Ambassador Hotel Limited - Accounts

Ambassador Hotel Limited

Report and Accounts

for the year ended

31 May 2016

Registered Number

06572111

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
Independent auditors' report	3
Profit and loss account	4
Balance sheet	5
Notes to the accounts	6-9

Ambassador Hotel Limited

Company Information

Director

Ms Sara Al-Jumaily

Auditors

Rawi & Co Associates Ltd

Chartered Accountants and Registered Auditiors

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 Churchill Place

London

E14 5HP

Registered number

06572111

Ambassador Hotel Limited
Registered number:			06572111
Director's Report
The director presents her report and accounts for the year ended 31 May 2016.
Principal activities
The company's principal activity during the year continued to be that of hoteliers and related activities.
Directors
The following person served as directors during the year:
				Date appointed	Date resigned
	Ms Sara Al-Jumaily			19/08/2016
	Mr Nagui Bazan				19/08/2016
Director's responsibilities
The director is responsible for preparing the report and accounts in accordance with applicable law and regulations.
Company law requires the director to prepare accounts for each financial year. Under that law the director has elected to prepare the accounts 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 accounts 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 accounts, the director is required to:
●	select suitable accounting policies and then apply them consistently;
●	make judgements and estimates that are reasonable and prudent;
●	prepare the accounts 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 her to ensure that the accounts comply with the Companies Act 2006. She 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 she is aware, there is no relevant audit information of which the company's auditor is unaware; and
●	she has taken all the steps that she ought to have taken as a director in order to make herself 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 14 October 2016 and signed by its order on its behalf.

Ms Sara Al-Jumaily

Director

Ambassador Hotel Limited

Independent auditors' report

to the shareholder of Ambassador Hotel Limited

We have audited the accounts of Ambassador Hotel Limited for the year ended 31 May 2016 which comprise the Profit and Loss Account, the Balance Sheet and the related notes. The financial reporting framework that has been applied in their preparation is applicable law and the Financial Reporting Standard For Smaller Entities (effective January 2015) (United Kingdom Generally Accepted Accounting Practice applicable to Smaller Entities).

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 auditors' 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.

Respective responsibilities of directors and auditors

As explained more fully in the Statement of Director's Responsibilities, the director is responsible for the preparation of the accounts and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the accounts in accordance with applicable law and International Standards on Auditing (UK and Ireland). Those standards require us to comply with the Auditing Practices Board's (APB's) Ethical Standards for Auditors.

In accordance with the exemption provided by APB Ethical Standard - Provisions Available for Smaller Entities (Revised), we have prepared and submitted the company’s returns to the tax authorities and assisted with the preparation of the accounts.

Scope of the audit of the accounts

A description of the scope of an audit of financial statements is provided on the APB’s website at www.frc.org.uk/apb/scope/private.cfm

Opinion on the accounts
In our opinion the accounts:
●	give a true and fair view of the state of the company's affairs as at 31 May 2016 and of its profit for the year then ended;
●	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice applicable to Smaller Entities; and
●	have been prepared in accordance with the requirements of the Companies Act 2006.

Opinion on other matters prescribed by the Companies Act 2006
In our opinion the information given in the Director's Report for the financial year for which the accounts are prepared is consistent with the accounts.
Matters on which we are required to report by exception
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 accounts 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’ exemption in preparing the directors’ report and take advantage of the small companies exemption from the requirement to prepare a strategic report.
Bipinchandra Vyas
(Senior Statutory Auditor)		128 Ebury Street
for and on behalf of		London
Rawi & Co Associates Ltd		SW1W 9QQ
Chartered Accountants and Statutory Auditors
14 October 2016

Ambassador Hotel Limited
Profit and Loss Account
for the year ended 31 May 2016
Notes						2016		2015
£							£
Turnover						3,354,410		3,378,446
Cost of sales						(918,262)		(787,527)
Gross profit						2,436,148		2,590,919
Administrative expenses						(2,425,848)		(2,514,633)
Other operating income						-		65
Operating profit				2		10,300		76,351
Interest receivable						-		102
Profit on ordinary activities before taxation						10,300		76,453
Tax on profit on ordinary activities				3		(5,074)		(18,453)
Profit for the financial year						5,226		58,000

Ambassador Hotel Limited
Balance Sheet
as at 31 May 2016
Notes				2016			2015
£					£
Fixed assets
Tangible assets	4			29,387			20,416
Current assets
Stocks			7,210			6,700
Debtors	5		476,438			760,490
Cash at bank and in hand			242,491			101,675
			726,139			868,865
Creditors: amounts falling due within one year	6		(439,991)			(374,815)
Net current assets				286,148			494,050
Total assets less current liabilities				315,535			514,466
Creditors: amounts falling due after more than one year	7			-			(204,157)
Net assets				315,535			310,309
Capital and reserves
Called up share capital	9			1,000			1,000
Profit and loss account	10			314,535			309,309
Shareholder's funds				315,535			310,309
The accounts have been prepared in accordance with the provisions in Part 15 of the Companies Act 2006 applicable to companies subject to the small companies regime.
Ms Sara Al-Jumaily
Director
Approved by the board on 14 October 2016

Ambassador Hotel Limited
Notes to the Accounts
for the year ended 31 May 2016
1	Accounting policies
	Basis of preparation
	The accounts have been prepared under the historical cost convention and in accordance with the Financial Reporting Standard for Smaller Entities (effective January 2015).
	Turnover
	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.
	Depreciation
	Depreciation has been provided at the following rates in order to write off the assets over their estimated useful lives.
	Leasehold improvements			25% straight line
	Plant and machinery			25% straight line
	Motor vehicles			25% straight line
	Stocks
	Stock is valued at the lower of cost and net realisable value.
	Deferred taxation
	Full provision is made for deferred taxation resulting from timing differences between the recognition of gains and losses in the accounts and their recognition for tax purposes. Deferred taxation is calculated on an un-discounted basis at the tax rates which are expected to apply in the periods when the timing differences will reverse.
	Foreign currencies
	Transactions in foreign currencies are recorded at the rate ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are translated at the rate of exchange ruling at the balance sheet date. All differences are taken to the profit and loss account.
	Leasing and hire purchase commitments
	Assets held under finance leases and hire purchase contracts, which are those where substantially all the risks and rewards of ownership of the asset have passed to the company, are capitalised in the balance sheet and depreciated over their useful lives. The corresponding lease or hire purchase obligation is treated in the balance sheet as a liability. The interest element of the rental obligations is charged to the profit and loss account over the period of the lease and represents a constant proportion of the balance of capital repayments outstanding. Rentals paid under operating leases are charged to income on a straight line basis over the lease term.
2	Operating profit					2016		2015
£							£
	This is stated after charging:
	Depreciation of owned fixed assets					17,575		31,706
	Auditors' remuneration					16,450		14,200
3	Taxation					2016		2015
£							£
	UK corporation tax					173		16,502
	Deferred tax asset					4,901		1,951
						5,074		18,453
4	Tangible fixed assets
				Leasehold Improveme-nts		Plant and machinery etc		Total
£					£		£
	Cost
	At 1 June 2015			132,046		432,018		564,064
	Additions			-		26,546		26,546
	At 31 May 2016			132,046		458,564		590,610
	Depreciation
	At 1 June 2015			132,046		411,602		543,648
	Charge for the year			-		17,575		17,575
	At 31 May 2016			132,046		429,177		561,223
	Net book value
	At 31 May 2016			-		29,387		29,387
	At 31 May 2015			-		20,416		20,416
5	Debtors					2016		2015
£							£
	Trade debtors					95,029		227,627
	Amounts owed by group undertakings and undertakings in which the company has a participating interest					9,202		-
	Deferred tax asset (see note 8)					27,132		32,033
	Other debtors					345,075		500,830
						476,438		760,490
6	Creditors: amounts falling due within one year					2016		2015
£							£
	Trade creditors					285,202		288,442
	Other taxes and social security costs					32,883		58,545
	Other creditors					121,906		27,828
						439,991		374,815
7	Creditors: amounts falling due after one year					2016		2015
£							£
	Amounts owed to group undertakings and undertakings in which the company has a participating interest					-		204,157
8	Deferred taxation (asset)/liability
						2016		2015
£							£
	Accelerated capital allowances					(27,132)		(32,033)
	Included in debtors (note 5)
	The movement in the deferred taxation account during the year was:
						2016		2015
£							£
	At 1 June					(32,033)		(33,985)
	Deferred tax charge in profit and loss account					4,901		1,952
	At 31 May					(27,132)		(32,033)
9	Share capital	Nominal		2016		2016		2015
value			Number		£		£
	Allotted, called up and fully paid:
	Ordinary shares	£1 each		1,000		1,000		1,000
10	Profit and loss account					2016
£
	At 1 June 2015					309,309
	Profit for the year					5,226
	At 31 May 2016					314,535
11	Other financial commitments					2016		2015
£							£
	At the year end the company had annual commitments under non-cancellable operating leases as set out below:
	Operating leases which expire:
	within two to five years					1,500,000		1,500,000
	Other
	Operating leases which expire:
	within two to five years					12,811		7,600
12	Related party					2016		2015
£							£
	Utilico Properties Limited
	Group undertakings included in creditors amount due to the related party					-		205,807
	Utilico Properties Limited
	Group undertakings included in debtors amount due from the related party					8,202
	Member of a group companies rent paid during the year					1,500,000		1,500,000
	Utilico Holding Limited
	Group undertakings included in debtors amount due from the related party					1,000
	Central Park Hotel Limited
	Parent's associated Company included in creditors amount due to the related party							26,714
13	Ultimate parent company
	In the opinion of the directors, the ultimate parent company is Utilico Holding Limited, a company registered in British Virgin Islands.
14	Ultimate controlling party
	There is no one ultimate controlling party, the shareholders of ultimate parent company, Utilico Holdings Limited are controlling the company.
15	Contingent liabilities
	The company has issued debenture to the bank creating a charge over fixed and current assets of the company to secure amount payable to the bank in respect of £12,300,000 loan to associate company, Utilico Property Limited and legal charges of parents company, Utilico Holding Limited.
	The company also gave a cross guarantee to Barclay Bank Plc for all the obligations of associate company,Utilico Property Limited upto the limit of £12,300,000, In the event that the Utilico Property Limited fail to honour its obligation under these facilities the company has given guarantee to indemnify the bank.