REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS FOR THE PERIOD 1 APRIL 2021 TO 30 JUNE 2022 |
FOR |
NINE BASINGSTOKE LIMITED |
REGISTERED NUMBER: |
STRATEGIC REPORT, REPORT OF THE DIRECTORS AND |
FINANCIAL STATEMENTS FOR THE PERIOD 1 APRIL 2021 TO 30 JUNE 2022 |
FOR |
NINE BASINGSTOKE LIMITED |
NINE BASINGSTOKE LIMITED (REGISTERED NUMBER: 09451231) |
CONTENTS OF THE FINANCIAL STATEMENTS |
FOR THE PERIOD 1 APRIL 2021 TO 30 JUNE 2022 |
Page |
Company Information | 1 |
Strategic Report | 2 |
Report of the Directors | 3 |
Report of the Independent Auditors | 4 |
Income Statement | 8 |
Other Comprehensive Income | 9 |
Balance Sheet | 10 |
Statement of Changes in Equity | 11 |
Notes to the Financial Statements | 12 |
NINE BASINGSTOKE LIMITED |
COMPANY INFORMATION |
FOR THE PERIOD 1 APRIL 2021 TO 30 JUNE 2022 |
DIRECTORS: |
REGISTERED OFFICE: |
REGISTERED NUMBER: |
AUDITORS: |
Chartered Accountants |
and Statutory Auditors |
7 St John's Road |
Harrow |
Middlesex |
HA1 2EY |
NINE BASINGSTOKE LIMITED (REGISTERED NUMBER: 09451231) |
STRATEGIC REPORT |
FOR THE PERIOD 1 APRIL 2021 TO 30 JUNE 2022 |
The directors present their strategic report for the period 1 April 2021 to 30 June 2022. |
REVIEW OF BUSINESS |
The loss for the period after taxation is £424,488 (2021: loss for the year £822,000). |
The investment property is held for capital appreciation. Following an appraisal from Colliers on 26 August 2022 the value of the investment property was deemed to have increased by £550,000 (2021: decrease by £500,000). |
The Company applies FRS101 - Reduced Disclosure Framework and has taken advantage of the disclosure exemptions allowed under this standard. The Company's parent undertaking, HICP Holdings Limited (and subsequently the new parent Nine Group), was notified of and did not object to the use of the disclosure exemptions. |
PRINCIPAL RISKS AND UNCERTAINTIES |
The COVID-19 pandemic started to manifest itself in early March 2020 and the Hotels were mandated to shut from mid-March 2020 onwards. The main risk to the business was managing the operations and costs through the pandemic and new government rules of lockdowns, tiered openings and then further lockdowns. |
Subsequently, the challenges around the supply chain caused by COVID-19 and the shortage of quality staff are the biggest risks for the foreseeable future. |
KEY PERFORMANCE INDICATORS |
The Company's key financial and other performance indicators during the period were as follows: |
Turnover (continuing operations): £434,003 (2021: £338,000) |
Loss for the financial period: £424,488 (2021: loss £822,000) |
Valuation of the investment property: £4,750,000 (2021: £4,200,000) |
FUTURE DEVELOPMENTS |
Bryant Park Hospitality SARL decided to sell the company in early September 2022. |
The new owners Nine Group, acquired the company with the intension to invest in the portfolio, including up-branding and ensuring the hotel is in the prime condition to maximise from the economic recovery post COVID-19. |
The ownership change allowed the company to be restructured allowing for the overall financial position to be improved. |
ON BEHALF OF THE BOARD: |
28 June 2023 |
NINE BASINGSTOKE LIMITED (REGISTERED NUMBER: 09451231) |
REPORT OF THE DIRECTORS |
FOR THE PERIOD 1 APRIL 2021 TO 30 JUNE 2022 |
The directors present their report with the financial statements of the company for the period 1 April 2021 to 30 June 2022. |
EVENTS SINCE THE END OF THE PERIOD |
Information relating to events since the end of the period is given in the notes to the financial statements. |
DIRECTOR |
STATEMENT OF DIRECTORS' RESPONSIBILITIES |
The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations. |
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to: |
- | select suitable accounting policies and then apply them consistently; |
- | make judgements and accounting estimates that are reasonable and prudent; |
- | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. |
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. |
STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS |
So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information. |
AUDITORS |
Pursuant to Section 487(2) of the Companies Act 2006, the auditors, Macalvins Limited, will be deemed to be re-appointment and therefore will continue in office. |
This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies. |
ON BEHALF OF THE BOARD: |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
NINE BASINGSTOKE LIMITED |
Opinion |
We have audited the financial statements of Nine Basingstoke Limited (the 'company') for the period ended 30 June 2022 which comprise the Income Statement, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 101 'Reduced Disclosure Framework' (United Kingdom Generally Accepted Accounting Practice). |
In our opinion the financial statements: |
- | give a true and fair view of the state of the company's affairs as at 30 June 2022 and of its profit for the period then ended; |
- | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and |
- | have been prepared in accordance with the requirements of the Companies Act 2006. |
Basis for opinion |
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. |
Material uncertainty relating to going concern |
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. |
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. |
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. |
We draw attention to note 16 to the financial statements, which indicates that the company is in a net liability position as at 30 June 2022. The directors have indicated their continued support to the company in respect of the post balance sheet creditor remaining due of circa £5.1m. Should the director seek repayment of the creditor balance, the company would not have the financial resources to continue as a going concern. Our opinion is not modified in respect of this matter. |
Other information |
The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon. |
Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. |
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. |
Opinions on other matters prescribed by the Companies Act 2006 |
In our opinion, based on the work undertaken in the course of the audit: |
- | the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and |
- | the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
NINE BASINGSTOKE LIMITED |
Matters on which we are required to report by exception |
In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors. |
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion: |
- | adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or |
- | the financial statements are not in agreement with the accounting records and returns; or |
- | certain disclosures of directors' remuneration specified by law are not made; or |
- | we have not received all the information and explanations we require for our audit; or |
- | the directors were not entitled to prepare the financial statements in accordance with the small companies regime and take advantage of the small companies' exemption from the requirement to prepare a Strategic Report or in preparing the Report of the Directors. |
Responsibilities of directors |
As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. |
In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
NINE BASINGSTOKE LIMITED |
Auditors' responsibilities for the audit of the financial statements |
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue a Report of the Auditors that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. |
The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: |
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. |
Based on our understanding of the company, we considered that non-compliance with the following laws and regulations might have a material effect on the financial statements: employment regulation and anti-money laundering regulation. |
To help us identify instances of non-compliance with these laws and regulations, and in identifying and assessing the risks of material misstatement in respect to non-compliance, our procedures included, but were not limited to: |
" Inquiring of management and, where appropriate, those charged with governance, as to whether the company is in compliance with laws and regulations, and discussing their policies and procedures regarding compliance with laws and regulations; |
" Inspecting correspondence, if any, with relevant licensing or regulatory authorities; |
" Communicating identified laws and regulations to the engagement team and remaining alert to any indications of non-compliance throughout our audit; and |
" Considering the risk of acts by the company which were contrary to applicable laws and regulations, including fraud. |
We also considered those laws and regulations that have a direct effect on the preparation of the financial statements, such as tax legislation and the Companies Act 2006. |
In addition, we evaluated the directors' and management's incentives and opportunities for fraudulent manipulation of the financial statements, including the risk of management override of controls, and determined that the principal risks related to posting manual journal entries to manipulate financial performance, management bias through judgements and assumptions in significant accounting estimates, in particular in relation to research and development costs capitalized and to impairment of non-current assets, revenue recognition (which we pinpointed to the cut-off) and significant one-off or unusual transactions. |
Our audit procedures in relation to fraud included but were not limited to: |
" Making enquiries of the directors and management on whether they had knowledge of any actual, suspected or alleged fraud; |
" Gaining an understanding of the internal controls established to mitigate risks related to fraud; |
" Discussing amongst the engagement team the risks of fraud; and |
" Addressing the risks of fraud through management override of controls by performing journal entry testing. |
There are inherent limitations in the audit procedures described above and the primary responsibility for the prevention and detection of irregularities including fraud rests with management. As with any audit, there remained a risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal controls. |
The risks of material misstatement that had the greatest effect on our audit are the valuation of the property and the going concern. |
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors. |
REPORT OF THE INDEPENDENT AUDITORS TO THE MEMBERS OF |
NINE BASINGSTOKE LIMITED |
Use of our report |
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed. |
for and on behalf of |
Chartered Accountants |
and Statutory Auditors |
7 St John's Road |
Harrow |
Middlesex |
HA1 2EY |
NINE BASINGSTOKE LIMITED (REGISTERED NUMBER: 09451231) |
INCOME STATEMENT |
FOR THE PERIOD 1 APRIL 2021 TO 30 JUNE 2022 |
Period |
1.4.21 |
to | Year Ended |
30.6.22 | 31.3.21 |
Notes | £ | £ |
TURNOVER |
Administrative expenses |
OPERATING PROFIT |
Profit/loss on sale of operatn | 4 |
426,003 | 359,000 |
Amounts written off investments | 5 | - | 500,000 |
Gain/loss on revaluation of investments | (550,000 | ) | - |
(550,000 | ) | 500,000 |
976,003 | (141,000 | ) |
Interest payable and similar expenses | 6 |
PROFIT/(LOSS) BEFORE TAXATION | 7 | ( |
) |
Tax on profit/(loss) | 8 |
PROFIT/(LOSS) FOR THE FINANCIAL PERIOD |
( |
) |
NINE BASINGSTOKE LIMITED (REGISTERED NUMBER: 09451231) |
OTHER COMPREHENSIVE INCOME |
FOR THE PERIOD 1 APRIL 2021 TO 30 JUNE 2022 |
Period |
1.4.21 |
to | Year Ended |
30.6.22 | 31.3.21 |
Notes | £ | £ |
PROFIT/(LOSS) FOR THE PERIOD | ( |
) |
OTHER COMPREHENSIVE INCOME | - | - |
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD |
( |
) |
NINE BASINGSTOKE LIMITED (REGISTERED NUMBER: 09451231) |
BALANCE SHEET |
30 JUNE 2022 |
30.6.22 | 31.3.21 |
Notes | £ | £ | £ | £ |
FIXED ASSETS |
Investment property | 9 |
CREDITORS |
Amounts falling due within one year | 10 |
NET CURRENT LIABILITIES | ( |
) | ( |
) |
TOTAL ASSETS LESS CURRENT LIABILITIES |
CREDITORS |
Amounts falling due after more than one year |
11 |
NET LIABILITIES | ( |
) | ( |
) |
CAPITAL AND RESERVES |
Called up share capital | 12 |
Retained earnings | 13 | ( |
) | ( |
) |
SHAREHOLDERS' FUNDS | ( |
) | ( |
) |
The financial statements were approved by the Board of Directors and authorised for issue on |
NINE BASINGSTOKE LIMITED (REGISTERED NUMBER: 09451231) |
STATEMENT OF CHANGES IN EQUITY |
FOR THE PERIOD 1 APRIL 2021 TO 30 JUNE 2022 |
Called up |
share | Retained | Total |
capital | earnings | equity |
£ | £ | £ |
Balance at 1 April 2020 | ( |
) | ( |
) |
Changes in equity |
Issue of share capital | - |
Total comprehensive income | - | ( |
) | ( |
) |
Balance at 31 March 2021 | (5,491,253 | ) | ( |
) |
Changes in equity |
Total comprehensive income | - |
Balance at 30 June 2022 | ( |
) | ( |
) |
NINE BASINGSTOKE LIMITED (REGISTERED NUMBER: 09451231) |
NOTES TO THE FINANCIAL STATEMENTS |
FOR THE PERIOD 1 APRIL 2021 TO 30 JUNE 2022 |
1. | STATUTORY INFORMATION |
Nine Basingstoke Limited is a |
2. | ACCOUNTING POLICIES |
Basis of preparation |
Nine Basingstoke Limited (the "Company') is a company incorporated and domiciled in England, United Kingdom. The Company is a private company limited by shares. The registered number is 09451231 and the registered address is Vivek House, 65-67 Clarendon Road, Watford, England, WD17 1DS. |
The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 101 "Reduced Disclosure Framework": |
• | the requirements of paragraphs 45(b) and 46 to 52 of IFRS 2 Share-based Payment; |
• | the requirements of paragraphs 62, B64(d), B64(e), B64(g), B64(h), B64(j) to B64(m), B64(n)(ii), B64(o)(ii), B64(p), B64(q)(ii), B66 and B67 of IFRS 3 Business Combinations; |
• | the requirements of paragraph 33(c) of IFRS 5 Non Current Assets Held for Sale and Discontinued Operations; |
• | the requirements of paragraph 24(6) of IFRS 6 Exploration for and Evaluation of Mineral Resources; |
• | the requirements of IFRS 7 Financial Instruments: Disclosures; |
• | the requirements of paragraphs 91 to 99 of IFRS 13 Fair Value Measurement; |
• | the requirements of paragraph 52, the second sentence of paragraph 89, and paragraphs 90, 91 and 93 of IFRS 16 Leases; |
the requirements of paragraph 58 of IFRS 16; |
• | the requirements of the second sentence of paragraph 110 and paragraphs 113(a), 114, 115, 118, 119(a) to (c), 120 to 127 and 129 of IFRS 15 Revenue from Contracts with Customers; |
• | the requirement in paragraph 38 of IAS 1 Presentation of Financial Statements to present comparative information in respect of: |
- | paragraph 79(a)(iv) of IAS 1; |
- | paragraph 73(e) of IAS 16 Property, Plant and Equipment; |
- | paragraph 118(e) of IAS 38 Intangible Assets; |
- | paragraphs 76 and 79(d) of IAS 40 Investment Property; and |
- | paragraph 50 of IAS 41 Agriculture; |
• | the requirements of paragraphs 10(d), 10)(f), 16, 38A, 38B, 38C, 38D, 40A, 40B, 40C, 40D and 111 of IAS 1 Presentation of Financial Statements; |
• | the requirements of paragraphs 134 to 136 of IAS 1 Presentation of Financial Statements; |
• | the requirements of IAS 7 Statement of Cash Flows; |
• | the requirements of paragraphs 30 and 31 of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors; |
• | the requirements of paragraphs 17 and 18A of IAS 24 Related Party Disclosures; |
• | the requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into between two or more members of a group; |
• | the requirements of paragraphs 134(d) to 134(f) and 135(c) to 135(e) of IAS 36 Impairments of Assets. |
Critical accounting judgements and key sources of estimation uncertainty |
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations of future events, which are believed to be reasonable under the circumstances. Investment properties are held to earn rental income and for capital appreciation. Investment properties are stated at fair value and are determined by a third party valuation. |
NINE BASINGSTOKE LIMITED (REGISTERED NUMBER: 09451231) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 APRIL 2021 TO 30 JUNE 2022 |
2. | ACCOUNTING POLICIES - continued |
Turnover |
Rents received under operating leases are credited to the profit and loss account on a straight-line basis over the lease term. |
Investment property and impairment |
Investment properties are properties which are held either to earn rental income or for capital appreciation or for both. Investment properties are stated at fair value. |
In applying the fair value model in IAS 40 Investment Property: |
i. investment properties are held at fair value. Any gains or losses arising from changes in the fair value are recognised in profit or loss in the period that they arise. Rental income from investment property is accounted for as described in the turnover accounting policy. |
ii. no depreciation is provided in respect of investment properties applying the fair value model. |
The carrying amounts of the Company's financial assets are reviewed at each reporting date to determine whether there is any indication of impairment. If any such indication exists, then the asset's recoverable amount is estimated. |
Impairment losses recognised in prior periods are assessed at each reporting date for any indications that the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that the asset's carrying amount does not exceed the carrying amount that would have been determined, net of depreciation or amortisation, if no impairment loss had been recognised. |
Taxation |
Current taxes are based on the results shown in the financial statements and are calculated according to local tax rules, using tax rates enacted or substantially enacted by the balance sheet date. |
3. | EMPLOYEES AND DIRECTORS |
There were no staff costs for the period ended 30 June 2022 nor for the year ended 31 March 2021. |
The average number of employees during the period was NIL (2021 - NIL). |
In the current year the directors' remuneration, amounting to £nil. |
4. | EXCEPTIONAL ITEMS |
Period |
1.4.21 |
to | Year Ended |
30.6.22 | 31.3.21 |
£ | £ |
Profit/loss on sale of operatn |
NINE BASINGSTOKE LIMITED (REGISTERED NUMBER: 09451231) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 APRIL 2021 TO 30 JUNE 2022 |
5. | AMOUNTS WRITTEN OFF INVESTMENTS |
Period |
1.4.21 |
to | Year Ended |
30.6.22 | 31.3.21 |
£ | £ |
Amounts w/o invs | - | 500,000 |
The fair value of the investment property was deemed to have increased by £550,000 in the period (2021: decrease £500,000). Refer to note 9 for more details regarding the valuation. |
6. | INTEREST PAYABLE AND SIMILAR EXPENSES |
Period |
1.4.21 |
to | Year Ended |
30.6.22 | 31.3.21 |
£ | £ |
Loan |
7. | PROFIT/(LOSS) BEFORE TAXATION |
The profit before taxation (2021 - loss before taxation) is stated after charging: |
Period |
1.4.21 |
to | Year Ended |
30.6.22 | 31.3.21 |
£ | £ |
Auditors' remuneration |
8. | TAXATION |
Analysis of tax expense |
No liability to UK corporation tax arose for the period ended 30 June 2022 nor for the year ended 31 March 2021. |
The UK tax rate increased to 25% from 1 April 2023. This will have a consequential effect on the Company's future tax charge. The deferred tax asset / (liability) at 30 June 2022 should have been calculated at 25% (2021: 19%), however as at period end there is no deferred tax position as it is deemed that it is unlikely that a tax benefit will be available in the short to medium term. |
9. | INVESTMENT PROPERTY |
Total |
£ |
FAIR VALUE |
At 1 April 2021 |
Revaluations | 550,000 |
At 30 June 2022 |
NET BOOK VALUE |
At 30 June 2022 |
At 31 March 2021 |
NINE BASINGSTOKE LIMITED (REGISTERED NUMBER: 09451231) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 APRIL 2021 TO 30 JUNE 2022 |
9. | INVESTMENT PROPERTY - continued |
The Company applies the fair value model as provided in IAS 40. The property was given as a security to the external bank of its parent company HICP Holdings Limited. |
Fair value |
The company was sold in early September 2022 to the Nine Group which included the investment property as part of the consideration of £5,125,000. |
The fair value of investment property was determined by external, independent property valuers, having appropriate recognised professional qualifications and recent experience in the location and category of the property being valued. The independent valuers provide the fair value of the Company's investment property portfolio every year. |
The investment property has been categorised as a Level 3 fair value based on the inputs to the valuation technique used. |
Valuation technique and significant unobservable inputs |
The Company's investment property comprises a total of one commercial property, situated in the United Kingdom, which is leased to an affiliated entity. In the last fiscal period the Company did not acquire or sell any properties which were classified as investment property. |
The fair value of investment property has been determined in accordance with IFRS 13. IFRS 13.9 defined fair value as the price that would be received to sell an asset in an orderly transaction between market participants at the measurement date. The above definition concurs with that of Market Value defined in the RICS Valuation - Professional Standards 8th Edition published by the Royal institution of Chartered Surveyors and is also generally consistent with the definition of Fair Value as adopted by the International Accounting Standard Board (IASB). |
The appraisals were performed by Colliers, with valuation date as 26 August 2022. Colliers is an accredited independent appraiser with a recognised and relevant professional qualification and with recent experience in the location and category of the investment properties being valued. |
In order to arrive at the fair value of the investment property, the external appraiser applied their market knowledge and professional judgement and not only relied on comparable historical transactions. The Company holds one class of investment property being commercial properties in the United Kingdom. For all investment properties, their current use equates to the highest and best use. |
The company's finance department reviewed the appraisals performed by the independent appraisers for financial reporting purposes. Discussions of appraisal processes are held between Colliers and the Company. At each financial year end the finance department: (i) verifies all major inputs to the independent appraisals; (ii) assesses property valuation movements when compared to the prior year valuation report and/or (iii) holds discussions with the independent appraiser. |
The company was sold to the Nine Group in early September and have therefore applied the Market value.. |
Fair value at 30 June 2022 is represented by: |
£ |
Valuation in 0 | 4,200,000 |
Valuation in 0 | 550,000 |
4,750,000 |
NINE BASINGSTOKE LIMITED (REGISTERED NUMBER: 09451231) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 APRIL 2021 TO 30 JUNE 2022 |
10. | CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR |
30.6.22 | 31.3.21 |
£ | £ |
Accrued expenses |
11. | CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR |
30.6.22 | 31.3.21 |
£ | £ |
Other creditors |
The creditor due after more than one year was due to HICP Holdings Property Co. Following the acquisition of the company by Nine Group in September 2022, £4,491,516 of the creditor balance was waived. No adjustments have been recognised in the balance sheet as this was a post year end adjustment. |
12. | CALLED UP SHARE CAPITAL |
Allotted, issued and fully paid: |
Number: | Class: | Nominal | 30.6.22 | 31.3.21 |
value: | £ | £ |
Ordinary | 1 | 740,001 | 740,001 |
13. | RESERVES |
Retained |
earnings |
£ |
At 1 April 2021 | ( |
) |
Profit for the period |
At 30 June 2022 | ( |
) |
14. | EVENTS AFTER THE REPORTING PERIOD |
Bryant Park Hospitality SARL (Part of the Marathon group) decided to sell the company in early September 2022. |
The new owners Nine Group, acquired the company with the intension to invest in the portfolio, including up-branding and ensuring the hotel is in the prime condition to maximise from the economic recovery post COVID-19. |
The ownership change allowed the company to be restructured allowing for the overall financial position to be improved. |
NINE BASINGSTOKE LIMITED (REGISTERED NUMBER: 09451231) |
NOTES TO THE FINANCIAL STATEMENTS - continued |
FOR THE PERIOD 1 APRIL 2021 TO 30 JUNE 2022 |
15. | ULTIMATE CONTROLLING PARTY |
The Company was a subsidiary undertaking of Bryant Park Hospitality SARL (Part of the Marathon group) which is the ultimate parent company incorporated in the UK. The ultimate controlling party was the Marathon group. Ultimately the Company is owned by investment funds affiliated with the Marathon group as at the balance sheet date. |
Subsequent to the year end, from early September 2022 onwards the company is now ultimately owned by Nine Group. The Company has taken advantage of the exemptions in FRS 101 Section 8 from disclosing transactions with other members of the Group. |
16. | GOING CONCERN |
The financial statements have been prepared on a going concern basis notwithstanding the fact that the company had net liabilities of £4.6m at 30 June 2022 (2020: £4.7m). |
Within creditors are loans from HICP Holdings Property Co of £ £9,367,740. Following the acquisition of the company by Nine Group in September 202; HCIP Holdings Property Co. forgave £4,491,516 f the loan. The remaining balance of £5,100,000 was transferred to the director of the company. The director has since indicated that they will not recall the loan for at least a period of 12 months from the date of approval of these accounts. In addition, the company acquired a long term bank loan of £2,625,000 post year end to sustain its cash flow requirements. Accordingly, the financial statements have been prepared on a going concern basis. |
In the event that the director were to seek repayment of the loans, the company would have insufficient resources to continue as a going concern. The financial statements do not include adjustments that would result if the company were unable to continue as a going concern. |