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

The group is ultimately majority owned and operated by investment funds managed by KSL Capital Partners. KSL is a private equity firm specialising in travel and leisure enterprises in five primary sectors: hospitality, recreation, clubs, real estate, and travel services. KSL is one of the world’s largest investors in hospitality and leisure.

The directors consider turnover, EBITDA, occupancy and daily covers to be the key performance indicators (KPIs) as they are the most effective measure of performance against the group's objectives.

As a group we had turnover of £50.6m (2023: £49.9m) and an EBITDA net of non-trading costs of £4.8m for the year (2023: £4.7m). The increase in revenue and improvement of revenue metrics year-on-year were mainly driven by the opening of the Village Pub and The Pig in the Cotswolds in June 2024 and September 2024 respectively. The lower occupancy levels seen in 2024 were offset by an increase seen in ADR achieved.

Even though we saw a growth in revenue, our new operations are still stabilising resulting in higher administrative expenses and only marginally higher EBITDA.

Since 2022, we have seen continued softness in the UK hospitality market post the significant uplift experienced due to Covid restrictions on foreign travel and the general pent-up demand for leisure experiences post UK restrictions being lifted. This softness has continued through 2024, along with the cost of living crisis still being felt by consumers. As a group we have an average occupancy of 77% (2023: 82%) but saw an uplift in ADR achieved with average daily restaurant covers increasing to 1,291 (2023: 1,283) for the year to 31 December 2024.

A valuation was undertaken of our hotel portfolio after the year-end. This saw an updated valuation of £138.4m for the hotels. The revaluation was reflected in our balance sheet at 31 December 2024, with the revaluation reserve utilised on a property-by-property basis and any further adjustments being charged to the statement of comprehensive income.

The principal risks and uncertainties facing the group are broadly grouped as liquidity risk, interest rate risk, credit risk and price risk. Further details are included in the directors' report.

The board of directors of The Pig Hotel Holdco Limited group consider, both individually and together, that they have acted in the way they consider, in good faith, would be most likely to promote the success of the group for the benefit of its members as a whole (having regard to the stakeholders and matters set out in s172(1)(a)-(f) of the Act) in the decisions taken during the year ended 31 December 2024.

To assist them in discharging their duty under s172 Companies Act 2006, the directors engage with employees, customers and suppliers to reflect their insights and views when making decisions on strategy; delivering operational effectiveness, driving initiatives; and committing to deliver outcomes that enhance social value. Below are examples of how the directors engage with stakeholders:

• Employees: The involvement and engagement of employees is vital to our business. We aim to be a responsible employer in our approach to the pay and benefits our team members receive. The health, safety and well-being of our team members is one of our primary factors in the way we do business. We participated in the Caterer's Best Places to Work in Hospitality survey to ensure that we are aware of, and can respond to, the needs of our employees. We also communicate regularly via our HIVE platform to deliver training needs and send company-wide updates.

• Guests: The directors place considerable value on the engagement and treatment of our guests. Our aim is to deliver a fantastic experience and gain their desire to return. We treat our guests' safety as one of our top priorities. All guests are invited to provide feedback on their stays at Pig Hotels so that we can respond to any concerns and maintain our high standards.

• Suppliers: Suppliers are not decided purely based on price but also their quality, impact on the environment and local community and how they conduct business. We champion local sourcing, working closely with small suppliers who share our sustainability values. We are certified B Corporation and expect our suppliers to have similarly high standards.

• Community: In operating our Hotels, we took into account the impact of the group's operations on the community and environment and our wider social responsibilities, and in particular how we comply with legislation and react promptly to local community concerns. The Pig actively supports the community through partnerships with local charities, undertaking fundraising and volunteering. We also offer bespoke training schemes for young talent in hospitality, such as out successful apprenticeship programme.

As the board of directors, our intention is to behave responsibly and ensure that management operate the business in a responsible manner, operating within the high standards of business conduct and good governance expected for a business such as ours. The intention is to nurture our reputation, through both the construction and delivery of our vision, that reflects our responsible behaviour.

The above, along with the narratives in the Directors' Report, help highlight how the directors have observed the principles of s172 and engaged with stakeholders in decision making and in promoting the long-term success of the group.

On behalf of the board

The directors present their annual report and the audited financial statements for the year ended 31 December 2024.

The company’s principal activity is that of an holding and management company within The Pig Hotel group.

The principal activity of the group was that of a hotelier and restaurateur.

The results for the year are set out on page 11.

No ordinary dividends were paid (2023: none). The directors do not recommend payment of a final dividend.

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

The company has made qualifying third party indemnity provisions for the benefit of its directors which were made during the period and remain in force at the date of this report.

The group operates a centralised treasury function which is responsible for managing the liquidity, interest, and foreign currency risks associated with the group's activities.

The group manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the group has sufficient liquid resources to meet the operating needs of the businesses. The group uses two major banks, both rated A with the major rating agencies, to finance its operations.

The group is exposed to fair value interest rate risk on any fixed rate borrowings and cash flow interest rate risk on floating rate deposits, bank overdrafts and loans. The group uses a combination of fixed and variable rate debt to reduce its exposure to changes in interest rates.

Approximately 80% of the interest on the group’s long-term loans has been hedged by agreeing a fixed interest rate until September 2025, with the cap likely to be extended at this point.

Investments of cash surpluses and borrowings are made through banks and companies which must fulfil credit rating criteria approved by the Board.

All customers who wish to trade on long credit terms are subject to credit verification procedures. Trade debtors are monitored on an ongoing basis and provision is made for doubtful debts where necessary. However, the group has no significant concentration of credit risk. In common with hotel and restaurant operations, services are provided in relatively small transactions with immediate settlement.

The directors consider that the company faces the usual pricing risk of any other company operating in a competitive, commercial environment.

Applications for employment by disabled persons are always fully considered, bearing in mind the aptitudes of the applicant concerned. In the event of members of staff becoming disabled, every effort is made to ensure that their employment within the group continues and that the appropriate training is arranged. It is the policy of the group that the training, career development and promotion of disabled persons should, as far as possible, be identical to that of other employees.

Details of engagement with employees can be found in the section 172 statement in the strategic report.

Details of engagement with suppliers, customers and others in a business relationship can be found in the section 172 statement in the strategic report.

The directors are committed to ongoing growth of the business and continually assess prospective sites for acquisition and expansion.

The auditor, PricewaterhouseCoopers (Northern Ireland) LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

In the year to 31 December 2024, The Pig Hotel Holdco Limited group’s total greenhouse gas emissions were 2,277 tonnes (2023: 2,132 tonnes) of carbon dioxide and the total energy consumption over this year was 10,143,991 (2023: 9,442,094) kWh.

The group has followed the 2019 HM Government Environmental Reporting Guidelines. The group has also used the GHG Reporting Protocol – Corporate Standard and have used the 2024 UK Government’s Conversion Factors for Company Reporting.

The directors have included the energy usage of all of the trading establishments. Data sources for the information provided are meter readings, fuel delivery invoices and recorded mileage on both company owned and employee owned vehicles.

The chosen intensity measurement ratio is total gross emissions in metric tonnes CO2e guest/footfall at the Hotels.

Working purposefully for both people and planet has been central to the way we work at the PIGs since our very first hotel opened. Our three key pillars of sustainability are to Source Responsibly, Support Society and to Protect the Environment. Every team member has a part to play in our sustainability journey and in 2024, we were incredibly proud for this to be recognised by us gaining our B Corp certification. Energy efficiency plays a big part in this, and it is important for us at THE PIGs, as it reduces environmental impact, saves costs, helps us meet certification standards, enhances reputation, and drives innovation in sustainable practices.

2024 saw us undertake our ESOS audit. The Energy Savings Opportunity Scheme (ESOS) audit is a comprehensive assessment of our energy use across all operations. The audit identified cost-effective measures to improve energy efficiency, such as implementing a behavioural change programme and optimising our air conditioning systems. By implementing these recommendations in 2025 and beyond, we can reduce our energy consumption and operational costs.

In 2023, we set a waste reduction target of a reduction in general waste by 1%. It was great to have achieved and surpassed this, by reducing our general waste by 4% (July 2023 – July 2024). We achieved this though a variety of ways, including better waste segregation and innovative recycling schemes (1,600 candles recycled and 648kg of soap with 13,063 new soap bars created and distributed). Reducing waste not only minimises our overall environmental footprint, but also lowers the energy required for waste processing and disposal.

The “S” of ESG plays an equally important part in our wider sustainability strategy. We care passionately about both planet and people and 2024 saw us increase a variety of social initiatives at THE PIGs. For example, and not limited to, completing over 2,000 hours of volunteering in our local communities, bolstering our involvement with The Royal Academy of Culinary Arts’ “Adopt a School” programme, training our Hotel Directors on Neurodiversity in the workplace and continuing our local charity partnerships; by fundraising, awareness raising and volunteering.

The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulation.

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, comprising FRS 102 "The Financial Reporting Standards applicable in the UK and Republic of Ireland", 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 group and company, and of the profit or loss of the group for that period. In preparing the financial statements, the directors are required to:

• select suitable accounting policies and then apply them consistently;

• state whether applicable UK Accounting Standards, comprising FRS 102 have been followed, subject to any material departures disclosed and explained in the financial statements;

• 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 group and company will continue in business.

The directors are responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The directors are also responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006.

Directors confirmations

In the case of each director in office at the date of the directors' report is approved:

• so far as the director is aware, there is no relevant audit information of which the company's auditors are unaware; and

• they have taken all the steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditors are aware of that information.

In our opinion, The Pig Hotel Holdco Limited’s group financial statements and company financial statements (the “financial statements”):

• give a true and fair view of the state of the group’s and of the company’s affairs as at 31 December 2024 and of the group’s loss and the group’s cash flows for the year then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, including FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland”, and applicable law); and

• have been prepared in accordance with the requirements of the Companies Act 2006.

We have audited the financial statements, included within the Annual Report and Financial Statements (the “Annual Report”), which comprise: the Group and Company Balance Sheets as at 31 December 2024; the Group Statement of Comprehensive Income, the Group and Company Statements of Changes in Equity and the Group Statement of Cash Flows for the year then ended; and the notes to the financial statements, which include a description of the significant accounting policies.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our responsibilities under ISAs (UK) are further described in the Auditors’ responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We remained independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, which includes the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.

Conclusions relating to going concern

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 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.

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.

However, because not all future events or conditions can be predicted, this conclusion is not a guarantee as to the group's and the company's ability to continue as a going concern.

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

Reporting on other information

The other information comprises all of the information in the Annual Report other than the financial statements and our auditors’ report thereon. The directors are responsible for the other information. Our opinion on the financial statements does not cover the other information and, accordingly, we do not express an audit opinion or, except to the extent otherwise explicitly stated in this report, any form of assurance 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 an apparent material inconsistency or material misstatement, we are required to perform procedures to conclude whether there is a material misstatement of 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 based on these responsibilities.

Reporting on other information (continued)

With respect to the Strategic report and Directors' Report, we also considered whether the disclosures required by the UK Companies Act 2006 have been included.

Based on our work undertaken in the course of the audit, the Companies Act 2006 requires us also to report certain opinions and matters as described below.

Strategic report and Directors' Report

In our opinion, based on the work undertaken in the course of the audit, the information given in the Strategic report and Directors' Report for the year ended 31 December 2024 is consistent with the financial statements and has been prepared in accordance with applicable legal requirements.

In light of the knowledge and understanding of the group and company and their environment obtained in the course of the audit, we did not identify any material misstatements in the Strategic report and Directors' Report

Responsibilities of the directors for the financial statements

As explained more fully in the Statement of director's responsibilities, the directors are responsible for the preparation of the financial statements in accordance with the applicable framework and for being satisfied that they give a true and fair view. The directors are also responsible for such internal control as they determine 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 directors are responsible for assessing the group’s and 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 group or the company or to cease operations, or have no realistic alternative but to do so.

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 auditors’ 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.

Based on our understanding of the group and industry, we identified that the principal risks of non- compliance with laws and regulations related to healthy and safety, data protection, employment and 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 increase revenue and related profits and management bias in determining accounting estimates. Audit procedures performed by the engagement team included:

Auditors' responsibilities for the audit of the financial statements (continued)

• Discussions with management, including consideration of known or suspected instances of non- compliance with laws and regulation and fraud;

• Review of legal expenses to understand the nature of the expenses incurred

• Identifying and testing unusual journal entries, in particular journal entries with unusual account combinations, such as those impacting revenue; and

• Evaluating and, where appropriate, challenging judgements and estimates made by management in determining amounts to be recognised in the financial statements.

There are inherent limitations in the audit procedures described above. We are less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements. Also, 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.

A further description of our responsibilities for the audit of the financial statements is located on the FRC’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors’ report.

Use of this 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 auditor's 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.

Other required reporting

Companies Act 2006 exception reporting

Under the Companies Act 2006 we are required to report to you if, in our opinion:

• we have not obtained all the information and explanations we require for our audit; or

• adequate accounting records have not been kept by the company, or returns adequate for our audit have not been received from branches not visited by us; or

• certain disclosures of directors’ remuneration specified by law are not made; or

• the company financial statements are not in agreement with the accounting records and returns. We have no exceptions to report arising from this responsibility.

We have no exceptions to report arising from this responsibility.

Results for 2023 have been restated as detailed in note 34.

The notes on pages 17 to 39 form part of these financial statements.

Results for 2023 have been restated as detailed in note 34.

The notes on pages 17 to 39 form part of these financial statements.

Results for 2023 have been restated as detailed in note 34.

The notes on pages 17 to 39 form part of these financial statements.

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £9,695,659 (2023 - £8,204,905 loss).

Results for 2023 have been restated as detailed in note 34.

The notes on pages 17 to 39 form part of these financial statements.

Results for 2023 have been restated as detailed in note 34.

The notes on pages 17 to 39 form part of these financial statements.

Results for 2023 have been restated as detailed in note 34.

The notes on pages 17 to 39 form part of these financial statements.

The Pig Hotel Holdco Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is 3rd Floor, 63 St James's Street, London, England, SW1A 1LY.

The group consists of The Pig Hotel Holdco Limited and all of its subsidiaries.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared on a going concern basis under the historical cost convention, modified to include the revaluation of properties and certain financial instruments at fair value. The principal accounting policies adopted are set out below.

The preparation of financial statements requires the use of certain critical accounting estimates. It also requires management to exercise its judgement in the process of applying the group and company accounting policies. The areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are disclosed in note 2.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

• Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

• Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instrument Issues: Interest income/expense and net gains/losses for financial instruments not measured at fair value; basis of determining fair values; details of collateral, loan defaults or breaches, details of hedges, hedging fair value changes recognised in profit or loss and in other comprehensive income;

• Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries, joint ventures and associates are accounted for at cost less impairment.

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

The consolidated financial statements incorporate those of The Pig Hotel Holdco Limited and all of its material subsidiaries (i.e. entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes.

All financial statements are made up to 31 December 2024. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used in line with those used by other members of the group.

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

The financial statements have been prepared on a going concern basis which assumes that the Group will continue in operational existence for the foreseeable future.

As the Group continues to deliver on its growth strategy, it requires additional support and investment from its ultimate controlling party. This support has been provided historically, and it is expected to continue to be provided. The directors have received a letter of support from KSL Capital Partners VI LP to confirm that they will provide the necessary financial support such that the Company is able to operate as a going concern and to settle its liabilities as and when they fall due. This support is in place for a period of not less than 12 months from the date of the approval of these financial statements. Further detail on the parent undertakings is provided in note 30. Treasury and cash flow of the Group is managed and scrutinised on a regular basis. The Directors consider that it is appropriate to perform their going concern assessment at a Group level.

In preparing the Group and the Company’s financial statements management has drawn up forecasts based on expected working capital requirements, expected capital projects of the Group as a whole, and also considering the prevailing macro-economic conditions (in particular inflationary pressures) and any impact they may have on the business. Management has included severe but plausible downside scenarios within their forecasts, to understand the impact of any adverse movements on key assumptions. With continued financial support, these cashflow forecasts indicate that the Group will have sufficient cash to meet its obligations as and when they fall due and to operate with a satisfactory level of headroom against the covenants in place on its loan facilities.

The Directors are satisfied that the Group and Company has adequate resources to continue in operational existence and meet its obligations and liabilities as they fall due, for not less than 12 months from the date of approval of these financial statements. The Group has traded strongly, with EBITDA net of non-trading costs of £4.8m, and is expected to continue to do so. The Group has discretion over its capital expenditure and expansion programmes with funding to support growth to be provided by the shareholders, as has been provided in the past.

Turnover represents amounts receivable for goods and services net of VAT.

For accommodation and room hire, revenue is recognised at the point of service. Revenue for food, drink and other services is recognised at the point of sale.

Any revenue received in advance is deferred until the point when the service is provided, in accordance with the stated policy.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Goodwill represents the excess of the cost of a business combination over the fair value of the group’s share of the net identifiable assets of the acquired subsidiary at the date of acquisition. Goodwill on acquisitions of subsidiaries is included in ‘intangible assets’.

Goodwill is carried at cost less accumulated amortisation and accumulated impairment losses. Goodwill amortisation is calculated by applying the straight-line method to its estimated useful life. If a reliable estimate cannot be made, the useful life of goodwill is presumed to be 10 years. Goodwill is being amortised to ‘administrative expenses’ over a 10 year period.

Estimates of the useful economic life of goodwill are based on a variety of factors such as the expected use of the acquired business, the expected useful life of the cash generating units to which the goodwill is attributed, any legal, regulatory or contractual provisions that can limit useful life and assumptions that market participants would consider in respect of similar businesses.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Properties whose fair value can be measured reliably are held under the revaluation model and are carried at a revalued amount, being their fair value at the date of valuation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The fair value of the land and buildings is usually considered to be their market value.

Revaluation gains and losses are recognised in other comprehensive income and accumulated in equity, except to the extent that a revaluation gain reverses a revaluation loss previously recognised in profit or loss or a revaluation loss exceeds the accumulated revaluation gains recognised in equity; such gains and loss are recognised in profit or loss.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Freehold land and assets in the course of construction are not depreciated.

Leasehold land and buildings are not depreciated because the residual value is sufficiently high that any depreciation charge and accumulated depreciation would be immaterial.

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

If the recoverable amount of the asset is estimated to be lower than the carrying amount, the carrying amount is reduced to its recoverable amount. An impairment loss is recognised in the profit and loss account, unless the asset has been revalued when the amount is recognised in other comprehensive income to the extent of any previously recognised revaluation. Thereafter any excess is recognised in profit or loss.

Stocks are stated at the lower of cost and net realisable value. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Stocks are valued on a First In First Out basis.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been, had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the group transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities.

Basic financial liabilities, including creditors and loans from fellow group companies that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Financial liabilities are derecognised when the group's contractual obligations expire or are discharged or cancelled.

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and 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. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

In the application of the group’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount 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 where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

The hotels are periodically revalued by an independent valuation expert. The valuation uses the profit method which is based on the group’s estimates and assumptions concerning its future revenue growth, trading and cash flows. The valuation of revalued properties at the reporting data was £138.4m, with the most recent valuation taking place in March 2025. This valuation was adopted by the directors as at 31 December 2024.

The depreciation on freehold properties are based on an assumed residual value equal to 95% of the valuation amount.

All income is derived from UK operations.

Fees payable to the company's and the group's auditors are paid by Home Grown Hotels Limited.

The average monthly number of persons (including directors) employed by the group and company during the year was:

Their aggregate remuneration comprised:

There are no employees in the company during the year or in the prior year.

None of the directors (2023: none) received remuneration from the Company as they are remunerated by KSL Capital Partners, a private equity firm who have invested in The Pig Hotel Holdco Limited. The directors do not believe it is practicable to apportion the directors’ remuneration to services as directors of the individual group companies within the Pig Hotel group.

Results for 2023 have been restated as detailed in note 34.

On the 1 April 2023 the rate of UK Corporation Tax increased from 19% to 25% for companies with profits over

£250,000. For profits between £50,000 and £250,000 a marginal rate of tax is applied.

The actual (credit)/charge for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:

In addition to the amount charged to the profit and loss account, the following amounts relating to tax have been recognised directly in other comprehensive income:

Land with a value of £3,675,000 (2023: £3,675,000) has not been depreciated.

The hotels were valued by Savills, independent RICS registered valuers, on 12 March 2025. The assets were valued on the basis of current market value under the profits method. The projected net operating income and cash flow have been discounted using a market discount rate. The key estimates are a capitalisation rate of between 7.25% and 10.5% and a discount rate which is 2.5% above the capitalisation rate used in the cash flow. The land, buildings, and furniture, fittings & equipment of the hotels have been valued at £138.4m. The valuation on 12 March 2025 was adopted by the directors at the balance sheet date. A reasonable possible change in any key assumptions could result in a material change to the valuation adopted.

The revaluation surplus is disclosed in note 25.

Land and buildings in Home Grown Hotels Limited are carried at valuation. If these assets were measured using the cost model, the carrying amounts would be as follows:

Additions comprise issues of 12,264,734 £1 ordinary shares in The Pig Hotel Midco Limited during the year

No investments are held in the group company.

Details of the company's subsidiaries at 31 December 2024 are as follows:

Registered office addresses (all UK unless otherwise indicated):

During the year ended 31 December 2024, The Pig Hotel Group Limited purchased an interest rate cap instrument with SONIA capped at 3.5% on tranche A of the bank loan, totalling £77,416,097 at year-end. The market value of the instrument at the year-end was £563,087.

There was no stock provision in place in either the current year or prior year.

There is no significant difference between the replacement cost of goods and their carrying value.

The derivative financial instrument is detailed in note 15.

Amounts owed by group undertakings are repayable on demand and attract no interest.

There is no provision for bad debt in current year or prior year.

Amounts owed to group undertakings and other borrowings are repayable on demand and attract no interest.

The preference shares have the right to receive an annual preferential dividend of 9% of the subscription price of the shares, which has been accrued. See note 23 for further details.

The bank loans are secured over the properties and assets held by the group.

On 15 July 2022 all existing bank loans were repaid, and a new bank loan was drawn totalling £78m from facility A. The term of the bank loan ends in July 2027, at which point any outstanding balances is repayable. It attracts interest at a rate of 3.65% above SONIA rate. Interest charged on bank loans is shown under interest payable within the statement of comprehensive income. The group has purchased an interest rate cap derivative with a cap of 3.5% on the SONIA rate to be applied when calculating the interest on the £78m loan. The cap is effective from 1 October 2024 and 30 September 2025.

A further £4.9m was drawn down in April 2023 from facility B. This attracts the same terms, interest rate and treatment as Facility A above. The interest rate cap above does not apply to tranche B.

During the year additional loan arrangement fees of £163,254 have been capitalised. In the year ended 31 December 2024 an amortisation charge of £544,774 has been made. Amortisation is charged to interest payable over the life of the bank loan facilities.

For more information regarding preference shares, see note 23.

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

The group operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund. At the balance sheet date £119,315 (2023: £89,901) of pension contributions were outstanding.

Ordinary share capital

On 28 December 2023 19,500 Ordinary D shares of £0.01 each were issued at £1.78 a share resulting in a premium of £1.77 a share.

On 3 January 2024 650 Ordinary D shares of £0.01 each were issued at £1.78 a share resulting in a premium of £1.77 a share.

All ordinary shares in issue have the same rights, preferences and restrictions attached to them.

Preference share capital

On 19 December 2023 2,735,268 Preference A shares of £0.01 each were issued at £1 a share resulting in a premium of £0.99 a share.

On 24 April 2024 2,464,732 Preference A shares of £0.01 each were issued at £1 a share resulting in a premium of £0.99 a share.

On 5 September 2024 4,500,000 Preference A shares of £0.01 each were issued at £1 a share resulting in a premium of £0.99 a share.

On 20 September 2024 4,000,000 Preference A shares of £0.01 each were issued at £1 a share resulting in a premium of £0.99 a share.

On 16 December 2024 1,000,000 Preference A shares of £0.01 each were issued at £1 a share resulting in a premium of £0.99 a share.

At the reporting date the company has in issue 99,085,955 £0.01 redeemable preference shares that are allotted, called up and fully paid. These shares are classified as a financial liability in accordance with FRS 102. The preference shares have the right to receive an annual preferential dividend of 9% of the subscription price of the shares, which has been accrued (see Note 19). The company may at any time, subject to receiving the investor's consent, redeem some or all of the preference shares.

The preference shares have no voting rights attached and are not eligible for further dividends beyond the contractual 9% noted above.

On 16 January 2024 the group acquired the business of Barnsley House Trading Limited and Barnsley House Properties Limited.

Subsequent to the acquisition, £7,000,000 in respect of borrowings that were assumed were repaid by Home Grown Hotels Limited.

On 14th June 2024, the trade and assets of Barnsley House Trading Limited and Barnsley House Properties Limited were transferred to the company as part of an Asset Purchase Agreement.

The revenue from Barnsley House Trading Limited included in the consolidated income statement for 2024 was £192,000. Barnsley House Trading Limited also contributed a loss of £485,000 over the same period.

The group has provided guarantee, fixed and floating charges over its properties and assets as security against bank borrowing facilities entered into by The Pig Hotel Group Limited.

Operating lease payments represent rentals payable by the group for certain items of equipment. Leases are negotiated for an average term of 4 years and rentals are fixed for an average of 4 years.

At the reporting end date the group had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

The company has taken advantage of the exemption available in Section 33.1A of FRS 102 whereby it has not disclosed transactions with the ultimate parent company or any wholly owned subsidiary undertaking of the group.

Related parties

At 31 December 2024, the group owed £13m to KSL Capital Partners for funding provided to the group during the year. The was no equivalent balance in prior year.

Purchase of services

During the financial year Home Grown Hotels Limited made purchases of £417,522 (2023: £46,257) from related parties and made sales of £348 (2023: £nil). The related parties were related by virtue of having a director in common at the time of the transactions. At 31 December 2024, £24,515 was owing to the related parties.

The directors considered that KSL Capital Partners LLC through their Fund KSL Capital Partners VI LP, is the ultimate controlling party of the group by virtue of its share holding up to the balance sheet date.

The Pig Hotel Holdco Limited has provided guarantees to the subsidiaries listed below, under Section 479C of the Companies Act 2006 in respect of their relevant financial years and therefore these subsidiaries are exempt from the requirements of this Act relating to the audit of financial statements under Section 479A of the Companies Act 2006.

Subsidiary Name         Registered Number

The Pig Hotel Midco Limited    13916571

HGH (Staff Houses) Limited    08990144

Barnsley House Properties Limited    13522298

Barnsley House Trading Limited    13522241

Results for 2023 have been restated as detailed in note 34.

In the prior year dividends payable on preference shares, totalling £8,173,425 for 2023 were incorrectly treated as interest paid, despite being a non-cash item.  The comparatives were restated with a corresponding adjustment to ‘Increase/(decrease) in creditors’. 

Management have identified a misstatement in the presentation of interest income received within The Pig Hotel Group Limited. In the year to 31 December 2023, £849,174 of interest income received on the interest rate cap in The Pig Hotel Group Limited was offset against interest payable on bank loans in the group statement of comprehensive income. The comparative in the statement of comprehensive income has been restated to appropriately include this interest income within “Interest receivable and similar income” and remove the effects from “Interest payable and similar expenses”. 

This misstatement also impacted the presentation within the cashflow statement for the year to 31 December 2023 as interest paid and interest received were incorrectly understated by the amount of this cash inflow in the operating activities and financing activities sections, respectively.