Company registration number 09066663 (England and Wales)
ABQ INVESTMENT UK LTD
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
ABQ INVESTMENT UK LTD
COMPANY INFORMATION
Director
Shiekh A Al Thani
Company number
09066663
Registered office
27 East Overcliff Drive
Bournemouth
Dorset
BH1 3AF
Auditor
Alliotts LLP
Manfield House
1 Southampton Street
London
WC2R 0LR
Business address
27 East Overcliff Drive
Bournemouth
Dorset
BH1 3AF
ABQ INVESTMENT UK LTD
CONTENTS
Page
Strategic report
1 - 4
Director's report
5
Independent auditor's report
6 - 8
Statement of comprehensive income
9
Statement of financial position
10
Statement of changes in equity
11
Statement of cash flows
12
Notes to the financial statements
13 - 25
ABQ INVESTMENT UK LTD
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 1 -

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

Fair Review of the Business

The principal activity of the group is the operation and management of the Oceana Hotels resort complex in Bournemouth that consists of three hotels; The Cumberland, The Suncliff, and Ocean Beach (formerly Cliffeside) providing a total contribution of 285 bedrooms. All hotels and outlets are on one site. The complex offers several food and beverage outlets encompassing The Ventana, The Overcliff Pub and The Italian Café, serving residents and the local community with the addition of Yoga Club and part of the squash court turned into gym. Locally the business has corporate, food and beverage and function and events business. The business mix is diverse with all properties attracting leisure, corporate and group accommodation business. Each of the hotels has a unique style, and although all are resort hotels, each hotel appeals to slightly different market sectors. The business model is to operate full-service hotels that offer different facilities, appeal to different market segments and remain diverse and able to expand or contract to achieve success during different seasons and industry changes. An emphasis on good facilities and food and beverage options to drive growth are also key. The UK Hospitality sector market has been impacted by the Russia and Ukraine War and high inflationary cost has impact the overall demand to reduce. Main challenge during the year was sourcing of supplies from Europe and splintered labour market leading to both, recruitment and retention challenges across all industry sectors, particularly hospitality. Despite the challenges faced by the business, it has been able to adapt to an ever- changing environment, the director is satisfied with the results and performance for the year. As an established resort business, the business strategy is set out as follows: Diversify the guest profile within the business to ensure risks are minimised. Maintain and improve a local reputation in all outlets and events to ensure this revenue stream remains robust. Develop our facilities and up selling to maximise the guest spend per head and improved guest experience. Operate as a modern company that respects and rewards staff of all diversities and cultures, to ensure we are all part of a winning team. Foresee and predict changes to the industry and remain ahead of the competition in terms of marketing and technology and ensure continuity of alternative revenue and supply resources. Maintain and improve the properties to ensure sustainability in the seasonal seaside resort market for years to come. Constantly training and motivating the team to focus on the customer service excellence to promote loyalty with our return and local business guests and ensure we go the extra mile to stay ahead of our competitors. Constantly implement technological advancements in order to keep up to the pace with modern operational and commercial requirements resulting in better and improved revenue management and yield strategies.

ABQ INVESTMENT UK LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 2 -
Principal Risks and Uncertainties

The principal risks to the business during the year 2024 have been the following: The UK is currently in a period of well understood economic uncertainty with the rising cost, Staff shortages & retention, change in customer expectation and significant regulatory and other inflationary cost pressures. After a gradual return to normality post Covid-19 pandemic, UK and Europe have found themselves on the verge of inflation crises and War between Russia and Ukraine has led to the shortfall of major food supplies. This caused uncertainty amongst the guests/clients and became a prime driver of loss of revenue during the year, resulting in suppressed ADR and reduced occupancy as compared to previous years. The directors have monitored the situation closely and reacted to minimise the impact of these risks, including the limiting of discretionary spend along with finding alternate supplies and resources. Impact of Brexit on travel and staff resources, in particular chefs and Restaurant Staff, due to a reduction in available EU nationals. This is anticipated to impact payroll costs adversely in the future as a result of increased competition for key staff within the industry. New Hotel openings in Bournemouth, specifically upmarket hotel chain openings in the area, and the improvement and upgrade of the competition set. Recent shifts in pricing strategy by close competitors choosing to reduce their ADR to increase occupancy. Budget hotel chains which drive down the average ADR in Bournemouth, with almost 1000 plus rooms in town. Decline of ABQ’s tour business as a market segment. Provided we continue to improve our product and guest experience this could be an opportunity. Introduction of apartments for hire by large OTAs such as Booking.com and Expedia have diluted the traffic being received through these channels to the business. This segment does seem to have grown substantially in the last few months and continues to do so which does predict a shift in selling strategy by the big players as mentioned before. Principal risks going forward into 2025 are similar to the ones highlighted for 2024 with additional risks including the introduction of Visitor charge (currently on hold), increase in minimum wage along with revised age brackets, the rise of online accommodation booking agents, the rental of student lets outside of term time as guest accommodation thus creating more cheap room inventory in the town and the increase in prices on imported goods as a result of the War between Ukraine & Russia, lack of staff due to foreign travel and viruses outbreaks. Despite the above challenges faced by the business the director, remains confident in the long-term fundamentals of the market, in which business operates and do not believe that the outbreak/War will impact the viability of the business in the long term.

ABQ INVESTMENT UK LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 3 -
Development and Performance

Despite the risks faced by the business and industry as a whole, the business has seen adverse effects of inflationary pressure in 2024 but still considers that Oceana hotels has performed sustainably in 2024 with 3% decrease in top line Revenue and GP% due to reduced Occupancy. ADR increased as compared to 2023 due to improved ratings and level of service.

For the year ended 31 December 2024:

- The Cumberland average ADR finished at £102.62 with average occupancy of 59%

- The Suncliff average ADR finished at £70.59 with average occupancy of 62%

- The Ocean Beach average ADR finished at £65.23 with average occupancy of 57%

Cumberland still performs well and remains the cash cow of the group. Future improvements to bedrooms at Cumberland and Suncliff have proved that the company remains strong through challenges in 2024.

There has also been measured development in the senior team structure, and the responsibilities they have in maintaining and developing the business.

The business has also provided and funded training opportunities to staff at all levels including in-house customer service training, NVQ’s, National Coastal Tourism Academy training and Master Classes and systems training which has encouraged personal development of the team.

Less demand due to high inflationary pressure and weak UK economy’s overall growth has impacted the business. However business remains hopeful that it will grow and prosper as soon as the situation changes.

It’s difficult to manage the cost of sales due to hyperinflation and increased payroll costs, however the business remains committed to making prioritised and structured, improvements in order to ensure minimum impact on revenues and profits.

Key Performance Indicators

The key performance indicators of the business are as follows: Trip advisor scores have been maintained or improved in relation to the guest experience. Staff retention at a senior level of Head of Department and above has remained stable. Revenue has experienced a dip due to reduced demand of occupancy in Hospitality sector during 2024. Gross Profits also suffered the impact of reduced economic growth and demand remains being low as compared to previous years. Overall performance if apportioned between operating and non-operating period, has been very promising. Attention to environmental performance has seen an increase in replacement of lighting to LED in many public areas and bedrooms, continued replacement of old gas appliances and boilers with more efficient models and more efficient waste collection and management. The company has signed with various green energy suppliers for its utility’s procurement. Food GP% and Bar GP% are in line with industry average as there is a upward shift because of high F&B Prices. We have had challenges with recruitment because of less availability of skilled workers in the industry.

ABQ INVESTMENT UK LTD
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 4 -
Future developments and performance

Resort Hotel trading generally has the same risks year on year as have been highlighted in the principal risks and uncertainties faced by the business. Future risks not evident in 2024 are without doubt the introduction of Visitor charge by ABID, high rate of Inflation, hike in energy prices due to war and shortage of supplies, the consequences of this may include recession, shortage of employees and a slowdown in demand resultant of consumer confidence and fear of the global recession.

As a company that has weathered previous recession with robust profits, we are primed and ready to strategies accordingly to minimise any effects resulting due to an economic downturn. With an effective sales and marketing team, and operational managers that are experienced in reducing costs due to seasonal trends, the business is in a strong position and is prepared to strategies accordingly should it face challenges in relation to any future period of recession or economic downturn.

We are working towards negating any impact with improvements to the properties, mainly through the refurbishment of bedrooms and further development of the outlets to increase local trade and retain guest loyalty. This will of course come at a cost, but a cost that without doubt will provide a return on investment in the coming years. Should the future of hospitality in our location remain strong, we will be primed to further improve on our top line figures and stay ahead of our competitive set.

Providing opportunities for staff and encouraging the team to work as one to achieve Key Performance Objectives (KPO’s) will also strengthen the business, and ensure any impact on the business due to Brexit will be nominal but the impact of Covid-19 pandemic is yet to be measured and difficult to calculate. We have already seen a healthy desire in the senior team to achieve KPO’s set by the business and maintain our success once normal operations resume. The diversity and inclusiveness of our staff shows that the business is modern thinking which projects onto our guest demographic. We offer staff support and assistance on a personal level, provide healthy meals on duty to all staff, and ensure our zero-tolerance discrimination and bullying policy is encrypted within the staff handbook and contracts.

The business will continue to provide and fund training opportunities to staff at all levels including in-house customer service training, NVQ’s, National Coastal Tourism Academy training and Master Classes and systems training.

As a leading business within the town, we have been working very hard to ensure the future employability of all our staff and have been constantly looking for ways to engage with the staff in order to ensure their welfare throughout the year. We have been working very closely with the local government and all local stakeholders in order to find different ways through which the hospitality industry can survive during these difficult times and remain confident that our businesses remain viable and ready to achieve success for when allowed to operate again.

On behalf of the board

Shiekh A Al Thani
Director
18 August 2025
ABQ INVESTMENT UK LTD
DIRECTOR'S REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024
- 5 -

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

Principal activities

The principal activity of the company is that of the management and operation of hotels.

Director

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

Shiekh A Al Thani
Results and dividends

The results for the year are set out on page 9.

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

Statement of director's responsibilities

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; and

- 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.

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 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.

On behalf of the board
Shiekh A Al Thani
Director
18 August 2025
ABQ INVESTMENT UK LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ABQ INVESTMENT UK LTD
- 6 -
Opinion

We have audited the financial statements of ABQ Investment UK Ltd (the 'company') for the year ended 31 December 2024 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity, the 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:

- give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its loss 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 r eport 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.

ABQ INVESTMENT UK LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ABQ INVESTMENT UK LTD (CONTINUED)
- 7 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identifie d material misstatements in the strategic report or the director's r eport.

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

- adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or

- the financial statements are not in agreement with the accounting records and returns; or

- certain disclosures of director's remuneration specified by law are not made; or

- we have not received all the information and explanations we require for our audit.

Responsibilities of director

As explained more fully in the director's r esponsibilities s tatement, 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.

Auditor's responsibilities for the audit of the financial statements

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

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

- the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

- we identified the laws and regulations applicable to the company through discussions with directors and other management, and from our commercial knowledge and experience of the hospitality sector;

- we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the company, including the Companies Act 2006, taxation legislation and data protection, anti-bribery, employment, environmental and health and safety legislation;

- we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

- identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

- making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;

- considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations; and

- understanding the design of the company’s remuneration policies.

ABQ INVESTMENT UK LTD
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ABQ INVESTMENT UK LTD (CONTINUED)
- 8 -

Audit response to risks identified
To address the risk of fraud through management bias and override of controls, we:

- performed analytical procedures to identify any unusual or unexpected relationships;

- tested journal entries to identify unusual transactions;

- assessed whether judgements and assumptions made in determining the accounting estimates were indicative of potential bias; and

- investigated the rationale behind significant or unusual transactions.

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

- agreeing financial statement disclosures to underlying supporting documentation;

- inspecting food safety inspection reports and discussion of these with management;

- enquiring of management as to actual and potential litigation and claims; and

- reviewing correspondence with HMRC, relevant regulators and the company’s legal advisors

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
29 August 2025
ABQ INVESTMENT UK LTD
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024
- 9 -
2024
2023
Notes
£
£
Revenue
3
8,787,715
9,015,614
Cost of sales
(1,134,804)
(1,271,219)
Gross profit
7,652,911
7,744,395
Administrative expenses
(8,974,712)
(8,462,744)
Operating loss
5
(1,321,801)
(718,349)
Investment income
7
8,869
8,869
Finance costs
8
(630,000)
(630,000)
Loss before taxation
(1,942,932)
(1,339,480)
Taxation
9
-
0
-
0
Loss for the financial year
(1,942,932)
(1,339,480)

The income statement has been prepared on the basis that all operations are continuing operations.

ABQ INVESTMENT UK LTD
STATEMENT OF FINANCIAL POSITION
AS AT
31 DECEMBER 2024
31 December 2024
- 10 -
2024
2023
Notes
£
£
£
£
Non-current assets
Property, plant and equipment
11
6,819,854
7,081,486
Current assets
Inventories
12
47,059
56,928
Trade and other receivables
13
5,918,552
7,465,649
Cash and cash equivalents
610,446
309,969
6,576,057
7,832,546
Current liabilities
14
(15,979,145)
(15,854,334)
Net current liabilities
(9,403,088)
(8,021,788)
Total assets less current liabilities
(2,583,234)
(940,302)
Provisions for liabilities
Provisions
15
300,000
-
0
(300,000)
-
Net liabilities
(2,883,234)
(940,302)
Equity
Called up share capital
17
100
100
Retained earnings
(2,883,334)
(940,402)
Total equity
(2,883,234)
(940,302)

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

The financial statements were approved and signed by the director and authorised for issue on 18 August 2025
Shiekh A Al Thani
Director
Company registration number 09066663 (England and Wales)
ABQ INVESTMENT UK LTD
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024
- 11 -
Share capital
Retained earnings
Total
£
£
£
Balance at 1 January 2023
100
399,078
399,178
Year ended 31 December 2023:
Loss and total comprehensive income
-
(1,339,480)
(1,339,480)
Balance at 31 December 2023
100
(940,402)
(940,302)
Year ended 31 December 2024:
Loss and total comprehensive income
-
(1,942,932)
(1,942,932)
Balance at 31 December 2024
100
(2,883,334)
(2,883,234)
ABQ INVESTMENT UK LTD
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 12 -
2024
2023
Notes
£
£
£
£
Cash flows from operating activities
Cash generated from operations
21
1,041,431
120,121
Interest paid
(630,000)
(630,000)
Net cash inflow/(outflow) from operating activities
411,431
(509,879)
Investing activities
Purchase of property, plant and equipment
(119,823)
(237,585)
Interest received
8,869
8,869
Net cash used in investing activities
(110,954)
(228,716)
Net increase/(decrease) in cash and cash equivalents
300,477
(738,595)
Cash and cash equivalents at beginning of year
309,969
1,048,564
Cash and cash equivalents at end of year
610,446
309,969
ABQ INVESTMENT UK LTD
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
- 13 -
1
Accounting policies
Company information

ABQ Investment UK Ltd is a private company limited by shares incorporated in England and Wales. The registered office is 27 East Overcliff Drive, Bournemouth, Dorset, BH1 3AF.

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 a mounts 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.

1.2
Going concern

These financial statements are prepared on the going concern basis. The director has a reasonable expectation that the company will continue in operational existence for the foreseeable future. However, the director is aware of certain material uncertainties which may cause doubt on the company's ability to continue as a going concern, which result from the intercompany management charges and loan interest.

The company has net current liabilities of £9,403,088 at the financial reporting date and loss before tax of £1,942,932 for the year ended 31 December 2024. The company has the financial support of the ultimate controlling party and his other business interests. The director is confident that the group has adequate resources to continue as a going concern for the foreseeable future and to grow its business.

1.3
Revenue

Revenue represents income from hotel and restaurant operations, excludes value added tax and is recognised on the date of the provision of the related service. Revenue is derived solely from UK operations.

1.4
Property, plant and equipment

Property, plant and equipment 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:

Land and buildings Leasehold
Over the lease term
Plant and machinery
15% on net book value
Fixtures, fittings & equipment
15% on cost or 15% on net book value
Computer equipment
33% on cost
Motor vehicles
15% on net book value

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.

1.5
Impairment of non-current assets

At each reporting period end date, the company reviews the carrying amounts of its tangible and intangible 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.

ABQ INVESTMENT UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 14 -

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.

1.6
Inventories

Inventories are stated at the lower of cost and estimated selling price.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of inventories 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.

1.7
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.

1.8
Financial instruments

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 statement of financial position when the company becomes party to the contractual provisions of the instrument.

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

Basic financial assets

Basic financial assets, which include trade and other receivables 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.

Other financial assets

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

ABQ INVESTMENT UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 15 -
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 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.

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 company after deducting all of its liabilities.

Basic financial liabilities

Basic financial liabilities, including trade and other payables, 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 paymen ts 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 payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. A m ounts 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 payables are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Other financial liabilities

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value though profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Derecognition of financial liabilities

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

ABQ INVESTMENT UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
1
Accounting policies
(Continued)
- 16 -
1.9
Equity instruments

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.

1.10
Provisions

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision i s measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

1.11
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 non-current 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.

1.12
Retirement benefits

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

1.13
Leases

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 lease s asset are consumed.

ABQ INVESTMENT UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 17 -
2
Judgements and key sources of estimation uncertainty

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.

Critical judgements

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

Revenue Recognition

Revenue is recognised upon the date of the provision of services from hotel and restaurant operations, the principal revenue activity being the supply of hotel rooms. The director considers that this is when it is probable that the economic benefits associated with the provision of the service will flow to the entity since only upon guest check in to the hotel does the hotel have an obligation to the guest to provide a service. Room deposits that become non-refundable in the instance that a guest cancels their stay too close to their arrival date are not material during the year.

Provisions

Provisions are recognised when the company has a present obligation (legal or constructive) as a result of a past event, it is probable that a transfer of economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation

Tangible assets

The director determines whether there are indicators of impairment on the company's tangible assets. Factors taken into consideration in reaching such a decision include the economic viability, changes in market prices and expected future financial performance of the asset.

Key sources of estimation uncertainty

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Property, plant and equipment

Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

Rent review provision

The company has made a provision for a rent review under its lease agreements. Estimating this provisions involves judgement about the resolution of an ongoing negotiation with the landlord. The provision is reviewed regularly and updated as needed.

ABQ INVESTMENT UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 18 -
3
Revenue

An analysis of the company's revenue is as follows:

2024
2023
£
£
Revenue analysed by class of business
Operation of hotels
8,787,715
9,015,614
2024
2023
£
£
Other significant revenue
Interest income
8,869
8,869

Revenue from the operation of hotels is derived solely in the United Kingdom.

4
Exceptional item
2024
2023
£
£
Expenditure
Exceptional item - Admin costs
1,200,000
-

Following an associated related party going into administration during 2024, a provision of £1.2m has been included within administrative expenses against the recovery of balances owed.

5
Operating loss
2024
2023
Operating loss for the year is stated after charging:
£
£
Fees payable to the company's auditor for the audit of the company's financial statements
20,221
19,496
Depreciation of owned property, plant and equipment
381,455
433,259
Operating lease charges
309,945
12,753
6
Employees

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

2024
2023
Number
Number
Management
37
36
Staff
152
182
Total
189
218
ABQ INVESTMENT UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
6
Employees
(Continued)
- 19 -

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
3,847,739
3,738,729
Social security costs
306,797
280,224
Pension costs
62,375
59,234
4,216,911
4,078,187
7
Investment income
2024
2023
£
£
Interest income
Interest receivable from group companies
8,869
8,869
2024
2023
Investment income includes the following:
£
£
Interest on financial assets not measured at fair value through profit or loss
8,869
8,869
8
Finance costs
2024
2023
£
£
Interest on financial liabilities measured at amortised cost:
Interest payable to group undertakings
630,000
630,000
ABQ INVESTMENT UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 20 -
9
Taxation

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

2024
2023
£
£
Loss before taxation
(1,942,932)
(1,339,480)
Expected tax credit based on the standard rate of corporation tax in the UK of 25.00% (2023: 23.52%)
(485,733)
(315,046)
Tax effect of expenses that are not deductible in determining taxable profit
301,370
28,063
Unutilised tax losses carried forward
-
0
253,354
Change in unrecognised deferred tax assets
160,301
-
0
Other permanent differences
1,453
834
Deferred tax adjustments in respect of prior years
(29,521)
(14,994)
Fixed asset differences
52,130
47,789
Taxation charge for the year
-
-
10
Intangible fixed assets
Goodwill
£
Cost
At 1 January 2024 and 31 December 2024
5,000,000
Amortisation and impairment
At 1 January 2024 and 31 December 2024
5,000,000
Carrying amount
At 31 December 2024
-
0
At 31 December 2023
-
0
ABQ INVESTMENT UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 21 -
11
Property, plant and equipment
Land and buildings Leasehold
Plant and machinery
Fixtures, fittings & equipment
Computer equipment
Motor vehicles
Total
£
£
£
£
£
£
Cost
At 1 January 2024
8,114,313
644,251
1,621,332
56,719
8,631
10,445,246
Additions
-
0
50,490
48,963
20,370
-
0
119,823
At 31 December 2024
8,114,313
694,741
1,670,295
77,089
8,631
10,565,069
Depreciation and impairment
At 1 January 2024
1,708,600
287,468
1,316,876
47,485
3,331
3,363,760
Depreciation charged in the year
203,862
61,091
105,921
9,786
795
381,455
At 31 December 2024
1,912,462
348,559
1,422,797
57,271
4,126
3,745,215
Carrying amount
At 31 December 2024
6,201,851
346,182
247,498
19,818
4,505
6,819,854
At 31 December 2023
6,405,713
356,783
304,456
9,234
5,300
7,081,486

The carrying value of land and buildings comprises:

2024
2023
£
£
Long leasehold
1,056,800
1,081,920
Short leasehold
5,145,051
5,323,793
6,201,851
6,405,713
12
Inventories
2024
2023
£
£
Finished goods and goods for resale
47,059
56,928
13
Trade and other receivables
2024
2023
Amounts falling due within one year:
£
£
Trade receivables
11,294
10,817
Other receivables
5,771,270
7,355,102
Prepayments and accrued income
135,988
99,730
5,918,552
7,465,649
ABQ INVESTMENT UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 22 -
14
Current liabilities
2024
2023
£
£
Trade payables
430,404
493,815
Taxation and social security
385,067
344,021
Other payables
13,915,852
13,963,422
Accruals and deferred income
1,247,822
1,053,076
15,979,145
15,854,334
15
Provisions for liabilities
2024
2023
£
£
Rent review
300,000
-
Movements on provisions:
Rent review
£
Additional provisions in the year
300,000

At the reporting date, the company has recognised a provision of £300,000 in respect of a potential liability arising from an on-going rent review on one of its leased properties.

The lease agreement includes periodic rent reviews, and the landlord has initiated a rent review inline with the terms of the agreement, dated 25th June 2022. Although negotiations are ongoing, based on legal and professional advice received the directors have estimated the potential increase in rent payable for the retrospective period.

This provision represents management’s best estimate of the likely additional rental costs arising from the review.

The timing and amount of any settlement remain uncertain and are subject to final agreement with the landlord.

16
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
62,375
59,234

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.

ABQ INVESTMENT UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 23 -
17
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100

The company has one class of ordinary shares which carry one vote per share and full rights to dividends and capital distributions.

18
Operating lease commitments
As lessee

Operating lease payments represent rentals payable by the group to the freeholders for leasehold owned properties from which the group conducts its hotel trade.

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:

2024
2023
£
£
Within 1 year
12,910
12,910
Years 2-5
51,640
51,640
After 5 years
329,739
342,649
394,289
407,199
19
Related party transactions

The following amounts were outstanding at the reporting end date:

2024
2023
Amounts due to related parties
£
£
Other related parties
13,637,782
13,637,782

The following amounts were outstanding at the reporting end date:

2024
2023
Amounts due from related parties
£
£
Other related parties
5,710,290
7,297,995
ABQ INVESTMENT UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
19
Related party transactions
(Continued)
- 24 -
Other information

The company was provided with unsecured borrowings from ABQ Qatar Limited during the prior year of which £13,637,782 was owed at the financial reporting date (2023: £13,637,782). A market rate of interest is charged on the borrowings and this is presented within other payables. During the year interest of £630,000 (2023: £630,000) was paid to ABQ Qatar Limited.

The company incurred management charges during the year from ABQ Qatar Limited totalling £300,000 (2023: £1,485,976).

ABQ Qatar Limited is related by virtue of Shiekh A Al Thani having significant influence over that entity.

The company incurred management charges during the year from ABQ Global Hospitality Services totalling £263,633 (2023: £270,476).

ABQ Global Hospitality Services is related by virtue of Shiekh A Al Thani having significant influence over that entity.

The company has fully provided for a related party balance owed by Coast Hotels & Leisure JV Limited totalling £1,200,000 as a bad debt. Coast Hotels & Leisure JV Limited is related by virtue of a close family member of Sheikh A A Thani having significant influence over that entity.

No guarantees have been given or received.

20
Ultimate controlling party

The ultimate controlling party is Shiekh A Al Thani, by virtue of his majority shareholding in the company.

21
Cash generated from operations
2024
2023
£
£
Loss for the year after tax
(1,942,932)
(1,339,480)
Adjustments for:
Finance costs
630,000
630,000
Investment income
(8,869)
(8,869)
Depreciation and impairment of property, plant and equipment
381,455
433,259
Increase in provisions
300,000
-
Movements in working capital:
Decrease/(increase) in inventories
9,869
(3,984)
Decrease in trade and other receivables
1,547,097
705,477
Increase/(decrease) in trade and other payables
124,811
(296,282)
Cash generated from operations
1,041,431
120,121
ABQ INVESTMENT UK LTD
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 DECEMBER 2024
- 25 -
22
Analysis of changes in net funds
1 January 2024
Cash flows
31 December 2024
£
£
£
Cash at bank and in hand
309,969
300,477
610,446
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