The director presents the strategic report for the year ended 31 December 2024.

KOKO reopened in April 2022 after an extensive redevelopment, and now includes state-of-the-art broadcast facilities, three restaurants, multiple bars, a recording studio, and several performance spaces, including a fully restored 1,600-capacity Victorian theatre. The House of KOKO, a dynamic members' club, is integrated with the main theatre and offers an enhanced entertainment experience with music, electronic, and cultural programming. Notable features include a cocktail bar in the iconic copper dome, a roof garden, terrace, penthouse studio, jazz club, piano room, stage kitchen, and vinyl listening rooms.

In 2023, KOKO was awarded UK Venue of the Year at the UK Live Awards and shortlisted for the Best Venue award at the BBC Radio 1 Dance Awards 2024.

The year ended 31 December 2024 marked the second full trading year for The Hope Lease Limited. Despite challenging macro-economic conditions, the Company achieved significant growth and delivered a strong financial performance.

Turnover for 2024 reached £26.7M (2023: £23.3M), reflecting a 14.7% increase compared to the previous year.

The year featured a wide range of high-profile events, including residencies with Thundercat, Berlioz, and Jungle, and performances by Snow Patrol, Burna Boy, Pet Shop Boys, Halsey, Francis Mercier, Marco Carola, Dixon, Camelphat, and John Summit. Strong demand for KOKO Electronic events further solidified the brand's presence in the late-night electronic music industry, despite broader economic inflationary pressures.

There was an exceptional gain of £9.1M in the period arising from an insurance claim.

Position of the Business at the End of the Year

The Company reports a profit of £5.3M (2023: loss of £7.3M). The Company retains a healthy cash reserve, primarily comprising advanced payments for future commitments, with cash at bank and in hand standing at £3.5M (2023: £1.6M).

The Directors are confident that the company has adequate resources to meet its obligations as they arise.

Systems and procedures are in place to identify, assess and mitigate major business risks that could impact the company. Monitoring exposure to risk and uncertainty is an integral part the Board and Senior management structure and process.

Liquidity and cash flow

Liquidity and cash flow are reviewed regularly by the Board and Senior Management. The company is considered to have sufficient resources to continue operations. As outlined in note 17 of the financial statements, the company secured £1.45M in additional funding during the year to bridge the gap between 2024 and an expected business interruption insurance claim, which was received in February 2025.

Other risks

Other principal risks the company faces are operational risks, economic risks, recruitment and retention of staff.

The Company tracks several KPIs, including the number of theatre events, theatre attendance, turnover, gross profit, and profit/loss before tax. Key performance metrics for 2024 include:

The Directors of The Hope Lease Limited are committed to fulfilling their duties as outlined in Section 172 of the UK Companies Act 2006.

In a large organisation like ours, the Directors delegate day-to-day decision-making to the Company's senior employees through an established governance framework.

In their decision-making processes, the Board of Directors carefully considers the potential impact on key stakeholders while balancing broader concerns, such as the long-term sustainability of the business and responsible operational practices. Through open and transparent communication with stakeholders, the Directors have gained a deep understanding of their needs and expectations, which has informed the Company's strategic direction.

The Board confirms that during the year ended 31 December 2024, the Directors acted in a manner they believe, in good faith, was most likely to promote the Company's success for the benefit of its members and stakeholders.

Engagement with suppliers, customers and others

The Board recognises that fostering strong relationships with stakeholders, including suppliers and customers, is essential to the Company's success. The Directors maintain active visibility over these relationships, ensuring stakeholder considerations are taken into account when making decisions.

KOKO, one of London's iconic music venues, plays a key role in the success of the Company. The venue's relationships with artists, promoters, House of KOKO members, suppliers, fans, and the local community are integral to the delivery of the Company's strategic plan. By focusing on connecting artists with their audiences and creating memorable experiences, the Company continues to build and maintain productive partnerships with stakeholders, which drives the promotion of world-class events and the achievement of our objectives.

Engagement with employees

The Company is committed to investing in its employees, believing that a well-supported workforce contributes positively to the business. The Directors engage with employees through various channels, ensuring clear communication on strategic matters and providing training opportunities to foster both professional and personal growth.

In addition to informal discussions, formal feedback is regularly gathered to improve work-life balance and workplace culture. The Company also supports flexible working arrangements where possible, enhanced family leave benefits, encourages open discussions on employee wellbeing, and invests into an Employee Assistance Program. The Company also hosts an annual Vision and Values day open to all employees to help guide our strategic direction and commitment to high standards of business conduct.

Social Impact through Music and Sustainability

As part of Company commitment to the environment and community principles, KOKO Foundation (registered charity number 1199564) continues to drive meaningful social impact through music and culture. The Foundation's primary mission is to empower and support underserved communities by providing access to music education, mentorship programs, and creative opportunities for young people.

By 31 December 2024, the Company had contributed over £188K to the Foundation, helping to plant 40% of new trees in Camden, establish the Borough of Camden's first fruit orchards, and run music academies with Grammy and Mercury Prize-winning artists. These initiatives form a core part of the Company's ESG strategy, focusing on environmental sustainability and empowering disadvantaged youth through music and arts education. Through this continued support of the KOKO Foundation, the Company aligns its core values with a broader commitment to community engagement and sustainability.

Future developments

The Directors anticipate continued growth in 2025, driven by a robust pipeline of electronic and live events, advance corporate bookings, a sponsorship agreement with Coca-Cola, and increased membership offerings. Plans for 2025 include securing new contracts and partnerships, launching new packages and membership perks, and investing in technology to enhance service delivery. These initiatives align with the Company's strategic goals and are expected to contribute to further financial performance improvements.

In 2024, The Hope Lease Limited delivered strong results despite a challenging macroeconomic environment. The Directors are confident in the Company's strategic direction and remain optimistic about continued growth in the years to come.

On behalf of the board

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

The principal activity of the company was the redevelopment and operation of live entertainment venue and premium hospitality space trading as KOKO in Camden, London.

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

No ordinary dividends were paid. The director does not recommend payment of a final dividend.

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

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the company continues and that the appropriate training is arranged. It is the policy of the company that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

The company's policy is to consult and discuss with employees, through unions, staff councils and at meetings, matters likely to affect employees' interests.

Information about matters of concern to employees is given through information bulletins and reports which seek to achieve a common awareness on the part of all employees of the financial and economic factors affecting the company's performance.

There is no employee share scheme at present, but the directors are considering the introduction of such a scheme as a means of further encouraging the involvement of employees in the company's performance.

In accordance with the company's articles, a resolution proposing that Moore Kingston Smith LLP be reappointed as auditor of the company will be put at a General Meeting.

In accordance with the UK Government Streamlined Energy and Carbon Reporting (SECR) Guidelines (March 2019), this company qualifies for an exemption from SECR disclosures as it is a subsidiary included in the consolidated SECR reporting of its parent company, Obar Camden Holdings Limited.

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 company’s auditor 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 company’s auditor is aware of that information.

The director is responsible for preparing the annual 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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 and then apply them consistently;

• make judgements 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 enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

We have audited the financial statements of The Hope Lease Limited (the 'company') for the year ended 31 December 2024 which comprise the Statement of Comprehensive Income, the Balance Sheet, the Statement of Changes in Equity 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 FRS 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 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 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.

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 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:

• 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.

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.

As explained more fully in the Director's Responsibilities Statement, 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 has no realistic alternative but to do so.

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.

As part of an audit in accordance with ISAs (UK) we exercise professional judgement and maintain professional scepticism throughout the audit. We also:

• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the company’s internal control.

• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

• Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern.

• Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

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.

The objectives of our audit in respect of fraud, are; to identify and assess the risks of material misstatement of the financial statements due to fraud; to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud, through designing and implementing appropriate responses to those assessed risks; and to respond appropriately to instances of fraud or suspected fraud identified during the audit. However, the primary responsibility for the prevention and detection of fraud rests with both management and those charged with governance of the company.

Our approach was as follows:

• We obtained an understanding of the legal and regulatory requirements applicable to the company and considered that the most significant are the Companies Act 2006, UK financial reporting standards as issued by the Financial Reporting Council, and UK taxation legislation.

• We obtained an understanding of how the company complies with these requirements by discussions with management and those charged with governance.

• We assessed the risk of material misstatement of the financial statements, including the risk of material misstatement due to fraud and how it might occur, by holding discussions with management and those charged with governance.

• We inquired of management and those charged with governance as to any known instances of non-compliance or suspected non-compliance with laws and regulations.

• Based on this understanding, we designed specific appropriate audit procedures to identify instances of non-compliance with laws and regulations. This included making enquiries of management and those charged with governance and obtaining additional corroborative evidence as required.

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

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.

The Statement of Comprehensive Income has been prepared on the basis that all operations are continuing operations.

The Hope Lease Limited is a private company limited by shares incorporated in England and Wales. The registered office is 3rd Floor, 7 Greenland Street, London, United Kingdom, NW1 0ND.

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. The principal accounting policies adopted are set out below.

This 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:

• Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

• Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.

The financial statements of the company are consolidated in the financial statements of Obar Camden Holdings Limited. These consolidated financial statements are available from its registered office, 3rd Floor, 7 Greenland Street, London, United Kingdom, NW1 0ND.

The Company made a profit of £5,334,003 (2023 loss of £7,283,470) in the year and had net liabilities of £22,541,338 (2023: £27,875,241) at 31 December 2024. The financial statements have been prepared on a going concern basis having given due consideration to the Company profit and forward-looking projections.

On 29 April 2022, the business reopened for trading after a major three-year redevelopment project which had been delayed due to a fire part way through the construction in January 2020. Following the successful relaunch, the business made losses in its first year and continued to be trading loss making in the current year excluding the proceeds expected from an insurance claim at the year end. As of the date of signing of the financial statements the business has remained trading loss making but has achieved positive EBITDA for six out of seven prior months.

The directors have prepared a detailed cash flow forecast for a period of at least twelve months from the date of approval of these financial statements for the Company which indicate based on trading, facilities available and insurance proceeds, the group will have sufficient working capital to meet its liabilities as they fall due for that period. The Group’s investment partners have also confirmed their ongoing support in relation to existing finance for the business for a period of at least 12 months from the date of approval of these financial statements.

As at date of signing, the Company held a cash balance of £1.9 million. In addition, the Group has made significant progress in deleveraging, having repaid over £4 million in loans and accrued interest post year-end. No further funding is expected or required from investment partners during the forecast period.

Based on the above, the directors consider it appropriate to prepare the financial statements on a going concern basis.

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

When cash inflows are deferred and represent a financing arrangement, the fair value of the consideration is the present value of the future receipts. The difference between the fair value of the consideration and the nominal amount received is recognised as interest income.

The Company’s revenues are mainly derived from food and beverage and related services provided to customers, membership income, sale of tickets for music events and related services to the customers and sponsorship income.

Food and beverage

Revenue is recognised at the time of sale within the Members’ Club and the Music Venue. This is recorded net of tax, tips, and service charge.

Membership and patron memberships

Memberships are paid in advance monthly, annually or for a period of 10 years. Therefore, the revenue is deferred and recognised on a monthly basis over the total membership period. Joining fees received relate to the administration fees and therefore are recognised as revenue on commencement of membership.

Event related sales

Ticket sales are received in advance of the event and are deferred until the event has taken place. They are recognised as income on maturity of the relevant event.

Sponsorship income

When Sponsorship income is received in relation to a specific event, this is deferred and released when the sponsored event takes place. Sponsorship income is received in relation to a Partnership across a specified period, this is deferred and released as revenue monthly over the total agreed period.

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:

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 credited or charged to profit or loss.

No depreciation is charged while an asset is under construction.

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.

All other borrowing costs are recognised in profit or loss in the period in which they are incurred.

At each reporting period end date, the company 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). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

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 (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) 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 (or cash-generating unit) 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 (or cash-generating unit) 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.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

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.

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.

The company 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 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, 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.

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.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company 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.

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 deducting all of its 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.

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

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.

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

Equity instruments issued by the company 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 company.

The component parts of compound instruments issued by the company are classified separately as financial liabilities and equity in accordance with the substance of the contractual arrangement. At the date of issue, the fair value of the liability component is estimated using the prevailing market interest rate for a similar non-convertible instrument. This amount is recorded as a liability on an amortised cost basis using the effective interest method until extinguished upon conversion or at the instrument's maturity date. The equity component is determined by deducting the amount of the liability component from the fair value of the compound instrument as a whole. This is recognised and included in equity net of income tax effects and is not subsequently remeasured.

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.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

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

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

In the application of the company’s accounting policies, the director is 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.

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

The annual depreciation charge for property, plant and equipment is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are re-assessed annually. They are amended when necessary to reflect current estimates, based on technological advancement, future investments, economic utilisation and the physical condition of the assets. See note 10 for the carrying amount of the property, plant and equipment.

The company holds artwork valued at cost, which includes the acquisition price and any directly attributable costs necessary to bring the asset to its current location and condition for use. In line with company policy and the directors' judgement, no depreciation is charged on the artwork as it is considered to have an indefinite useful life. Currently, there is no revaluation policy in place. Future revaluation, if deemed appropriate, will be conducted in accordance with FRS 102, which allows for assets to be revalued to fair value. The directors continue to monitor the appropriateness of this judgement and will review the need for revaluations or impairment in accordance with FRS 102 as part of the company’s ongoing assessment process.

All turnover has been generated in the UK.

Further information on the insurance proceeds are included in note 20.

The amounts paid out to other parties is in relation to an agreement which is linked to the outcome of the insurance claim.

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

Their aggregate remuneration comprised:

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2023 - 1).

As total directors' remuneration was less than £200,000 in the current year, no disclosure is provided for that year.

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

At the year end, there is an unrecognised deferred tax asset of £8.3m (2024: £9.6m).

There are £30.1m (2023: £35.1m) of losses carried forward upon which there is no deferred tax asset recognised.

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

Long term loans held in the Group have fixed and floating charges over the assets of The Hope Lease Limited, and its parent company, Obar Camden Holdings Limited.

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

The company has taken exemption under section 33 Related Party Disclosures paragraph 33.1A from disclosing transactions with other members of a wholly owned group.

During the year, the company made purchases of £nil (2023: £20,604) from Mint Group Holdings Limited, a related party by virtue of common control.

During the year, the company made donations of £188,000 (2023: £96,665) to KOKO Foundation, a related party by virtue of common control. During the year the company incurred costs on behalf of KOKO Foundation of £nil (2023: £94,244). At the year-end the company owed £80,210 (2023: £14,462).

During the year, the company made sales of £11,000 (2023: £nil) and purchases of £nil (2023: £68,000) from Skiff Capital Advisors Limited, a related party by virtue of common control. At the balance sheet date, the company owed £nil (2023: £33,600).

During the year, the company made sales of £nil (2023: £5,904) and purchases of £nil (2023: £10,000) to Sister Group Limited, a related party by virtue of common control.

During the year, the company made sales of £4,167 (2023: £nil) to a director of Sister Group Limited.

At the year end, the company owed an amount of £nil (2023: £2,787) to director O Bengough.

In January 2020, the company suffered fire damage and subsequently pursued a legal claim against its insurance broker, alleging professional negligence in the advice provided in relation to the company’s insurance arrangements.

At the reporting date, the directors assessed the most probable outcome of the claim to be £12,500,000, which was recognised as a receivable in the financial statements.

Subsequent to the year end, in February 2025, the company received a final settlement of £14,500,000 in full and final resolution of the claim. As this settlement occurred after the reporting date and reflects conditions that arose after year end, it is considered a non-adjusting post balance sheet event under FRS 102 Section 32. The additional £2,000,000 will be recognised in the financial statements for the year ending 31 December 2025.

In addition, post year end, loans totalling £3,152,326 were repaid in full by the company.

The company is controlled by Obar Camden Holdings Limited, its immediate and ultimate parent company, a company registered in England and Wales.

A copy of the group's consolidated financial statements can be obtained from the registered office of Obar Camden Holdings Limited: 3rd Floor, 7 Greenland Street, London, NW1 0ND

The ultimate controlling party is O Bengough, by virtue of his majority voting shareholding in Obar Camden Holdings Limited.