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Registered number: 03405105










COCKPIT HOTEL (LONDON) LIMITED










ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

 
COCKPIT HOTEL (LONDON) LIMITED
 
 
COMPANY INFORMATION


Director
Teo Kok Woon 




Registered number
03405105



Registered office
47 Lillie Road

London

SW6 1UD




Independent auditor
MHA, Statutory Auditor

Birmingham, United Kingdom





 
COCKPIT HOTEL (LONDON) LIMITED
 

CONTENTS



Page
Strategic Report
 
1
Director's Report
 
2 - 4
Independent Auditor's Report
 
5 - 8
Statement of Comprehensive Income
 
9
Balance Sheet
 
10
Statement of Changes in Equity
 
11
Statement of Cash Flows
 
12
Analysis of Net Debt
 
13
Notes to the Financial Statements
 
14 - 28


 
COCKPIT HOTEL (LONDON) LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

Introduction
 
The director presents his report and the financial statements for the year ended 31 December 2024.
Principal activity
The company has continued to operate a hotel in London in the year.

Principal risks and uncertainties
 
The hotel operates in a highly competitive market and faces risks common to the hospitality sector in London. The key risks identified by the directors include macroeconomic conditions such as economic fluctuations, inflationary pressures, and changes in consumer spending patterns, which may impact occupancy rates and revenue, UK’s attractiveness as a destination, competitive landscape and regulatory compliance and standards.

The Board of Directors conducts regular risk assessments and implements strategic measures to address these challenges, ensuring the hotel's resilience and long-term sustainability.

Financial key performance indicators
 
he company's financial and operational performance in the current year has been impacted by an ongoing refurbishment, expected to continue until the first quarter of 2025. 
• Turnover – Revenue declined by 9% compared to the previous year due to the refurbishment.
• EBITDA – The company reported an EBITDA profit of £504,665, a decrease from £1,735,815 in 2023.
• Occupancy Rate – Dropped by 2.1 percentage points to 72.9% (2024) from 75.0% (2023), reflecting temporary capacity constraints and market conditions.
• Average Room Rate (ARR) – Decreased by £2.81, from £106.17 (2023) to £103.36 (2024).
Despite the temporary decline in performance, the director considers the results satisfactory, given the planned refurbishment and its expected long-term benefits. The company remains focused on enhancing its service offerings and positioning itself for stronger performance post-renovation.
Results and dividends
The profit for the year, after taxation, amounted to £411,030 (2023 - 1,570,846).
The director does not recommend the payment of a dividend (2023 - £Nil).
Future Outlook
The company remains committed to maintaining the hotel's standards while leveraging the refurbishment to enhance guest experience, drive revenue growth, and improve profitability in 2025. The upgraded facilities are expected to strengthen the hotel's competitive positioning, attract a broader customer base, and increase both occupancy rates and average room rates.
The Director is confident that these improvements will support long-term growth and financial stability.


This report was approved by the board on 26 June 2025 and signed on its behalf.



Teo Kok Woon
Director

Page 1

 
COCKPIT HOTEL (LONDON) LIMITED
 
 
 
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

The director presents his report and the financial statements for the year ended 31 December 2024.

Director's responsibilities statement

The director is responsible for preparing the Strategic Report, the Director's Report and the 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the director must not approve the financial statements unless he 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 for the Company's financial statements 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 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 to enable him to ensure that the financial statements comply with the Companies Act 2006He 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.

Results and dividends

The profit for the year, after taxation, amounted to £411,030 (2023 - £1,570,846).

The directors does not recommend the payment of a dividend (2023 - £Nil).

Director

The director who served during the year was:

Teo Kok Woon 

Page 2

 
COCKPIT HOTEL (LONDON) LIMITED
 
 
 
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024

Disclosure of information to auditor

The director at the time when this Director's Report is approved has confirmed 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 ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.

Going concern 
The Director has assessed the Company’s ability to continue as a going concern and has a reasonable expectation that the Company has adequate resources to meet its liabilities as they fall due for a period of at least 12 months from the date of approval of the financial statements.
The Company has shown improvement in its financial position during the year, now being in a net assets position compared to net liabilities in 2023 and continued profitability in 2024. Trading has remained robust into 2025, supported by the refurbishment of hotel rooms, restaurant, and bar, as well as the successful rebranding of the property under the dual Ibis and Mercure brands. Revenue growth is being driven by both higher occupancy volumes and improved average room rates across the two brands.
The Company holds sufficient cash reserves and maintains access to adequate financial resources to support ongoing operations. The ultimate owner has confirmed that balances due to related parties, which are under common ownership, will not be recalled by these parties unless the Company has sufficient funds to do so and it will not impact the cash requirements of the Company. 
The broader UK economic outlook is positive due to strong wage growth, and anticipated reductions in interest rates expected to support further growth in the hospitality sector.
The refurbishment programme, funded by Lillie Investments Limited, progressed significantly during 2024, with the majority of works now completed. The remaining elements are expected to be finalised during 2025.
The Company’s fellow subsidiary, Lillie Investments Limited, owns the property used by Cockpit Hotel (London) Limited to trade. Lillie Investments Limited has confirmed it will continue to financially support the Company in relation to the refurbishment of the hotel. Cockpit Hotel (London) Limited continues to act as guarantor for the bank loan refinanced by Lillie Investments Limited in 2022. 
In preparing the forecasts, management has considered current trading trends, the impact of the refurbishment, seasonality, and cost pressures. Based on these forecasts and cash flow projections covering a period of at least 12 months from the date of approval of the financial statements, the Director is satisfied that the going concern basis remains appropriate.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Page 3

 
COCKPIT HOTEL (LONDON) LIMITED
 
 
 
DIRECTOR'S REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024


Auditor

The auditor, MHA, previously traded through the legal entity MacIntyre Hudson LLP. In response, to regulatory changes, MacIntyre Hudson ceased to hold an audit registration with the engagement transitioning to MHA Audit Services LLP.

MHA will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 26 June 2025 and signed on its behalf.
 





Teo Kok Woon
Director

Page 4

 
COCKPIT HOTEL (LONDON) LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF COCKPIT HOTEL (LONDON) LIMITED
 

Opinion


We have audited the financial statements of Cockpit Hotel (London) Limited (the 'Company') for the year ended 31 December 2024, which comprises of the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity, the Statement of Cash Flows,  and the related notes, including significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (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 31 December 2024 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.


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 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 United Kingdom, including the Financial Reporting Council'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.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the director's 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 director with respect to going concern are described in the relevant sections of this report.


Page 5

 
COCKPIT HOTEL (LONDON) LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF COCKPIT HOTEL (LONDON) LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditor's Report thereon. The director is responsible for the other information contained within the Annual ReportOur 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. 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 course of 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.


Opinion 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 Director's Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic Report and the Director's 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 Director's 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 director's remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Director's Responsibilities Statement set out on page 2, the director is 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 director determines 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 director is 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 director either intends to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Page 6

 
COCKPIT HOTEL (LONDON) LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF COCKPIT HOTEL (LONDON) LIMITED (CONTINUED)


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.


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. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
 
Enquiry of management and those charged with governance around actual and potential litigation and claims;
A review of legal and professional expense nominal accounts for any indications of non-compliance with laws and regulations;
Performing audit work over the risk of management override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale for significant transactions outside the normal course of business and reviewing accounting estimates for bias; and
Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations.
Reviewing minutes of meetings of those charge with governance.


Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


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.


Page 7

 
COCKPIT HOTEL (LONDON) LIMITED
 
 
 
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF COCKPIT HOTEL (LONDON) LIMITED (CONTINUED)


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 2006Our 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.





Martin Ramsey BSc (Hons) FCCA (Senior Statutory Auditor)
for and on behalf of
MHA, Statutory Auditor
Birmingham, United Kingdom

27 June 2025
MHA is the trading name of MHA Audit Services LLP, a limited liability partnership in England and Wales (registered number OC455542)
Page 8

 
COCKPIT HOTEL (LONDON) LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024

2024
2023
Note
£
£

  

Turnover
 4 
17,392,199
19,034,918

Cost of sales
  
(620,945)
(761,176)

Gross profit
  
16,771,254
18,273,742

Administrative expenses
  
(16,396,566)
(16,657,962)

Other operating income
 5 
53,512
50,254

Operating profit
 6 
428,200
1,666,034

Interest receivable and similar income
 9 
982
920

Profit before tax
  
429,182
1,666,954

Tax on profit
 10 
(18,152)
(96,108)

Profit for the financial year
  
411,030
1,570,846

There was no other comprehensive income for 2024 (2023:£NIL).

The notes on pages 14 to 28 form part of these financial statements.

Page 9

 
COCKPIT HOTEL (LONDON) LIMITED
REGISTERED NUMBER: 03405105

BALANCE SHEET
AS AT 31 DECEMBER 2024

2024
2023
Note
£
£

Fixed assets
  

Tangible assets
 11 
288,807
351,671

Current assets
  

Stocks
 12 
16,786
28,351

Debtors: amounts falling due within one year
 13 
8,152,985
10,493,480

Cash at bank and in hand
  
1,256,813
627,021

  
9,426,584
11,148,852

Creditors: amounts falling due within one year
 14 
(9,632,836)
(11,828,997)

Net current liabilities
  
 
 
(206,252)
 
 
(680,145)

Total assets less current liabilities
  
82,555
(328,474)

Creditors: amounts falling due after more than one year
 15 
(20,266)
(20,267)

  

Net assets/(liabilities)
  
62,289
(348,741)


Capital and reserves
  

Called up share capital 
 17 
8,000,000
8,000,000

Profit and loss account
 18 
(7,937,711)
(8,348,741)

  
62,289
(348,741)


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 26 June 2025.




Teo Kok Woon
Director

The notes on pages 14 to 28 form part of these financial statements.

Page 10

 
COCKPIT HOTEL (LONDON) LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 January 2023
8,000,000
(9,919,587)
(1,919,587)


Comprehensive income for the year

Profit for the year
-
1,570,846
1,570,846



At 1 January 2024
8,000,000
(8,348,741)
(348,741)


Comprehensive income for the year

Profit for the year
-
411,030
411,030


At 31 December 2024
8,000,000
(7,937,711)
62,289


The notes on pages 14 to 28 form part of these financial statements.

Page 11

 
COCKPIT HOTEL (LONDON) LIMITED
 

STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024

2024
2023
£
£

Cash flows from operating activities

Profit for the financial year
411,030
1,570,846

Adjustments for:

Depreciation of tangible assets
76,289
69,781

Interest received
(982)
(920)

Taxation charge
18,152
96,108

Decrease in stocks
11,565
13,559

(Increase)/decrease in debtors
(138,891)
1,267,291

Decrease in amounts owed by groups
2,461,234
1,536,786

Increase/(decrease) in creditors
423,838
(1,696,973)

Decrease in amounts owed to groups
(2,620,000)
-

Corporation tax received
-
1,649

Decrease in amounts owed to groups
-
(5,968,539)

Net cash generated from operating activities

642,235
(3,110,412)


Cash flows from investing activities

Sale of intangible assets
-
4

Purchase of tangible fixed assets
(13,425)
(202,140)

Interest received
982
920

Net cash from investing activities

(12,443)
(201,216)


Net increase/(decrease) in cash and cash equivalents
629,792
(3,311,628)

Cash and cash equivalents at beginning of year
627,021
3,938,649

Cash and cash equivalents at the end of year
1,256,813
627,021


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
1,256,813
627,021

1,256,813
627,021


The notes on pages 14 to 28 form part of these financial statements.

Page 12

 
COCKPIT HOTEL (LONDON) LIMITED
 

ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 DECEMBER 2024




At 1 January 2024
Cash flows
At 31 December 2024
£

£

£

Cash at bank and in hand

627,021

629,792

1,256,813


627,021
629,792
1,256,813

The notes on pages 14 to 28 form part of these financial statements.

Page 13

 
COCKPIT HOTEL (LONDON) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

1.


General information

Cockpit Hotel (London) Limited is a private limited company, limited by shares, incorporated in England and Wales under the Companies Act. The address of the registered office and principal place of business is 47 Lillie Road, London, SW6 1UD.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Going concern

The Director has assessed the Company’s ability to continue as a going concern and has a reasonable expectation that the Company has adequate resources to meet its liabilities as they fall due for a period of at least 12 months from the date of approval of the financial statements.
The Company has shown improvement in its financial position during the year, now being in a net assets position compared to net liabilities in 2023 and continued profitability in 2024. Trading has remained robust into 2025, supported by the refurbishment of hotel rooms, restaurant, and bar, as well as the successful rebranding of the property under the dual Ibis and Mercure brands. Revenue growth is being driven by both higher occupancy volumes and improved average room rates across the two brands.
The Company holds sufficient cash reserves and maintains access to adequate financial resources to support ongoing operations. The ultimate owner has confirmed that balances due to related parties, which are under common ownership, will not be recalled by these parties unless the Company has sufficient funds to do so and it will not impact the cash requirements of the Company. 
The broader UK economic outlook is positive due to strong wage growth, and anticipated reductions in interest rates expected to support further growth in the hospitality sector.
The refurbishment programme, funded by Lillie Investments Limited, progressed significantly during 2024, with the majority of works now completed. The remaining elements are expected to be finalised during 2025.
The Company’s fellow subsidiary, Lillie Investments Limited, owns the property used by Cockpit Hotel (London) Limited to trade. Lillie Investments Limited has confirmed it will continue to financially support the Company in relation to the refurbishment of the hotel. Cockpit Hotel (London) Limited continues to act as guarantor for the bank loan refinanced by Lillie Investments Limited in 2022. 
In preparing the forecasts, management has considered current trading trends, the impact of the refurbishment, seasonality, and cost pressures. Based on these forecasts and cash flow projections covering a period of at least 12 months from the date of approval of the financial statements, the Director is satisfied that the going concern basis remains appropriate.

Page 14

 
COCKPIT HOTEL (LONDON) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.3

Turnover

Hotel and leisure turnover, including rental income, represents amounts receivable for accommodation, food and beverage sales and ancillary services provided in the normal course of business, net of discounts, VAT and other sales related taxes. Turnover is recognised at the point at which goods and services are delivered to the customer.

The following criteria must also be met before turnover is recognised: 
Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes.

 
2.4

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss 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 lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.5

Interest income

Interest income is recognised in profit or loss using the effective interest method.

 
2.6

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance Sheet. The assets of the plan are held separately from the Company in independently administered funds.

Page 15

 
COCKPIT HOTEL (LONDON) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.7

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the balance sheet date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the balance sheet date.


 
2.8

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Furniture, fittings and building renovations
-
5% to 33%

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Page 16

 
COCKPIT HOTEL (LONDON) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.9

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs and sell. Cost is based on the cost of purchase on a weighted average basis.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.10

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.11

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours.


 
2.12

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.13

Financial instruments

The Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

The Company has elected to apply the recognition and measurement provisions of IFRS 9 Financial Instruments (as adopted by the UK Endorsement Board) with the disclosure requirements of Sections 11 and 12 and the other presentation requirements of FRS 102.

Financial instruments are recognised in the Company's Balance Sheet when the Company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash
Page 17

 
COCKPIT HOTEL (LONDON) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)


2.13
Financial instruments (continued)

equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

Other financial assets

Other financial assets, which includes investments in equity instruments which are not classified as subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the recognised transaction price. Such assets are subsequently measured at fair value with the changes in fair value being recognised in the profit or loss. Where other financial assets are not publicly traded, hence their fair value cannot be measured reliably, they are measured at cost less impairment.

Impairment of financial assets

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Page 18

 
COCKPIT HOTEL (LONDON) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)


2.13
Financial instruments (continued)

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

Financial liabilities are derecognised when the Company's contractual obligations expire or are discharged or cancelled.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In preparing these financial statements, the director has made the following judgements:
Determine whether there are indicators of impairment of the company's tangible assets. Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset and where it is a component of a larger cash-generating unit, the viability and expected future performance of that unit.


4.


Turnover

The whole of the turnover is attributable to one class of business.

All turnover arose within the United Kingdom.


5.


Other operating income

2024
2023
£
£

Net rents receivable
53,512
50,254


Page 19

 
COCKPIT HOTEL (LONDON) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

6.


Operating profit

The operating profit is stated after charging:

2024
2023
£
£

Defined contribution pension cost
129,147
90,257

Exchange differences
175
1,712

Other operating lease rentals
5,198,178
5,154,000

Depreciation of tangible fixed assets
71,464
69,781


7.


Auditor's remuneration

During the year, the Company obtained the following services from the Company's auditor:


2024
2023
£
£

Fees payable to the Company's auditor for the audit of the Company's financial statements
30,000
30,000


Fees payable to the auditor in respect of:


Accountancy fees
4,500
4,500

Taxation compliance services
7,500
7,500

Secretarial services
1,000
1,000

13,000
13,000

Page 20

 
COCKPIT HOTEL (LONDON) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

8.


Employees

Staff costs were as follows:


2024
2023
£
£

Wages and salaries
3,265,639
3,001,291

Social security costs
347,187
294,675

Cost of defined contribution scheme
129,147
90,257

3,741,973
3,386,223


The average monthly number of employees, including the director, during the year was as follows:


        2024
        2023
            No.
            No.







Operational
74
72



Admin
23
21

97
93


9.


Interest receivable

2024
2023
£
£


Other interest receivable
982
920


10.


Taxation


2024
2023
£
£



Deferred tax


Origination and reversal of timing differences
18,152
96,108


Tax on profit
18,152
96,108
Page 21

 
COCKPIT HOTEL (LONDON) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
 
10.Taxation (continued)


Factors affecting tax charge for the year

The tax assessed for the year is lower than (2023 - lower than) the standard rate of corporation tax in the UK of 25% (pro-rated) (2023 - 23.52%). The differences are explained below:

2024
2023
£
£


Profit on ordinary activities before tax
429,182
1,666,954


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 19%)
107,296
392,077

Effects of:


Expenses not deductible for tax purposes
1,832
8,664

Capital allowances for year in excess of depreciation
-
(1,199)

Utilisation of tax losses
-
(138,385)

Losses surrendered by group
(98,000)
(193,050)

Adjustments to tax charge in respect of prior periods
-
23,716

Remeasurement of deferred tax for changes in tax rates
-
4,285

Deferred tax not recognised
7,024
-

Total tax charge for the year
18,152
96,108


Factors that may affect future tax charges

In the spring budget of 2021, the Government announced that the corporation tax rate would increase to 25% with effect from 1 April 2023. The new law was substantively enacted on 24 May 2021. Corporation tax is measured at 25% (2023 - 23.52%) and deferred tax is measured at 25%.

Page 22

 
COCKPIT HOTEL (LONDON) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

11.


Tangible fixed assets





Furniture, fittings and building renovations

£



Cost


At 1 January 2024
792,935


Additions
13,425


Disposals
(4,825)



At 31 December 2024

801,535



Depreciation


At 1 January 2024
441,264


Charge for the year
76,289


Disposals
(4,825)



At 31 December 2024

512,728



Net book value



At 31 December 2024
288,807



At 31 December 2023
351,671

Page 23

 
COCKPIT HOTEL (LONDON) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

12.


Stocks

2024
2023
£
£

Finished goods and goods for resale
16,786
28,351



13.


Debtors

2024
2023
£
£


Trade debtors
544,597
326,393

Amounts owed by group undertakings
7,489,813
9,951,047

Other debtors
513
126,886

Prepayments and accrued income
98,826
51,766

Deferred taxation
19,236
37,388

8,152,985
10,493,480


Amounts owed by group undertakings are unsecured, non-interest bearing and are repayable on demand.


14.


Creditors: Amounts falling due within one year

2024
2023
£
£

Trade creditors
628,350
699,429

Amounts owed to group undertakings
4,725,000
8,645,000

Amounts owed to related parties
1,800,000
500,000

Other taxation and social security
343,427
210,086

Other creditors
53,878
158,808

Accruals and deferred income
2,082,181
1,615,674

9,632,836
11,828,997


Amounts owed to group undertakings and to related party companies are unsecured, non-interest bearing and are repayable on demand.

Page 24

 
COCKPIT HOTEL (LONDON) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

15.


Creditors: Amounts falling due after more than one year

2024
2023
£
£

Amounts owed to group undertakings
20,266
20,267


Amounts owed to group undertakings are unsecured, non-interest bearing and are repayable on demand.


16.


Deferred taxation




2024
2023


£

£






At beginning of year
37,388
133,496


Charged to profit or loss
(18,152)
-


Utilised in year
-
(96,108)



At end of year
19,236
37,388

The deferred tax asset is made up as follows:

2024
2023
£
£


Accelerated capital allowances
19,128
32,902

Short term timing differences
108
4,486

19,236
37,388


17.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



8,000,000 (2023 - 8,000,000) Ordinary shares of £1.00 each
8,000,000
8,000,000


Page 25

 
COCKPIT HOTEL (LONDON) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

18.


Reserves

The company's reserves are as follows:

Profit and loss account

Includes all current and period year retained profit and losses.


19.


Contingent liabilities and guarantees

In May 2017, the company provided a guarantee to the lenders of Lillie Investments Limited in respect of bank facilities, which had outstanding balances as at 31 December 2024 of £60.2m (2023 - £53.1m). Those facilities were also secured by fixed and floating charges over the company's assets. 


20.


Pension commitments

The entity operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the entity in an independently administered fund. The pension cost charge represents contributions payable by the entity to the fund and amounted to £129,147 (2023 - £90,257). Contributions totalling £Nil (2023 - £17,801) were payable to the fund at balance sheet date and are included in creditors.


21.


Commitments under operating leases

At 31 December 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2024
2023
£
£


Not later than 1 year
5,100,000
5,100,000

Later than 1 year and not later than 5 years
20,400,000
20,400,000

Later than 5 years
-
5,100,000

25,500,000
30,600,000

Page 26

 
COCKPIT HOTEL (LONDON) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

22.


Related party transactions

The following are related party transactions by virtue of the other party to the transaction being in the same group. No amounts due from any related parties have been written off during the year. 
Amounts owed to group undertakings 
Tambusu Holdings Limited has provided an interest free loan to the company with the balance outstanding at the year end being £20,266 (2023 - £20,267). 
The company leases the majority of the hotel property from Lillie Investments Limited, a fellow group undertakingDuring the year the company was charged rent of £5,100,000 (2023 - £5,100,000) by Lillie Investments Limited. The year end balance due from Lillie Investments Limited was £5,022,776 (2023 -due to Lillie Investments Limited - £2,985,068). Group tax relief of £391,999 (2023 - £Nil-was transferred from Lillie investments Limited in the year. Other movements in this balance represented net loans to Lillie Investments Limited. The total invoices paid on behalf of Lillie Investments Limited was £2,784,541 (2023 - £8,362,237).
Amounts owed by group undertakings 
The company leases the remaining part of the hotel property from Favor Well Limited , a fellow group undertaking. During the year the company was charged rent of £72,000 (2023 - £54,000) by Favor Well Limited. The year end balance due from Favor Well Limited was £1,426,372 (2023 - £1,250,450). 
The company loaned £Nil (2023 - £Nil) to Goodearth Hotels Limited, a fellow group undertaking. The year end balance due from Goodearth Hotels Limited was £723,658 (2023 - £723,658). 
The company loaned £Nil (2023 - £Nil) to Strandline Investments Limited, a fellow group undertaking. The year end balance due from Strandline Investments Limited was £61,041 (2023 - £61,041). 
The company paid £Nil (2023 - £Nil) to Kozan Investments Limited, a fellow group undertaking. The year end balance due from Kozan Investments Limited was £255,966 (2023 - £255,966).
Amounts owed by related parties 
The company paid £Nil to Cockpit International Pte Ltd (2023 - £2,000,000). The year end balance due to Cockpit International Pte Ltd was £4,725,000 (2023 - £Nil).
The registered addresses of Tambusu Holdings Limited, Goodearth Hotels Limited, Lillie Investments Limited, Favor Well Limited and Kozan Investments Limited are at Vistra Corporate Services Centre, Wickham Cay 11, Road Town, Tortola, British Virgin Islands. 
Amounts owed to related parties 
The company received a loan totalling £1,800,000 (2023 - £Nil) from Teo Kok Woon, a director of the company. The loan is interest free and repayable on demand. The year end balance due to Teo Kok Woon is £1,800,000 (2023 - £500,000).

Page 27

 
COCKPIT HOTEL (LONDON) LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

23.


Controlling party

The immediate and ultimate parent undertaking is Tambusu Holdings Limited (incorporated in the British Virgin Islands) and Tambusu Group Holdings Limited (incorporated in the Cayman Islands) respectively.
Mr Teo Kok Woon is the ultimate controlling party.

 
Page 28