REGISTERED NUMBER: 07216055 (England and Wales)

Group Strategic Report,

Report of the Directors and

Consolidated Financial Statements

for the Year Ended 31 December 2024

for

Brayford Hotels Holdings Ltd

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

5

Consolidated Income Statement

7

Consolidated Other Comprehensive Income

8

Consolidated Balance Sheet

9

Company Balance Sheet

10

Consolidated Statement of Changes in Equity

11

Company Statement of Changes in Equity

12

Consolidated Cash Flow Statement

13

Notes to the Consolidated Cash Flow Statement

14

Notes to the Consolidated Financial Statements

15

DIRECTORS:

L M Hall

D A Wann

SECRETARY:

L M Hall

REGISTERED OFFICE:

Unit 1

The Circus

Belton Park Road

Skegness

Lincolnshire

PE25 1GU

REGISTERED NUMBER:

07216055 (England and Wales)

AUDITORS:

Wright Vigar Limited

Statutory Auditors

Chartered Accountants & Business Advisers

15 Newland

Lincoln

Lincolnshire

LN1 1XG

The directors present their strategic report of the company and the group for the year ended 31 December 2024.

REVIEW OF BUSINESS

The results for the year and financial position of the group are as shown in the financial statements.

31.12.24

31.12.23

31.12.22

31.12.21

31.12.20

£

£

£

£

£

Turnover

15,760,525

16,163,431

14,365,913

10,139,847

5,465,026

Cost of sales

5,924,941

6,169,363

5,608,996

4,063,091

2,915,665

Gross profit

9,835,584

9,994,068

8,756,917

6,076,756

2,549,361

Gross profit margin %

62.41

61.83

60.96

59.93

45.65

Profit/(Loss) on ordinary activities before taxation

3,680,217

2,189,986

2,143,343

1,616,253

(462,835

)

Profit % on ordinary activities before taxation

23.35

13.55

14.92

15.94

(8.47

)

The sector continued to be influenced by external factors throughout 2024. Pressure from continued high inflation remained at the forefront, with inflation rates remaining substantially above the government target, which continued to cause supply chain issues which needed to be closely managed to ensure there was no impact on the hotels operations.

The directors' were pleased with the operational performance with the group's room occupancy numbers for the year at 78.43% (2023: 79.94%). A slight dip due to a rescheduling, that has helped occupancy early in 2025

The volatility in the energy markets continued and the decision to source electricity by taking advantage of wholesale market prices through a flexible purchasing agreement allowing forward prices to be fixed.

The Bank of England did reduce interest rates from 5.25% to 5.0% in August 2024, and another reduction of 0.25% in November, finance interest was £353K greater than 2023. .

The directors continue to monitor financial performance of the group both against prior years and forecasts, as they remain mindful of the competitive environment in which the group operates and the need to maintain close control over the company's working capital and financial position. The group continues to invest in its hotel facilities to ensure they are maintained to a high standard.

The directors consider the financial reporting position remains strong at the year end with healthy net assets of £17,970,936 (2023: £13,590,986 ) and an increasing cash position, which provide strong foundations for the group to continue to grow despite the challenging market conditions.

Borrowings and risk management

The group's principal financial instruments comprise bank balances, bank loans, trade creditors and trade debtors. The main purpose of these instruments is to raise funds for the group operations. The group's approach to managing other risks applicable to the financial instruments minimised the risk to a level that the Directors consider appropriate.

Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits.

Trade creditors liquidity risk is managed by ensuring sufficient funds are available to meet amounts due.

PRINCIPAL RISKS AND UNCERTAINTIES

The group is affected by a number of factors, the principal ones of which are:

- The group is exposed to the risk of negative developments in financial markets and the sectors in which it operates, either directly or through the impact on the group's bankers, suppliers or customers. These developments can result in recession, inflation, deflation, restrictions in the availability of credit, impact on demand for customers, problems in the supplier base, increases in the financing costs or in the cost of utilities and finished products. Such developments might increase operating costs, reduce revenues, lower asset values or result in the business being unable to meet in full its strategic objectives.

- The group operates in a competitive market, and failure to compete effectively in terms of price and quality can have an adverse effect on demand and/or margins.

The group mitigates risk in several ways:

- The group has in place an organisational structure with clearly defined lines of responsibility and delegation or authority. There are established policies and procedures for the setting of corporate strategies; financial planning and budgeting; for information and reporting systems; for systems of operational and financial internal control; for assessment of risk; and for monitoring operations and performance.

- Management and staff at all levels work closely with customers and suppliers to operate as effectively and efficiently as possible, whilst maintaining long term working relationships, innovation and good lines of communication.

- The group operates a recruitment and selection process to ensure employees are experienced and competent in their work. The workforce is trained to be alert, responsive to customer needs, and to operate in line with the group's corporate objectives.

ON BEHALF OF THE BOARD:

L M Hall - Director

17 September 2025

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

DIVIDENDS

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

DIRECTORS

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

L M Hall

D A Wann

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group 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 the group and of the profit or loss of the group 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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group 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 group'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 group's auditors are aware of that information.

AUDITORS

The auditors, Wright Vigar Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

L M Hall - Director

17 September 2025

Opinion

We have audited the financial statements of Brayford Hotels Holdings Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated 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 group's and of the parent company affairs as at 31 December 2024 and of the group's 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 group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

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

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

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

Other information

The directors are responsible for the other information. The other information comprises the information in the Group 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 Group 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 Group 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 group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company 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 group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent 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:

Our work is performed to include an assessment of the susceptibility of the entity's financial statements to material misstatement, including the risk of fraud. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK).

In identifying and assessing risk of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, our procedures included the following:

-

We plan our work to gain an understanding of the significant laws and regulations that are of significance to the entity and the sector in which they operate. We perform our work to ensure that the entity is complying with its legal and regulatory framework.

-

We obtained an understanding of how the company is complying with those legal and regulatory frameworks by making inquiries to the management and people charged with governance.

We assessed the susceptibility of the Company's financial statements to material misstatement, including how fraud might occur. Audit procedures performed by the engagement team included:

-

Substantive procedures performed in accordance with the ISAs (UK).

-

Challenging assumptions and judgments made by management in its significant accounting estimates.

-

Identifying and testing journal entries, in particular material journal entries and an assessment of year end journals.

-

Assessing the extent of compliance with the relevant laws and regulations.

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.

Kevin Shaw BSc FCA (Senior Statutory Auditor)

for and on behalf of Wright Vigar Limited

Statutory Auditors

Chartered Accountants & Business Advisers

15 Newland

Lincoln

Lincolnshire

LN1 1XG

17 September 2025

TURNOVER

15,760,526

16,163,431

Cost of sales

5,924,941

6,169,363

GROSS PROFIT

9,835,585

9,994,068

Administrative expenses

5,622,917

5,867,649

4,212,668

4,126,419

Gain/loss on revaluation of assets

1,445,172

-

OPERATING PROFIT

4

5,657,840

4,126,419

Interest receivable and similar income

353,035

41,182

6,010,875

4,167,601

Interest payable and similar expenses

5

2,330,658

1,977,615

PROFIT BEFORE TAXATION

3,680,217

2,189,986

Tax on profit

6

569,343

532,378

PROFIT FOR THE FINANCIAL YEAR

3,110,874

1,657,608

Profit attributable to:

Owners of the parent

2,798,362

1,619,798

Non-controlling interests

312,512

37,810

3,110,874

1,657,608

PROFIT FOR THE YEAR

3,110,874

1,657,608

OTHER COMPREHENSIVE INCOME

Revaluation of freehold property

1,692,101

-

Deferred tax movement

(423,025

)

-

Income tax relating to components of other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

1,269,076

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

4,379,950

1,657,608

Total comprehensive income attributable to:

Owners of the parent

4,067,438

1,619,798

Non-controlling interests

312,512

37,810

4,379,950

1,657,608

FIXED ASSETS

Intangible assets

8

138,134

166,713

Tangible assets

9

45,600,001

42,391,487

Investments

10

-

-

45,738,135

42,558,200

CURRENT ASSETS

Stocks

11

124,618

152,067

Debtors

12

14,989,274

14,480,313

Cash at bank

3,245,676

2,344,244

18,359,568

16,976,624

CREDITORS

Amounts falling due within one year

13

8,090,543

7,248,457

NET CURRENT ASSETS

10,269,025

9,728,167

TOTAL ASSETS LESS CURRENT LIABILITIES

56,007,160

52,286,367

CREDITORS

Amounts falling due after more than one year

14

(33,173,948

)

(34,379,779

)

PROVISIONS FOR LIABILITIES

17

(4,862,276

)

(4,315,602

)

NET ASSETS

17,970,936

13,590,986

CAPITAL AND RESERVES

Called up share capital

18

900

900

Revaluation reserve

19

8,270,713

7,001,637

Capital redemption reserve

19

100

100

Retained earnings

19

9,570,726

6,772,364

SHAREHOLDERS' FUNDS

17,842,439

13,775,001

NON-CONTROLLING INTERESTS

128,497

(184,015

)

TOTAL EQUITY

17,970,936

13,590,986

The financial statements were approved by the Board of Directors and authorised for issue on 17 September 2025 and were signed on its behalf by:

L M Hall - Director

D A Wann - Director

FIXED ASSETS

Intangible assets

8

-

-

Tangible assets

9

-

-

Investments

10

500,960

500,960

500,960

500,960

CURRENT ASSETS

Debtors

12

16,615,936

16,572,661

Cash at bank

982,897

244,830

17,598,833

16,817,491

CREDITORS

Amounts falling due within one year

13

1,057,286

823,922

NET CURRENT ASSETS

16,541,547

15,993,569

TOTAL ASSETS LESS CURRENT LIABILITIES

17,042,507

16,494,529

CREDITORS

Amounts falling due after more than one year

14

11,006,410

13,757,480

NET ASSETS

6,036,097

2,737,049

CAPITAL AND RESERVES

Called up share capital

18

900

900

Capital redemption reserve

19

100

100

Retained earnings

19

6,035,097

2,736,049

SHAREHOLDERS' FUNDS

6,036,097

2,737,049

Company's profit/(loss) for the financial year

3,299,048

(100,082

)

The financial statements were approved by the Board of Directors and authorised for issue on 17 September 2025 and were signed on its behalf by:

L M Hall - Director

D A Wann - Director

Called up

share

Retained

Revaluation

capital

earnings

reserve

£

£

£

Balance at 1 January 2023

900

5,152,566

7,001,637

Changes in equity

Total comprehensive income

-

1,619,798

-

Balance at 31 December 2023

900

6,772,364

7,001,637

Changes in equity

Total comprehensive income

-

2,798,362

1,269,076

Balance at 31 December 2024

900

9,570,726

8,270,713

Capital

redemption

Non-controlling

Total

reserve

Total

interests

equity

£

£

£

£

Balance at 1 January 2023

100

12,155,203

(221,825

)

11,933,378

Changes in equity

Total comprehensive income

-

1,619,798

37,810

1,657,608

Balance at 31 December 2023

100

13,775,001

(184,015

)

13,590,986

Changes in equity

Total comprehensive income

-

4,067,438

312,512

4,379,950

Balance at 31 December 2024

100

17,842,439

128,497

17,970,936

Called up

Capital

share

Retained

redemption

Total

capital

earnings

reserve

equity

£

£

£

£

Balance at 1 January 2023

900

2,836,131

100

2,837,131

Changes in equity

Total comprehensive income

-

(100,082

)

-

(100,082

)

Balance at 31 December 2023

900

2,736,049

100

2,737,049

Changes in equity

Total comprehensive income

-

3,299,048

-

3,299,048

Balance at 31 December 2024

900

6,035,097

100

6,036,097

Cash flows from operating activities

Cash generated from operations

1

4,187,443

3,981,537

Interest paid

(2,330,658

)

(1,977,615

)

Tax paid

(151,358

)

(27,945

)

Net cash from operating activities

1,705,427

1,975,977

Cash flows from investing activities

Purchase of tangible fixed assets

(189,930

)

(230,118

)

Interest received

353,035

41,182

Net cash from investing activities

163,105

(188,936

)

Cash flows from financing activities

Loan repayments in year

(1,200,075

)

(1,193,319

)

Amount introduced by directors

500,000

-

Amount withdrawn by directors

(267,025

)

(198,999

)

Net cash from financing activities

(967,100

)

(1,392,318

)

Increase in cash and cash equivalents

901,432

394,723

Cash and cash equivalents at beginning of year

2

2,344,244

1,949,521

Cash and cash equivalents at end of year

2

3,245,676

2,344,244

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

2024

2023

£

£

Profit before taxation

3,680,217

2,189,986

Depreciation charges

147,268

127,321

Loss on disposal of fixed assets

-

5,742

Gain on revaluation of fixed assets

(1,445,172

)

-

Finance costs

2,330,658

1,977,615

Finance income

(353,035

)

(41,182

)

4,359,936

4,259,482

Decrease/(increase) in stocks

27,449

(30,065

)

Increase in trade and other debtors

(707,137

)

(437,361

)

Increase in trade and other creditors

507,195

189,481

Cash generated from operations

4,187,443

3,981,537

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

3,245,676

2,344,244

Year ended 31 December 2023

31.12.23

1.1.23

£

£

Cash and cash equivalents

2,344,244

1,949,521

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.1.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank

2,344,244

901,432

3,245,676

2,344,244

901,432

3,245,676

Debt

Debts falling due within 1 year

(1,201,694

)

(5,756

)

(1,207,450

)

Debts falling due after 1 year

(20,942,696

)

1,205,831

(19,736,865

)

(22,144,390

)

1,200,075

(20,944,315

)

Total

(19,800,146

)

2,101,507

(17,698,639

)