Michels Ventures 4 Limited 31/12/2024 iXBRL

Company registration number: 11166224

Michels Ventures 4 Limited

Financial statements

31 December 2024

Michels Ventures 4 Limited

Contents

Directors and other information

Strategic report

Director's report

Independent auditor's report to the members

Statement of comprehensive income

Statement of financial position

Statement of changes in equity

Notes to the financial statements

Michels Ventures 4 Limited

Directors and other information


	Director	Sir David Michels


	Secretary	Ian Noble


	Company number	11166224


	Registered office	2nd Floor
		32-33 Gosfield Street
		London
		W1W 6HL


	Auditor	Baker Friend Audit Limited
		Second Floor
		32-33 Gosfield Street
		London
		W1W 6HL

Michels Ventures 4 Limited

Strategic report

Year ended 31 December 2024

PRINCIPAL ACTIVITIES AND BUSINESS REVIEW

The principal activity of the company during the year was the ownership and operation of a hotel, the St Annes Manor Hilton.

RESULTS AND DIVIDENDS

The loss for the period, after taxation, amounted to £842,864 (2023: £1,450,764).The directors monitor the performance using a wide range of financial and non-financial indicators including like for like turnover and cost management. The board does not foresee any changes to the strategy of the business for the next three years and therefore does not anticipate anu significant changes to the structure of the company.

The director has not recommended a dividend.

PRINCIPAL RISKS AND UNCERTAINTIES

2024 saw a recovery in the business but also some major increases in costs, especially business rates , energy costs and payroll.

OTHER INFORMATION

Section 172 of the Companies Act 2006 requires directors to take into consideration the interest of stakeholders and other matters in their decision making. The directors continue to have regard to the interests of the company's employees and other stakeholders, the impact of its activities on the community, the environment and the company reputation for good business conduct, when making decisions. The company seeks to ensure that all employees, job applications and prospective job applicants are afforded equality of job opportunity in all areas of employment. The company place value on the involvement of its employees and has continued its practice of keeping them informed of matters affecting them as employees, and on various matters affecting performance.

This report was approved by the board of directors on 30 September 2025 and signed on behalf of the board by:

Sir David Michels

Director

Michels Ventures 4 Limited

Director's report

Year ended 31 December 2024

The director presents his report and the financial statements of the company for the year ended 31 December 2024.

Director

The director who served the company during the year was as follows:

Sir David Michels

Dividends

Future developments

The hotel continues to perform well and in line with projections. The is no major refurbishment planned apart from the normal repairs and renewals.

Financial instruments

The company uses various financial instruments. These include loans from shareholders, bank loans and various items, such as trade debtors and trade creditors, which arise directly from its operations. The main purpose of these financial instruments is to raise finance for the company's operations and to fund extensive refurbishments to the hotel. The existence of these financial instruments exposes the company to a number of financial risks, the principal ones of which are liquidity risk and credit risk.

Director's responsibilities statement

The director is responsible for preparing the strategic report, director's report and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and the profit or loss of the company for that period.

In preparing these financial statements, the director is required to:

- select suitable accounting policies and then apply them consistently;

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

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

The director is 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 him 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.

Auditor

Each of the persons who is a director at the date of approval of this report confirms that:

- so far as they are aware, there is no relevant audit information of which the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information.

The auditor is deemed to have been re-appointed in accordance with section 487 of the Companies Act 2006.

This report was approved by the board of directors on 30 September 2025 and signed on behalf of the board by:

Sir David Michels

Director

Michels Ventures 4 Limited

Independent auditor's report to the members of

Michels Ventures 4 Limited

Year ended 31 December 2024

Opinion

We have audited the financial statements of Michels Ventures 4 Limited (the 'company') for the year ended 31 December 2024 which comprise the statement of comprehensive income, statement of financial position, 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 FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion, the financial statements: - give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its loss for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and - have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor’s 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 director's 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 director with respect to going concern are described in the relevant sections of this report.

Other Information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The director is responsible for the other information. 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

- the strategic report and the director's report has 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 director's report. 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 the returns; or - certain disclosures of director's 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 director's responsibilities statement, the director is 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 director determines is 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Auditor's 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 an auditor’s report 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. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatements may not be detected, even though the audit is properly planned and performed in accordance with the ISAs (UK)Based on our understanding of the Group and industry, we identified that the principal risks of non-compliance with laws and regulations related to pensions legislation, UK and other relevant tax legislation, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the financial statements such as the Companies Act 2006.We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to manipulate financial results and management bias in accounting estimates. Audit procedures performed by the Audit team and / or component auditors included:o Discussions with management, legal counsel and the internal audit function, including consideration of unknown or suspected instances of non-compliance with laws and regulations and fraud:o Challenging assumptions made by management in its significant accounting estimates in particular in relation to estimation of the cashflow projections used to value the fixed assets and uncertain tax provisions; ando Identifying and testing higher risk journal entries, in particular any journal entries posted with unusual account combinations, journals posted by senior managementThere 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. Also, the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting on resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collision. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. we also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the director. - Conclude on the appropriateness of the director's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.

A further description of our responsibilities is located on the Financial Reporting Council's website at https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

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 an auditors report 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.

Jeffrey Baker (Senior Statutory Auditor)

For and on behalf of

Baker Friend Audit Limited

Chartered Accountants and Statutory Auditors

Second Floor

32-33 Gosfield Street

London

W1W 6HL

30 September 2025

Michels Ventures 4 Limited

Statement of comprehensive income

Year ended 31 December 2024

		2024	2023
	Note	£	£


Turnover	4	5,867,527	6,082,713
Cost of sales		( 555,783)	( 599,057)
		_______	_______
Gross profit		5,311,744	5,483,656

Administrative expenses		( 5,278,376)	( 5,885,528)
		_______	_______
Operating profit/(loss)	5	33,368	( 401,872)

Interest payable and similar expenses	7	( 1,169,973)	( 1,160,465)
Loss before taxation		( 1,136,605)	( 1,562,337)

Tax on loss	8	293,741	111,573
		_______	_______
Loss for the financial year and total comprehensive income		( 842,864)	( 1,450,764)
		_______	_______

All the activities of the company are from continuing operations.

Michels Ventures 4 Limited

Statement of financial position

31 December 2024

		2024		2023
	Note	£	£	£	£

Fixed assets
Tangible assets	9	18,652,515		18,634,335
		_______		_______
			18,652,515		18,634,335

Current assets
Stocks	10	37,693		36,652
Debtors	11	1,131,489		620,344
Cash at bank and in hand		587,177		314,223
		_______		_______
		1,756,359		971,219
Creditors: amounts falling due
within one year	12	( 28,143,305)		( 4,257,826)
		_______		_______
Net current liabilities			( 26,386,946)		( 3,286,607)
			_______		_______
Total assets less current liabilities			( 7,734,431)		15,347,728

Creditors: amounts falling due
after more than one year	13		-		( 22,239,295)
			_______		_______
Net liabilities			( 7,734,431)		( 6,891,567)
			_______		_______

Capital and reserves
Called up share capital	16		100		100
Profit and loss account			( 7,734,531)		( 6,891,667)
			_______		_______
Shareholders deficit			( 7,734,431)		( 6,891,567)
			_______		_______

These financial statements were approved by the board of directors and authorised for issue on 30 September 2025 , and are signed on behalf of the board by:

Sir David Michels

Director

Company registration number: 11166224

Michels Ventures 4 Limited

Statement of changes in equity

Year ended 31 December 2024

	Called up share capital	Profit and loss account	Total
	£	£	£


At 1 January 2023	100	( 5,440,903)	( 5,440,803)

Loss for the year		( 1,450,764)	( 1,450,764)
	_______	_______	_______
Total comprehensive income for the year	-	( 1,450,764)	( 1,450,764)

	_______	_______	_______
At 31 December 2023 and 1 January 2024	100	( 6,891,667)	( 6,891,567)

Loss for the year		( 842,864)	( 842,864)
	_______	_______	_______
Total comprehensive income for the year	-	( 842,864)	( 842,864)

	_______	_______	_______
At 31 December 2024	100	( 7,734,531)	( 7,734,431)
	_______	_______	_______

Michels Ventures 4 Limited

Notes to the financial statements

Year ended 31 December 2024

1. General information

The company is a private company limited by shares registered in England. The address of the registered office is 32-33 Gosfield Street, London W1W 6HL.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Going concern

The hotel saw its revenue decreased in 2024, unfortunately the margin has been negatively impacted by strong increase in costs, especially energy costs and business rate. Despite these negative effects, we considered implications for the company's going concern assessment and appropriate disclosure in the Financial Statement, by developing stress test scenarios to model potential impacts. In addition, the directors managed to negotiate the renewal of the bank loan with Citibank. Based on the above and the current cash reserve, the director believes that will be able to continue trading in the next 12 months.

Disclosure exemptions

The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. Its financial statements are consolidated into the financial statements of London and Regional Group Property Holdings Ltd which can be obtained from the Registered Office . As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102: (a) Disclosures in respect of each class of share capital have not been presented.(b) No cash flow statement has been presented for the company.(c) Disclosures in respect of financial instruments have not been presented.(d) Disclosures in respect of share-based payments have not been presented.(e) No disclosure has been given for the aggregate remuneration of key management personnel.

Judgements and key sources of estimation uncertainty

In the application of the Company's accounting policies, the Directors are required to make judgements, estimates and assumptions about the carrying amounts of assets and liabilities that are not readily apparent from other sources.The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.The estimates and underlying assumptions are reviewed on an ongoing basis.Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods. Estimated useful lives and residual values of fixed assets Deprecation of tangible and intangible fixed assets has been based on estimated useful lives and residual values deemed appropriate by the Directors. Estimated useful lives and residual values are reviewed annually and will be revised as appropriate.The Directors also paid a particular attention to the value of the fixed assets in the accounts and believe, based on their projections that there is no need for any impairment as of 31 December 2024.

Turnover

Turnover is measured at the fair value of the consideration received or receivable for goods supplied and services rendered, net of discounts and Value Added Tax. Revenue from the sale of goods is recognised when the significant risks and rewards of ownership have transferred to the buyer (usually on despatch of the goods); the amount of revenue can be measured reliably; it is probable that the associated economic benefits will flow to the entity; and the costs incurred or to be incurred in respect of the transactions can be measured reliably.Hotel AccommodationRevenue is recognised on customer departure on the basis it is probable the company will receive the consideration, and costs incurred in respect of the transactions can be measure reliably.

Taxation

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. 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 capital and reserves. In this case, tax is recognised in other comprehensive income or directly in capital and reserves, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses.An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:


Equipment	-	10% to 33% reducing balance

If there is an indication that there has been a significant change in depreciation rate, useful life or residual value of tangible assets, the depreciation is revised prospectively to reflect the new estimates.

Impairment

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. When it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that are largely independent of the cash inflows from other assets or groups of assets.

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stocks to their present location and condition.

Financial instruments

A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets or either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised in finance costs in profit or loss in the period in which it arises.

Cash and cash equivalents

Cash and cash equivalent include cash in hand, demand deposits, and other short term highly liquid investments with original maturities of three months or less.

4. Turnover

Turnover arises from:

	2024	2023
	£	£
Rendering of services	5,867,527	6,082,713
	_______	_______

The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.

5. Operating loss

Operating loss is stated after charging/(crediting):

	2024	2023
	£	£
Depreciation of tangible assets	140,870	593,819
Impairment of trade debtors	857	17,879
Fees payable for the audit of the financial statements	30,000	30,000
	_______	_______

6. Staff costs

The average number of persons employed by the company during the year, including the director, amounted to:

	2024	2023
Hotel staff	89	87
	_______	_______

The aggregate payroll costs incurred during the year were:

	2024	2023
	£	£
Wages and salaries	2,346,005	2,312,554
Social security costs	131,727	129,849
Other pension costs	27,173	23,294
	_______	_______
	2,504,905	2,465,697
	_______	_______

7. Interest payable and similar expenses

		2024	2023
		£	£
Bank loans and overdrafts		764,047	801,157
Other loans made to the company:
	Other interest on other loans made to the company	405,926	359,308
		_______	_______
		1,169,973	1,160,465
		_______	_______

8. Tax on loss

Major components of tax income

	2024	2023
	£	£
Current tax:
UK current tax income/expense	( 177,664)	-
Adjustments in respect of previous periods	-	12,495
	_______	_______

Deferred tax:
Origination and reversal of timing differences	( 116,077)	( 124,068)
	_______	_______
Tax on loss	( 293,741)	( 111,573)
	_______	_______

Reconciliation of tax income

The tax assessed on the loss for the year is lower than (2023: higher than) the standard rate of corporation tax in the UK of 25.00 % (2023: 23.50%).

	2024	2023
	£	£
Loss before taxation	( 1,136,605)	( 1,562,337)
	_______	_______

Loss multiplied by rate of tax	( 284,151)	( 367,149)
Adjustments in respect of prior periods	-	12,495
Effect of expenses not deductible for tax purposes	( 1,582)	84,100
Effect of different UK tax rates on some earnings	-	(22,978)
Utilisation of tax losses	-	181,959
Prior year adjustment to deferred tax	( 8,008)	-
	_______	_______
Tax on loss	( 293,741)	( 111,573)
	_______	_______

9. Tangible assets

	Freehold property	Fixtures, fittings and equipment	Total
	£	£	£
Cost
At 1 January 2024	18,486,825	3,720,021	22,206,846
Additions	-	159,050	159,050
	_______	_______	_______
At 31 December 2024	18,486,825	3,879,071	22,365,896
	_______	_______	_______
Depreciation
At 1 January 2024	-	3,572,511	3,572,511
Charge for the year	-	140,870	140,870
	_______	_______	_______
At 31 December 2024	-	3,713,381	3,713,381
	_______	_______	_______
Carrying amount
At 31 December 2024	18,486,825	165,690	18,652,515
	_______	_______	_______
At 31 December 2023	18,486,825	147,510	18,634,335
	_______	_______	_______

The freehold property is depreciated over 50 years, however as it is maintained to a high standard the residual value is considered to be at least carrying value so no depreciation has been charged in the period.An impairment of £2,807,000 of the freehold was recognised to reflect the valuation report issued by Savills in 2023.

10. Stocks

	2024	2023
	£	£
Finished goods and goods for resale	37,693	36,652
	_______	_______

11. Debtors

	2024	2023
	£	£
Trade debtors	191,871	32,015
Amounts owed by group undertakings	196,243	18,579
Deferred tax asset (note 14)	515,172	399,095
Prepayments and accrued income	141,155	83,187
Other debtors	87,048	87,468
	_______	_______
	1,131,489	620,344
	_______	_______

12. Creditors: amounts falling due within one year

	2024	2023
	£	£
Bank loans and overdrafts	10,803,389	108,314
Trade creditors	471,038	649,729
Amounts owed to parent	12,175,913	172,112
Amounts owed to other group undertakings	4,073,288	2,824,617
Accruals and deferred income	455,775	354,453
Social security and other taxes	153,002	136,275
Other creditors	10,900	12,326
	_______	_______
	28,143,305	4,257,826
	_______	_______

The company has a loan agreement with CitiBank for a nominal loan amount of £10,641,420. The loan bears interest at LIBOR 3 months plus 2% and repayable in September 2025. The company also has a loan from its parent company London & Regional Group Property Holdings Limited for an original amount £ 23,981,073 which was partially repaid . The current outstanding loan bears interest at 3.5%.

13. Creditors: amounts falling due after more than one year

	2024	2023
	£	£
Bank loans and overdrafts	-	10,641,420
Amounts owed to parent company	-	11,597,875
	_______	_______
	-	22,239,295
	_______	_______

14. Deferred tax

The deferred tax included in the statement of financial position is as follows:

	2024	2023
	£	£
Included in debtors (note 11)	515,172	399,095
	_______	_______

The deferred tax account consists of the tax effect of timing differences in respect of:

	2024	2023
	£	£
Accelerated capital allowances	118,882	104,286
Timing difference on interest payable	396,926	294,809
	_______	_______
	515,808	399,095
	_______	_______

15. Employee benefits

The amount recognised in profit or loss in relation to defined contribution plans was £ 27,173 (2023: £ 23,294 ).

16. Called up share capital

Issued, called up and fully paid

	2024		2023
	No	£	No	£
Ordinary shares of £ 1.00 each	100	100	100	100
	_______	_______	_______	_______

17. Related party transactions

During the year the company entered into the following transactions with related parties:

	Transaction value		Balance owed by/(owed to)
	2024	2023	2024	2023
	£	£	£	£
Parent company	405,926	359,308	( 12,175,913)	( 11,769,987)
Michels and Taylor (London) Limited	139,564	65,017	12,975	-
Other group companies	-	-	( 3,877,046)	( 2,806,038)
	_______	_______	_______	_______

As described in note 12 above, the company has an interest bearing loan from its parent company.

18. Controlling party

The immediate parent undertaking is London and Regional Group Property Holdings Ltd , a company incorporated and registered in England and Wales.The ultimate parent undertaking is London and Regional Group Properties Ltd , a company incorporated in England and Wales.London and Regional Group Property Holdings Ltd is the parent undertaking of the smallest group of undertakings to consolidate these financial statement as at 31 December 2024. London and Regional Group Properties Ltd is the parent undertaking of the largest group of undertakings to consolidate these financial statements at 31 December 2024. The consolidated financial statements of London and Regional Group Properties Ltd can be obtained from the company secretary at 8th Floor, South Block, 55 Baker Street, London, United Kingdom , W1U 8EW.The ultimate controlling parties are I.M. Livingstone and R.J. Livingston through their joint ownership of London and Regional Group Properties Ltd.