REGISTERED NUMBER: SC590738 (Scotland)

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 December 2024

for

SRS Hotels Aberdeen Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Statement of Comprehensive Income

8

Balance Sheet

9

Statement of Changes in Equity

10

Cash Flow Statement

11

Notes to the Cash Flow Statement

12

Notes to the Financial Statements

13

DIRECTORS:

S Campbell

R Morrow

REGISTERED OFFICE:

Aberdeen Altens Hotel

Souter Head Road

Altens Industrial Estate

Aberdeen

AB12 3LF

REGISTERED NUMBER:

SC590738 (Scotland)

AUDITORS:

McDougall Johnstone Limited

Chartered Certified Accountants

Statutory Auditor

280a St Vincent Street

Glasgow

G2 5RL

BANKERS:

Santander UK plc

301 St Vincent St

Glasgow

G2 5HN

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

REVIEW OF BUSINESS

Total revenue for the company was £6.89m (2023 - £7.39m) with an operating profit of £0.96m (2023 - £1.41m).

Turnover for The Aberdeen Altens Hotel reduced by 7% in 2024 verses 2023. In 2024 the amount of oil industry related projects in Aberdeen reduced significantly from the prior year. Government policy with regards to the Energy Profits Levy resulted in projects moving overseas with a detrimental effect on the Aberdeen economy. A large contract stopped in January 2024 for rooms only business and this was a large contributor to the 13% year-on-year reduction in accommodation revenue. Despite this all the other revenues streams for the hotel increased in 2024 on the prior year. Costs declined in-line with the reduced turnover and because of good management. The year-on-year decrease in operating profit was 30% but still positive at just under £1m.

In 2024 the wider Aberdeen hotel market contracted following a strong project led 2023. Both occupancy and average daily rates decreased as demand reduced. As inflation reduced and the cost of utilities settled down the cost pressures in 2024 were not as bad as seen in 2023.

Trading in the first seven months of 2025 has matched 2024 with no unique events or projects taking place. There are two large events in 2025 which will boost demand - the Tall Ships event and the Offshore Europe Conference. This should push revenue higher in 2025. Costs increases have reduced in general except for payroll due to the Government policies for national minimum wage and employers' national insurance contributions. Full year 2025 profitability is expected to be the same as 2024 based on current forecasts.

PRINCIPAL RISKS AND UNCERTAINTIES

While it is not possible to identity or anticipate every risk due to the changing business environment, the company has a risk management process to manage and mitigate those key risks which it believes could have an impact on its sustainability.

The company's board meets regularly and in addition to reviewing the trading performance, will discuss the main risks to the company.

The key risks facing the company are set out below:

Strategic

- Failure to execute appropriate hotel management strategies and projects and enhance returns to stakeholders

Management regularly reviews current strategic plans and set realistic goals required to achieve the strategic objective. Detailed annual budgets and business plans are prepared and reported against monthly.

Financial

- Variable nature of revenue per available room and operational costs versus fixed lease costs

The company has a Financial Controller and a General Manager who closely monitor the financial performance of the hotel. Budgets and forecasts are set annually with variance analysis carried out every month. The company has responded to the cost-of-living crisis by continuing to closely monitor costs and negotiating or using alterative suppliers where possible to minimise price increases. In the opinion of the directors, the budgets and forecasts include reasonable assumptions for expense and wage inflation.

- Finance and borrowing risks relate to the company having sufficient liquidity to pay for goods and services required to operate

The directors are confident that the banking and financing facilities currently in place are more than adequate for the company's working capital requirements.

Operational

- Reduced occupier demand through macro and micro economic factors and increase in competitors

Management respond quickly and appropriately to external market forces and review outcomes of decisions made to measure effectiveness.

- Key management departure

The company offers excellent working conditions, training and attractive remuneration packages to attract and retain quality management personnel.

- Customer satisfaction

The hotel General Manager reviews internal and external feedback, through customer surveys and meetings with key customers.

- Credit risk

The company has established procedures to minimise the risk of default by trade debtors including detailed credit checks undertaken before a customer is accepted. This proves effective in minimising the level of impaired and past due debtors. The company does not take significant credit risk as the trade debtors position as a percentage of turnover is small.

Legal and Other

- Health, safety and environmental risks

The company employs a hotel management company which has a facilities management team who conduct regular inspections of the hotel and surrounding areas to ascertain any potential health and safety or environmental risks and instruct repairs or improvements to be carried out where necessary, ensuring compliance with all legislative requirements.

- Changes or breaches of regulatory requirements

Management place significant emphasis on regulatory compliance and invest significant resources into meeting industry standards.

FINANCIAL KEY PERFORMANCE INDICATORS

The company's key financial and other performance indicators during the period were as follows:

2024

2023

£

£

Turnover

6.89m

7.39m

Operating Profit

0.96m

1.41m

ON BEHALF OF THE BOARD:

S Campbell - Director

8 September 2025

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

PRINCIPAL ACTIVITY

The principle activity of the company is the operation of a 216 bedroom hotel in Aberdeen, The Aberdeen Altens Hotel.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2024.

POST BALANCE SHEET EVENTS

Since the balance sheet date, there have been no events to report.

DIRECTORS

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

S Campbell

R Morrow

CHARITABLE DONATIONS

During the year, SRS Hotels Aberdeen Limited made charitable donations totalling £2,640 (2023: £Nil).

GOING CONCERN

The company's business review, together with the principal risks and uncertainties likely to affect its performance, are set out in the strategic report on pages 2 to 3. The financial position of the company, its cash flows, liquidity position and borrowing facilities are described in the financial statements and notes to the financial statements on pages 8 to 20. The directors have considered the principal risks and how they may impact going concern. The directors are of the opinion that the entity is in a strong financial position as evidenced by:

- Cash reserves of £869k as at 31 December 2024

- Net assets of £2,181k as at 31 December 2024

- Bank covenants fully met in 2024 and since year end

- Excess capital repayments made on the bank loan of £150k in 2024

Trading has been positive in the first seven months of 2025 and bank covenants have been fully met at all test dates in 2025. The company's cashflow forecasts to December 2025 indicate that it will continue to have significant financial resources, continue to settle its debts as they fall due and operate well within its bank covenants for at least a period of 12 months from the date of these financial statements.

After due consideration of the matters set out above, the directors are satisfied that there is a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future, being at least 12 months from the date of signing these financial statements. For this reason, they continue to adopt the going concern basis in the preparation of these financial statements.

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, McDougall Johnstone Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

S Campbell - Director

8 September 2025

Opinion

We have audited the financial statements of SRS Hotels Aberdeen Limited (the 'company') for the year ended 31 December 2024 which comprise the Statement of Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, 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 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 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 four, 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.

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.

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.

Ian McDougall FCCA (Senior Statutory Auditor)

for and on behalf of McDougall Johnstone Limited

Chartered Certified Accountants

Statutory Auditor

280a St Vincent Street

Glasgow

G2 5RL

8 September 2025

TURNOVER

4

6,892,812

7,389,005

Cost of sales

(3,153,133

)

(3,135,162

)

GROSS PROFIT

3,739,679

4,253,843

Administrative expenses

(2,800,402

)

(2,856,139

)

939,277

1,397,704

Other operating income

15,731

15,731

OPERATING PROFIT

6

955,008

1,413,435

Interest receivable and similar income

16,100

5,552

971,108

1,418,987

Interest payable and similar expenses

8

(245,907

)

(263,058

)

PROFIT BEFORE TAXATION

725,201

1,155,929

Tax on profit

9

(183,214

)

(282,106

)

PROFIT FOR THE FINANCIAL YEAR

541,987

873,823

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

541,987

873,823

FIXED ASSETS

Tangible assets

10

5,193,145

5,544,245

CURRENT ASSETS

Stocks

11

40,668

36,366

Debtors

12

349,684

414,231

Cash at bank

869,412

341,849

1,259,764

792,446

CREDITORS

Amounts falling due within one year

13

(1,421,749

)

(1,475,504

)

NET CURRENT LIABILITIES

(161,985

)

(683,058

)

TOTAL ASSETS LESS CURRENT LIABILITIES

5,031,160

4,861,187

CREDITORS

Amounts falling due after more than one year

14

(2,675,000

)

(2,995,000

)

PROVISIONS FOR LIABILITIES

16

(174,954

)

(226,968

)

NET ASSETS

2,181,206

1,639,219

CAPITAL AND RESERVES

Called up share capital

17

100

100

Retained earnings

18

2,181,106

1,639,119

SHAREHOLDERS' FUNDS

2,181,206

1,639,219

The financial statements were approved by the Board of Directors and authorised for issue on 8 September 2025 and were signed on its behalf by:

S Campbell - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

100

1,289,542

1,289,642

Changes in equity

Profit for the year

-

873,823

873,823

Total comprehensive income

-

873,823

873,823

Redemption of shareholder

loans

-

(524,246

)

(524,246

)

Balance at 31 December 2023

100

1,639,119

1,639,219

Changes in equity

Profit for the year

-

541,987

541,987

Total comprehensive income

-

541,987

541,987

Balance at 31 December 2024

100

2,181,106

2,181,206

Cash flows from operating activities

Cash generated from operations

1

1,424,377

1,833,623

Tax paid

(305,028

)

(50,326

)

Net cash from operating activities

1,119,349

1,783,297

Cash flows from investing activities

Purchase of tangible fixed assets

(41,979

)

(133,903

)

Interest received

16,100

5,552

Net cash from investing activities

(25,879

)

(128,351

)

Cash flows from financing activities

New loans in year

-

3,400,000

Repayment of loans

(320,000

)

(3,322,500

)

Repayment of other loans

-

(1,600,000

)

Interest paid

(245,907

)

(221,043

)

Net cash from financing activities

(565,907

)

(1,743,543

)

Increase/(decrease) in cash and cash equivalents

527,563

(88,597

)

Cash and cash equivalents at beginning of year

2

341,849

430,446

Cash and cash equivalents at end of year

2

869,412

341,849

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2024

2023

£

£

Profit before taxation

725,201

1,155,929

Depreciation charges

393,079

387,969

Finance costs

245,907

263,058

Finance income

(16,100

)

(5,552

)

1,348,087

1,801,404

(Increase)/decrease in stocks

(4,302

)

2,144

Decrease in trade and other debtors

64,547

50,899

Increase/(decrease) in trade and other creditors

16,045

(20,824

)

Cash generated from operations

1,424,377

1,833,623

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2024

31.12.24

1.1.24

£

£

Cash and cash equivalents

869,412

341,849

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

341,849

430,446

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.1.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank

341,849

527,563

869,412

341,849

527,563

869,412

Debt

Debts falling due within 1 year

(170,000

)

-

(170,000

)

Debts falling due after 1 year

(2,995,000

)

320,000

(2,675,000

)

(3,165,000

)

320,000

(2,845,000

)

Total

(2,823,151

)

847,563

(1,975,588

)

1.	STATUTORY INFORMATION

SRS Hotels Aberdeen 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.

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.

Revenue

Revenue is derived from the hotel operations of The Aberdeen Altens Hotel. Revenue includes the rental of rooms and food and beverage sales. Revenue is recognised when rooms are occupied and food and beverages at the point of sales, excluding sales tax, rebates and trade discounts. All revenue is generated in the UK.

Tangible fixed assets

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

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

Depreciation is provided on the following basis:

Long-term leasehold property - 86 years

Fixtures and fittings - 4 to 10 years

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

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in the statement of comprehensive income.

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

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

Financial instruments

The company only enters into basic financial instrument transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to related parties and investments in ordinary shares.

Basic financial instruments such as interest bearing borrowings, are recognised initially at the present value of future payments discounted at a market rate of interest. Subsequent to initial recognition, interest bearing borrowings are stated at amortised cost using the effective interest method, less any impairment losses.

Financial assets that are measured at cost and amortised cost are assessed at the end of each reporting period for objective evidence of impairment. If objective evidence of impairment is found, an impairment loss is recognised in the statement of comprehensive income.

For financial assets measured at amortised cost, the impairment loss is measured as the difference between an asset's carrying amount and the present value of estimated cash flows discounted at the asset's original effective interest rate. If a financial asset has a variable interest rate, the discount rate for measuring any impairment loss is the current effective interest rate determined under the contract.

For financial assets measured at cost less impairment, the impairment loss is measured as the difference between an asset's carrying amount and best estimate of the recoverable amount, which is an approximation of the amount that the company would receive for the asset if it were to be sold at the balance sheet date.

Financial assets and liabilities are offset and the net amount reported in the balance sheet when there is an 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.

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.

Finance costs

Finance costs are charged to the statement of comprehensive income over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

Borrowing costs

All borrowing costs are recognised in the statement of comprehensive income in the year in which they are incurred.

Operating leases; the company as lessee

Rentals paid under operating leases are charged to the statement of comprehensive income on a straight-line basis over the lease term.

Pensions - defined contribution pension plan

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

The contributions are recognised as an expense in the statement of comprehensive income when they fall due. Amounts not paid are shown in accruals as a liability in the balance sheet. The assets of the plan are held separately from the company in independently administered funds.

Debtors

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

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the company's cash management.

Creditors

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

Provisions for liabilities

Provisions are made where an event has taken place that gives the company a legal or constructive obligation that probably requires settlement by a transfer of economic benefit, and a reliable estimate can be made of the amount of the obligation.

Provisions are charged as an expense to the statement of comprehensive income in the year that the company becomes aware of the obligation, and are measured at the best estimate at the balance sheet date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties.

When payments are eventually made, they are charged to the provision carried in the balance sheet.

3.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amount reported for assets and liabilities as at the date of the balance sheet and amounts reported for revenues and expenses during the year. However, the nature of estimation means that actual outcomes could differ from those estimates.

The following are considered to be key areas requiring judgement:

Fixed assets

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, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual; value assessments consider issues such as future market conditions, the remaining useful life of the asset and projected disposal values.

Assets are considered for indications of impairment. If required an impairment review will be carried out and a decision made on possible impairment, Factors taken into consideration in reaching such a decision include the economic viability and expected future financial performance of the asset and where it is a component of a larger cash-generating unit, the viability and expected future performance of that unit.

4.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the company.

An analysis of turnover by class of business is given below:

2024

2023

£

£

Hotel Operations

6,892,812

7,389,005

6,892,812

7,389,005

An analysis of turnover by geographical market is given below:

2024

2023

£

£

United Kingdom

6,892,812

7,389,005

6,892,812

7,389,005

5.	EMPLOYEES AND DIRECTORS

2024

2023

£

£

Wages and salaries

2,007,452

1,996,223

Social security costs

147,881

167,163

Other pension costs

50,648

53,428

2,205,981

2,216,814

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

2024

2023

Administration

4

4

Operational

110

101

114

105

2024

2023

£

£

Directors' remuneration

-

-

6.	OPERATING PROFIT

The operating profit is stated after charging:

2024

2023

£

£

Other operating lease rentals

136,800

136,800

Depreciation - owned assets

393,079

387,969

Defined contribution pension costs

50,648

53,428

7.	AUDITORS' REMUNERATION

2024

2023

£

£

Fees payable to the company's auditors for the audit of the company's financial statements

8,500

11,000

Total audit fees

8,500

11,000

8.

INTEREST PAYABLE AND SIMILAR EXPENSES

2024

2023

£

£

Bank loan interest

245,907

221,043

Other Interest

-

42,015

245,907

263,058

9.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2024

2023

£

£

Current tax:

UK corporation tax

235,228

305,029

Deferred tax

(52,014

)

(22,923

)

Tax on profit

183,214

282,106

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:

2024

2023

£

£

Profit before tax

725,201

1,155,929

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2023 - 23.520%)

181,300

271,875

Effects of:

Expenses not deductible for tax purposes

1,260

11,587

Adjustments to tax charge in respect of previous periods

654

-

Remeasurement of deferred tax for changes in tax rates

-

(1,356

)

Total tax charge

183,214

282,106