Company registration number 06055959 (England and Wales)
PREMIER CIRCUIT HOTELS LIMITED
UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2023
PAGES FOR FILING WITH REGISTRAR
PREMIER CIRCUIT HOTELS LIMITED
CONTENTS
Page
Balance sheet
1
Notes to the financial statements
2 - 5
PREMIER CIRCUIT HOTELS LIMITED
BALANCE SHEET
AS AT
31 MARCH 2023
31 March 2023
- 1 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
4
9,124,570
9,354,071
Current assets
Stocks
13,918
12,646
Debtors
5
172,693
169,332
Cash at bank and in hand
446,678
524,890
633,289
706,868
Creditors: amounts falling due within one year
6
(7,035,991)
(7,773,505)
Net current liabilities
(6,402,702)
(7,066,637)
Net assets
2,721,868
2,287,434
Capital and reserves
Called up share capital
100
100
Profit and loss reserves
2,721,768
2,287,334
Total equity
2,721,868
2,287,434
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 2023 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.
The 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 16 December 2023 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 2023
- 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 amounts 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
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.
1.3
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.
1.4
Stocks
Stocks are stated at the lower of cost and net realisable value after making due allowance for obsolete and slow moving stock.
1.5
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.
PREMIER CIRCUIT HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
1
Accounting policies
(Continued)
- 3 -
1.6
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 initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest rate method. 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 fellow group companies 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 payments 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. Amounts 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.
1.7
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.
1.8
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.
PREMIER CIRCUIT HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 4 -
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:
2023
2022
Number
Number
Total
18
17
4
Tangible fixed assets
Land and buildings
Plant and machinery etc
Total
£
£
£
Cost
At 1 April 2022 and 31 March 2023
9,666,767
1,807,078
11,473,845
Depreciation and impairment
At 1 April 2022
815,560
1,304,214
2,119,774
Depreciation charged in the year
107,475
122,026
229,501
At 31 March 2023
923,035
1,426,240
2,349,275
Carrying amount
At 31 March 2023
8,743,732
380,838
9,124,570
At 31 March 2022
8,851,207
502,864
9,354,071
PREMIER CIRCUIT HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2023
- 5 -
5
Debtors
2023
2022
Amounts falling due within one year:
£
£
Trade debtors
20,612
25,402
Other debtors
152,081
143,930
172,693
169,332
6
Creditors: amounts falling due within one year
2023
2022
£
£
Trade creditors
108,803
89,379
Amounts owed to group undertakings
6,439,373
7,352,734
Corporation tax
94,868
74,500
Other taxation and social security
100,442
15,937
Other creditors
292,505
240,955
7,035,991
7,773,505
7
Related party transactions
At 1 April 2022, £7,296,734 was owed to the Parent. During the year under review, the Parent levied asset management fees of £240,000 (2022: £240,000) and charged interest of £211,708 (2022: £184,113) on loans made to the company. The Company made net repayments totalling £1,365,069 (2022: £811,776) and at the balance sheet date, £6,383,373 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 (2022: £56,000) was owed to the company's ultimate parent entity.