freehold buildings to be 30% of its cost. The balance of 70% is depreciated at the rate of 2% per annum. Any variation in the residual value will have an impact on both the balance sheet and the statement of comprehensive income. There is an inevitable degree of judgement involved in the estimation of the residual value which can only ultimately be confirmed on the sale of the building.
3
Employees
The average monthly number of persons employed by the company during the year was:
2022
2021
Number
Number
Total
17
16
PREMIER CIRCUIT HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 5 -
4
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 April 2021
9,666,767
1,777,994
11,444,761
Additions
29,084
29,084
At 31 March 2022
9,666,767
1,807,078
11,473,845
Depreciation and impairment
At 1 April 2021
708,085
1,182,188
1,890,273
Depreciation charged in the year
107,475
122,026
229,501
At 31 March 2022
815,560
1,304,214
2,119,774
Carrying amount
At 31 March 2022
8,851,207
502,864
9,354,071
At 31 March 2021
8,958,682
595,806
9,554,488
5
Debtors
2022
2021
Amounts falling due within one year:
£
£
Trade debtors
25,402
642
Other debtors
143,930
93,451
169,332
94,093
6
Creditors: amounts falling due within one year
2022
2021
£
£
Trade creditors
89,379
89,434
Amounts owed to group undertakings
7,352,734
7,740,397
Corporation tax
74,500
Other taxation and social security
15,937
6,981
Other creditors
240,955
107,479
7,773,505
7,944,291
7
Government grants
Amounts included within operating profit as government grants are as follows:
The Coronavirus Job Retention Scheme £17,921
(202
1
: £
78,203
)
Small Business Grant £
18,000
(202
1
: £
21,750
)
PREMIER CIRCUIT HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2022
- 6 -
8
Related party transactions
At 1 April 202
1
, £7,
684,397
was owed to the Parent. During the year under review, the Parent levied asset management fees of £240,000 (202
1
: £240,000) and charged interest of £
184,113
(202
1
: £
196,902
) on loans made to the company. The Company made net repayments totalling £
851,905
(202
1
: £
14,188
) and at the balance sheet date, £7,
256,734
was owed to the Parent.
The parent company's bank loan is secured by way of a fixed and floating charge over the assets of the company.
At the balance sheet date £56,000 (2021: £56,000) was owed to the company's ultimate parent entity.