Forrest Hotel Developments Limited - Limited company accounts 25.1

REGISTERED NUMBER: SC222100 (Scotland)

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 December 2024

for

Forrest Hotel Developments Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

5

Statement of Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Notes to the Financial Statements

12

DIRECTORS:

Mr D A Sharp

Mr D G W Stewart

Mr C D Trainer

Mr K A Vallance

SECRETARY:

Mr D A Sharp

REGISTERED OFFICE:

7 Seaward Street

Paisley Road

Glasgow

G41 1HJ

REGISTERED NUMBER:

SC222100 (Scotland)

AUDITORS:

Stevenson & Kyles

Chartered Accountants

Statutory Auditor

25 Sandyford Place

Glasgow

G3 7NG

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

REVIEW OF BUSINESS

The company made a loss in 2024. The company primarily generates income from its remaining investment property.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risk for the company is the health of the property market and wider construction sector. The directors continue to review investment opportunities and are focused on maintaining adequate cash flow within the business.

ENVIRONMENTAL

The company recognises the importance of environmental responsibilities and has policies in place to manage its impact on the environment.

ON BEHALF OF THE BOARD:

Mr D A Sharp - Director

10 July 2025

The directors present their report with the financial statements of the company for the year ended 31 December 2024.

PRINCIPAL ACTIVITY

The principal activity of the company in the year under review was that of property management.

DIVIDENDS

Dividends of £200,000 (2023: £nil) were paid during the year.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2024 to the date of this report.

Mr D A Sharp

Mr D G W Stewart

Mr C D Trainer

Mr K A Vallance

ENGAGEMENT WITH EMPLOYEES

The company keeps its employees up to date on all matters relevant to the future of the company and their role within it. Employees are kept informed regarding the management structure of the company and the processes and procedures required by their role.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

-	make judgements and accounting estimates that are reasonable and prudent;

-	prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Stevenson & Kyles, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

Mr D A Sharp - Director

10 July 2025

Opinion

We have audited the financial statements of Forrest Hotel Developments Limited (the 'company') for the year ended 31 December 2024 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity and Notes to the Financial Statements, including a summary of 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 Auditors' 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 directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

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

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

Other information

The directors are responsible for the other information. The other information comprises the information in the Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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 the audit:

-	the information given in the Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

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

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

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

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

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

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditors' 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 a Report of the Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Auditor's approach to assessing the risks of material misstatement due to irregularities

We obtained an understanding of the legal and regulatory frameworks that are applicable to the entity. Those that have a direct impact include: FRS102, Companies Act 2006 and UK tax laws. Those that have an indirect impact include: employment matters, data protection, and health and safety regulations. We assessed the risk of material misstatement in respect of fraud and made enquiries of management as to the existence of, or any evidence of, actual or suspected instances of fraud.

Audit procedures designed to respond to the risk of non-compliance with laws and regulations

Based on the results of our risk assessment we designed audit procedures to identify non-compliance with such laws and regulations identified above. We made enquiries of management and those charged with governance. We corroborated our enquiries through a review of relevant correspondence and a review of professional fees.

Audit procedures designed to respond to the risk of fraud

We considered the risk of fraud through management override and in response we incorporated testing of manual journal entries into our audit approach. In order to address the risk of fraud in relation to revenue recognition, we undertook a proof-in-total for rents received and reviewed interest receivable .

Considerations around likelihood of detection

There are inherent difficulties in the audit process described above to detect the existence of irregularities. We have mitigated these limitations by reviewing and testing the company's internal controls and by the nature, timing and extent of the audit procedures involved, by introducing an element of unpredictability in our sampling and testing.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

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 a Report of the Auditors 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.

Mr Amardeep Kalsi CA (Senior Statutory Auditor)

for and on behalf of Stevenson & Kyles

Chartered Accountants

Statutory Auditor

25 Sandyford Place

Glasgow

G3 7NG

10 July 2025

TURNOVER

59,953

625,806

Cost of sales

59,953

611,470

GROSS PROFIT

-

14,336

Administrative expenses

376,347

347,811

(376,347

)

(333,475

)

Other operating income

3

170,655

162,025

OPERATING LOSS

5

(205,692

)

(171,450

)

Interest receivable and similar income

262,017

142,780

56,325

(28,670

)

Interest payable and similar expenses

6

245,124

129,584

LOSS BEFORE TAXATION

(188,799

)

(158,254

)

Tax on loss

7

-

LOSS FOR THE FINANCIAL YEAR

(188,799

)

(158,254

)

OTHER COMPREHENSIVE INCOME

-

TOTAL COMPREHENSIVE
INCOME FOR THE YEAR

(188,799

)

(158,254

)

FIXED ASSETS

Investments

9

820

Investment property

10

450,000

450,820

CURRENT ASSETS

Debtors

11

21,159,969

22,244,821

Cash at bank

123,184

26,685

21,283,153

22,271,506

CREDITORS

Amounts falling due within one year

12

5,887,671

6,487,225

NET CURRENT ASSETS

15,395,482

15,784,281

TOTAL ASSETS LESS CURRENT
LIABILITIES

15,846,302

16,235,101

CAPITAL AND RESERVES

Called up share capital

13

17,833

Share premium

995,600

Fair value reserve

450,000

Retained earnings

14,382,869

14,771,668

SHAREHOLDERS' FUNDS

15,846,302

16,235,101

The financial statements were approved by the Board of Directors and authorised for issue on 10 July 2025 and were signed on its behalf by:

Mr D A Sharp - Director

Called up

Fair

share

Retained

Share

value

Total

capital

earnings

premium

reserve

equity

£

Balance at 1 January 2023

17,833

14,929,922

995,600

450,000

16,393,355

Changes in equity

Total comprehensive income

-

(158,254

)

-

(158,254

)

Balance at 31 December 2023

17,833

14,771,668

995,600

450,000

16,235,101

Changes in equity

Dividends

-

(200,000

)

-

(200,000

)

Total comprehensive income

-

(188,799

)

-

(188,799

)

Balance at 31 December 2024

17,833

14,382,869

995,600

450,000

15,846,302

1.	STATUTORY INFORMATION

Forrest Hotel Developments Limited is a private company, limited by shares , registered in Scotland. The company's registered number and registered office address can be found on the Company Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirements of Section 7 Statement of Cash Flows.

This information is included in the consolidated financial statements of Forrest Developments Holdings Limited as at 31 December 2024 and these financial statements may be obtained from 7 Seaward Street, Paisley Road, Glasgow, G41 1HJ.

Preparation of consolidated financial statements

The financial statements contain information about Forrest Hotel Developments Limited as an individual company and do not contain consolidated financial information as the parent of a group. The company is exempt under Section 400 of the Companies Act 2006 from the requirements to prepare consolidated financial statements as it and its subsidiary undertaking are included by full consolidation in the consolidated financial statements of its parent, Forrest Developments Holdings Limited, 7 Seaward Street, Paisley Road, Glasgow, G41 1HJ.

Turnover

Turnover is measured at the fair value of the consideration received for services rendered, excluding discounts, rebates, value added tax and other sales taxes.

Investments in subsidiaries

Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.

Investment properties

Investment properties are shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value are recognised in the income statement.

Financial instruments

Basic financial instruments, including debtors and creditors with no stated interest rate and receivable or payable within one year, are recorded at transaction price. Any losses arising from impairment are recognised in the income statement in administrative expenses.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Statement of Comprehensive Income, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

3.	OTHER OPERATING INCOME

31.12.24

31.12.23

£

Rental income

170,655

162,025

4.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was as follows:

31.12.24

31.12.23

Management

2

Administration

-

1

Total

2

3

31.12.24

31.12.23

£

Directors' remuneration

224,000

208,080

The number of directors to whom retirement benefits were accruing was as follows:

Money purchase schemes

2

Information regarding the highest paid director is as follows:

31.12.24

31.12.23

£

Emoluments etc

145,000

102,500

5.	OPERATING LOSS

The operating loss is stated after charging:

31.12.24

31.12.23

£

Hire of plant and machinery

1,294

1,295

Auditors' remuneration

4,000

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

31.12.24

31.12.23

£

Interest on tax paid late

-

7,305

Other interest payable

245,124

122,279

245,124

129,584

7.

TAXATION

Analysis of the tax charge

No liability to UK corporation tax arose for the year ended 31 December 2024 nor for the year ended 31 December 2023.

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

31.12.24

31.12.23

£

Loss before tax

(188,799

)

(158,254

)

Loss multiplied by the standard rate of corporation tax in the UK of
25% (2023 - 25%)

(47,200

)

(39,564

)

Effects of:

Expenses not deductible for tax purposes

1,780

5,512

Capital allowances in excess of depreciation

(2,155

)

(2,396

)

Group relief

47,575

36,448

Total tax charge

-

8.

DIVIDENDS

Dividends of £200,000 (2023: £nil) were paid during the year.

9.	FIXED ASSET INVESTMENTS

Shares in

group

undertakings

£

COST

At 1 January 2024

and 31 December 2024

820

NET BOOK VALUE

At 31 December 2024

820

At 31 December 2023

820

The company's investments at the Balance Sheet date in the share capital of companies include the following:

Forrest Hotels Limited

Registered office: 7 Seaward Street, Paisley Road, Glasgow, G41 1HJ

Nature of business: Operation of hotels

%

Class of shares:

holding

Ordinary

82.00

10.	INVESTMENT PROPERTY

Total

£

FAIR VALUE

At 1 January 2024

and 31 December 2024

450,000

NET BOOK VALUE

At 31 December 2024

450,000

At 31 December 2023

450,000

The investment properties have been valued at fair value by the Directors. The valuation was arrived at using a multiple of rent received.

11.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.24

31.12.23

£

Trade debtors

60,653

65,546

Amounts owed by associates

21,099,316

22,179,275

21,159,969

22,244,821

The amounts owed by associates and connected undertakings relate to advances made to Forrest Hotels Ltd and Forrest Developments Ltd. The amounts with Forrest Hotels Ltd are unsecured, interest bearing and repayable on demand. The amounts with Forrest Developments Ltd are unsecured, interest free and repayable on demand.

12.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

31.12.24

31.12.23

£

Trade creditors

(373

)

(355

)

Amounts owed to associates

3,086,429

2,992,666

Social security and other taxes

50,977

29,700

Other creditors

9,317

9,300

Directors' loan accounts

2,734,157

3,448,719

Accrued charges

7,164

7,195

5,887,671

6,487,225

The amounts owed to associates and connected undertakings relate to a loan from Forrest Developments Holdings Ltd, which is unsecured, interest bearing and repayable on demand. One Director's loan account is unsecured, interest free and repayable on demand, with the other being interest bearing.

13.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

31.12.24

31.12.23

value:

£

10,700

Ordinary A

£1

10,700

7,133

Ordinary B

£1

7,133

17,833

14.	RELATED PARTY DISCLOSURES

Entities with control, joint control or significant influence over the entity

31.12.24

31.12.23

£

Amount due to related party

3,086,429

2,992,666

Entities over which the entity has control, joint control or significant influence

31.12.24

31.12.23

£

Sales

59,953

65,806

Amount due from related party

19,305,303

19,592,458

Other related parties

31.12.24

31.12.23

£

Amount due from related party

1,794,013

2,586,817

Key management personnel are restricted to the Directors.

15.	ULTIMATE CONTROLLING PARTY

The ultimate parent undertaking is Forrest Developments Holdings Ltd, registered at 7 Seaward Street, Paisley Road, Glasgow, G41 1HJ.