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Whitbread PLC Annual Report 2013
4608_rns_2013-02-28_51ff1773-1af6-4cec-8aa9-09f7db88b5a7.pdf
Annual Report
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Registered number: 5137608
PREMIER INN HOTELS LIMITED
DIRECTORS' REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 28 FEBRUARY 2013
PREMIER INN HOTELS LIMITED
COMPANY INFORMATION
DIRECTORS
PJA Dempsey
B Mistry (appointed 25 March 2013)
JJ Forrest
COMPANY SECRETARY
DC Lowry
RW Fairhurst
REGISTERED NUMBER
5137608
REGISTERED OFFICE
Whitbread Court
Houghton Hall Business Park
Porz Avenue
Dunstable
Bedfordshire
LU5 5XE
INDEPENDENT AUDITOR
Ernst & Young LLP
1 Colmore Square
Birmingham
West Midlands
B4 6HQ
PREMIER INN HOTELS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2013
The directors present their report and the financial statements for the year ended 28 February 2013.
PRINCIPAL ACTIVITY AND REVIEW OF BUSINESS
The Company operates Premier Inn hotels.
The Company's key financial and other performance indicators for the year are as follows:
| KPI Information | 2012/13
£000 | 2011/12
£000 |
| --- | --- | --- |
| Turnover | 201,014 | 124,048 |
| Operating Profit | 36,847 | 21,070 |
| Average Room Rate | £59.43 | £57.12 |
| Occupancy | 69.40% | 74.03% |
| Yield | £41.23 | £42.29 |
RESULTS AND DIVIDENDS
The profit for the year, after taxation, amounted to £32,635,000 (2012 - £23,898,000).
No dividend was proposed in the current year (2012 - £NIL)
FUTURE DEVELOPMENTS
In 2013/14 we shall continue with our progress towards our 2018 growth milestones together with a strong focus on return on capital. For further information on future likely developments please see the business review included in the Annual Report and Accounts of Whitbread PLC (the immediate and ultimate parent company) for the year ended 28 February 2013.
DIRECTORS
The directors who served during the year were:
- PJA Dempsey
- JJ Forrest
- AD Pellington (resigned 25 March 2013)
- CCB Rogers (resigned 20 July 2012)
All fees paid to the directors as remuneration are borne by Whitbread Group PLC and it is not practical to allocate the amount for services in respect of this Company.
Page 1
PREMIER INN HOTELS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2013
PRINCIPAL RISKS AND UNCERTAINTIES
Risk: There is a serious health or provenance issue relating to food
Mitigation: Mitigation of this risk comes from the expertise of members of the procurement, food development and safety and security teams. This is coupled with stringent food safety policies and a detailed sourcing policy, traceability and testing requirements introduced in respect of processed meat and focus on predicting other potential issues in the supply chain. NSF, an independent company, carries out regular audits on all suppliers to measure their performance against a range of health and safety standards. Health and safety is included as a hurdle on the scorecards for the outlets. Regular updates are provided to the directors.
Risk: Improvement in competitor financial health and/or competitor activity can result in a loss of market share
Mitigation: Actions to outperform the competition are developed on a strategic and tactical basis. Significant customer research is carried out and the customer insight received is used to develop action plans. Consumer trends, both in the UK and overseas, are analysed and competitor activity is monitored. Monthly reports are produced by each business for the directors.
Risk: There is a data security breach resulting in the loss, or improper access to, customer or confidential data
Mitigation: Mitigation of this risk comes from the expertise of the IS team in protecting the systems and network. IS security training has been delivered to employees and legal advisors are used to monitor new legislation and advise the IS team. Systems are continually monitored for irregular activity and disaster recovery plans are reviewed by the directors.
Risk: There is a third-party failing and consequently breaching the terms of a significant contract
Mitigation: Credit control checks are carried out on parties to significant contracts, along with the continued auditing and monitoring of those contracts. A regular review of the debtors register is undertaken.
EMPLOYEE INVOLVEMENT
All employee services are provided to the Company by Whitbread Group PLC. For further information on employee involvement please refer to the accounts of Whitbread Group PLC for the year ended 28 February 2013.
DISABLED EMPLOYEES
All employee services are provided to the Company by Whitbread Group PLC. For further information on the Company's policy on the employment of disabled persons please refer to the accounts of Whitbread Group PLC for the year ended 28 February 2013.
QUALIFYING THIRD PARTY INDEMNITY PROVISIONS
A qualifying indemnity provision (as defined in Section 236 (1) of the Companies Act 2006) is in force for the benefit of the directors.
Page 2
PREMIER INN HOTELS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 28 FEBRUARY 2013
PROVISION OF INFORMATION TO AUDITOR
Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
- so far as that director is aware, there is no relevant audit information of which the Company's auditor is unaware, and
- that director has taken all the steps that ought to have been taken as a director in order to be aware of any information needed by the Company's auditor in connection with preparing its report and to establish that the Company's auditor is aware of that information.
AUDITOR
The auditor, Ernst & Young LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board on 15/11/2013 and signed on its behalf.
Page 3
PREMIER INN HOTELS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT FOR THE YEAR ENDED 28 FEBRUARY 2013
The directors are responsible for preparing the Directors' Report 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 judgments and accounting 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 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.
Page 4
PREMIER INN HOTELS LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE SHAREHOLDERS OF PREMIER INN HOTELS LIMITED
We have audited the financial statements of Premier Inn Hotels Limited for the year ended 28 February 2013, 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 United Kingdom Accounting Standards (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.
RESPECTIVE RESPONSIBILITIES OF DIRECTORS AND AUDITOR
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. Our responsibility is to audit and express an opinion on the financial statements 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 Ethical Standards for Auditors.
SCOPE OF THE AUDIT OF THE FINANCIAL STATEMENTS
An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: whether the accounting policies are appropriate to the Company's circumstances and have been consistently applied and adequately disclosed; the reasonableness of significant accounting estimates made by the directors; and the overall presentation of the financial statements. In addition, we read all the financial and non-financial information in the Directors' Report and financial statements to identify material inconsistencies with the audited financial statements. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.
OPINION ON FINANCIAL STATEMENTS
In our opinion the financial statements:
- give a true and fair view of the state of the Company's affairs as at 28 February 2013 and of its profit for the year 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.
OPINION ON OTHER MATTER PRESCRIBED BY THE COMPANIES ACT 2006
In our opinion the information given in the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements.
Page 5
PREMIER INN HOTELS LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE SHAREHOLDERS OF PREMIER INN HOTELS LIMITED
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 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.
Ernst & Young LLP
Simon O’Neill (Senior Statutory Auditor)
for and on behalf of
Ernst & Young LLP
Statutory Auditor
Birmingham
Date: 20/11/2013
Page 6
PREMIER INN HOTELS LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 28 FEBRUARY 2013
| | Note | Year ended
28 February
2013
£000 | Year ended
1 March
2012
£000 |
| --- | --- | --- | --- |
| TURNOVER | 2 | 201,014 | 124,048 |
| Cost of sales | | (16,461) | (9,835) |
| GROSS PROFIT | | 184,553 | 114,213 |
| Distribution costs | | (147,821) | (93,143) |
| Other operating charges | | 115 | - |
| OPERATING PROFIT | 3 | 36,847 | 21,070 |
| EXCEPTIONAL ITEMS | | | |
| Net profit/(loss) on sale of tangible fixed assets | 8 | - | (8) |
| Other exceptional items | 8 | (7,722) | (10,169) |
| PROFIT ON ORDINARY ACTIVITIES BEFORE INTEREST | | 29,125 | 10,893 |
| Income from other fixed asset investments | | - | 2,450 |
| Interest receivable and similar income | 6 | 59,070 | 71,908 |
| Interest payable and similar charges | 7 | (43,627) | (47,851) |
| PROFIT ON ORDINARY ACTIVITIES BEFORE TAXATION | | 44,568 | 37,400 |
| Tax on profit on ordinary activities | 9 | (11,933) | (13,502) |
| PROFIT FOR THE FINANCIAL PERIOD | | 32,635 | 23,898 |
All amounts relate to continuing operations.
There were no recognised gains and losses for 2013 or 2012 other than those included in the Profit and Loss Account.
The notes on pages 9 to 20 form part of these financial statements.
Page 7
PREMIER INN HOTELS LIMITED
REGISTERED NUMBER: 5137608
BALANCE SHEET
AS AT 28 FEBRUARY 2013
| Note | 28 February | 1 March | |
|---|---|---|---|
| 2013 | 2012 | ||
| £000 | £000 | ||
| FIXED ASSETS | |||
| Intangible assets | 11 | 8,557 | 8,923 |
| Tangible assets | 12 | 339,782 | 236,065 |
| Investments | 13 | 73,106 | 80,413 |
| 421,445 | 325,401 | ||
| CURRENT ASSETS | |||
| Stocks | 14 | 731 | 500 |
| Debtors | 15 | 1,173,468 | 1,110,539 |
| Cash at bank and in hand | 1,662 | 1,151 | |
| 1,175,861 | 1,112,190 | ||
| CREDITORS: amounts falling due within one year | 16 | (1,000,800) | (878,238) |
| NET CURRENT ASSETS | 175,061 | 233,952 | |
| TOTAL ASSETS LESS CURRENT LIABILITIES | 596,506 | 559,353 | |
| CREDITORS: amounts falling due after more than one year | 17 | (9,377) | (6,397) |
| PROVISIONS FOR LIABILITIES | |||
| Deferred tax | 10 | (9,049) | (7,511) |
| NET ASSETS | 578,080 | 545,445 | |
| CAPITAL AND RESERVES | |||
| Called up share capital | 18 | 200,000 | 200,000 |
| Non distributable reserves | 19 | 334,581 | 334,581 |
| Profit and loss account | 19 | 43,499 | 10,864 |
| SHAREHOLDERS' FUNDS | 20 | 578,080 | 545,445 |
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 15/11/2012
Director
B. NUSTRY
Page 8
PREMIER INN HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2013
1. ACCOUNTING POLICIES
1.1 Authorisation
The financial statements of Premier Inn Hotels Limited for the year ended 28 February 2013 were authorised for issue by the Board of Directors on 15 November 2013.
1.2 Basis of preparation of financial statements
The financial statements have been prepared under the historical cost convention and in accordance with applicable accounting standards.
The Company is itself a subsidiary company and is exempt from the requirement to prepare group accounts by virtue of section 400 of the Companies Act 2006. These financial statements therefore present information about the Company as an individual undertaking and not about its group.
1.3 Going concern
The financial position of the Company is set out in these financial statements. The Company has considerable financial resources and, as a consequence, the directors believe that the Company is well placed to manage its business risks.
The directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Thus they continue to adopt the going concern basis of accounting in preparing the financial statements.
1.4 Cash flow
The Company, being a subsidiary undertaking where 90% or more of the voting rights are controlled within the group whose consolidated financial statements are publicly available, is exempt from the requirement to draw up a cash flow statement in accordance with FRS 1.
1.5 Turnover
Turnover comprises revenue recognised by the Company in respect of goods and services supplied during the year, exclusive of Value Added Tax and trade discounts.
Service revenue is recognised when rooms are occupied, food and beverages are sold and finance revenue is recognised as interest accrues.
1.6 Intangible fixed assets and amortisation
Goodwill is the difference between amounts paid on the acquisition of a business and the fair value of the identifiable assets and liabilities. It is amortised to the Profit and Loss Account over its estimated economic life.
IT software is capitalised at cost and amortised on a straight line basis over five years.
Other intangibles, which comprise the brand name and franchise fees, are capitalised at cost and amortised over their estimated useful economic lives of periods up to ten years.
The carrying values of intangible fixed assets are reviewed for impairment if events or changes in circumstances indicate that their carrying value may not be recoverable.
Page 9
PREMIER INN HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2013
1. ACCOUNTING POLICIES (continued)
1.7 Tangible fixed assets and depreciation
Tangible fixed assets are stated at cost less depreciation. Depreciation is not charged on freehold land. Depreciation on other tangible fixed assets is provided at rates calculated to write off the cost of those assets, less their estimated residual value, over their expected useful lives on the following bases:
- Leasehold premises where the lease has less than 20 years to run
- or the remaining term of the lease
- Furniture, fittings & equipment
- mainly over ten years
The carrying value of tangible fixed assets are reviewed for impairment if events or changes in circumstances indicate that their carrying values may not be recoverable.
Gross interest cost incurred on the financing of qualifying assets are capitalised until the time that the projects are available for use.
1.8 Investments
Investments held as fixed assets are shown at cost less provision for impairment.
1.9 Operating leases
Rentals under operating leases are charged to the Profit and Loss Account on a straight line basis over the lease term.
Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight line basis over the period until the date the rent is expected to be adjusted to the prevailing market rate.
1.10 Stocks
Stocks are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.
1.11 Deferred taxation
Full provision is made for deferred tax assets and liabilities arising from all timing differences between the recognition of gains and losses in the financial statements and recognition in the tax computation.
A net deferred tax asset is recognised only if it can be regarded as more likely than not that there will be suitable taxable profits from which the future reversal of the underlying timing differences can be deducted.
Deferred tax assets and liabilities are calculated at the tax rates expected to be effective at the time the timing differences are expected to reverse, using rates that have been enacted or substantively enacted at the balance sheet date.
Deferred tax assets and liabilities are not discounted.
Page 10
PREMIER INN HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2013
1. ACCOUNTING POLICIES (continued)
1.12 Pensions
Employees are entitled to participate in a contracted-in defined contribution pension scheme operated by Whitbread Group PLC as described in Note 5. Contributions to the scheme are charged in the profit and loss account as they become payable in accordance with the rules of the scheme. The assets of the scheme are invested and managed independently of the finances of the Company.
2. TURNOVER
The whole of the turnover is attributable to the operation of Premier Inn hotels.
All turnover arose within the United Kingdom.
3. OPERATING PROFIT
The operating profit is stated after charging:
| Year ended 28 February | Year ended 1 March | |
|---|---|---|
| 2013 | 2012 | |
| £000 | £000 | |
| Amortisation - intangible fixed assets | 383 | 533 |
| Depreciation of tangible fixed assets: | ||
| - owned by the company | 11,530 | 7,882 |
| Difference on foreign exchange | (115) | - |
| Operating lease rentals - plant and machinery | 193 | 134 |
| Operating lease rentals - property | 41,262 | 26,623 |
All products and services are supplied by Whitbread Group PLC.
4. AUDITORS' REMUNERATION
Audit fees for the year were paid by the parent company, Whitbread Group PLC. Information about the total audit fees paid by the Group can be found in the Whitbread PLC report and financial statements for the year ended 28 February 2013.
5. STAFF COSTS
The Company has no employees other than the directors, who did not receive any remuneration (2012 - £NIL). All fees paid to directors as remuneration are borne by the parent company Whitbread Group PLC and it is not practical to allocate the amount for services in respect of this Company.
The Company is party to a Management Services Agreement with Whitbread Group PLC, under which all services are provided to it.
Page 11
PREMIER INN HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2013
6. INTEREST RECEIVABLE
| | Year ended
28 February
2013
£000 | Year ended
1 March
2012
£000 |
| --- | --- | --- |
| Interest receivable from group companies | 59,070 | 71,856 |
| Other interest receivable | - | 52 |
| | 59,070 | 71,908 |
7. INTEREST PAYABLE
| | Year ended
28 February
2013
£000 | Year ended
1 March
2012
£000 |
| --- | --- | --- |
| On loans from group undertakings | 45,654 | 50,382 |
| Less: Capitalised Interest | (2,027) | (2,531) |
| | 43,627 | 47,851 |
8. EXCEPTIONAL ITEMS
| | Year ended
28 February
2013
£000 | Year ended
1 March
2012
£000 |
| --- | --- | --- |
| Loss on disposal of property, plant and equipment | - | 8 |
| Reversal of asset write off previously written off through
exceptionals | (736) | - |
| Impairment charge of property, plant and equipment | 1,082 | 1,575 |
| Impairment of investments | 7,376 | 8,594 |
| | 7,722 | 10,177 |
PREMIER INN HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2013
9. TAXATION
| | Year ended
28 February
2013
£000 | Year ended
1 March
2012
£000 |
| --- | --- | --- |
| Analysis of tax charge in the year | | |
| Current tax (see note below) | | |
| UK corporation tax charge on profit for the year | 10,430 | 9,523 |
| Adjustments in respect of prior periods | (34) | 1,606 |
| Total current tax | 10,396 | 11,129 |
| Deferred tax | | |
| Origination and reversal of timing differences | 2,683 | 3,244 |
| Adjustments in respect of prior years | (451) | (270) |
| Change in UK tax rate 23% (2012 - 25%) | (695) | (601) |
| Total deferred tax (see note 10) | 1,537 | 2,373 |
| Tax on profit on ordinary activities | 11,933 | 13,502 |
Factors affecting tax charge for the year
The tax assessed for the year is lower than (2012 - lower than) the standard rate of corporation tax in the UK of 24.17% (2012 - 26.17%). The differences are explained below:
| | Year ended
28 February
2013
£000 | Year ended
1 March
2012
£000 |
| --- | --- | --- |
| Profit on ordinary activities before tax | 44,568 | 37,400 |
| Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 24.17% (2012 - 26.17%) | 10,772 | 9,788 |
| Effects of: | | |
| Expenses not deductible for tax purposes, other than goodwill amortisation and impairment | 1,151 | 1,998 |
| Capital allowances for year in excess of depreciation | (2,132) | (2,659) |
| Adjustments to tax charge in respect of prior periods | (34) | 1,606 |
| Depreciation not in deferred tax | 639 | 396 |
| Current tax charge for the year (see note above) | 10,396 | 11,129 |
PREMIER INN HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2013
9. TAXATION (continued)
Factors that may affect future tax charges
The Finance Act 2012 reduced the main rate of UK corporation tax to 24% from 1 April 2012 and to 23% from 1 April 2013.
In his budget of 20 March 2013, the Chancellor of the Exchequer confirmed the planned additional reduction in the rate of corporation tax to 21% from 1 April 2014 and announced a further reduction to 20% from 1 April 2015. These changes had not been substantively enacted at the balance sheet date and consequently, in accordance with UK accounting standards, are not reflected in these financial statements.
These reductions in the rate of corporation tax were substantively enacted on 2 July 2013 by virtue of the Finance Act 2013. If the change had been enacted before the Company's balance sheet date, the effect would have been to reduce the deferred tax liability by £995,000.
The rate change will impact the amount of the future cash tax payment to be made by the Company.
10. DEFERRED TAXATION
| 28 February | 1 March | |
|---|---|---|
| 2013 | 2012 | |
| £000 | £000 | |
| At beginning of year | 7,511 | 5,138 |
| Charge for year | 2,232 | 2,974 |
| Change in UK tax rate to 23% (2012 - 25%) | (694) | (601) |
| At end of year | 9,049 | 7,511 |
The provision for deferred taxation is made up as follows:
| 28 February | 1 March | |
|---|---|---|
| 2013 | 2012 | |
| £000 | £000 | |
| Accelerated capital allowances | 7,149 | 6,144 |
| Capitalised interest | 1,900 | 1,367 |
| 9,049 | 7,511 |
PREMIER INN HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2013
11. INTANGIBLE FIXED ASSETS
| IT Software £000 | Other intangibles £000 | Goodwill £000 | Total £000 | |
|---|---|---|---|---|
| Cost | ||||
| At 2 March 2012 | 38 | 431 | 10,669 | 11,138 |
| Additions | 21 | - | - | 21 |
| Assets written off | (14) | (431) | - | (445) |
| Transfers | (6) | - | - | (6) |
| At 28 February 2013 | 39 | - | 10,669 | 10,708 |
| Amortisation | ||||
| At 2 March 2012 | 21 | 431 | 1,763 | 2,215 |
| Charge for the year | 13 | - | 370 | 383 |
| Assets written off | (14) | (431) | - | (445) |
| Transfers | (2) | - | - | (2) |
| At 28 February 2013 | 18 | - | 2,133 | 2,151 |
| Net book value | ||||
| At 28 February 2013 | 21 | - | 8,536 | 8,557 |
| At 1 March 2012 | 17 | - | 8,906 | 8,923 |
The 'Other' category of intangible fixed assets relates to the brand name acquired with Premier Lodge business which is now fully amortised and written off.
Page 15
PREMIER INN HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2013
12. TANGIBLE FIXED ASSETS
| Land and buildings £000 | Furniture, fittings & equipment £000 | Total £000 | |
|---|---|---|---|
| Cost | |||
| At 2 March 2012 | 184,849 | 84,373 | 269,222 |
| Additions | 92,810 | 43,809 | 136,619 |
| Transfers intra group | 21 | 296 | 317 |
| Disposals | (22,565) | - | (22,565) |
| Transfer between classes | (738) | 738 | - |
| Asset write off | - | (2,581) | (2,581) |
| At 28 February 2013 | 254,377 | 126,635 | 381,012 |
| Depreciation | |||
| At 2 March 2012 | 16,011 | 17,146 | 33,157 |
| Charge for the year | 1,922 | 9,608 | 11,530 |
| Transfers intra group | (1,225) | 3 | (1,222) |
| Impairment charge | 366 | 716 | 1,082 |
| Impairment reversal | (736) | - | (736) |
| Asset write off | - | (2,581) | (2,581) |
| At 28 February 2013 | 16,338 | 24,892 | 41,230 |
| Net book value | |||
| At 28 February 2013 | 238,039 | 101,743 | 339,782 |
| At 1 March 2012 | 168,838 | 67,227 | 236,065 |
Included in land and buildings is freehold land at cost of £17,296,375 (2012 - £18,052,253), which is not depreciated.
Capitalised interest amounted to £2,027,089 using an average rate of 4.5% (2012 - £2,530,902 using an average rate of 5.4%).
Capital expenditure commitments for which no provision has been made are £12,404,865 (2012-£17,742,521)
Page 16
PREMIER INN HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2013
13. FIXED ASSET INVESTMENTS
| Investments in subsidiary companies £000 | Loans to subsidiaries £000 | Total £000 | |
|---|---|---|---|
| Cost or valuation | |||
| At 2 March 2012 | 81,945 | 11,161 | 93,106 |
| Foreign exchange movement | - | 69 | 69 |
| At 28 February 2013 | 81,945 | 11,230 | 93,175 |
| Impairment | |||
| At 2 March 2012 | 12,693 | - | 12,693 |
| Charge for the year | 7,376 | - | 7,376 |
| At 28 February 2013 | 20,069 | - | 20,069 |
| Net book value | |||
| At 28 February 2013 | 61,876 | 11,230 | 73,106 |
| At 1 March 2012 | 69,252 | 11,161 | 80,413 |
Subsidiary undertakings
The following were subsidiary undertakings of the Company:
| Name and nature of business | Country of Incorporation and Operation | Holding |
|---|---|---|
| Stripe Travel Inn Limited - Hotels | England | 100% |
| PTI Middle East Limited - Hotels | UAE | 100% |
| Premier Travel Inn India Limited - Hotels | England | 100% |
| Elm Hotel Holdings Limited - Hotels | England | 100% |
| Premier Inn Manchester Trafford Limited - Hotels | England | 100% |
| Premier Inn Westminster Limited - Hotels | England | 100% |
| Premier Inn Ochre Limited | England | 100% |
| Premier Inn (UK) Ltd | England | 100% |
14. STOCKS
| 28 February 2013 | 1 March 2012 | |
|---|---|---|
| Finished goods and goods for resale | £000 | £000 |
| 731 | 500 |
Page 17
PREMIER INN HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2013
15. DEBTORS
| 28 February | 1 March | |
|---|---|---|
| 2013 | 2012 | |
| £000 | £000 | |
| Trade debtors | 3,426 | 4,168 |
| Amounts owed by group undertakings | 1,153,220 | 1,093,275 |
| Other debtors | 239 | 316 |
| Prepayments and accrued income | 16,583 | 12,780 |
| 1,173,468 | 1,110,539 |
Amounts owed by group undertakings relate to the sale of assets to other Whitbread Group companies to facilitate a proposed bond issue.
16. CREDITORS: Amounts falling due within one year
| 28 February | 1 March | |
|---|---|---|
| 2013 | 2012 | |
| £000 | £000 | |
| Trade creditors | 20,968 | 15,585 |
| Amounts owed to group undertakings | 939,037 | 826,979 |
| Corporation tax | 10,396 | 11,129 |
| Other creditors | 10,174 | 5,485 |
| Accruals and deferred income | 20,225 | 19,060 |
| 1,000,800 | 878,238 |
17. CREDITORS: Amounts falling due after more than one year
| 28 February | 1 March | |
|---|---|---|
| 2013 | 2012 | |
| £000 | £000 | |
| Accruals and deferred income | 9,377 | 6,397 |
18. SHARE CAPITAL
| 28 February | 1 March | |
|---|---|---|
| 2013 | 2012 | |
| £000 | £000 | |
| Allotted, called up and fully paid | ||
| 200,000,002 Ordinary shares shares of £1 each | 200,000 | 200,000 |
PREMIER INN HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2013
19. RESERVES
| Other reserves £000 | Profit and loss account £000 | |
|---|---|---|
| At 2 March 2012 | 334,581 | 10,864 |
| Profit for the year | - | 32,635 |
| At 28 February 2013 | 334,581 | 43,499 |
20. RECONCILIATION OF MOVEMENT IN SHAREHOLDERS' FUNDS
| 28 February 2013 | 1 March 2012 | |
|---|---|---|
| £000 | £000 | |
| Opening shareholders' funds | 545,445 | 521,547 |
| Profit for the year | 32,635 | 23,898 |
| Closing shareholders' funds | 578,080 | 545,445 |
21. OPERATING LEASE COMMITMENTS
At 28 February 2013 the Company had annual commitments under non-cancellable operating leases as follows:
| Land and buildings | ||
|---|---|---|
| 28 February 2013 | 1 March 2012 | |
| £000 | £000 | |
| Expiry date: | ||
| Between 2 and 5 years | 815 | - |
| After more than 5 years | 35,597 | 32,209 |
22. RELATED PARTY TRANSACTIONS
The Company is a wholly-owned subsidiary of Whitbread PLC, the ultimate controlling entity of the Group, and has taken advantage of the exemption given in Financial Reporting Standard No.8 not to disclose transactions with other group companies.
PREMIER INN HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 28 FEBRUARY 2013
23. ULTIMATE PARENT UNDERTAKING AND CONTROLLING PARTY
The immediate parent undertaking is Whitbread Group PLC. The ultimate parent undertaking is Whitbread PLC.
The parent undertaking of the smallest group of undertakings for which group accounts are drawn up and of which the Company is a member is Whitbread Group PLC, registered in England and Wales. Copies of their accounts can be obtained from Whitbread Court, Houghton Hall Business Park, Porz Avenue, Dunstable, Bedfordshire LU5 5XE.
The parent undertaking of the largest group of undertakings for which group accounts are drawn up and of which the Company is a member is Whitbread PLC, registered in England and Wales. Copies of their accounts can be obtained from Whitbread Court, Houghton Hall Business Park, Porz Avenue, Dunstable, Bedfordshire LU5 5XE.
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