Falcon Hotels Limited

	Page
Company Information	1
Strategic Report	2
Directors' Report	3—4
Independent Auditor's Report	5—7
Consolidated Profit and Loss Account	8
Consolidated Statement of Comprehensive Income	9
Consolidated Balance Sheet	10
Company Balance Sheet	11
Consolidated Statement of Changes in Equity	12
Company Statement of Changes in Equity	13
Consolidated Statement of Cash Flows	14
Notes to the Consolidated Statement of Cash Flows	15
Company Statement of Cash Flows	16
Notes to the Company Statement of Cash Flows	17
Notes to the Financial Statements	18—24

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Strategic Report

For The Year Ended 31 December 2024

Strategic Report

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

Review of the Business

Revenues for the year fell by £35k against 2023, whilst EBITDA dropped by £66k, which was attributable to increased costs – mainly manning, due to an increase in NLW, and business rates, due to the reduction of hospitality relief.

Principal Risks and Uncertainties

The future shape and direction of the market remains positive. The cost of living crisis appears to be coming to an end, and utility prices are set to fall. As a result the hotel only entered into a one year deal with electricity, which will yield some benefit in 2024. The directors continue to mitigate risk by working closely with its professional advisors to ensure the business is well positioned in the domestic leisure market, and it continues to benefit from the market recovery. Business rates are also still benefiting from government assistance in the retail and hospitality sectors.

Financial Key Performance Indicators

The hotel achieved an overall occupancy of 75.2% (PY74.6%) and an ADR of £76.08 (PY£76.18). The Directors consider that this performance was on a par with market expectations. The hotel continues to perform average against it’s compset.

On behalf of the board

Mr H L Jaffer

Director

29 September 2025

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Falcon Hotels Limited

Company No. 06953013

Directors' Report For The Year Ended 31 December 2024

Directors' Report

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

Principal Activity

The group's principal activity continues to be that of Hoterlier.

Directors

The directors who held office during the year were as follows:

Ms S Jaffer
Mr H A Suleman
Dr M Raman
Mr M Jetha	Resigned	01/04/2025
Mr H L Jaffer

Statement of Directors' Responsibilities

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 United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising FRS102 'The Financial Reporting Standard 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 company and the group 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;
make judgments and accounting estimates that are reasonable and prudent;
state whether applicable United Kingdom Accounting Standards, comprising FRS102, have been followed subject to any material departures disclosed and explained in the financial statements;
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 and group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

The directors are responsible for the maintenance and integrity of the corporate and financial information included on the company's website. Legislation in the United Kingdom governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

Statement of Disclosure of Information to Auditors

In the case of each director in office at the date the Directors' Report is approved:

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

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Falcon Hotels Limited

Directors' Report (continued)

For The Year Ended 31 December 2024

Independent Auditors

The auditors, Fairman Harris, have indicated their willingness to continue in office and a resolution concerning their re-appointment will be proposed at the Annual General Meeting.

On behalf of the board

Mr H L Jaffer

Director

29 September 2025

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Independent Auditor's Report

to the Members of

Falcon Hotels Limited

Independent Auditor's Report

Opinion

We have audited the financial statements of Falcon Hotels Limited (the "parent company") and its subsidiaries (the "group") for the year ended 31 December 2024 which comprise the Consolidated Profit and Loss Account, Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes of Equity, Company Statement of Changes of Equity, Consolidated Cash Flow Statement, Company Cash Flow Statement and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland".

In our opinion the financial statements:

give a true and fair view of the state of the group's and of the parent company's affairs as at 31 December 2024 and of the group's profit/(loss) for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions Relating to Going Concern

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

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group and parent company's ability to continue as a going concern for a period of at least 12 months from when the financial statements are authorised for issue.

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

Other Information

The other information comprises the information included in the annual report, other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on Other Matters Prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

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

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Independent Auditor's Report (continued)

to the Members of

Falcon Hotels Limited

Matters on Which We Are Required to Report by Exception

In the light of the knowledge and understanding of the group and parent company and their 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or
the parent company financial statements are not in agreement with the accounting records or 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—4, 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 group and parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.

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Independent Auditor's Report (continued)

to the Members of

Falcon Hotels Limited

Auditor's Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

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

Our approach to identifying and assessing the risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, was as follows:

● the engagement partner ensured that the engagement team collectively had the appropriate competence, capabilities and skills to identify or recognise non-compliance with applicable laws and regulations;

● we identified the laws and regulations applicable to the group through discussions with directors and other management, and from our commercial knowledge and experience of the industry.

● we focused on specific laws and regulations which we considered may have a direct material effect on the financial statements or the operations of the group, including the Companies Act 2006, taxation legislation, data protection, anti-money-laundering, employment, environmental and health and safety legislation;

● we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management.

● identified laws and regulations were communicated within the audit team regularly and the team remained alert to instances of non-compliance throughout the audit.

We assessed the susceptibility of the group's financial statements to material misstatement, including obtaining an understanding of how fraud might occur, by:

● making enquiries of management as to where they considered there was susceptibility to fraud, their knowledge of actual, suspected and alleged fraud;

● considering the internal controls in place to mitigate risks of fraud and non-compliance with laws and regulations

To address the risk of fraud through management bias and override of controls, we:

● performed analytical procedures to identify any unusual or unexpected relationships;

● tested journal entries to identify unusual transactions;

● assessed whether judgements and assumptions made in determining the accounting estimates set out in note 1 were indicative of potential bias; and

● investigated the rationale behind significant or unusual transactions.

In response to the risk of irregularities and non-compliance with laws and regulations, we designed procedures which included, but were not limited to:

● agreeing financial statement disclosures to underlying supporting documentation;

● reading the minutes of meetings of those charged with governance;

● enquiring of management as to actual and potential litigation and claims; and

● reviewing correspondence with HMRC.

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of the directors and other management and the inspection of regulatory and legal correspondence, if any. Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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

Use Of Our Report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters that 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.

F Meghani (Senior Statutory Auditor)

for and on behalf of Fairman Harris , Statutory Auditor

29 September 2025

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Falcon Hotels Limited

Consolidated Profit and Loss Account

For The Year Ended 31 December 2024

Consolidated Profit and Loss Account

		2024	2023
	Notes	£	£
TURNOVER		4,323,882	4,359,023
Cost of sales		(2,262,621 )	(2,166,177 )

GROSS PROFIT		2,061,261	2,192,846

Administrative expenses		(2,336,367 )	(2,360,183 )

OPERATING LOSS	3	(275,106 )	(167,337 )
Other interest receivable and similar income	7	-	-
Interest payable and similar charges	8	(247,265 )	(299,580 )

LOSS FOR THE FINANCIAL YEAR ATTRIBUTABLE TO THE OWNERS OF THE PARENT		(522,371 )	(466,917 )

The notes on pages 15 to 24 form part of these financial statements.

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Falcon Hotels Limited

Consolidated Statement of Comprehensive Income

For The Year Ended 31 December 2024

Consolidated Statement of Comprehensive Income

	2024	2023
	£	£
LOSS FOR THE FINANCIAL YEAR	(522,371 )	(466,917 )
OTHER COMPREHENSIVE INCOME FOR THE YEAR	-	-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR ATTRIBUTABLE TO THE OWNERS OF THE PARENT	(522,371 )	(466,917 )

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Falcon Hotels Limited

Consolidated Balance Sheet

As At 31 December 2024

Consolidated Balance Sheet

		2024		2023
	Notes	£	£	£	£
FIXED ASSETS
Intangible Assets	10		230,802		393,659
Tangible Assets	11		6,571,480		6,711,565

			6,802,282		7,105,224
CURRENT ASSETS
Stocks	13	35,578		29,221
Debtors	14	650,490		1,028,404
Cash at bank and in hand		8,437		114,322

		694,505		1,171,947
Creditors: Amounts Falling Due Within One Year	15	(2,449,887 )		(4,024,765 )

NET CURRENT ASSETS (LIABILITIES)			(1,755,382 )		(2,852,818 )

TOTAL ASSETS LESS CURRENT LIABILITIES			5,046,900		4,252,406

Creditors: Amounts Falling Due After More Than One Year	16		(7,382,713 )		(6,065,848 )

NET LIABILITIES			(2,335,813 )		(1,813,442 )

CAPITAL AND RESERVES
Called up share capital	19		100		100
Revaluation reserve			375,756		375,756
Profit and Loss Account			(2,711,669 )		(2,189,298 )

SHAREHOLDERS' FUNDS			(2,335,813)		(1,813,442)

On behalf of the board

Mr H L Jaffer

Director

29 September 2025

The notes on pages 15 to 24 form part of these financial statements.

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Falcon Hotels Limited

Company Balance Sheet

As At 31 December 2024

Company Balance Sheet

		2024		2023
	Notes	£	£	£	£
FIXED ASSETS
Investments	12		6,279,180		6,279,180

			6,279,180		6,279,180
CURRENT ASSETS
Debtors	14	5,577		474,377
Cash at bank and in hand		512		1,016

		6,089		475,393
Creditors: Amounts Falling Due Within One Year	15	(74,968 )		(53,641 )

NET CURRENT ASSETS (LIABILITIES)			(68,879 )		421,752

TOTAL ASSETS LESS CURRENT LIABILITIES			6,210,301		6,700,932

Creditors: Amounts Falling Due After More Than One Year	16		(6,521,450 )		(6,971,495 )

NET LIABILITIES			(311,149 )		(270,563 )

CAPITAL AND RESERVES
Called up share capital	19		100		100
Profit and Loss Account			(311,249 )		(270,663 )

SHAREHOLDERS' FUNDS			(311,149)		(270,563)

In accordance with section 408(3) of the Companies Act 2006, the company has not presented its own profit and loss account and the related notes. The company's loss for the year was £(40,585 ) (2023: £(8,206 ) loss).

On behalf of the board

Mr H L Jaffer

Director

29 September 2025

The notes on pages 15 to 24 form part of these financial statements.

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Falcon Hotels Limited

Consolidated Statement of Changes in Equity

For The Year Ended 31 December 2024

Consolidated Statement of Changes in Equity

	Share Capital	Revaluation reserve	Profit and Loss Account	Total
	£	£	£	£
As at 1 January 2023	100	375,756	(1,722,381 )	(1,346,525)
Loss for the year and total comprehensive income	-	-	(466,917 )	(466,917)

As at 31 December 2023 and 1 January 2024	100	375,756	(2,189,298 )	(1,813,442)


Loss for the year and total comprehensive income	-	-	(522,371 )	(522,371)

As at 31 December 2024	100	375,756	(2,711,669 )	(2,335,813)

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Falcon Hotels Limited

Company Statement of Changes in Equity

For The Year Ended 31 December 2024

Company Statement of Changes in Equity

	Share Capital	Profit and Loss Account	Total
	£	£	£
As at 1 January 2023	100	(262,457 )	(262,357)
Loss for the year and total comprehensive income	-	(8,206 )	(8,206)

As at 31 December 2023 and 1 January 2024	100	(270,663 )	(270,563)


Loss for the year and total comprehensive income	-	(40,585 )	(40,585)

As at 31 December 2024	100	(311,249 )	(311,149)

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Falcon Hotels Limited

Consolidated Statement of Cash Flows

For The Year Ended 31 December 2024

Consolidated Statement of Cash Flows

		2024	2023
	Notes	£	£
Cash flows from operating activities
Net cash generated from operations	1	1,804,365	1,121,541
Interest paid		(247,265 )	(299,580 )

Net cash generated from operating activities		1,557,100	821,961

Cash flows from investing activities
Purchase of tangible assets		(91,807 )	(27,349 )

Cash flows from financing activities
Repayment of bank borrowings		(1,562,500 )	(699,925 )
Repayment of finance leases		(8,678 )	(17,357 )

Net cash used in financing activities		(1,571,178 )	(717,282 )



(Decrease)/increase in cash and cash equivalents		(105,885 )	77,330
Cash and cash equivalents at beginning of year	2	114,322	36,992

Cash and cash equivalents at end of year	2	8,437	114,322

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Falcon Hotels Limited

Notes to the Consolidated Statement of Cash Flows

For The Year Ended 31 December 2024

Notes to the Consolidated Statement of Cash Flows

1. Reconciliation of loss for the financial year to cash generated from operations

	2024	2023
	£	£
Loss for the financial year	(522,371 )	(466,917 )
Adjustments for:
Interest expense	247,265	299,580
Amortisation of intangible assets	162,857	162,857
Depreciation of tangible assets	231,892	233,794
Movements in working capital:
Increase in stocks	(6,357 )	(5,074 )
Decrease in trade and other debtors	377,914	46,680
Increase in trade and other creditors	1,313,165	850,621

Net cash generated from operations	1,804,365	1,121,541

2. Cash and cash equivalents

Cash and cash equivalents, as stated in the Statement of Cash Flows, relates to the following items in the Balance Sheet:

	2024	2023
	£	£
Cash at bank and in hand	8,437	114,322

3. Analysis of changes in net debt

	As at 1 January 2024	Cash flows	As at 31 December 2024
	£	£	£
Cash at bank and in hand	114,322	(105,885)	8,437
Finance leases	(8,678)	8,678	-
Debts falling due within one year	(1,562,500 )	1,562,500	-
Debts falling due after more than one year	(2,135,000)	-	(2,135,000)

	(3,591,856)	1,465,293	(2,126,563)

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Falcon Hotels Limited

Company Statement of Cash Flows

For The Year Ended 31 December 2024

Company Statement of Cash Flows

		2024	2023
	Notes	£	£
Cash flows from operating activities
Net cash (used in)/generated from operations	1	(503 )	828

Net cash (used in)/generated from operating activities		(503 )	828



(Decrease)/increase in cash and cash equivalents		(503 )	828
Cash and cash equivalents at beginning of year	2	1,016	188

Cash and cash equivalents at end of year	2	513	1,016

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Falcon Hotels Limited

Notes to the Company Statement of Cash Flows

For The Year Ended 31 December 2024

Notes to the Company Statement of Cash Flows

1. Reconciliation of loss for the financial year to cash (used in)/generated from operations

	2024	2023
	£	£
Loss for the financial year	(40,585 )	(8,206 )
Movements in working capital:
Decrease in trade and other debtors	468,800	780
(Decrease)/increase in trade and other creditors	(428,718 )	8,254

Net cash (used in)/generated from operations	(503 )	828

2. Cash and cash equivalents

Cash and cash equivalents, as stated in the Statement of Cash Flows, relates to the following items in the Balance Sheet:

	2024	2023
	£	£
Cash at bank and in hand	512	1,016

3. Analysis of changes in net funds

	As at 1 January 2024	Cash flows	As at 31 December 2024
	£	£	£
Cash at bank and in hand	1,016	(504)	512

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Falcon Hotels Limited

Notes to the Financial Statements

For The Year Ended 31 December 2024

Notes to the Financial Statements

1. General Information

Falcon Hotels Limited is a private company, limited by shares, incorporated in England & Wales, registered number 06953013 . The registered office is Kirkland House, 11-15 Peterborough Road, Harrow, Middlesex, HA1 2AX.

2. Accounting Policies

2.1. Basis of Preparation of Financial Statements

The financial statements have been prepared under the historical cost convention and in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland'' and the Companies Act 2006.

2.2. Basis Of Consolidation

The group consolidated financial statements include the financial statements of the company and all of its subsidiary undertakings together with the group’s share of the results of associates made up to 31 December 2024.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities. Where the group owns less than 50% of the voting powers of an entity but controls the entity by virtue of an agreement with other investors which give it control of the financial and operating policies of the entity, it accounts for that entity as a subsidiary.

Where a subsidiary has different accounting policies to the group, adjustments are made to those subsidiary financial statements to apply the group’s accounting policies when preparing the consolidated financial statements.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the group holds a long-term interest and where the group has significant influence. The group considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate. The results of associates are accounted for using the equity method of accounting.

Any subsidiary undertakings or associates sold or acquired during the year are included up to, or from, the dates of change of control or change of significant influence respectively.

Where control of a subsidiary is lost, the gain or loss is recognised in the consolidated income statement. The cumulative amounts of any exchange differences on translation, recognised in equity, are not included in the gain or loss on disposal and are transferred to retained earnings. The gain or loss also includes amounts included in other comprehensive income that are required to be reclassified to profit or loss but excludes those amounts that are not required to be reclassified.

Where control of a subsidiary is achieved in stages, the initial acquisition that gave the group control is accounted for as a business combination. Thereafter where the group increases its controlling interest in the subsidiary the transaction is treated as a transaction between equity holders. Any difference between the fair value of the consideration paid and the carrying amount of the non-controlling interest acquired is recognised directly in equity. No changes are made to the carrying value of assets, liabilities or provisions for contingent liabilities.

2.3. Business Combinations

Business combinations are accounted for by applying the purchase method.

The cost of a business combination is the fair value of the consideration given, liabilities incurred or assumed and of equity instruments issued plus the costs directly attributable to the business combination. Where control is achieved in stages the cost is the consideration at the date of each transaction.

Contingent consideration is initially recognised at estimated amount where the consideration is probable and can be measured reliably. Where (i) the contingent consideration is not considered probable or cannot be reliably measured but subsequently becomes probable and measurable or (ii) contingent consideration previously measured is adjusted, the amounts are recognised as an adjustment to the cost of the business combination.

On acquisition of a business, fair values are attributed to the identifiable assets, liabilities and contingent liabilities unless the fair value cannot be measured reliably, in which case the value is incorporated in goodwill. Intangible assets are only recognised separately from goodwill where they are separable and arise from contractual or other legal rights. Where the fair value of contingent liabilities cannot be reliably measured they are disclosed on the same basis as other contingent liabilities.

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Falcon Hotels Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

2.4. Turnover

Turnover is measured at the fair value of the consideration received or receivable, net of discounts and value added taxes. Turnover includes revenue earned from the sale of goods and from the rendering of services. Turnover is reduced for estimated customer returns, rebates and other similar allowances.

Sale of goods

Turnover from the sale of goods is recognised when the significant risks and rewards of ownership of the goods has transferred to the buyer. This is usually at the point that the customer has signed for the delivery of the goods.

Rendering of services

Turnover from the rendering of services is recognised by reference to the stage of completion of the contract. The stage of completion of a contract is measured by comparing the costs incurred for work performed to date to the total estimated contract costs. Turnover is only recognised to the extent of recoverable expenses when the outcome of a contract cannot be estimated reliably.

2.5. Intangible Fixed Assets and Amortisation - Goodwill

Goodwill represents the excess of the cost of a business combination over the fair value of the group’s share of the identifiable net assets, liabilities and contingent liabilities acquired.

Goodwill arising on the acquisition of subsidiaries is included in Intangible Assets. Goodwill arising on the acquisition of associates and joint ventures is included in the related equity accounted investment value.

Goodwill is amortised over its expected useful life which is estimated to be .... years.

Goodwill is assessed for impairment when there are indicators of impairment and any impairment is charged to the profit and loss account. No reversals of impairment are recognised.

2.6. Tangible Fixed Assets and Depreciation

Tangible fixed assets are measured at cost less accumulated depreciation and any accumulated impairment losses. Depreciation is provided at rates calculated to write off the cost of the fixed assets, less their estimated residual value, over their expected useful lives on the following bases:

Freehold	Over 50 years
Leasehold	Over the lease term
Plant & Machinery	Straight line over 10 years
Fixtures & Fittings	Straight line over 10 years

2.7. Leasing and Hire Purchase Contracts

Assets obtained under finance leases are capitalised as tangible fixed assets. Assets acquired under finance leases are depreciated over the shorter of the lease term and their useful lives. Assets acquired under hire purchase contracts are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in the creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to the profit and loss account so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.

Rentals applicable to operating leases where substantially all of the benefits and risks of ownership remain with the lessor are charged to profit and loss account as incurred.

2.8. Stocks and Work in Progress

Stocks and work in progress are valued at the lower of cost and net realisable value after making due allowance for obsolete and slow-moving stocks.

Cost is determined using the first-in, first-out method. Cost includes all direct costs and an appropriate proportion of fixed and variable overheads.

Work in progress is reflected in the accounts on a contract by contract basis by recording turnover and related costs as contract activity progresses.

At the end of each reporting period stocks are assessed for impairment. If an item of stock is impaired, the identified stock is reduced to its selling price less costs to complete and sell and an impairment charge is recognised in the profit and loss account. Where a reversal of the impairment is required the impairment charge is reversed, up to the original impairment loss, and is recognised as a credit in the profit and loss account.

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Falcon Hotels Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

2.9. Cash and Cash Equivalents

Cash and cash equivalents are basic financial assets and include cash in hand and deposits held at call with banks, other short-term highly liquid investments that mature in no more than three months from the date of acquisition and are readily convertible to a known amount of cash with insignificant risk of change in value, and bank overdrafts.

3. Operating Loss

The operating loss is stated after charging:

	2024	2023
	£	£
Depreciation of tangible fixed assets	231,892	233,794
Amortisation of intangible fixed assets	162,857	162,857

4. Auditor's Remuneration

Remuneration received by the company's auditors and their associates during the year was as follows:

	2024	2023
	£	£
Audit Services
Audit of the group and company's financial statements	11,500	11,500

5. Staff Costs

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

	2024	2023
	£	£
Wages and salaries	1,752,904	1,745,099
Social security costs	126,167	110,192
Other pension costs	21,204	21,204

	1,900,275	1,876,495

6. Average Number of Employees

Group

Average number of employees, including directors, during the year was: 83 (2023: 83)

Company

Average number of employees, including directors, during the year was: NIL (2023: NIL)

7. Interest Receivable and Similar Income

	2024		2023
	£		£

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Falcon Hotels Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

8. Interest Payable and Similar Charges

	2024	2023
	£	£
Bank loans and overdrafts	54,825	103,951
Other finance charges	192,440	195,629

	247,265	299,580

9. Tax on Profit

	2024	2023
The tax (credit)/charge on the loss for the year was as follows:
	£	£
Current tax
UK Corporation Tax	-	-


The actual (credit)/charge for the year can be reconciled to the expected credit for the year based on the loss and the standard rate of corporation tax as follows:
	2024	2023
	£	£
Profit before tax	(522,371)	(466,917)

Tax on profit at 0% (UK standard rate)	-	-
Total tax charge for the period	-	-

10. Intangible Assets

Group

	Goodwill
	£
Cost
As at 1 January 2024	1,628,573

As at 31 December 2024	1,628,573

Amortisation
As at 1 January 2024	1,234,914
Provided during the period	162,857

As at 31 December 2024	1,397,771

Net Book Value
As at 31 December 2024	230,802

As at 1 January 2024	393,659

Goodwill is being written off in equal annual instalments over its economic life of 10 years.

Company

The company had no intangible fixed assets as at 31 December 2024 or 31 December 2023.

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Falcon Hotels Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

11. Tangible Assets

Group

	Land & Property
	Freehold	Plant & Machinery	Fixtures & Fittings	Total
	£	£	£	£
Cost
As at 1 January 2024	7,084,210	642,183	1,302,442	9,028,835
Additions	1,000	82,840	7,967	91,807

As at 31 December 2024	7,085,210	725,023	1,310,409	9,120,642

Depreciation
As at 1 January 2024	648,327	631,427	1,037,516	2,317,270
Provided during the period	92,849	8,294	130,749	231,892

As at 31 December 2024	741,176	639,721	1,168,265	2,549,162

Net Book Value
As at 31 December 2024	6,344,034	85,302	142,144	6,571,480

As at 1 January 2024	6,435,883	10,756	264,926	6,711,565

Company

The company had no tangible fixed assets as at 31 December 2024 or 31 December 2023.

12. Investments

Company

	Unlisted
	£
Cost
As at 1 January 2024	6,279,180

As at 31 December 2024	6,279,180

Provision
As at 1 January 2024	-

As at 31 December 2024	-

Net Book Value
As at 31 December 2024	6,279,180

As at 1 January 2024	6,279,180

Subsidiaries

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

Name of undertaking	Registered Office	Class of shares held	Direct holding	Indirect holding
Chilworth Manor Limited	Kirkland House, 11-15 Peteborough Road, Harrow HA1 2AX	Ordinary	100.00%	-

The aggregate capital and reserves and the result for the year of the subsidiaries listed above was as follows:

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Falcon Hotels Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

13. Stocks

	2024	2023
	£	£
Finished goods	35,578	29,221

14. Debtors

	Group		Company
	2024	2023	2024	2023
	£	£	£	£
Due within one year
Trade debtors	62,636	40,207	-	-
Other debtors	587,854	988,197	5,577	474,377

	650,490	1,028,404	5,577	474,377

15. Creditors: Amounts Falling Due Within One Year

	Group		Company
	2024	2023	2024	2023
	£	£	£	£
Net obligations under finance lease and hire purchase contracts	-	8,678	-	-
Trade creditors	536,900	557,116	(610 )	(340 )
Bank loans and overdrafts	-	1,562,500	-	-
Other creditors	267,696	477,801	72,078	53,981
Taxation and social security	681,037	556,456	-	-
Accruals and deferred income	964,254	862,214	3,500	-

	2,449,887	4,024,765	74,968	53,641

16. Creditors: Amounts Falling Due After More Than One Year

	Group		Company
	2024	2023	2024	2023
	£	£	£	£
Other loans	2,135,000	2,135,000	-	-
Amounts owed to group undertakings	-	-	1,273,737	3,040,647
Amounts owed to participating interests	5,247,713	3,930,848	5,247,713	3,930,848

	7,382,713	6,065,848	6,521,450	6,971,495

17. Loans

An analysis of the maturity of loans is given below:

	Group
	2024	2023
	£	£
Amounts falling due within one year or on demand:
Bank loans	-	1,562,500

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Falcon Hotels Limited

Notes to the Financial Statements (continued)

For The Year Ended 31 December 2024

	Group
	2024	2023
	£	£
Amounts falling due between one and five years:
Other loans	2,135,000	2,135,000

18. Obligations Under Finance Leases and Hire Purchase

	Group
	2024	2023
	£	£
The future minimum finance lease payments are as follows:
Not later than one year	-	8,678

19. Share Capital

	2024	2023
Allotted, called up and fully paid	£	£
100 Ordinary Shares of £ 1.000 each	100	100

20. Pension Commitments

The group operates a defined contribution pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund.

During the year the charge to profit or loss in respect of defined contribution schemes was £21,204 (2023: £21,204).

At the balance sheet date contributions of £NIL were due to the fund and are included in creditors.

21. Related Party Disclosures

The company has taken advantage of exemption, under 33.1A of the Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland", not to disclose transactions with wholly owned subsidiaries within the group.

During the year the group made purchases of £115,368 (2023 - £107,775) from Legacy Hotels and Resorts Limited, a company with common directors. At the year end £161,564 (2023 - £131,730) was owed to that company.

At the year end, the group owed £2,135,000 (2023: £2,135,000) in terms of loan to Benson Securities Ltd, a company with common directors. The interest payable on this loan at the end of the year was £896,876 (2023 - £704,726).

At the year end, the group owed £Nil (2023: £10,000) to PV Hotel SPV Limited, £Nil (2023: £60,000) to Handy Cross Opco Limited and £Nil (2023: £50,000) Castle Green Kendal Limited, companies with common directors.

At the year end, the group owed £18,096 (2023: £474,229 dr) to Frank truman Limited, a company with common directors.

At the year end, the group owed £10,543.16 (2023: £49,500) to Kendal Castle Limited, £4,481 (2023: £4,481) to Destination Hotels Limited and £38,957 (2023: £Nil) to The Angel Hotel Chippenham Limited, the comapnies with common directors.

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