Caseware UK (AP4) 2024.0.164 2024.0.164 2024-12-312024-12-31trueHoteling Servicestruetruetruefalse2024-01-01false9088truefalse 02850880 2024-01-01 2024-12-31 02850880 2023-01-01 2023-12-31 02850880 2024-12-31 02850880 2023-12-31 02850880 2023-01-01 02850880 1 2024-01-01 2024-12-31 02850880 1 2023-01-01 2023-12-31 02850880 6 2023-01-01 2023-12-31 02850880 d:Exceptional 2024-01-01 2024-12-31 02850880 d:Exceptional 2023-01-01 2023-12-31 02850880 e:CompanySecretary1 2024-01-01 2024-12-31 02850880 e:Director1 2024-01-01 2024-12-31 02850880 e:Director3 2024-01-01 2024-12-31 02850880 e:Director4 2024-01-01 2024-12-31 02850880 e:Director4 2024-12-31 02850880 e:RegisteredOffice 2024-01-01 2024-12-31 02850880 d:Buildings d:LongLeaseholdAssets 2024-01-01 2024-12-31 02850880 d:Buildings d:LongLeaseholdAssets 2024-12-31 02850880 d:Buildings d:LongLeaseholdAssets 2023-12-31 02850880 d:PlantMachinery 2024-01-01 2024-12-31 02850880 d:PlantMachinery 2024-12-31 02850880 d:PlantMachinery 2023-12-31 02850880 d:PlantMachinery d:OwnedOrFreeholdAssets 2024-01-01 2024-12-31 02850880 d:FurnitureFittings 2024-01-01 2024-12-31 02850880 d:FurnitureFittings 2024-12-31 02850880 d:FurnitureFittings 2023-12-31 02850880 d:FurnitureFittings d:OwnedOrFreeholdAssets 2024-01-01 2024-12-31 02850880 d:OwnedOrFreeholdAssets 2024-01-01 2024-12-31 02850880 d:DevelopmentCostsCapitalisedDevelopmentExpenditure 2024-12-31 02850880 d:DevelopmentCostsCapitalisedDevelopmentExpenditure 2023-12-31 02850880 d:OtherResidualIntangibleAssets 2024-01-01 2024-12-31 02850880 d:CurrentFinancialInstruments 2024-12-31 02850880 d:CurrentFinancialInstruments 2023-12-31 02850880 d:CurrentFinancialInstruments d:WithinOneYear 2024-12-31 02850880 d:CurrentFinancialInstruments d:WithinOneYear 2023-12-31 02850880 d:ReportableOperatingSegment1 2024-01-01 2024-12-31 02850880 d:ReportableOperatingSegment1 2023-01-01 2023-12-31 02850880 d:ShareCapital 2024-01-01 2024-12-31 02850880 d:ShareCapital 2024-12-31 02850880 d:ShareCapital 2023-01-01 2023-12-31 02850880 d:ShareCapital 2023-12-31 02850880 d:ShareCapital 2023-01-01 02850880 d:SharePremium 2024-01-01 2024-12-31 02850880 d:SharePremium 2024-12-31 02850880 d:SharePremium 2023-01-01 2023-12-31 02850880 d:SharePremium 2023-12-31 02850880 d:SharePremium 2023-01-01 02850880 d:RevaluationReserve 2024-01-01 2024-12-31 02850880 d:RevaluationReserve 2024-12-31 02850880 d:RevaluationReserve 2023-01-01 2023-12-31 02850880 d:RevaluationReserve 2023-12-31 02850880 d:RevaluationReserve 2023-01-01 02850880 d:RevaluationReserve 6 2023-01-01 2023-12-31 02850880 d:RetainedEarningsAccumulatedLosses 2024-01-01 2024-12-31 02850880 d:RetainedEarningsAccumulatedLosses 2024-12-31 02850880 d:RetainedEarningsAccumulatedLosses 2023-01-01 2023-12-31 02850880 d:RetainedEarningsAccumulatedLosses 2023-12-31 02850880 d:RetainedEarningsAccumulatedLosses 2023-01-01 02850880 d:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2024-12-31 02850880 d:FinancialAssetsDesignatedFairValueThroughProfitOrLoss 2023-12-31 02850880 e:OrdinaryShareClass1 2024-01-01 2024-12-31 02850880 e:OrdinaryShareClass1 2024-12-31 02850880 e:OrdinaryShareClass1 2023-12-31 02850880 e:FRS102 2024-01-01 2024-12-31 02850880 e:Audited 2024-01-01 2024-12-31 02850880 e:FullAccounts 2024-01-01 2024-12-31 02850880 e:PrivateLimitedCompanyLtd 2024-01-01 2024-12-31 02850880 d:Subsidiary1 2024-01-01 2024-12-31 02850880 d:Subsidiary1 1 2024-01-01 2024-12-31 02850880 d:Subsidiary2 2024-01-01 2024-12-31 02850880 d:Subsidiary2 1 2024-01-01 2024-12-31 02850880 d:Subsidiary3 2024-01-01 2024-12-31 02850880 d:Subsidiary3 1 2024-01-01 2024-12-31 02850880 d:WithinOneYear 2024-12-31 02850880 d:WithinOneYear 2023-12-31 02850880 d:BetweenOneFiveYears 2024-12-31 02850880 d:BetweenOneFiveYears 2023-12-31 02850880 4 2024-01-01 2024-12-31 02850880 5 2024-01-01 2024-12-31 02850880 6 2024-01-01 2024-12-31 02850880 d:DevelopmentCostsCapitalisedDevelopmentExpenditure d:OwnedIntangibleAssets 2024-01-01 2024-12-31 02850880 f:PoundSterling 2024-01-01 2024-12-31 02850880 d:RetainedEarningsAccumulatedLosses 6 2023-01-01 2023-12-31 iso4217:GBP xbrli:shares xbrli:pure

Registered number: 02850880









Q.N. HOTELS LIMITED









ANNUAL REPORT AND FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

 
Q.N. HOTELS LIMITED
 
 
COMPANY INFORMATION


Directors
Q Ahmed 
N Ahmed 
A Ahmed (resigned 2 January 2024)




Company secretary
Q Ahmed



Registered number
02850880



Registered office
QN House
Unit 4 Loughton Business Centre

5 Langston Road

Loughton

Essex

IG10 3FL




Independent auditors
Haslers
Chartered Accountants & Statutory Auditor

Old Station Road

Loughton

Essex

IG10 4PL





 
Q.N. HOTELS LIMITED
 

CONTENTS



Page
Strategic report
 
1
Directors' report
 
2
Directors' responsibilities statement
 
3
Independent auditors' report
 
4 - 7
Statement of comprehensive income
 
8
Balance sheet
 
9
Statement of changes in equity
 
10
Notes to the financial statements
 
11 - 26


 
Q.N. HOTELS LIMITED
 
 
STRATEGIC REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

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

Business review
 
Turnover in the company showed a slight growth as compared to the previous year. Inflationary pressures remained during the year however the company managed to keep these below inflation.  
The company made a pre-tax loss of £1,005,933 (2023: £696,620 loss).
£337,201 of exceptional costs are included in this loss. 
  
Future Developments
The Company is not planning any significant capital expenditure in the next 12 months.  

Principal risks and uncertainties
 
The principal risks and uncertainties facing the business (apart from those associated with a general economic downturn) relate to the management of cash and borrowing requirements.

Key performance indicators
 
In the opinion of the directors the key performance indicators are occupancy, average room rate and revenue per available room


This report was approved by the board on 25 September 2025 and signed on its behalf.



Q Ahmed
Director

Page 1

 
Q.N. HOTELS LIMITED
 
 
 
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 DECEMBER 2024

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

Results and dividends

The loss for the year, after taxation, amounted to £1,005,933 (2023 - loss £696,620).

No ordinary dividends were paid. The directors do not recommend payment of a final dividend.

Directors

The directors who served during the year were:

Q Ahmed 
N Ahmed 
A Ahmed (resigned 2 January 2024)

Future developments

The company is not planning any significant capital expenditure in the next 12 months.

Disclosure of information to auditors

Each of the persons who are directors at the time when this Directors' report is approved has confirmed that:
 
so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and

the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditors are aware of that information.

Post balance sheet events

There have been no significant events affecting the Company since the year end.

Auditors

The auditorsHaslerswill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 25 September 2025 and signed on its behalf.
 



Q Ahmed
Director

Page 2

 
Q.N. HOTELS LIMITED
 
 
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 DECEMBER 2024

The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period.

 In preparing these financial statements, the directors are required to:

select suitable accounting policies for the Company's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;


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

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

Page 3

 
Q.N. HOTELS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF Q.N. HOTELS LIMITED
 

Opinion


We have audited the financial statements of Q.N. Hotels Limited (the 'Company') for the year ended 31 December 2024, which comprise the Statement of comprehensive income, the Balance sheet, the Statement of changes in equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Company's affairs as at 31 December 2024 and of its 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


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


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


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


Page 4

 
Q.N. HOTELS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF Q.N. HOTELS LIMITED (CONTINUED)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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. 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 course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Opinion 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 Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
the financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement set out on page 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine 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 Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.


Page 5

 
Q.N. HOTELS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF Q.N. HOTELS LIMITED (CONTINUED)


Auditors' responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue 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 legal and regulatory frameworks that are applicable to the entity we have considered those that have a direct and indirect material impact on the financial statements and operations of the company. These include but are not limited to the Companies Act 2006, GDPR, Employment and Health & Safety legislation, tax legislation.
We obtained an understanding of how the company are complying with those legal and regulatory frameworks by making inquiries to the management. We corroborated our inquiries through our review of documentation generated and assessing the extent of compliance with the relevant laws and regulations.
We discussed among the audit engagement team regarding the opportunities and incentives, including management override of controls, that may exist within the organisation for fraud and how and where fraud might occur in the financial statements.
As a result of performing the above, we identified the greatest potential for material misstatements due to fraud are in the following areas, and our specific procedures performed to address these are described below:
The risk of management override of controls is the area where the financial statements were most susceptible to material misstatement due to fraud. In addition, the key principal risks related to the existence of inappropriate journal entries to impact the profit for the year and management bias in accounting estimates.
Procedures performed to address these were as follows:
•  Walkthrough testing was carried out to identify and assess the design effectiveness of controls     management have in place to prevent and detect fraud, including known of suspected instances or non-    compliance with laws and regulations and fraud,
•  Understanding how those charged with governance considered and addressed the potential for override      of controls or other inappropriate influence over the financial reporting process,
•  Using analytical procedures to identify any unusual or unexpected relationships that may indicate risks of
 material misstatements due to fraud,
•  Assessing the appropriateness of accounting estimates and challenging any significant assumptions or
 judgements made by management,
• Incorporating testing of manual journal entries that were posted throughout the year. In particular, we    focused on material journal entries, round sum journal entries, unauthorised journals, and journal entries   posted outside normal business working hours. These were scrutinised for evidence of unusual entries.
Page 6

 
Q.N. HOTELS LIMITED
 
 
 
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF Q.N. HOTELS LIMITED (CONTINUED)




Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' 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 2006Our 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.





Matthew Wells ACA (Senior statutory auditor)
for and on behalf of
Haslers
Chartered Accountants
Statutory Auditor
Old Station Road
Loughton
Essex
IG10 4PL

25 September 2025
Page 7

 
Q.N. HOTELS LIMITED
 
 
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER 2024

2024
2023
Note
£
£

  

Turnover
 4 
3,627,554
3,555,369

Cost of sales
  
(2,221,408)
(2,149,546)

Gross profit
  
1,406,146
1,405,823

Administrative expenses
  
(1,801,541)
(1,758,818)

Exceptional administrative expenses
  
(337,201)
-

Other operating income
 5 
33,521
28,054

Operating loss
 6 
(699,075)
(324,941)

Interest payable and similar expenses
 10 
(306,858)
(371,679)

Loss before tax
  
(1,005,933)
(696,620)

Loss for the financial year
  
(1,005,933)
(696,620)

Other comprehensive income for the year
  

Unrealised surplus on revaluation of tangible fixed assets
  
-
14,292

Other comprehensive income for the year
  
-
14,292

Total comprehensive income for the year
  
(1,005,933)
(682,328)

The notes on pages 11 to 26 form part of these financial statements.

Page 8

 
Q.N. HOTELS LIMITED
REGISTERED NUMBER: 02850880

BALANCE SHEET
AS AT 31 DECEMBER 2024

2024
2023
Note
£
£

Fixed assets
  

Intangible assets
 13 
17,250
18,500

Tangible assets
 14 
5,229,166
5,200,000

Investments
 15 
1,394,536
1,394,536

  
6,640,952
6,613,036

Current assets
  

Stocks
 16 
22,286
23,147

Debtors: amounts falling due within one year
 17 
6,326,502
7,887,336

Cash at bank and in hand
 18 
198,931
522,682

  
6,547,719
8,433,165

Creditors: amounts falling due within one year
 19 
(5,794,533)
(6,646,130)

Net current assets
  
 
 
753,186
 
 
1,787,035

Total assets less current liabilities
  
7,394,138
8,400,071

  

Net assets
  
7,394,138
8,400,071


Capital and reserves
  

Called up share capital 
 22 
1,000,000
1,000,000

Share premium account
 23 
17,476,650
17,476,650

Revaluation reserve
 23 
322,979
322,979

Profit and loss account
 23 
(11,405,491)
(10,399,558)

  
7,394,138
8,400,071


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 25 September 2025.




Q Ahmed
Director

The notes on pages 11 to 26 form part of these financial statements.

Page 9

 
Q.N. HOTELS LIMITED
 

STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2024


Called up share capital
Share premium account
Revaluation reserve
Profit and loss account
Total equity

£
£
£
£
£

At 1 January 2024
1,000,000
17,476,650
322,979
(10,399,558)
8,400,071


Comprehensive income for the year

Loss for the year
-
-
-
(1,005,933)
(1,005,933)
Total comprehensive income for the year
-
-
-
(1,005,933)
(1,005,933)


At 31 December 2024
1,000,000
17,476,650
322,979
(11,405,491)
7,394,138



STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER 2023


Called up share capital
Share premium account
Revaluation reserve
Profit and loss account
Total equity

£
£
£
£
£

At 1 January 2023
1,000,000
17,476,650
308,687
(9,702,938)
9,082,399


Comprehensive income for the year

Loss for the year
-
-
-
(696,620)
(696,620)

Surplus on revaluation of leasehold property
-
-
14,292
-
14,292
Total comprehensive income for the year
-
-
14,292
(696,620)
(682,328)


At 31 December 2023
1,000,000
17,476,650
322,979
(10,399,558)
8,400,071


The notes on pages 11 to 26 form part of these financial statements.

Page 10

 
Q.N. HOTELS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

1.


General information

Q.N. Hotels Limited is a private company limited by shares incorporated in England and Wales, registration number 02850880. The registered office is Qn House Unit 4 Loughton Business Centre, 5 Langston Road, Loughton, Essex, IG10 3FL. The principal activity of the company continued to be that of Hotelier services.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies (see note 3).

The following principal accounting policies have been applied:

 
2.2

Financial Reporting Standard 102 - reduced disclosure exemptions

The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
the requirements of Section 7 Statement of Cash Flows;
the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
the requirements of Section 33 Related Party Disclosures paragraph 33.7.

This information is included in the consolidated financial statements of Q.N. (Holdings) Limited as at 31st December 2024 and these financial statements may be obtained from Companies House.

 
2.3

Going concern

The immediate parent company Q.N. (Holdings) Limited has obtained a loan in the year from Metro bank, allowing for repayment of the Coutt's Bank Loan held in Q.N. Hotels Limited.
Funds from this Metro loan are accessible across the Q.N. (Holdings) Group. 
At the time of approving the financial statements, based on the budgets and post year-end results, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

Page 11

 
Q.N. HOTELS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Turnover is recognised when services have been rendered, and is derived primarily from the rental of rooms, conference and banqueting, food and beverage sales.
 
Turnover is derived from hotel operations, and arose wholly in the United Kingdom.

 
2.5

Operating leases: the Company as lessee

Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term.

Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.

 
2.6

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.7

Pensions

Defined contribution pension plan

The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Balance sheet. The assets of the plan are held separately from the Company in independently administered funds.

 
2.8

Taxation

Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the balance sheet date in the countries where the Company operates and generates income.

Page 12

 
Q.N. HOTELS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.9

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the Company but are presented separately due to their size or incidence.

 
2.10

Intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 The estimated useful lives range as follows:

Franchise fees
-
20
years

 
2.11

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Long-term leasehold property
-
See below
Plant and machinery
-
15%
straight line
Fixtures, fittings and equipment
-
15%
straight line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

Long-term leasehold property is held at fair value, determined by external valuers and and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in profit or loss.

Page 13

 
Q.N. HOTELS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.12

Revaluation of tangible fixed assets

Individual freehold and leasehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the balance sheet date.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.

Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.

 
2.13

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.14

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis.

At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.15

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.16

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

 
2.17

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

Page 14

 
Q.N. HOTELS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)

 
2.18

Financial instruments

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

Basic financial assets

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Company's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

Impairment of financial assets

At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Basic financial liabilities

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 Company after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans and other loans are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

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

Page 15

 
Q.N. HOTELS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

2.Accounting policies (continued)


2.18
Financial instruments (continued)

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

Derecognition of financial instruments

Derecognition of financial assets

Financial assets are derecognised when their contractual right to future cash flow expire, or are settled, or when the Company transfers the asset and substantially all the risks and rewards of ownership to another party. If significant risks and rewards of ownership are retained after the transfer to another party, then the Company will continue to recognise the value of the portion of the risks and rewards retained.

Derecognition of financial liabilities

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

Page 16

 
Q.N. HOTELS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

3.


Judgments in applying accounting policies 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 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.
Key sources of estimation uncertainty
The estimates and assumptions which have a signifcant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.
Valuation of land and buildings
The company has adopted the revaluation model for its land and buildings. At the end of each reporting period, the directors update their assessment of the fair value of each property, taking into account the most recent independent valuations. The directors determine a property’s value within a range of reasonable fair value estimates. 
During the year to 31 December 2024, a formal valuation was carried out by an independent RICS Chartered Surveyor. The valuation technique used in arriving at the value of the land and buildings in these financial statements was based on discounted future cash flows as valuers considers this approach to the one most likely to be adopted by potential purchasers. The valuation model considers the present value of net cashflows to be generated by the property taking into account expected rental growth and occupancy rate among other things. The expected net cashflows are discounted using a risk adjusted discount rate. The valuation of property at fair value is a source of significant estimation uncertainty as determining this involves the use of significant assumptions which include the discount rate.


4.


Turnover

An analysis of turnover by class of business is as follows:


2024
2023
£
£

Hotelier Activities
3,627,554
3,555,369

3,627,554
3,555,369


All turnover arose within the United Kingdom.

Page 17

 
Q.N. HOTELS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

5.


Other operating income

2024
2023
£
£

Net rents receivable
33,521
28,054

33,521
28,054



6.


Operating loss

The operating loss is stated after charging:

2024
2023
£
£

Fees payable to auditors
63,450
54,350

Depreciation of tangible fixed assets
250,278
230,516

Other operating lease charges
110,236
-

Amortisation of intangible assets
1,250
1,250


7.


Auditors' remuneration

During the year, the Company obtained the following services from the Company's auditors:


2024
2023
£
£

Fees payable to the Company's auditors for the audit of the Company's financial statements
63,450
54,350

The Company has taken advantage of the exemption not to disclose amounts paid for non-audit services as these are disclosed in the consolidated accounts of the parent Company.

Page 18

 
Q.N. HOTELS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

8.


Employees

Staff costs, including directors' remuneration, were as follows:


2024
2023
£
£

Wages and salaries
1,527,971
1,408,225

Social security costs
111,969
98,687

Cost of defined contribution scheme
21,761
20,245

1,661,701
1,527,157


The average monthly number of employees, including the directors, during the year was as follows:


        2024
        2023
            No.
            No.







Director
2
3



Hotel Service Staff
75
72



Administration and Management staff
13
13

90
88


9.


Directors' remuneration

2024
2023
£
£

Directors' emoluments
-
24,900

Company contributions to defined contribution pension schemes
-
330

-
25,230


During the year retirement benefits were accruing to no directors (2023 - NIL) in respect of defined contribution pension schemes.


10.


Interest payable and similar expenses

2024
2023
£
£


Bank interest payable
306,858
371,679

306,858
371,679

Page 19

 
Q.N. HOTELS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

11.


Taxation


2024
2023
£
£



Total current tax
-
-

Factors affecting tax charge for the year

The tax assessed for the year is lower than (2023 - lower than) the standard rate of corporation tax in the UK of 25% (2023 - 23%). The differences are explained below:

2024
2023
£
£


Loss on ordinary activities before tax
(1,005,933)
(696,620)


Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2023 - 23%)
(251,483)
(160,223)

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
180,916
-

Capital allowances for year in excess of depreciation
(18,330)
-

Unrelieved tax losses carried forward
94,359
160,223

Other differences leading to an increase (decrease) in the tax charge
(5,462)
-

Total tax charge for the year
-
-


Factors that may affect future tax charges

There are group tax losses carried forward to be utilised against future profits.


12.


Exceptional items

2024
2023
£
£


Director loan write-off
399,442
-

Intercompany loan write-off
(62,241)
-

337,201
-

Page 20

 
Q.N. HOTELS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

13.


Intangible assets




Franchise fee

£



Cost


At 1 January 2024
25,000



At 31 December 2024

25,000



Amortisation


At 1 January 2024
6,500


Charge for the year on owned assets
1,250



At 31 December 2024

7,750



Net book value



At 31 December 2024
17,250



At 31 December 2023
18,500



Page 21

 
Q.N. HOTELS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

14.


Tangible fixed assets





Long-term leasehold property
Plant and machinery
Fixtures and fittings
Total

£
£
£
£



Cost or valuation


At 1 January 2024
4,342,365
1,059,890
4,212,225
9,614,480


Additions
-
-
279,444
279,444



At 31 December 2024

4,342,365
1,059,890
4,491,669
9,893,924



Depreciation


At 1 January 2024
-
1,014,596
3,399,884
4,414,480


Charge for the year on owned assets
-
12,787
237,491
250,278



At 31 December 2024

-
1,027,383
3,637,375
4,664,758



Net book value



At 31 December 2024
4,342,365
32,507
854,294
5,229,166



At 31 December 2023
4,342,365
45,293
812,342
5,200,000


15.


Fixed asset investments





Investments in subsidiary companies

£



Cost or valuation


At 1 January 2024
1,394,536



At 31 December 2024
1,394,536




Page 22

 
Q.N. HOTELS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Class of shares

Holding

Q.N. Hotels (Aylesbury) Limited
Ordinary shares
100%
Q.N. Hotels (Wrexham) Limited
Ordinary shares
100%
Swanfield Limited
Ordinary shares
100%


16.


Stocks

2024
2023
£
£

Food and drink
22,286
23,147

22,286
23,147



17.


Debtors

2024
2023
£
£


Trade debtors
124,214
84,265

Amounts owed by group undertakings
5,624,287
6,847,991

Other debtors
544,295
929,864

Prepayments and accrued income
33,706
25,216

6,326,502
7,887,336



18.


Cash and cash equivalents

2024
2023
£
£

Cash at bank and in hand
198,931
522,682

Less: bank overdrafts
(15,926)
-

183,005
522,682


Page 23

 
Q.N. HOTELS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

19.


Creditors: Amounts falling due within one year

2024
2023
£
£

Bank overdrafts
15,926
-

Bank loans
-
5,529,563

Trade creditors
250,049
203,016

Amounts owed to group undertakings
4,567,310
-

Corporation tax
331,825
218,296

Other taxation and social security
211,295
269,057

Other creditors
249,823
258,587

Accruals and deferred income
168,305
167,611

5,794,533
6,646,130



20.


Loans


Analysis of the maturity of loans is given below:


2024
2023
£
£

Amounts falling due within one year

Bank loans
-
5,529,563




-
5,529,563


The company forms part of a cross company guarantee securing the Metro bank borrowings of Q.N. (Holdings) Limited. At 31 December 2024 these borrowings amounted to £7,150,000 (2023: £Nil).
In 2023, the company formed part of a cross company guarantee securing the Coutt's bank borrowings of Q.N. Hotels Limited. At 31 December 2024 these borrowings amounted to £Nil  (2023: £5,529,563).
The bank has a charge over the leasehold property and other assets of the company in respect of these borrowings.
Finance costs incurred on the Metro loan are borne by the entities over which the bank holds security, apportioned at the market value of the secured properties.

Page 24

 
Q.N. HOTELS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

21.


Financial instruments

2024
2023
£
£

Financial assets


Financial assets measured at fair value through profit or loss
198,931
522,682




Financial assets measured at fair value through profit or loss comprise of cash at bank and in hand.


22.


Share capital

2024
2023
£
£
Allotted, called up and fully paid



1,000,000 (2023 - 1,000,000) Ordinary shares of £1.00 each
1,000,000
1,000,000



23.


Reserves

Share premium account

The share premium account represents the premium arising on the issue of shares net of issue costs

Revaluation reserve

The revaluation reserve represents cumulative effects of fair value adjustments net of deferred tax and other adjustments

Profit and loss account

The profit and loss account represents cumulative profits and losses net of dividends and other adjustments


24.


Pension commitments

The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £21,761 (2023: £20,245).                    Contributions totalling £11,559 (2023: £6,026) were payable to the fund at the balance sheet date.

Page 25

 
Q.N. HOTELS LIMITED
 
 
 
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024

25.


Commitments under operating leases

At 31 December 2024 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:

2024
2023
£
£


Not later than 1 year
12,886
17,814

Later than 1 year and not later than 5 years
-
12,886

12,886
30,700


26.


Related party transactions

The Company has taken advantage of the exemptions conferred in FRS 102 Section 33 not to disclose transactions with other group companies where 100% of the voting rights are controlled within the group.
As at 31 December 2024, amounts due from other companies under common control amounted to £512,860 (2023: £514,120).                                As at 31 December 2024 directors owed QN Hotels Limited £6,212 (2023: £399,442).
As at 31 December 2024 a director was owed £Nil by the company (2023:£9,234).
In the year, a person with significant control earned £106,000 (2023: £69,300) as an employee of the company.


27.


Controlling party

The immediate and ultimate parent company is Q.N. (Holdings) Limited, a company incorporated in England and Wales.
The ultimate controlling parties are Q Ahmed and N Ahmed by virtue of their shareholding.

 
Page 26