Registration number:
for the Year Ended
Rare Bird Hotels Limited
(Registration number: 08258851)
Balance Sheet as at 31 January 2021
Note |
2021 |
2020 |
|
Fixed assets |
|||
Tangible assets |
- |
|
|
Current assets |
|||
Stocks |
- |
|
|
Debtors |
|
|
|
Other financial assets |
6,619,047 |
- |
|
Cash at bank and in hand |
|
|
|
|
|
||
Creditors: Amounts falling due within one year |
( |
( |
|
Net current assets/(liabilities) |
|
( |
|
Total assets less current liabilities |
|
( |
|
Creditors: Amounts falling due after more than one year |
( |
- |
|
Net assets/(liabilities) |
|
( |
|
Capital and reserves |
|||
Called up share capital |
10,000 |
10,000 |
|
Other reserves |
(333,334) |
- |
|
Profit and loss account |
1,105,804 |
(5,453,225) |
|
Shareholders' funds/(deficit) |
782,470 |
(5,443,225) |
These financial statements have been prepared in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006.
These financial statements have been delivered in accordance with the provisions applicable to companies subject to the small companies regime and the option not to file the Profit and Loss Account has been taken.
Approved and authorised by the
.........................................
Company secretary and director
Rare Bird Hotels Limited
Notes to the Financial Statements for the Year Ended 31 January 2021
General information |
The company is a private company limited by share capital, incorporated in England and Wales.
The address of its registered office is:
England
Accounting policies |
Summary of significant accounting policies and key accounting estimates
The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.
Statement of compliance
These financial statements have been prepared in accordance with Financial Reporting Standard 102 Section 1A - 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006.
Basis of preparation
These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.
Going concern
After making enquiries, the Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence and meet its liabilities as they fall due for the forseeable future, being a period of at least twelve months from the date these financial statements were approved. The Company had made losses for a number of years: as a result of which it has been reliant on the support of other group companies.
The sale of the hotel business concluded in September 2020 for a sum in excess of £6.9 million, which should ensure the company's ability to continue as a going concern. Consequently, the financial statements have been prepared on that basis.
Audit report
Key sources of estimation uncertainty
Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.
Revenue recognition
Revenue from accommodation and related services is recognised at the point at which the services are provided and when the amount of revenue can be measured reliably and it is probable that the Company will receive the consideration due under the contract. Revenue is shown net of sales/value added tax, returns, rebates and discounts.
Rare Bird Hotels Limited
Notes to the Financial Statements for the Year Ended 31 January 2021
Tax
Taxation expense for the period comprises current and deferred tax recognised in the reporting period. Tax is recognised in the profit and loss account, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case tax is also recognised in other comprehensive income or directly in equity respectively.
Current tax is the amount of income tax payable in respect of the taxable profit for the year or prior years. Tax is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the period end.
Deferred tax araises from timing differences that are differences between taxable profits and total comprehensive income as stated in the financial statements. These 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 recognised on all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are only recognised when it is probable that they will be recovered against the reversal of deferred tax liabilities or other taxable profits.
Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing difference.
Tangible assets
Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.
The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.
Depreciation
Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:
Asset class |
Depreciation method and rate |
Plant and machinery |
20% straight line |
Fixtures and fittings |
20% straight line |
Computer equipment |
20% and 33% straight line |
Business combinations
Business combinations are accounted for using the purchase method. The consideration for each acquisition is measured at the aggregate of the fair values at acquisition date of assets given, liabilities incurred or assumed, and equity instruments issued by the group in exchange for control of the acquired, plus any costs directly attributable to the business combination. When a business combination agreement provides for an adjustment to the cost of the combination contingent on future events, the group includes the estimated amount of that adjustment in the cost of the combination at the acquisition date if the adjustment is probable and can be measured reliably.
Investments
Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss. Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment.
Interest income on debt securities, where applicable, is recognised in income using the effective interest method. Dividends on equity securities are recognised in income when receivable.
Rare Bird Hotels Limited
Notes to the Financial Statements for the Year Ended 31 January 2021
Cash and cash equivalents
Cash and cash equivalents comprise cash on hand and call deposits, and other short-term highly liquid investments that are readily convertible to a known amount of cash and are subject to an insignificant risk of change in value.
Debtors
Trade debtors are amounts due from customers for merchandise sold or services performed in the ordinary course of business.
Stocks
Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell.
Trade creditors
Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers.
Borrowings
Interest-bearing borrowings are initially recorded at fair value, net of transaction costs. Interest-bearing borrowings are subsequently carried at amortised cost, with the difference between the proceeds, net of transaction costs, and the amount due on redemption being recognised as a charge to the Profit and Loss Account over the period of the relevant borrowing.
Interest expense is recognised on the basis of the effective interest method and is included in interest payable and similar charges.
Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.
Leases
Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Share capital
Ordinary shares are classified as equity. Equity instruments are measured at the fair value of the cash or other resources received or receivable, net of the direct costs of issuing the equity instruments. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis.
Defined contribution pension obligation
A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.
Rare Bird Hotels Limited
Notes to the Financial Statements for the Year Ended 31 January 2021
Financial instruments
Classification
Recognition and measurement
Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.
Financial assets and liabilities are only offset in the Balance Sheet when, and only when there exists a legally enforceable right to set off the recognised amounts and the Group intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.
Debt instruments which meet the conditions of being 'basic' financial instruments as defined in FRS 102.11.9 are subsequently measured at amortised cost using the effective interest method.
Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled; or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party; or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.
Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.
Impairment
For financial assets carried at cost less impairment, the impairment loss is the difference between the asset's carrying amount and the best estimate of the amount that would be received for the asset if it were to be sold at the reporting date. The impairment loss is recognised in profit and loss.
Staff numbers |
The average number of persons employed by the company (including directors) during the year, was
Rare Bird Hotels Limited
Notes to the Financial Statements for the Year Ended 31 January 2021
Tangible assets |
Fixtures and fittings |
Plant and machinery |
Office equipment |
Total |
|
Cost or valuation |
||||
At 1 February 2020 |
|
|
|
|
Additions |
|
- |
- |
|
Disposals |
( |
( |
( |
( |
At 31 January 2021 |
- |
- |
- |
- |
Depreciation |
||||
At 1 February 2020 |
|
|
|
|
Eliminated on disposal |
( |
( |
( |
( |
At 31 January 2021 |
- |
- |
- |
- |
Carrying amount |
||||
At 31 January 2021 |
- |
- |
- |
- |
At 31 January 2020 |
|
|
|
|
Investments |
2021 |
2020 |
Subsidiaries |
£ |
Cost or valuation |
|
Additions |
|
Disposals |
( |
At 31 January 2021 |
- |
Provision |
|
Carrying amount |
|
At 31 January 2021 |
- |
Rare Bird Hotels Limited
Notes to the Financial Statements for the Year Ended 31 January 2021
Other financial assets (current and non-current) |
Financial assets at fair value through profit and loss |
Total |
|
Current financial assets |
||
Cost or valuation |
||
Additions |
6,952,381 |
6,952,381 |
Fair value adjustments |
(333,334) |
(333,334) |
At 31 January 2021 |
6,619,047 |
6,619,047 |
Impairment |
||
Carrying amount |
||
At 31 January 2021 |
|
6,619,047 |
Rare Bird Hotels Limited
Notes to the Financial Statements for the Year Ended 31 January 2021
Stocks |
2021 |
2020 |
|
Other inventories |
- |
|
Debtors |
2021 |
2020 |
|
Trade debtors |
- |
|
Prepayments |
- |
|
Other debtors |
|
|
|
|
Creditors |
Creditors: amounts falling due within one year
2021 |
2020 |
|
Due within one year |
||
Loans and borrowings |
|
- |
Trade creditors |
|
|
Amounts owed to group undertakings |
|
|
Taxation and social security |
- |
|
Other creditors |
|
|
|
|
Creditors include bank loans and overdrafts and net obligations under finance lease and hire purchase contracts which are secured of £90,000 (2020 - £nil).
Creditors: amounts falling due after more than one year
Note |
2021 |
2020 |
|
Due after one year |
|||
Loans and borrowings |
|
- |
Creditors include bank loans and overdrafts and net obligations under finance lease and hire purchase contracts which are secured of £510,000 (2020 - £nil).
Creditors include bank loans repayable by instalments of £60,000 (2020 - £nil) due after more than five years.
Rare Bird Hotels Limited
Notes to the Financial Statements for the Year Ended 31 January 2021
Loans and borrowings |
2021 |
2020 |
|
Current loans and borrowings |
||
Bank borrowings |
|
- |
2021 |
2020 |
|
Non-current loans and borrowings |
||
Bank borrowings |
|
- |
The liabilities are secured on the freehold property at Streatley.
Financial commitments, guarantees and contingencies |
Amounts not provided for in the balance sheet
The total amount of financial commitments not included in the balance sheet is £Nil
(2020 - £
Related party transactions |
Under FRS 102 Section 33, the Company is exempt from disclosing related party transactions with its Parent Company and fellow wholly owned subsidiaries, as 100% of the voting rights are controlled by CCO Trading Limited.
Summary of transactions with other related parties
Included within creditors is £5,684,742 (2020: £5,568,662) owed to CCO Cygnet Limited, a fellow subsidiary of CCO Trading Limited. This loan is interest free, unsecured and repayable on demand. During the year, the company was charged rent of £193,253 (2020: £337,500).
Included within other debtors is a balance of £14,989 (2020: £166,799) owed by The Great House at Sonning Limited. Transactions included within this balance relate solely to recharged expenses. The company is a related party by virtue of being under the common control of a director. During the year expenses of £Nil (2020: £129,000) were recharged. At the year end, there was also a balance of £Nil (2020: £8,032) included within accruals.
During the year, the company invoiced £157,598 (2020: £226,496) for services rendered and incurred expenses of £59,098 (2020: £301,086) to Various Eateries Limited, a company under the common control of a director. At the year end, there was a debtor of £370,558 (2020: £370,558) and a creditor of £Nil (2020: £200,372).