REGISTERED NUMBER: NI697602 (Northern Ireland)

Group Strategic Report, Report of the Directors and

Consolidated Financial Statements

for the Year Ended 31 December 2024

for

City Hotel Derry Ltd

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Consolidated Statement of Comprehensive Income

9

Consolidated Balance Sheet

10

Company Balance Sheet

11

Consolidated Statement of Changes in Equity

12

Company Statement of Changes in Equity

13

Consolidated Cash Flow Statement

14

Notes to the Consolidated Cash Flow Statement

15

Notes to the Consolidated Financial Statements

17

DIRECTORS:

Mr P Durkan

Mrs F G Durkan

Mr G A McCartney

Mrs E McCartney Logue

REGISTERED OFFICE:

Queen's Quay

Derry

Co. Londonderry

BT48 7AS

REGISTERED NUMBER:

NI697602 (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 of the company and the group for the year ended 31 December 2024.

REVIEW OF BUSINESS

Principal activity

The principal activity of the Group is that of hoteliers.

Performance

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

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

On 29th September 2023 the group, previously headed by City of Derry Hotel Limited, undertook a restructuring process resulting in the disposal of a subsidiary company, The Northern Hotel Portrush Ltd. A new group structure was formed with the incorporation of City Hotel Derry Limited which acquired 80% of the shares in City of Derry Hotel Limited.

REVIEW OF BUSINESS

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

Group

Company

Group

Company

2024

2024

2023

2023

£

£

£

£

Turnover

6,904,611

-

1,653.086

288,000

Profit/(loss) on ordinary activities before taxation

287,017

-

(90,275)

288,000

The results for the year are set out in the Consolidated Statement of Comprehensive Income on page 9 and in the related notes.

Liquidity risk

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

Interest rate cash flow risk

The group has both interest bearing assets and interest bearing liabilities. Interest bearing assets include cash balances. The group 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 group 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 group 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 group's revenues and expenses are denominated in sterling, the group is exposed to some foreign exchange risk in the normal course of business, principally in euros. While the group 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 group'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 A McCartney - 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.

PRINCIPAL ACTIVITY

The principal activity of the group in the year under review was that of 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

Mrs F 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 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 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 group's auditors are aware of that information.

AUDITORS

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

ON BEHALF OF THE BOARD:

Mr G A McCartney - Director

17 September 2025

Opinion

We have audited the financial statements of City Hotel Derry Ltd (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the Consolidated Statement of 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:

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

1,653,086

Cost of sales

1,094,347

260,472

GROSS PROFIT

5,810,264

1,392,614

Administrative expenses

5,458,220

1,436,849

OPERATING PROFIT/(LOSS)

6

352,044

(44,235

)

Interest receivable and similar income

23,476

(3,953

)

375,520

(48,188

)

Interest payable and similar expenses

7

88,502

42,087

PROFIT/(LOSS) BEFORE TAXATION

287,018

(90,275

)

Tax on profit/(loss)

8

72,915

68,410

PROFIT/(LOSS) FOR THE FINANCIAL YEAR

214,103

(158,685

)

OTHER COMPREHENSIVE INCOME

-

2,340,393

Income tax relating to other comprehensive income

-

-

OTHER COMPREHENSIVE INCOME FOR THE YEAR, NET OF INCOME TAX

-

2,340,393

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

214,103

2,181,708

Profit/(loss) attributable to:

Owners of the parent

171,283

(126,948

)

Non-controlling interests

42,820

(31,737

)

214,103

(158,685

)

Total comprehensive income attributable to:

Owners of the parent

171,283

2,213,445

Non-controlling interests

42,820

(31,737

)

214,103

2,181,708

FIXED ASSETS

Tangible assets

11

9,039,336

9,115,810

Investments

12

-

-

Investment property

13

1,200,000

1,200,000

10,239,336

10,315,810

CURRENT ASSETS

Stocks

14

56,943

45,420

Debtors

15

187,511

226,089

Cash at bank

1,795,702

1,371,701

2,040,156

1,643,210

CREDITORS

Amounts falling due within one year

16

2,294,624

1,873,466

NET CURRENT LIABILITIES

(254,468

)

(230,256

)

TOTAL ASSETS LESS CURRENT LIABILITIES

9,984,868

10,085,554

CREDITORS

Amounts falling due after more than one year

17

(470,667

)

(767,847

)

PROVISIONS FOR LIABILITIES

21

(732,948

)

(745,384

)

ACCRUALS AND DEFERRED INCOME

22

(5,531

)

(10,704

)

NET ASSETS

8,775,722

8,561,619

CAPITAL AND RESERVES

Called up share capital

23

7,195,600

7,195,600

Retained earnings

24

(156,846

)

(328,129

)

SHAREHOLDERS' FUNDS

7,038,754

6,867,471

NON-CONTROLLING INTERESTS

1,736,968

1,694,148

TOTAL EQUITY

8,775,722

8,561,619

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 A McCartney - Director

FIXED ASSETS

Tangible assets

11

-

-

Investments

12

7,195,540

7,195,540

Investment property

13

-

-

7,195,540

7,195,540

CURRENT ASSETS

Debtors

15

86,819

86,819

Cash at bank

60

60

86,879

86,879

NET CURRENT ASSETS

86,879

86,879

TOTAL ASSETS LESS CURRENT LIABILITIES

7,282,419

7,282,419

CAPITAL AND RESERVES

Called up share capital

23

7,195,600

7,195,600

Retained earnings

24

86,819

86,819

SHAREHOLDERS' FUNDS

7,282,419

7,282,419

Company's profit for the financial year

-

288,000

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 A McCartney - Director

Called up

share

Retained

Other

capital

earnings

reserves

£

£

£

Changes in equity

Issue of share capital

7,195,600

-

-

Dividends

-

(288,000

)

-

Total comprehensive income

-

(126,948

)

-

Demerger payment

-

-

86,819

Reserve transfer

-

86,819

(86,819

)

7,195,600

(328,129

)

-

Non-controlling interest arising on business combination

-

-

-

Balance at 31 December 2023

7,195,600

(328,129

)

-

Changes in equity

Total comprehensive income

-

171,283

-

Balance at 31 December 2024

7,195,600

(156,846

)

-

Non-controlling

Total

Total

interests

equity

£

£

£

Changes in equity

Issue of share capital

7,195,600

-

7,195,600

Dividends

(288,000

)

-

(288,000

)

Total comprehensive income

(126,948

)

(31,737

)

(158,685

)

Demerger payment

86,819

-

86,819

6,867,471

(31,737

)

6,835,734

Non-controlling interest arising on business combination

-

1,725,885

1,725,885

Balance at 31 December 2023

6,867,471

1,694,148

8,561,619

Changes in equity

Total comprehensive income

171,283

42,820

214,103

Balance at 31 December 2024

7,038,754

1,736,968

8,775,722

Called up

share

Retained

Other

Total

capital

earnings

reserves

equity

£

£

£

£

Changes in equity

Issue of share capital

7,195,600

-

-

7,195,600

Dividends

-

(288,000

)

-

(288,000

)

Total comprehensive income

-

288,000

-

288,000

Demerger payment

-

-

86,819

86,819

Reserve transfer

-

86,819

(86,819

)

-

Balance at 31 December 2023

7,195,600

86,819

-

7,282,419

Changes in equity

Balance at 31 December 2024

7,195,600

86,819

-

7,282,419

Cash flows from operating activities

Cash generated from operations

1

977,868

771,010

Interest paid

(88,502

)

(40,734

)

Tax paid

(85,334

)

-

Net cash from operating activities

804,032

730,276

Cash flows from investing activities

Purchase of tangible fixed assets

(103,829

)

(72,357

)

Cash acquired with subsidiary

-

1,151,105

Interest received

23,476

(3,953

)

Net cash from investing activities

(80,353

)

1,074,795

Cash flows from financing activities

Loan repayments in year

(299,678

)

(73,370

)

Equity dividends paid

-

(288,000

)

Dividends paid to minority interests

-

(72,000

)

Net cash from financing activities

(299,678

)

(433,370

)

Increase in cash and cash equivalents

424,001

1,371,701

Cash and cash equivalents at beginning of year

2

1,371,701

-

Cash and cash equivalents at end of year

2

1,795,702

1,371,701

1.	RECONCILIATION OF PROFIT/(LOSS) BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

Period

24.5.23

Year Ended

to

31.12.24

31.12.23

£

£

Profit/(loss) before taxation

287,018

(90,275

)

Depreciation charges

180,303

53,113

Finance costs

88,502

42,087

Finance income

(23,476

)

3,953

532,347

8,878

Increase in stocks

(11,523

)

(735

)

Decrease in trade and other debtors

38,578

839,173

Increase/(decrease) in trade and other creditors

418,466

(76,306

)

Cash generated from operations

977,868

771,010

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

1,795,702

1,371,701

Period ended 31 December 2023

31.12.23

24.5.23

£

£

Cash and cash equivalents

1,371,701

-

3.	ANALYSIS OF CHANGES IN NET FUNDS

At 1.1.24

Cash flow

At 31.12.24

£

£

£

Net cash

Cash at bank

1,371,701

424,001

1,795,702

1,371,701

424,001

1,795,702

Debt

Debts falling due within 1 year

(378,943

)

2,498

(376,445

)

Debts falling due after 1 year

(767,847

)

297,180

(470,667

)

(1,146,790

)

299,678

(847,112

)

Total

224,911

723,679

948,590

1.	STATUTORY INFORMATION

City Hotel Derry Ltd 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 General 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 as modified by the revaluation of certain assets.

Basis of consolidation

The consolidated financial statements include the financial statements of the Company and its subsidiary made up to 31 December annually. A subsidiary is an entity that is controlled by the parent. The results of subsidiary undertakings are included in the consolidated profit and loss account from the date that control commences until the date that control ceases. Control is established when the Company has the power to govern the operating and financial policies of an entity so as to obtain benefits from its activities. In assessing control, the Group takes into consideration potential voting rights that are currently exercisable.

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.

Investment property

Investment property is shown at most recent valuation. Any aggregate surplus or deficit arising from changes in fair value is recognised in profit or loss.