Company registration number 11166265 (England and Wales)
LODGECREST HOLDINGS PLC
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
LODGECREST HOLDINGS PLC
COMPANY INFORMATION
Directors
Mr M R Bright
Mr R Kelly
Mr P Lelliott
Secretary
Mr M R Bright
Company number
11166265
Registered office
The Old Courthouse
267-273 High Street
Dorking
Surrey
RH4 1RY
Auditor
Alliotts LLP
Manfield House
1 Southampton Street
London
WC2R 0LR
LODGECREST HOLDINGS PLC
CONTENTS
Page
Strategic report
1 - 5
Directors' report
6 - 7
Independent auditor's report
8 - 10
Profit and loss account
11
Group balance sheet
12
Company balance sheet
13
Group statement of changes in equity
14
Company statement of changes in equity
15
Group statement of cash flows
16
Notes to the financial statements
17 - 33
LODGECREST HOLDINGS PLC
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -

The directors present the strategic report for the year ended 31 December 2024.

Review of the business

The group operates in the field of property acquisition, development and investment both Commercial and Residential within London and the Southeast of England. This is the seventh Annual Review for the company - Lodgecrest Holdings PLC. The Lodgecrest Group of companies include Lodgecrest Developments Ltd, Lodgecrest Investments Ltd, and Pure Resi Ltd.

 

Results and performance

The results of the group for the year, as set out on page 11, these show a profit on ordinary activities before taxation of £1.64m (2023 - £2.74m). The shareholders' funds of the group now stand at £53.55m (2023 - £54.21m) at the year-end. The group's continued good performance produced positive results considering the operational period covered. Lodgecrest Holdings PLC's profitability held and with its investment property increasing by £3.51m to £99.84m.

 

Business environment

Despite affordability challenges, the UK housing market demonstrated resilience throughout 2024, bouncing back from a sluggish 2023. average house prices grew by 3.6% (Nationwide House Price Index) during the year.

 

This recovery was supported by several positive shifts:

 

At the start of 2024, cost-of-living pressures began to ease as inflation moved closer to the Bank of England’s target. This shift has contributed to a gradual improvement in consumer sentiment. In light of these developments—and with interest rates beginning to fall—we anticipate a modest upturn in average house prices over the course of 2025.

 

The rental market in Southeast England experienced notable resilience also in 2024, despite broader affordability pressures across the UK. Demand remained strong, particularly in commuter towns and urban centres, driven by a combination of limited housing supply and sustained interest from professionals and relocating families.

 

In 2024, Southeast England’s rental market demonstrated solid resilience amid the broader economic landscape. Despite ongoing affordability challenges across the country, the region continued to attract strong tenant demand, particularly in well-connected commuter towns and thriving urban centres. This demand was sustained by professionals, relocating families, and an undersupplied market affected by ongoing landlord exits prompted by rising costs and regulatory shifts.

 

Over the 12 months to August 2024, average private rents in the Southeast rose by 6.1%(ONS), outpacing the national average of 5.5% (ONS). While this marked a slowdown from the double-digit increases seen in 2023, it reflects a market starting to recalibrate in the face of tighter household budgets and easing post-pandemic pressures.

 

Looking ahead, further moderation is anticipated in 2025. However, the enduring imbalance between supply and demand is expected to keep upward pressure on rental values.

 

Strategy

The group's success relies on the thoughtful selection, accurate pricing, and active management of its owned, sold, and developed sites, as well as the effective oversight of its property portfolio. In 2024 and 2025, the group intends to further expand its residential property holdings through strategic growth initiatives.

 

PURE RESi Limited, the group's Private Rented Sector (PRS) fund, maintained stable operations throughout 2024. The debtors' book remained steady, with no significant increase, while occupancy levels consistently reached exceptional highs. A remarkably low vacancy rate of just 0.05% highlights the strength and reliability of tenant demand during the period.

LODGECREST HOLDINGS PLC
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
Principal risks and uncertainties

In 2024, the Bank of England maintained a cautious stance on monetary policy, holding interest rates at 5.25% for much of the year before gradually easing to 4.25% by June 2025. These elevated rates, a legacy of the inflation-fighting cycle that began in 2022, continued to exert upward pressure on borrowing costs. As a result, bank interest payments remained a significant component of our direct expenses.

 

Nevertheless, the group benefited from a continued rise in property rental income, which provided a buffer against these higher financing costs and supported overall financial stability.

 

The group also faced persistent financial risks throughout the year, including pricing uncertainty, volatility in material and labour costs, and fluctuations across both residential and commercial property markets. These challenges underscored the importance of maintaining a disciplined financial strategy and a flexible, risk-aware operational approach.

 

Key performance indicators

Throughout the year, the Group has achieved substantial advancements in key aspects of our strategy. The Board tracks the company's progress using the following Key Performance Indicators (KPIs):

Key performance indicators

Throughout the year, the Group has achieved substantial advancements in key aspects of our strategy. The Board tracks the company's progress using the following Key Performance Indicators (KPIs):

 

 

2024

2023

2022

2021

2020

Turnover

£5.8m

£4.9m

£4.0m

£6.7m

£3.8m

Net Profit

£1.0m

£2.0m

£4.4m

£4.5m

£7.9m

Net Asset Value

£53.6m

£54.2m

£53.0m

£49.5m

£48.9m

Fixed Assets

£100.0m

£96.6m

£93.4m

£86.3m

£77.1m

Future developments

The Lodgecrest Group is actively advancing its Private Rented Sector (PRS) presence through the continued development of PURE RESi Ltd. Simultaneously, Lodgecrest Investments Ltd is focused on expanding its investment portfolio by acquiring long-term commercial assets. Backed by robust cash reserves and access to attractive financing options, the group is strategically placed to realise its growth ambitions throughout 2025 and 2026.

 

Greenhouse Gasses

As the company has not consumed more than 40,000 kWh of energy in this reporting period, it qualifies as a low energy user under these regulations and is not required to report in its emissions, energy consumption or energy efficiency activities.

LODGECREST HOLDINGS PLC
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
Statement by the directors relating to their statutory duties under section 172(1) of the Companies Act 2006

The directors, in line with their duties under s172 of the Companies Act 2006, act individually and collectively in the way they consider, in good faith, would be most likely to promote success of the group and in doing so have regard, amongst other matters, to the:

 

The directors regard the above as key to their decision-making process. The group's business strategy is focused on achieving success for the group in the mid to long-term however, the board promotes a culture of upholding the highest standards of business conduct and regulatory conduct. It also ensures these core values are communicated to the group's employees and embedded in the group's policies and procedures.

 

The directors recognise that building strong and lasting relationships with our stakeholders will help us to deliver our strategy in line with our long-term values and operate a sustainable business.

 

The directors are supported in the discharge of their duties by:

Environmental

The Group monitors the impact of its developments on the local community and environment. The Group recognises that it has a responsibility to the environment beyond legal and regulatory requirements. It is committed to reducing its environmental impact and continually improving its environmental performance. It expects its suppliers and other stakeholders to do the same.

 

Stakeholders

The directors understand the importance of engagement with all of its stakeholders and gives appropriate weighting to the outcome of its decisions for the relevant stakeholder in weighing up how best to promote the success of the group.

The directors regularty discuss issues concerning employees, clients, suppliers, community and environment, regulators, and its shareholder, which it takes into account in its discussions and in its decision-making process.

In addition to this, the directors seek to understand the interests and views of the group's stakeholders by engaging with them directly when required.

LODGECREST HOLDINGS PLC
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -

The below summarises the key stakeholders and how we engage with each:

 

Stakeholders

Engagement

Employees

Whilst we operate with a relatively small workforce, our employees are key to the continued success of our business. In addition to aiming to be a responsible employer in our approach to balanced pay and benefits across both male and female staff.

 

We encourage an inclusive culture within the organisation and invite different perspectives from our employees and value any new ideas for growth. Our appraisal programme encourages employee feedback and facilities the opportunity for both employees and managers to set performance goals on an annual basis.

 

Our aim is to nurture a feeling of wellbeing and encourage our employees. We work hard to ensure our employees feel recognised for their hard work.

The Group is committed to respecting human rights and complying with The Modem Slavery Act 2015. It has a zero tolerance to slavery and human trafficking and expect all of those in its supply chain to adhere to these values and surrounding this.

 

The Group has a zero-tolerance approach to bribery and corruption. It is committed to acting professionally, fairly and with integrity in all its business dealings and relationships. It implements and enforces effective systems to counter bribery and corruption and has internal policies in place to educate its employees to recognise and deal with bribery and corruption.

Clients (Tenants & Purchasers)

Our tenants and purchasers are at the centre of our business.

 

Our tenant's services and purchaser's sale teams build lasting relationships with current and potential clients to understand their objectives and requirements. We are in regular contact with tenants and purchasers with updates and news of our current developments and the building operation within their blocks. Our service

team meet any maintenance requirements raised by our tenants and purchasers.

 

We understand the importance of building long-term relationships and have shown that we have an excellent track record in this regard.

 

LODGECREST HOLDINGS PLC
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 5 -

Supplies

As a business we operate in the south of east of England, but we work with a wide

range of suppliers both in the UK and Europe. We remain committed to being fair and transparent in our dealings with all of our suppliers however the Board encourages the engagement of small business within the local community and area of our developments.

 

The group has systems and processes in place to ensure all suppliers are paid in a timely manner.

Community & Environment

The directors' approach to social responsibility, diversity & the community is of high importance. We strive to create sustainable housing that offers greater value but leave a smaller impact. We take a consultative approach focused on building long­term relationships and solving business problems.

Diversity and inclusion is a key pillar for Lodgecrest Holdings PLC. A director is assigned responsibility for diversity & inclusion and aims to connect with affiliates and networks. The directors have ensured that there is no "pay gap" between its male and female employees.

 

The directors continue to commit and broaden the group's work and associations with local charitable organisations, in particular involving local schools by offering mentoring opportunities.

Shareholders

The directors also seek to behave in a responsible manner towards our shareholders. The directors communicate all information relevant to its shareholders, such as its financial reporting.

On behalf of the board

30 June 2025
LODGECREST HOLDINGS PLC
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 6 -

The directors present their annual report and financial statements for the year ended 31 December 2024.

Principal activities

The principal activity of the company and group continued to be that of property development and the holding of investment properties for rental income.

Results and dividends

The results for the year are set out on page 11.

Ordinary dividends were paid amounting to £1,665,351. The directors do not recommend payment of a further dividend.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

Mr M R Bright
Mr R Kelly
Mr P Lelliott
Supplier payment policy

The group's current policy concerning the payment of trade creditors is to:

 

Trade creditors of the group at the year end were less than 30 days purchases (2023 - less than 30 days), based on the average daily amount invoiced by suppliers during the year.

Financial instruments

The financial instruments used by the group arise wholly and directly from its activities and comprise of debtors, cash at bank and creditors. The group regularly reviews its performance by producing monthly management accounts and closely reviewing them. The group regularly monitors the level of its debtors and creditors.

 

The group has put in place the following measures in order to manage the risks arising from these financial instruments:

 

  1. The group’s credit risk is primarily attributable to tenants. Credit risk is managed by running credit checks on new tenants and by monitoring payments against contractual agreements. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary.

  2. The group manages its cash position by regularly monitoring cash flow, using cash flow forecasting and variance analysis.

  3. The financial risk arising from the possible non-advance of credit by the group’s trade creditors, either by exceeding agreed credit limits or by not paying with the specified terms, is managed by regularly monitoring the trade balance and credit limit terms from all suppliers.

  4. The company’s arrangements with other companies within the group ensures that in the event it has liquidity requirements above the level of cash generated from its on-going operations, it can access additional funds through group funding. The group’s liquidity requirements and interest rate risks are managed at a group level.

 

LODGECREST HOLDINGS PLC
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 7 -
Statement of directors' responsibilities

The directors are responsible for preparing the Annual 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 group and company, and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and 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 group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

On behalf of the board
30 June 2025
LODGECREST HOLDINGS PLC
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF LODGECREST HOLDINGS PLC
- 8 -
Opinion

We have audited the financial statements of Lodgecrest Holdings Plc (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the group profit and loss account, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 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:

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 group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's and parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

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 directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. 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.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

LODGECREST HOLDINGS PLC
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LODGECREST HOLDINGS PLC
- 9 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report.

 

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

 

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council's website, 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.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

LODGECREST HOLDINGS PLC
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF LODGECREST HOLDINGS PLC
- 10 -

We assessed the susceptibility of the company’s financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

Audit response to risks identified

To address the risk of fraud through management bias and override of controls, we:

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any.

 

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in 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.

Christopher Mantel (Senior Statutory Auditor)
For and on behalf of Alliotts LLP, Statutory Auditor
Chartered Accountants
Manfield House
1 Southampton Street
London
WC2R 0LR
30 June 2025
LODGECREST HOLDINGS PLC
GROUP PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
2024
2023
Notes
£
£
Turnover
3
5,799,512
4,848,072
Cost of sales
(275,274)
(408,892)
Gross profit
5,524,238
4,439,180
Administrative expenses
(1,652,972)
(1,585,628)
Other operating income
1,071
-
Gain/(Loss) on valuation of investment property
191,899
1,964,542
Operating profit
4
4,064,236
4,818,094
Interest receivable and similar income
8
9,126
34,834
Interest payable and similar expenses
9
(2,433,861)
(2,109,334)
Amounts written off investments
(3)
-
Profit before taxation
1,639,498
2,743,594
Tax on profit
10
(589,764)
(708,182)
Profit for the financial year
24
1,049,734
2,035,412
Profit for the financial year is all attributable to the owners of the parent company.
LODGECREST HOLDINGS PLC
GROUP BALANCE SHEET
AS AT
31 DECEMBER 2024
31 December 2024
- 12 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
12
185,904
228,968
Investment property
13
99,841,548
96,329,212
100,027,452
96,558,180
Current assets
Stocks
16
811,020
209,268
Debtors
17
340,685
1,131,031
Cash at bank and in hand
498,969
401,457
1,650,674
1,741,756
Creditors: amounts falling due within one year
18
(2,077,394)
(33,643,362)
Net current liabilities
(426,720)
(31,901,606)
Total assets less current liabilities
99,600,732
64,656,574
Creditors: amounts falling due after more than one year
19
(35,475,000)
-
Provisions for liabilities
Deferred tax liability
21
10,526,868
10,442,093
(10,526,868)
(10,442,093)
Net assets
53,598,864
54,214,481
Capital and reserves
Called up share capital
23
50,004
50,004
Other reserves
24
99
99
Profit and loss reserves
24
53,548,761
54,164,378
Total equity
53,598,864
54,214,481
The financial statements were approved by the board of directors and authorised for issue on 30 June 2025 and are signed on its behalf by:
30 June 2025
Director
Company registration number 11166265 (England and Wales)
LODGECREST HOLDINGS PLC
COMPANY BALANCE SHEET
AS AT 31 DECEMBER 2024
31 December 2024
- 13 -
2024
2023
Notes
£
£
£
£
Fixed assets
Investments
14
3
6
Current assets
Debtors
17
70,960,844
70,866,988
Cash at bank and in hand
487,960
341,295
71,448,804
71,208,283
Creditors: amounts falling due within one year
18
(25,146,432)
(23,371,496)
Net current assets
46,302,372
47,836,787
Total assets less current liabilities
46,302,375
47,836,793
Provisions for liabilities
Deferred tax liability
21
(8,853)
-
0
8,853
-
Net assets
46,311,228
47,836,793
Capital and reserves
Called up share capital
23
50,004
50,004
Profit and loss reserves
24
46,261,224
47,786,789
Total equity
46,311,228
47,836,793

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s profit for the year was £139,786 (2023 - £13,489 profit).

For the financial year ended 31 December 2024 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements.

The members have not required the company to obtain an audit of its financial statements for the year in question in accordance with section 476.

The financial statements were approved by the board of directors and authorised for issue on 30 June 2025 and are signed on its behalf by:
30 June 2025
Director
Company registration number 11166265 (England and Wales)
LODGECREST HOLDINGS PLC
GROUP STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 14 -
Share capital
Other reserve
Profit and loss reserves
Total
Notes
£
£
£
£
Balance at 1 January 2023
50,004
99
52,923,966
52,974,069
Year ended 31 December 2023:
Profit and total comprehensive income
-
-
2,035,412
2,035,412
Dividends
11
-
-
(795,000)
(795,000)
Balance at 31 December 2023
50,004
99
54,164,378
54,214,481
Year ended 31 December 2024:
Profit and total comprehensive income
-
-
1,049,734
1,049,734
Dividends
11
-
-
(1,665,351)
(1,665,351)
Balance at 31 December 2024
50,004
99
53,548,761
53,598,864
LODGECREST HOLDINGS PLC
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 15 -
Share capital
Profit and loss reserves
Total
Notes
£
£
£
Balance at 1 January 2023
50,004
48,568,300
48,618,304
Year ended 31 December 2023:
Profit and total comprehensive income for the year
-
13,489
13,489
Dividends
11
-
(795,000)
(795,000)
Balance at 31 December 2023
50,004
47,786,789
47,836,793
Year ended 31 December 2024:
Profit and total comprehensive income
-
139,786
139,786
Dividends
11
-
(1,665,351)
(1,665,351)
Balance at 31 December 2024
50,004
46,261,224
46,311,228
LODGECREST HOLDINGS PLC
GROUP STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 16 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
29
3,317,728
3,233,258
Interest paid
(2,433,861)
(2,109,334)
Income taxes paid
(348,367)
(306,839)
Net cash inflow from operating activities
535,500
817,085
Investing activities
Purchase of tangible fixed assets
(43,241)
(208,953)
Proceeds from disposal of tangible fixed assets
10,498
603,474
Purchase of investment property
(3,449,187)
(2,061,087)
Proceeds from disposal of investment property
155,000
-
Proceeds from disposal of subsidiaries, net of cash disposed
(3)
-
Repayment of loans
779,757
-
Interest received
9,126
34,834
Net cash used in investing activities
(2,538,050)
(1,631,732)
Financing activities
Repayment of bank loans
3,625,000
1,650,000
Dividends paid to equity shareholders
(1,665,351)
(795,000)
Net cash generated from financing activities
1,959,649
855,000
Net (decrease)/increase in cash and cash equivalents
(42,901)
40,353
Cash and cash equivalents at beginning of year
401,457
361,104
Cash and cash equivalents at end of year
358,556
401,457
Relating to:
Cash at bank and in hand
498,969
401,457
Bank overdrafts included in creditors payable within one year
(140,413)
-
LODGECREST HOLDINGS PLC
NOTES TO THE GROUP FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 17 -
1
Accounting policies
Company information

Lodgecrest Holdings Plc (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is The Old Courthouse, 267-273 High Street, Dorking, Surrey, RH4 1RY.

 

The group consists of Lodgecrest Holdings Plc and all of its subsidiaries.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of investment properties. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

 

1.2
Business combinations

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

 

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

LODGECREST HOLDINGS PLC
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 18 -
1.3
Basis of consolidation

The consolidated financial statements incorporate those of Lodgecrest Holdings Plc and all of its subsidiaries (ie entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits).

 

All financial statements are made up to 31 December 2024.

 

All intra-group transactions, balances and unrealised gain on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred. Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

The company has taken advantage of the exemption under the terms of Financial Reporting Standard 102 not to disclose related party transactions with wholly owned subsidiaries within the group.

1.4
Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

1.5
Turnover

Turnover comprises proceeds from property sales, rental income generated from properties held as investments and fees for development of properties held by non-group companies.

 

Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes and is recognised on the following basis;

 

1.6
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Plant and equipment
25% on reducing balance, 15% on reducing balance and straight line over 15 years less RV
Fixtures and fittings
25% reducing balance and 15% reducing balance
Computers
33% on cost
Motor vehicles
25% on reducing balance

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

LODGECREST HOLDINGS PLC
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 19 -
1.7
Investment property

Investment properties are stated at fair value at each reporting date, in accordance with Section 16 of FRS 102. Changes in fair value are recognised in profit or loss in the period in which they arise. A full review of the fair value of the investment property portfolio is carried out at the year end. The review is led by M Bright, a director of the group responsible for land acquisitions and property sales, with extensive experience in the construction industry.

 

The fair value is determined as follows:

 

 

The directors consider that this valuation methodology provides a reliable estimate of fair value for the Group's investment properties in accordance with FRS 102.

No depreciation is provided. Changes in fair value are recognised in the profit and loss account for the period. Deferred taxation is provided on these changes at the rate expected to apply when the property is sold.

 

The Companies Act 2006 requires all properties to be depreciated. However this requirement conflicts with the generally accepted accounting principle set out in FRS 102. The directors consider that, because investment properties are not held for consumption, but for their investment potential, to depreciate them would not give a true and fair view.

 

If this departure from the Companies Act 2006 had not been made to give a true and fair view, the profit for the year would have been reduced by depreciation. However the amounts of depreciation cannot reasonably be quantified, because depreciation is only one of many factors reflected in the annual valuation and the amount relating to depreciation of the property cannot be separately identified.

1.8
Fixed asset investments

In the parent company financial statements, investments in subsidiaries are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

1.9
Impairment of fixed assets

At each reporting period end date, the group reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any).

 

The carrying amount of the investments accounted for using the equity method is tested for impairment as a single asset. Any goodwill included in the carrying amount of the investment is not tested separately for impairment.

LODGECREST HOLDINGS PLC
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 20 -

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

 

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

1.10
Work in Progress

Properties in the course of development are valued at the lower of direct costs and sales price. Direct cost comprises the cost incurred to date in respect of land and property purchases, development expenditure and all associated costs relating to the property. Net sales price is based on estimated selling price less further costs expected to be incurred to completion and disposal.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

1.11
Construction contracts

Revenue and costs are recognised by reference to the stage of completion of the contract activity at the balance sheet date to the extent that the outcome of the contract can be estimated reliably.

 

When it is probable that total contract costs will exceed total contract turnover, the expected loss is recognised as an expense immediately.

The “percentage of completion method” is used to determine the appropriate amount to recognise in a given period. The stage of completion is measured by the proportion of contract costs incurred for work performed to date compared to the estimated total contract costs,

 

Amounts recoverable on long-term contracts, which are included in debtors, are stated at the net sales value of the work done.

1.12
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.13
Financial instruments

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

LODGECREST HOLDINGS PLC
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 21 -
Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Impairment of financial assets

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

 

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. 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.

 

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Derecognition of financial assets

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Classification of 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 group after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

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

Derecognition of financial liabilities

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

1.14
Equity instruments

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

LODGECREST HOLDINGS PLC
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 22 -
1.15
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.16
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

1.17
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

LODGECREST HOLDINGS PLC
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 23 -
2
Judgements and key sources of estimation uncertainty

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Fair value of investment properties

At each year end, a full review of property valuations is carried out by M Bright, a director with the group responsibility for all land acquisitions and property sales. M Bright uses his extensive experience in the construction industry combined with current market data to make his assessment of property valuations. Valuations are carried out on the basis of comparable evidence of properties advertised for sale and Land Registry actual sales evidence.

 

Work in progress

The company incurs development costs in relation to site acquisition, design and early-stage planning. These costs are recognised as work in progress (WIP) within inventories when management judges the project to be commercially viable and the costs to be recoverable.

 

A key judgement is whether to capitalise such costs before planning permission is obtained. Management assesses whether it is probable that planning consent will be granted and the project will generate future economic benefits. Where there is sufficient expectation of success, costs are capitalised. Otherwise, they are expensed. WIP is reviewed at each reporting date, and costs are written off if planning approval becomes unlikely or the project is no longer viable.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Rental income and fees
5,799,512
4,848,072
2024
2023
£
£
Other revenue
Interest income
9,126
34,834
Commissions received
550
-
LODGECREST HOLDINGS PLC
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 24 -
4
Operating profit
2024
2023
£
£
Operating profit for the year is stated after charging/(crediting):
Depreciation of owned tangible fixed assets
72,783
77,188
Loss on disposal of tangible fixed assets
3,024
369,322
Profit on disposal of investment property
(26,250)
-
0
Operating lease charges
179,671
163,117
5
Auditor's remuneration
2024
2023
Fees payable to the company's auditor and associates:
£
£
For audit services
Audit of the financial statements of the group and company
20,000
5,300
Audit of the financial statements of the company's subsidiaries
-
16,700
20,000
22,000
For other services
Taxation compliance services
9,750
8,500
All other non-audit services
4,650
15,100
14,400
23,600
6
Employees

The average monthly number of persons (including directors) employed by the group and company during the year was:

Group
Company
2024
2023
2024
2023
Number
Number
Number
Number
Directors
3
3
3
3
Administration
13
12
-
-
Total
16
15
3
3
LODGECREST HOLDINGS PLC
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
6
Employees
(Continued)
- 25 -

Their aggregate remuneration comprised:

Group
Company
2024
2023
2024
2023
£
£
£
£
Wages and salaries
514,445
465,553
-
0
-
0
Social security costs
53,438
45,262
-
-
Pension costs
11,672
10,371
-
0
-
0
579,555
521,186
-
0
-
0
7
Directors' remuneration
2024
2023
£
£
Remuneration for qualifying services
90,011
76,698
8
Interest receivable and similar income
2024
2023
£
£
Interest income
Interest on bank deposits
9,126
17,242
Other interest income
-
17,592
Total income
9,126
34,834
9
Interest payable and similar expenses
2024
2023
£
£
Interest on bank overdrafts and loans
2,433,861
2,109,334
10
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
524,430
357,808
Adjustments in respect of prior periods
(19,000)
-
0
Total current tax
505,430
357,808
Deferred tax
Origination and reversal of timing differences
84,334
350,374
Total tax charge
589,764
708,182
LODGECREST HOLDINGS PLC
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
10
Taxation
(Continued)
- 26 -

The actual charge for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2024
2023
£
£
Profit before taxation
1,639,498
2,743,594
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.50%)
409,875
644,745
Tax effect of expenses that are not deductible in determining taxable profit
126,029
179,278
Tax effect of income not taxable in determining taxable profit
56,955
-
0
Permanent capital allowances in excess of depreciation
15,905
(4,547)
Under/(over) provided in prior years
(19,000)
-
0
Effect of revaluations on investments
-
0
(461,668)
Deferred tax
-
0
350,374
Taxation charge
589,764
708,182
11
Dividends
2024
2023
Recognised as distributions to equity holders:
£
£
Final paid
1,665,351
795,000
LODGECREST HOLDINGS PLC
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 27 -
12
Tangible fixed assets
Group
Plant and equipment
Fixtures and fittings
Computers
Motor vehicles
Total
£
£
£
£
£
Cost
At 1 January 2024
35,057
11,352
15,581
327,728
389,718
Additions
-
0
-
0
2,801
40,440
43,241
Disposals
(1,037)
(2,413)
(7,268)
(25,402)
(36,120)
At 31 December 2024
34,020
8,939
11,114
342,766
396,839
Depreciation and impairment
At 1 January 2024
18,450
8,658
10,144
123,498
160,750
Depreciation charged in the year
4,002
530
2,180
66,071
72,783
Eliminated in respect of disposals
(436)
(1,840)
(5,636)
(14,686)
(22,598)
At 31 December 2024
22,016
7,348
6,688
174,883
210,935
Carrying amount
At 31 December 2024
12,004
1,591
4,426
167,883
185,904
At 31 December 2023
16,607
2,694
5,437
204,230
228,968
The company had no tangible fixed assets at 31 December 2024 or 31 December 2023.
13
Investment property
Group
Company
2024
2024
£
£
Fair value
At 1 January 2024
96,329,212
-
Additions through external acquisition
3,449,187
-
Disposals
(128,750)
-
Net gains or losses through fair value adjustments
191,899
-
At 31 December 2024
99,841,548
-

The fair value of the investment property has been arrived at on the basis of a valuation carried out at 31 December 2024 by the directors. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.

If investment properties were stated on an historical cost basis rather than a fair value basis, the amounts would have been included as follows:
Group
Company
2024
2023
2024
2023
£
£
£
£
Cost
56,053,257
52,732,809
-
-
LODGECREST HOLDINGS PLC
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 28 -
14
Fixed asset investments
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Investments in subsidiaries
15
-
0
-
0
3
6
Movements in fixed asset investments
Company
Shares in subsidiaries
£
Cost or valuation
At 1 January 2024
6
Disposals
(3)
At 31 December 2024
3
Carrying amount
At 31 December 2024
3
At 31 December 2023
6
15
Subsidiaries

Details of the company's subsidiaries at 31 December 2024 are as follows:

Name of undertaking
Address
Nature of business
Class of
% Held
shares held
Direct
Lodgecrest Investments Limited
1
Property investment
Ordinary
100.00
Lodgecrest Developments Limited
1
Property investment & development
Ordinary
100.00
Pure Resi Limited
1
Property investment
Ordinary
100.00

Registered office addresses (all UK unless otherwise indicated):

1
The Old Courthouse, 267-273 High Street, Dorking, Surrey, United Kingdom, RH4 1RY

As of reporting date, an assessment of the subsidiary's assets and liabilities has been conducted. The assets are being realised, and liabilities are being settled in accordance with the applicable legal and regulatory requirements.

16
Stocks
Group
Company
2024
2023
2024
2023
£
£
£
£
Work in progress
811,020
209,268
-
-
LODGECREST HOLDINGS PLC
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 29 -
17
Debtors
Group
Company
2024
2023
2024
2023
Amounts falling due within one year:
£
£
£
£
Trade debtors
114,874
56,041
-
0
-
0
Corporation tax recoverable
6,383
-
0
6,383
-
0
Amounts owed by group undertakings
-
-
70,952,262
70,087,483
Other debtors
62,915
839,166
2,199
779,505
Prepayments and accrued income
156,513
235,824
-
0
-
0
340,685
1,131,031
70,960,844
70,866,988
18
Creditors: amounts falling due within one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
20
140,413
31,850,000
-
0
-
0
Trade creditors
86,010
60,302
18,068
-
0
Amounts owed to group undertakings
-
0
-
0
25,119,746
23,367,750
Corporation tax payable
480,813
317,808
6,383
3,665
Other taxation and social security
33,175
51,962
-
-
Deferred income
605,004
-
0
-
0
-
0
Other creditors
631,969
543,481
-
0
-
0
Accruals and deferred income
100,010
819,809
2,235
81
2,077,394
33,643,362
25,146,432
23,371,496
19
Creditors: amounts falling due after more than one year
Group
Company
2024
2023
2024
2023
Notes
£
£
£
£
Bank loans and overdrafts
20
35,475,000
-
0
-
0
-
0
LODGECREST HOLDINGS PLC
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 30 -
20
Loans and overdrafts
Group
Company
2024
2023
2024
2023
£
£
£
£
Bank loans
35,475,000
31,850,000
-
0
-
0
Bank overdrafts
140,413
-
0
-
0
-
0
35,615,413
31,850,000
-
-
Payable within one year
140,413
31,850,000
-
0
-
0
Payable after one year
35,475,000
-
0
-
0
-
0

The long-term loans are secured by fixed and floating charges over the assets in the following companies:

 

- Lodgecrest Holdings Plc

- Lodgecrest Investments Limited

- Pure Resi Limited

The loan is interest only at a fixed rate over SONIA and is due for repayment in 2027.

21
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

Liabilities
Liabilities
2024
2023
Group
£
£
Tax losses
(8,853)
-
Revaluations
139,218
-
Investment property
10,396,503
10,442,093
10,526,868
10,442,093
Liabilities
Liabilities
2024
2023
Company
£
£
Tax losses
(8,853)
-
LODGECREST HOLDINGS PLC
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
21
Deferred taxation
(Continued)
- 31 -
Group
Company
2024
2024
Movements in the year:
£
£
Liability at 1 January 2024
10,442,093
-
Charge to profit or loss
93,628
-
Effect of change in tax rate - profit or loss
(8,853)
(8,853)
Liability/(Asset) at 31 December 2024
10,526,868
(8,853)

The deferred tax liability set out above is not expected to reverse within 12 months.

22
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
11,672
10,371

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

23
Share capital
Group and company
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
50,004
50,004
50,004
50,004

The shares carry full voting, dividend and capital distribution (including on winding up) rights. They do not confer any rights of redemption.

24
Reserves
Profit and loss reserves

The profit and loss reserve of the group includes an amount of £56,568,600 (2023: £54,164,378) in respect of the revaluation of the investment properties. This amount is not distributable.

 

The £99 other reserve (2023: £99) is in respect of a merger reserve that was created upon the group reorganisation in 2018.

25
Disposals

On 24 September 2024 Lodgecrest Asset Management Ltd, which was controlled by Lodgecrest Holdings Plc, was dissolved. There is no profit or loss included in the year to 31 December 2024 or the year to 31 December 2023 relating to the disposal or the performance of Lodgecrest Asset Management Ltd.

LODGECREST HOLDINGS PLC
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 32 -
26
Operating lease commitments

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
93,813
66,896
53,813
26,896
Between two and five years
85,858
96,221
45,858
16,221
179,671
163,117
99,671
43,117
Lessor

At the reporting end date the group had contracted with tenants for the following minimum lease payments:

Group
Company
2024
2023
2024
2023
£
£
£
£
Within one year
3,299,854
3,583,161
-
-
Between two and five years
1,147,582
-
-
-
4,447,436
3,583,161
-
-
27
Related party transactions
Transactions with related parties

During the year the group entered into the following transactions with related parties:

Sales
Sales
Purchases
Purchases
2024
2023
2024
2023
£
£
£
£
Group
Pension Fund
127,908
101,445
266,750
-
Remuneration
2024
2023
£
£
Group
Other related parties
150,000
111,875
28
Directors' transactions

At the year end the directors owed the group £Nil (2023: 777,662). The loan is repayable upon demand and interest of £Nil (2023: £17,592) has been charged by the group on the outstanding balance at a rate of 2.75% per annum.

LODGECREST HOLDINGS PLC
NOTES TO THE GROUP FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 33 -
29
Cash generated from group operations
2024
2023
£
£
Profit after taxation
1,049,734
2,035,412
Adjustments for:
Taxation charged
589,764
708,182
Finance costs
2,433,861
2,109,334
Investment income
(9,126)
(34,834)
Loss on disposal of tangible fixed assets
3,024
369,322
Gain on disposal of investment property
(26,250)
-
0
Fair value gain on investment properties
(191,899)
(1,964,542)
Depreciation and impairment of tangible fixed assets
72,783
77,188
Other gains and losses
3
-
Movements in working capital:
Increase in stocks
(601,752)
(70,635)
Decrease in debtors
16,972
378,928
Decrease in creditors
(624,390)
(375,097)
Increase in deferred income
605,004
-
Cash generated from operations
3,317,728
3,233,258
30
Analysis of changes in net debt - group
1 January 2024
Cash flows
31 December 2024
£
£
£
Cash at bank and in hand
401,457
97,512
498,969
Bank overdrafts
-
0
(140,413)
(140,413)
401,457
(42,901)
358,556
Borrowings excluding overdrafts
(31,850,000)
(3,625,000)
(35,475,000)
(31,448,543)
(3,667,901)
(35,116,444)
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