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FINANCIAL STATEMENTS |
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FOR THE YEAR ENDED 30 APRIL 2021 |
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LEIGH HOTELS LTD |
REGISTERED NUMBER:
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FINANCIAL STATEMENTS |
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FOR THE YEAR ENDED 30 APRIL 2021 |
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FOR |
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LEIGH HOTELS LTD |
LEIGH HOTELS LTD (REGISTERED NUMBER: 08897530) |
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CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 APRIL 2021 |
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Company Information | 1 |
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Balance Sheet | 2 |
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Notes to the Financial Statements | 3 |
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LEIGH HOTELS LTD |
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COMPANY INFORMATION |
FOR THE YEAR ENDED 30 APRIL 2021 |
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DIRECTORS: |
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REGISTERED OFFICE: |
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REGISTERED NUMBER: |
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AUDITORS: |
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Statutory Auditors and Chartered Accountants |
Rutland House |
90-92 Baxter Avenue |
Southend on Sea |
Essex |
SS2 6HZ |
LEIGH HOTELS LTD (REGISTERED NUMBER: 08897530) |
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BALANCE SHEET |
30 APRIL 2021 |
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2021 | 2020 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Intangible assets | 4 |
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Tangible assets | 5 |
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CURRENT ASSETS |
Stocks |
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Debtors | 6 |
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Cash at bank and in hand |
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CREDITORS |
Amounts falling due within one year | 7 |
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NET CURRENT ASSETS |
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TOTAL ASSETS LESS CURRENT
LIABILITIES |
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CREDITORS |
Amounts falling due after more than one
year |
8 |
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PROVISIONS FOR LIABILITIES | 11 | ( |
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NET ASSETS |
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CAPITAL AND RESERVES |
Called up share capital |
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Retained earnings |
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SHAREHOLDERS' FUNDS |
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In accordance with Section 444 of the Companies Act 2006, the Income Statement has not been delivered. |
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The financial statements were approved by the Board of Directors and authorised for issue on
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LEIGH HOTELS LTD (REGISTERED NUMBER: 08897530) |
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NOTES TO THE FINANCIAL STATEMENTS |
FOR THE YEAR ENDED 30 APRIL 2021 |
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1. | STATUTORY INFORMATION |
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Leigh Hotels Ltd is a
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The company operates from its premises in Leigh. |
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2. | ACCOUNTING POLICIES |
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Basis of preparing the financial statements |
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Turnover |
Turnover represents the income receivable by the company from its trading activities as a hotel. Sales encompass room hire, food and beverage income and all other associated ancillary hotel and guest services. Turnover is recognised in the period in which the physical goods are sold, as services are performed or otherwise as entitlement accrues to the company. |
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Intangible assets |
Intangible assets, representing the book loss on the disposal of the company's property during 2019, are being amortised over the 175 year life of the replacement leasehold property interest. |
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Tangible fixed assets |
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Leasehold property | - |
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Equipment | - |
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Fixtures and fittings | - |
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3. | EMPLOYEES AND DIRECTORS |
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The average number of employees during the year was
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LEIGH HOTELS LTD (REGISTERED NUMBER: 08897530) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2021 |
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4. | INTANGIBLE FIXED ASSETS |
Other |
intangible |
assets |
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COST |
At 1 May 2020 |
and 30 April 2021 |
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AMORTISATION |
At 1 May 2020 |
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Charge for year |
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At 30 April 2021 |
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NET BOOK VALUE |
At 30 April 2021 |
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At 30 April 2020 |
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5. | TANGIBLE FIXED ASSETS |
Fixtures |
Leasehold | and |
property | Equipment | fittings | Totals |
£ | £ | £ | £ |
COST |
At 1 May 2020 |
and 30 April 2021 |
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DEPRECIATION |
At 1 May 2020 |
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Charge for year |
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At 30 April 2021 |
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NET BOOK VALUE |
At 30 April 2021 |
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At 30 April 2020 | 10,162,464 | 1,576 | 7,152 | 10,171,192 |
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On 7 June 2018 the company entered into agreement to sell and then leaseback the property from which it trades, over a period of 175 years. This lease substantially amounts to a financing lease, as the company will derive benefit from the property throughout a major part of its useful life, and has been recognised accordingly. |
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The disposal event created an accounting loss which has been recognised as an intangible fixed asset (above) and is being written down over the same period as the property. |
LEIGH HOTELS LTD (REGISTERED NUMBER: 08897530) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2021 |
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5. | TANGIBLE FIXED ASSETS - continued |
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Fixed assets, included in the above, which are held under finance leases are as follows: |
Leasehold |
property |
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COST |
At 1 May 2020 |
and 30 April 2021 |
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DEPRECIATION |
At 1 May 2020 | 112,536 |
Charge for year | 58,714 |
At 30 April 2021 | 171,250 |
NET BOOK VALUE |
At 30 April 2021 | 10,103,750 |
At 30 April 2020 | 10,162,464 |
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6. | DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2021 | 2020 |
£ | £ |
Trade debtors |
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Amounts owed by group undertakings |
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Other debtors |
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7. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
2021 | 2020 |
£ | £ |
Bank loans and overdrafts |
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Trade creditors |
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Taxation and social security |
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Other creditors |
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8. |
CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR |
2021 | 2020 |
£ | £ |
Bank loans |
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Finance leases (see note 9) |
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LEIGH HOTELS LTD (REGISTERED NUMBER: 08897530) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2021 |
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8. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR - continued |
2021 | 2020 |
£ | £ |
Amounts falling due in more than five years: |
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Repayable by instalments |
Finance leases | 10,725,291 | 10,460,398 |
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9. | LEASING AGREEMENTS |
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Minimum lease payments under finance leases fall due as follows: |
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Finance leases |
2021 | 2020 |
£ | £ |
Gross obligations repayable: |
Within one year |
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Between one and five years |
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In more than five years |
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Finance charges repayable: |
Within one year |
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Between one and five years |
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In more than five years |
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Net obligations repayable: |
In more than five years |
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On 7 June 2018 the company entered into an agreement to lease the property from which it trades for a period of 175 years. This transaction amounts to a finance lease and has been recognised accordingly. The company is liable for an annual rent of £173,000, adjusted for changes in the retail price index but subject to a minimum of 1% and a maximum of 4% increase per year. |
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Throughout the initial period of the lease the annual interest arising will exceed the rental payments due and therefore the company's recognised finance liability will continue to increase. |
LEIGH HOTELS LTD (REGISTERED NUMBER: 08897530) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2021 |
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10. | SECURED DEBTS |
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The following secured debts are included within creditors: |
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2021 | 2020 |
£ | £ |
Bank overdraft |
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Bank loans |
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Finance leases | 10,725,291 | 10,460,398 |
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Bank loans are secured using fixed and floating charges over all of its assets (including its interests in the leasehold property and its tangible fixed assets) |
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The company has also given cross-guarantees in respect of other associated companies' debts. At the balance sheet date, those companies' liabilities to the bank totalled £9,554,175 (2020 - £9,491,513). |
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The company has given fixed and floating charges over all of its interests in the property (and any proceeds arising therefrom) as security for its bank loans, and its cross-guarantee. |
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Finance lease liabilities are secured on the assets to which they relate. |
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Bank overdraft is guaranteed by the other associated companies |
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11. | PROVISIONS FOR LIABILITIES |
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At the balance sheet date the company had recognised provisions totalling £20,220 (2020 - £11,610) for deferred tax liabilities and £20,060 (2020 - £17,000) in respect of other commercial costs. |
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12. | DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006 |
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The Report of the Auditors was unqualified, but drew attention to note 15 to the financial statements. |
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S T Blundell ACA (Senior Statutory Auditor) |
For and on behalf of Goldwyns Limited |
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13. | RELATED PARTY DISCLOSURES |
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The company works closely with a portfolio of four other hotels and their respective companies, all under similar (but not identical) control. Further, the whole portfolio is managed by BGAM Limited, a hotel management enterprise, again with ownership similarities and common directors. These close working relationships enables all businesses to access necessary trading expertise when needed, negotiate beneficial relationships with suppliers and leverage various economies of scale for mutual benefit. |
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During the course of the year, the company incurred management costs totalling £52,988 (2020 - £53,862) to BGAM Limited. |
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In aggregate at the balance sheet date, the company was owed £38,000 by, and owed £437,949 to, these associated companies (2020 - £93,000 and £nil respectively). |
LEIGH HOTELS LTD (REGISTERED NUMBER: 08897530) |
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NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE YEAR ENDED 30 APRIL 2021 |
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14. | ULTIMATE CONTROLLING PARTY |
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BGAM Hotels (LX) Limited is regarded by the directors as being the company's ultimate parent company. |
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15. | GOING CONCERN |
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In March 2020 the UK was struck by the Covid-19 pandemic which resulted in the widespread restriction of free movement and an enforced closure of hotels such as the company's. Whilst the company has since been able to start re-opening, it has been adversely affected by a substantial period of very low turnover (particularly in early 2021). The company is reliant upon trading to return after the lockdowns are lifted. However, the Government's adherence to their roadmap out of lockdown proves encouraging, as does the rapidly advancing vaccination programme. |
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Furthermore, the directors acted quickly to mitigate the short-term damage to the company but the protracted timescales of the restrictions have been damaging to its reserves. Consequently, the company is somewhat reliant upon its creditors' continued support to manage its liabilities as they fall due, which seems to remain forthcoming. |
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These both represent uncertainties beyond the company's control, albeit current indications are positive. The financial statements are therefore still drawn up on a going concern basis. |