Ambassador Hotel Limited - Accounts

Registered number

06572111

Ambassador Hotel Limited

Report and Financial Statements

for the year ended

31 May 2018

Rawi & Co Associates Ltd

Chartered Accountants and Registered Auditors

128 Ebury Street

London

SW1W 9QQ

Ambassador Hotel Limited
Report and accounts
Contents
Page
Company information	1
Director's report	2-3
Independent auditor's report	4-5
Income statement	6
Statement of financial position	7
Statement of changes in equity	8
Notes to the financial statements	9-13

Ambassador Hotel Limited

Company Information

Director

Mr Haider Al-Ali

Auditors

Rawi & Co Associates Ltd

128 Ebury Street

London

SW1W 9QQ

Registered office

C/o Rawi & Co Associates Ltd

128 Ebury Street

London

SW1W 9QQ

Bank

Barclays Bank Plc

1 Churchil Place

London

E14 5HP

Registered number

06572111

Ambassador Hotel Limited
Registered number:				06572111
Director's Report
The director presents his report and financial statements for the year ended 31 May 2018.
Principal activities
The company's principal activity during the year continued to be that of hoteliers.
Director
The following person served as director during the year:
	Mr Haider Al-Ali (Appointed 19 July 2018)
	Ms Sara Al-Jumaily (Retired 19 July 2018)
Director's responsibilities

The director is responsible for preparing the report and financial statements in accordance with applicable law and regulations.
Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (Financial Reporting Standard 102 and applicable law). Under company law the director must not approve the financial statements unless she is 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 director is required to:
●	select suitable accounting policies and then apply them consistently;
●	make judgements and estimates that are reasonable and prudent;
●	state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
●	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The director is 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 him to ensure that the financial statements comply with the Companies Act 2006. He is 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.

Disclosure of information to auditors

The director confirms that:
●	so far as he is aware, there is no relevant audit information of which the company's auditor is unaware; and
●	he has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditor is aware of that information.

Small company provisions

This report has been prepared in accordance with the provisions in Part 15 of the Companies Act 2006 applicable to companies subject to the small companies regime.

This report was approved by the board on 27 February 2019 and signed on its behalf.

Mr Haider Al-Ali

Director

Ambassador Hotel Limited

Independent auditor's report

to the members of Ambassador Hotel Limited

Opinion

We have audited the accounts of for the year ended 31 May 2018 which comprise the Profit and Loss Account, the Balance Sheet, the Statement of Changes in Equity and notes to the accounts, 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 FRS 102 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
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 an auditor's report 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.
In our opinion the financial statements:
●	give a true and fair view of the state of the company's affairs as at 31 May 2018 and of its profit for the year then ended;
●	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice;
●	have been prepared in accordance with the requirements of the Companies Act 2006.

Basis of 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 Auditor’s 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.
In accordance with the exemption provided by FRC's Ethical Standard - Provisions Available for Audits of Small Entities, we have prepared and submitted the company’s returns to the tax authorities and assisted with the preparation of the accounts.
Conclusions relating to going concern
We have nothing to report in respect of the following matters in relation to which the ISAs (UK) require us to report to you where:
●	the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
●	the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company’s ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
Other information
The other information comprises the information included in the report and financial statements, other than the financial statements and our auditor's report thereon. The directors are responsible for the other information. 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 directors’ report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
●	the strategic report and the directors’ report have been prepared in accordance with applicable legal requirements.
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 directors’ report.
We have nothing to report in respect of the following matters in relation to which 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 accounts in accordance with the small companies regime and take advantage of the small companies’ exemptions in preparing the directors’ report and from the requirement to prepare a strategic report.

Responsibilities of directors

As explained more fully in the directors’ responsibilities statement, 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 is 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.

Auditor’s 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 an auditor’s report 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.

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 auditor’s report.

Rajnikant Chhotabhai Patel
(Senior Statutory Auditor)		128 Ebury Street
for and on behalf of		London
Rawi & Co Associates Ltd		SW1W 9QQ
Chartered Accountants and Registered Auditors
28 February 2019

Ambassador Hotel Limited
Income Statement
for the year ended 31 May 2018
Notes						2018		2017
£							£
Turnover						3,552,010		3,184,266
Cost of sales						(866,975)		(861,748)
Gross profit						2,685,035		2,322,518
Administrative expenses						(2,670,067)		(2,273,497)
Other operating income						2,797		-
Operating profit				2		17,765		49,021
Profit on ordinary activities before taxation						17,765		49,021
Tax on profit on ordinary activities				4		(3,134)		(11,039)
Profit for the financial year						14,631		37,982

Ambassador Hotel Limited
Statement of Financial Position
as at 31 May 2018
Notes				2018			2017
£					£
Fixed assets
Tangible assets	5			12,340			19,782
Current assets
Stocks			1,819			4,326
Debtors	6		528,138			767,816
Cash at bank and in hand			315,061			210,256
			845,018			982,398
Creditors: amounts falling due within one year	7		(489,210)			(648,663)
Net current assets				355,808			333,735
Net assets				368,148			353,517
Capital and reserves
Called up share capital	9			1,000			1,000
Profit and loss account	10			367,148			352,517
Total equity				368,148			353,517
The accounts have been prepared and delivered in accordance with the special provisions applicable to companies subject to the small companies regime. The profit and loss account has not been delivered to the Registrar of Companies.
Mr Haider Al-Ali
Director
Approved by the board on 27 February 2019

Ambassador Hotel Limited
Statement of Changes in Equity
for the year ended 31 May 2018
Share			Profit			Total
capital			and loss
account
£			£			£
At 1 June 2016		1,000			314,535		315,535
Profit for the financial year					37,982		37,982
Total comprehensive income for the financial year		-			37,982		37,982
At 31 May 2017		1,000			352,517		353,517
At 31 May 2017 as restated		1,000			352,517		353,517
At 1 June 2017		1,000			352,517		353,517
Profit for the financial year					14,631		14,631
Total comprehensive income for the financial year		-			14,631		14,631
At 31 May 2018		1,000			367,148		368,148

Ambassador Hotel Limited
Notes to the Accounts
for the year ended 31 May 2018
1	Summary of significant accounting policies
	Basis of preparation
	The financial statements have been prepared under the historical cost convention and in accordance with the accounting policies set out below. These financial statements have been prepared in accordance with FRS 102 Section 1A - The Financial Reporting Standard applicable in the UK and Republic of Ireland and Companies Act 2006.
	Turnover
	Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the rendering of services.
	Turnover represents the value, net of value added tax and discounts, in respect of sales to customers.
	Revenue from the sale of food and beverages is recognised at the point of sale. Revenue from room sales and other guest services is recognised when rooms are occupied and services are provided.
	Tangible fixed assets

	Tangible fixed assets are measured at cost less accumulative depreciation and any accumulative impairment losses. Depreciation is provided on all tangible fixed assets, other than freehold land, at rates calculated to write off the cost, less estimated residual value, of each asset evenly over its expected useful life, as follows:
	Leasehold improvements			25% straight line
	Plant and machinery			25% straight line
	Motor vehicles			25% straight line

	Stocks
	Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first in first out method. The carrying amount of stock sold is recognised as an expense in the period in which the related revenue is recognised.
	Debtors
	Short term debtors are measured at transaction price (which is usually the invoice price), less any impairment losses for bad and doubtful debts. Loans and other financial assets are initially recognised at transaction price including any transaction costs and subsequently measured at amortised cost determined using the effective interest method, less any impairment losses for bad and doubtful debts.
	Creditors
	Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial liabilities are initially recognised at transaction price net of any transaction costs and subsequently measured at amortised cost determined using the effective interest method.
	Taxation
	A current tax liability is recognised for the tax payable on the taxable profit of the current and past periods. A current tax asset is recognised in respect of a tax loss that can be carried back to recover tax paid in a previous period. Deferred tax is recognised in respect of all timing differences between the recognition of income and expenses in the financial statements and their inclusion in tax assessments. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date and that are expected to apply to the reversal of the timing difference, except for revalued land and investment property where the tax rate that applies to the sale of the asset is used. Current and deferred tax assets and liabilities are not discounted.
	Provisions
	Provisions (ie liabilities of uncertain timing or amount) are recognised when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be transferred to settle the obligation and the amount of the obligation can be estimated reliably.
	Foreign currency translation
	Transactions in foreign currencies are initially recognised at the rate of exchange ruling at the date of the transaction. At the end of each reporting period foreign currency monetary items are translated at the closing rate of exchange. Non-monetary items that are measured at historical cost are translated at the rate ruling at the date of the transaction. All differences are charged to profit or loss.
	Leased assets
	A lease is classified as a finance lease if it transfers substantially all the risks and rewards incidental to ownership. All other leases are classified as operating leases. The rights of use and obligations under finance leases are initially recognised as assets and liabilities at amounts equal to the fair value of the leased assets or, if lower, the present value of the minimum lease payments. Minimum lease payments are apportioned between the finance charge and the reduction in the outstanding liability using the effective interest rate method. The finance charge is allocated to each period during the lease so as to produce a constant periodic rate of interest on the remaining balance of the liability. Leased assets are depreciated in accordance with the company's policy for tangible fixed assets. If there is no reasonable certainty that ownership will be obtained at the end of the lease term, the asset is depreciated over the lower of the lease term and its useful life. Operating lease payments are recognised as an expense on a straight line basis over the lease term.
	Pensions
	Contributions to defined contribution plans are expensed in the period to which they relate.
2	Operating profit					2018		2017
£							£
	This is stated after charging:
	Depreciation of owned fixed assets					12,061		14,082
	Auditors' remuneration for audit services					19,675		18,710
3	Employees					2018		2017
Number							Number
	Average number of employees during the year					23		14
4	Taxation					2018		2017
£							£
	Analysis of charge in period
	Current tax:
	UK corporation tax on profits of the period					1,067		7,260
	Deferred tax:
	Origination and reversal of timing differences					2,067		3,779
	Tax on profit on ordinary activities					3,134		11,039
5	Tangible fixed assets
				Land and buildings		Plant and machinery		Total
				At cost		At cost
£					£		£
	Cost or valuation
	At 1 June 2017			132,046		463,041		595,087
	Additions			-		4,619		4,619
	At 31 May 2018			132,046		467,660		599,706
	Depreciation
	At 1 June 2017			132,046		443,259		575,305
	Charge for the year			-		12,061		12,061
	At 31 May 2018			132,046		455,320		587,366
	Carrying amount
	At 31 May 2018			-		12,340		12,340
	At 31 May 2017			-		19,782		19,782
6	Debtors					2018		2017
£							£
	Trade debtors					33,229		204,546
	Amounts owed by group undertakings and undertakings in which the company has a participating interest					1,000		1,000
	Deferred tax asset (see note 8)					21,286		23,353
	Other debtors					472,623		538,917
						528,138		767,816
7	Creditors: amounts falling due within one year					2018		2017
£							£
	Trade creditors					253,241		597,274
	Other taxes and social security costs					36,908		30,704
	Other creditors					199,061		20,685
						489,210		648,663
8	Deferred taxation					2018		2017
£							£
	Accelerated capital allowances					(21,286)		(23,353)
						2018		2017
£							£
	At 1 June					(23,353)		(27,132)
	Charged to the profit and loss account					2,067		3,779
	At 31 May					(21,286)		(23,353)
9	Share capital	Nominal		2018		2018		2017
value			Number		£		£
	Allotted, called up and fully paid:
	Ordinary shares	£1 each		1,000		1,000		1,000
10	Profit and loss account					2018		2017
£							£
	At 1 June					352,517		314,535
	Profit for the financial year					14,631		37,982
	At 31 May					367,148		352,517
11	Other financial commitments					2018		2017
£							£
	Total future minimum payments under non-cancellable operating leases					10,500,000		4,500,000
12	Contingent liabilities
	The company has issued debenture containing, inter alia, creating a fixed charge and floating charge on its book debts to secure amount payable to Utilico Property Limited in respect of rent. In the event that the Utilico Property Limited fails to honour its obligation under these facilities the company has given guarantee to indemnify the bank.
13	Related party transactions
				2018		2017
	Utilico Property Limited
	Fellow subsidiary company included in creditors			221,733		76,226
	Fellow subsidiary company rent paid during the year			1,417,237		1,350,000
	Utilico Holding Limited
	Group undertaking included in debtors			1,000		1,000
	Firmrate Ltd
	Fellow subsidiary company included in debtors			47,258		3,405
	Crawford Management Ltd
	Associated company included in debtors			113,122		93,122
14	Ultimate parent company
	In the opinion of the director, the ultimate parent company is Utilico Holding Limited, a company registered in British Virgin Islands.
15	Ultimate controlling party
	There is no one ultimate controlling party, the shareholders of ultimate parent company, Utilico Holdings Limited are controlling the company.
16	Other information
	Ambassador Hotel Limited is a private company limited by shares and incorporated in England. Its registered office is:
	128 Ebury Street
	London
	SW1W 9QQ