REGISTERED NUMBER: NI025615 (Northern Ireland)

Strategic Report, Report of the Directors and

Audited Financial Statements

for the Year Ended 31 December 2024

for

City of Derry Hotel Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Statement of Comprehensive Income

9

Balance Sheet

10

Statement of Changes in Equity

11

Notes to the Financial Statements

12

DIRECTORS:

Mr P Durkan

Mr L Duddy

Mrs G Durkan

Mr G A McCartney

Mrs E McCartney Logue

SECRETARY:

Mr G A McCartney

REGISTERED OFFICE:

Queen's Quay

Derry

Co. Londonderry

BT48 7AS

REGISTERED NUMBER:

NI025615 (Northern Ireland)

AUDITORS:

HMCI Limited

T/A Hamill McIlwaine

Chartered Accountants and Statutory Auditors

28-30 Old Mountfield Road

Omagh

Co. Tyrone

BT79 7BJ

BANKERS:

Ulster Bank Limited

Da Vinci Complex

Culmore Road

Londonderry

Co. Londonderry

BT48 8JB

SOLICITORS:

McCartney & Casey

3-4 Castle Street

Londonderry

Co. Londonderry

BT48 6BX

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

REVIEW OF BUSINESS

Performance

The directors consider the results of the year ended 31 December 2024 to be satisfactory. The company will continue to seek every opportunity to increase profitable turnover in the coming years despite the current period of high inflation and interest rates which may affect discretionary spending.

The commercial environment, while competitive, is considered to be positive. The directors are confident that the hotel has several competitive advantages which will enable the company to maintain it's market position.

KEY PERFORMANCE INDICATORS

The directors have determined that the following financial key performance indicators are the most effective measures of progress towards the company's objectives.

2024

2023

2022

2021

£

£

£

£

Turnover

6,904,611

6,553,432

6,199,752

3,713,925

% Growth/(Decrease) in turnover

5.36%

5.70%

66.93%

68.44%

Profit/(Loss) on ordinary activities before taxation

287,018

314,741

766,886

716,693

Liquidity risk

The company actively maintains a mixture of long-term and short-term debt finance that is designed to ensure the company has sufficient available funds for operations and planned expansions.

Interest rate cash flow risk

The company has both interest bearing assets and interest bearing liabilities. Interest bearing assets include cash balances. The company maintains debt at a variable rate. The directors will revisit the appropriateness of this policy should the company's operations change in size or nature.

Environment and safety

The company aims to reduce its impact on the environment by minimising environmental waste. The management comply with environmental legislation relevant to them and recycle and reduce waste throughout their operations.

The company has a strong ethos with regard health and safety for its employees and customers, striving to ensure their operations are carried out to high standards of health and safety.

Foreign exchange risk

While the greater part of the company's revenues and expenses are denominated in sterling, the company is exposed to some foreign exchange risk in the normal course of business, principally in euros. While the company has not used financial instruments to date to hedge foreign exchange exposure, this position is kept constantly under review.

FUTURE DEVELOPMENTS

The directors are committed to long term growth in shareholder value by increasing the company's market share through organic growth. While the incoming year may be challenging both because of increased competition and the general economic climate, early results are satisfactory and the directors continue to closely monitor ongoing performance. Work is currently underway on an extensive refurbishment as part of a franchise agreement with 'DoubleTree by Hilton'.

ON BEHALF OF THE BOARD:

Mr G McCartney - Director

17 September 2025

The directors present their report with the audited 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 owning and operating a hotel.

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.

Mr P Durkan

Mr L Duddy

Mrs G Durkan

Mr G A McCartney

Other changes in directors holding office are as follows:

Mr J E McCartney - resigned 8 August 2024

Mrs E McCartney Logue - appointed 8 August 2024

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), including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, HMCI Limited, have indicated their willingness to continue in office, and a resolution concerning their reappointment will be proposed.

ON BEHALF OF THE BOARD:

Mr G McCartney - Director

17 September 2025

Opinion

We have audited the financial statements of City of Derry Hotel 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 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.

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

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion.

We focussed on laws and regulations which could give rise to a material misstatements in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statements disclosures to underlying supporting documentation, enquiries with management and enquiries of legal counsel where appropriate. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. We did not identify any key audit matters relating to irregularities, including fraud. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to 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.

Mrs Sarah Patterson FCA (Senior Statutory Auditor)

for and on behalf of HMCI Limited

T/A Hamill McIlwaine

Chartered Accountants and Statutory Auditors

28-30 Old Mountfield Road

Omagh

Co. Tyrone

BT79 7BJ

17 September 2025

TURNOVER

4

6,904,611

6,553,432

Cost of sales

1,094,347

957,365

GROSS PROFIT

5,810,264

5,596,067

Administrative expenses

5,458,220

5,198,592

OPERATING PROFIT

6

352,044

397,475

Interest receivable and similar income

23,476

16,924

375,520

414,399

Interest payable and similar expenses

7

88,502

99,658

PROFIT BEFORE TAXATION

287,018

314,741

Tax on profit

8

72,915

273,638

PROFIT FOR THE FINANCIAL YEAR

214,103

41,103

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

214,103

41,103

FIXED ASSETS

Tangible assets

10

6,698,943

6,775,417

Investment property

11

1,200,000

1,200,000

7,898,943

7,975,417

CURRENT ASSETS

Stocks

12

56,943

45,420

Debtors

13

187,511

226,089

Cash at bank

1,795,642

1,371,641

2,040,096

1,643,150

CREDITORS

Amounts falling due within one year

14

2,294,624

1,873,466

NET CURRENT LIABILITIES

(254,528

)

(230,316

)

TOTAL ASSETS LESS CURRENT LIABILITIES

7,644,415

7,745,101

CREDITORS

Amounts falling due after more than one year

15

(557,486

)

(854,666

)

PROVISIONS FOR LIABILITIES

18

(732,948

)

(745,384

)

ACCRUALS AND DEFERRED INCOME

19

(5,531

)

(10,704

)

NET ASSETS

6,348,450

6,134,347

CAPITAL AND RESERVES

Called up share capital

20

200,000

200,000

Retained earnings

21

6,148,450

5,934,347

SHAREHOLDERS' FUNDS

6,348,450

6,134,347

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

Mr G McCartney - Director

Called up

share

Retained

Share

Total

capital

earnings

premium

equity

£

£

£

£

Balance at 1 January 2023

200,000

4,694,254

1,559,990

6,454,244

Changes in equity

Dividends

-

(361,000

)

-

(361,000

)

Total comprehensive income

-

41,103

-

41,103

Reserve transfer

-

1,559,990

(1,559,990

)

-

Balance at 31 December 2023

200,000

5,934,347

-

6,134,347

Changes in equity

Total comprehensive income

-

214,103

-

214,103

Balance at 31 December 2024

200,000

6,148,450

-

6,348,450

1.	STATUTORY INFORMATION

City of Derry Hotel Limited is a private company, limited by shares , registered in Northern Ireland. 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.

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

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 - Statements of Cash flows as the cashflow is included in the parent company's accounts (City Hotel Derry Ltd) which are publicly available from Companies House.

Turnover

Turnover comprises revenue recognised by the company in respect of goods and services supplied during the year, exclusive of Value Added Tax and trade discounts. Turnover is recognised when, and to the extent that, the company obtains the right to consideration in exchange for its performance.

Tangible fixed assets

Tangible fixed assets are stated at cost less depreciation. 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, on the following basis:

Freehold property

2 - 5% straight line

Plant and machinery

7.5% straight line

Fixtures, fittings and equipment

15% straight line

Depreciation is not charged on freehold land.

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 net proceeds with the carrying amount and are recognised in the Statement of Comprehensive Income.

Impairment

Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each balance sheet date. If such indication exists, the recoverable amount of the asset, or the asset's cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognised in profit and loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.

Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in the Statement of Comprehensive Income.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

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 taxation

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.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Employee 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.

Government grants

Grants that relate to specific capital expenditure are treated as deferred income and credited to the profit and loss account over the related asset's useful economic life. Grants that relate to revenue expenditure are credited to the profit and loss account over the period that the revenue expenditure relates to.

Going concern

The directors have a reasonable expectation that there is sufficient resources available to allow the company to continue to operate for a period of not less than 12 months from the date of the approval of the financial statements and for the foreseeable future. Therefore the directors have adopted the going concern basis in preparing these financial statements.

3.	CRITICAL ACCOUNTING JUDGEMENTS AND KEY SOURCES OF ESTIMATION UNCERTAINTY

Estimates and judgements are continually evaluated and are based on historical experience and other factors, including expectations on future events that are believed to be under the circumstances.

(a) Critical judgements in applying the company's accounting policies.

There are no critical judgements in applying the company's accounting policies.

(b) Critical accounting estimates and assumptions.

The investment property is measured at fair value at each reporting period. In arriving at the fair value the directors have to use estimates and assumptions relating to market yields based on other rental properties in the local area.

4.

TURNOVER

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

All turnover arose within the United Kingdom.

5.	EMPLOYEES AND DIRECTORS

2024

2023

£

£

Wages and salaries

2,722,907

2,441,150

Social security costs

171,563

156,983

Other pension costs

38,800

36,665

2,933,270

2,634,798

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

2024

2023

Service and administration

181

163

2024

2023

£

£

Directors' remuneration

-

-

Key management are considered to be the directors of the group.

6.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2024

2023

£

£

Depreciation - owned assets

180,303

217,625

Auditors' remuneration

6,882

8,107

Deferred capital grants released

(5,173

)

(5,173

)

7.

INTEREST PAYABLE AND SIMILAR EXPENSES

2024

2023

£

£

Bank interest

75,471

83,767

Other Interest

13,031

15,891

88,502

99,658

8.

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

85,351

85,334

Deferred tax

(12,436

)

188,304

Tax on profit

72,915

273,638

UK corporation tax has been charged at 25% (2023 - 23.52%).

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

287,018

314,741

Profit multiplied by the standard rate of corporation tax in the UK of 25% (2023 - 23.521%)

71,755

74,030

Effects of:

Depreciation in excess of capital allowances

1,160

23,689

Effect in change in rates for deferred tax

-

175,919

Total tax charge

72,915

273,638

9.

DIVIDENDS

2024

2023

£

£

Ordinary shares shares of £1 each

Interim

-

361,000

10.	TANGIBLE FIXED ASSETS

Fixtures,

fittings

Freehold

Plant and

and

property

machinery

equipment

Totals

£

£

£

£

COST

At 1 January 2024

7,836,748

4,307,148

4,144,021

16,287,917

Additions

-

-

103,829

103,829

At 31 December 2024

7,836,748

4,307,148

4,247,850

16,391,746

DEPRECIATION

At 1 January 2024

1,376,500

4,232,455

3,903,545

9,512,500

Charge for year

65,312

48,508

66,483

180,303

At 31 December 2024

1,441,812

4,280,963

3,970,028

9,692,803

NET BOOK VALUE

At 31 December 2024

6,394,936

26,185

277,822

6,698,943

At 31 December 2023

6,460,248

74,693

240,476

6,775,417

11.	INVESTMENT PROPERTY

Total

£

FAIR VALUE

At 1 January 2024

and 31 December 2024

1,200,000

NET BOOK VALUE

At 31 December 2024

1,200,000

At 31 December 2023

1,200,000

£

Cost

922,591

Revaluation 2015

77,409

Revaluation 2020

200,000

1,200,000

The Investment property was sold to a third party after the year end for £1.2m and therefore director's valuation is in line with market value.

12.

STOCKS

2024

2023

£

£

Goods for resale

56,943

45,420

13.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

£

Trade debtors

106,088

85,605

Other debtors

-

47,112

Prepayments and accrued income

81,423

93,372

187,511

226,089

14.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2024

2023

£

£

Bank loans and overdrafts (see note 16)

376,445

378,943

Trade creditors

199,788

371,793

Tax

85,351

85,334

Social security and other taxes

284,172

216,611

Other creditors

566,674

424,514

Accruals and deferred income

782,194

396,271

2,294,624

1,873,466

15.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

2024

2023

£

£

Bank loans (see note 16)

470,667

767,847

Amounts owed to group undertakings

86,819

86,819

557,486

854,666

16.

LOANS

An analysis of the maturity of loans is given below:

2024

2023

£

£

Amounts falling due within one year or on demand:

Bank loans

376,445

378,943

Amounts falling due between one and two years:

Bank loans - 1-2 years

205,722

378,943

Amounts falling due between two and five years:

Bank loans - 2-5 years

264,945

388,904