Axcel Group Limited - Limited company accounts 25.1

REGISTERED NUMBER: 07206164 (England and Wales)

GROUP STRATEGIC REPORT, REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS FOR THE YEAR ENDED 31ST DECEMBER 2024

FOR

AXCEL GROUP LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

3

Report of the Independent Auditors

4

Consolidated Income Statement

7

Consolidated Other Comprehensive Income

8

Consolidated Balance Sheet

9

Company Balance Sheet

11

Consolidated Statement of Changes in Equity

12

Company Statement of Changes in Equity

13

Consolidated Cash Flow Statement

14

Notes to the Consolidated Cash Flow Statement

15

Notes to the Consolidated Financial Statements

17

DIRECTORS:

Sunil Patel

Shamir Patel

REGISTERED OFFICE:

2nd Floor

29 Dingwall Road

Croydon

CR0 2NB

REGISTERED NUMBER:

07206164 (England and Wales)

AUDITORS:

Xeinadin Audit Limited

Beckett House

36 Old Jewry

LONDON

EC2R 8DD

The directors present their strategic report of the company and the group for the year ended 31st December 2024.

REVIEW OF BUSINESS

The Group's principal activities during the period continued to be hotel development and operation.

The key financial and other performance indicators during the year were as follows:

2024

2023

% Change

£

Group turnover

42,802,118

42,043,887

1.8%

Group gross profit

38,227,538

38,075,728

0.4%

Group profit after tax

8,762,978

9,912,369

-13%

PRINCIPAL RISKS AND UNCERTAINTIES

The main risks and uncertainties affecting the group are summarised below:

Liquidity risk

With considered preparation and close monitoring of each trading activity's budget, the Group remains confident of being able to cover operational expenditure, illustrated by its increased profit margins. Expected interest rate rises are being monitored closely in respect of Bank debt service cover, with financial planning measures considered.

Market risk

The medium-term market stability outlook remains optimistic, added to the fact that the Group's trading units are based in economically-strong locations. Market risk is being monitored over the following 24 months.

Credit risk

Within the hotel industry payments are taken upon booking, or automatically charged to the customer on checkout. Group companies hold minimal trade debtors, therefore credit risk is considered to be low, due to frequent check and control procedures on debtor levels, together with vigorous recovery action when necessary.

ON BEHALF OF THE BOARD:

Shamir Patel - Director

30th September 2025

The directors present their report with the financial statements of the company and the group for the year ended 31st December 2024.

DIVIDENDS

No dividends will be distributed for the year ended 31st December 2024.

DIRECTORS

The directors shown below have held office during the whole of the period from 1st January 2024 to the date of this report.

Sunil Patel

Shamir Patel

STATEMENT OF DIRECTORS' RESPONSIBILITIES

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

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and the group and of the profit or loss of the group for that period. In preparing these financial statements, the directors are required to:

-	select suitable accounting policies and then apply them consistently;

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

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

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

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

ON BEHALF OF THE BOARD:

Shamir Patel - Director

30th September 2025

Opinion

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

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 31st December 2024 and of the group's profit for the year then ended;

-	have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

-	the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

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

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

-	the parent company financial statements are not in agreement with the accounting records and returns; or

-	certain disclosures of directors' remuneration specified by law are not made; or

-	we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page three, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.

Auditors' responsibilities for the audit of the financial statements

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

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

- Identify and assess the risk of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations or the override of internal control.

- Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purposes of expressing an opinion on the effectiveness of the company's internal control.

- Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and the related disclosures made by the directors.

- Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to event or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditors report to the related disclosure in the financial statements or, if such disclosures are inadequate to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the company to cease to continue as a going concern.

- Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

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

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in a Report of the Auditors and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Hazel Day BSc (Hons) FCA DChA (Senior Statutory Auditor)

for and on behalf of Xeinadin Audit Limited

Beckett House

36 Old Jewry

LONDON

EC2R 8DD

30th September 2025

TURNOVER

42,802,118

42,043,887

Cost of sales

(4,574,580

)

(3,968,159

)

GROSS PROFIT

38,227,538

38,075,728

Administrative expenses

(21,486,259

)

(19,487,628

)

16,741,279

18,588,100

Other operating income

456,835

468,527

OPERATING PROFIT

4

17,198,114

19,056,627

Interest receivable and similar income

241,134

4,039

17,439,248

19,060,666

Gain/loss on revaluation of assets

(2,115,000

)

(2,884,485

)

15,324,248

16,176,181

Interest payable and similar expenses

5

(4,051,981

)

(4,421,156

)

PROFIT BEFORE TAXATION

11,272,267

11,755,025

Tax on profit

6

(2,509,289

)

(1,842,656

)

PROFIT FOR THE FINANCIAL YEAR

8,762,978

9,912,369

Profit attributable to:

Owners of the parent

8,762,978

9,912,369

PROFIT FOR THE YEAR

8,762,978

9,912,369

OTHER COMPREHENSIVE INCOME

Revaluation

3,700,000

3,454,503

Income tax relating to other comprehensive
income

(925,000

)

(1,169,719

)

OTHER COMPREHENSIVE INCOME
FOR THE YEAR, NET OF INCOME TAX

2,775,000

2,284,784

TOTAL COMPREHENSIVE INCOME
FOR THE YEAR

11,537,978

12,197,153

Total comprehensive income attributable to:

Owners of the parent

11,537,978

12,197,153

FIXED ASSETS

Intangible assets

8

3,911,101

3,939,194

Tangible assets

9

178,928,387

174,746,881

Investments

10

-

Investment property

11

5,752,500

7,767,500

188,591,988

186,453,575

CURRENT ASSETS

Stocks

12

90,319

Debtors

13

2,278,570

2,489,456

Cash at bank and in hand

18,205,128

12,039,491

20,574,017

14,619,266

CREDITORS

Amounts falling due within one year

14

(11,254,742

)

(10,877,122

)

NET CURRENT ASSETS

9,319,275

3,742,144

TOTAL ASSETS LESS CURRENT
LIABILITIES

197,911,263

190,195,719

CREDITORS

Amounts falling due after more than one year

15

(82,569,637

)

(86,788,190

)

PROVISIONS FOR LIABILITIES

19

(22,039,180

)

(21,643,061

)

NET ASSETS

93,302,446

81,764,468

CAPITAL AND RESERVES

Called up share capital

20

100

Revaluation reserve

21

42,361,632

39,586,632

Fair value reserve

21

2,615,500

4,126,750

Retained earnings

21

48,325,214

38,050,986

SHAREHOLDERS' FUNDS

93,302,446

81,764,468

The financial statements were approved by the Board of Directors and authorised for issue on 30th September 2025 and were signed on its behalf by:

Shamir Patel - Director

Sunil Patel - Director

FIXED ASSETS

Intangible assets

8

-

Tangible assets

9

-

Investments

10

4,278,911

8,510,104

Investment property

11

-

4,278,911

8,510,104

CURRENT ASSETS

Debtors

13

29,205

6,950

Cash at bank and in hand

40,185

212,230

69,390

219,180

CREDITORS

Amounts falling due within one year

14

(451,675

)

(599,230

)

NET CURRENT LIABILITIES

(382,285

)

(380,050

)

TOTAL ASSETS LESS CURRENT
LIABILITIES

3,896,626

8,130,054

CREDITORS

Amounts falling due after more than one year

15

(9,846,102

)

(14,537,085

)

NET LIABILITIES

(5,949,476

)

(6,407,031

)

CAPITAL AND RESERVES

Called up share capital

20

100

Retained earnings

21

(5,949,576

)

(6,407,131

)

SHAREHOLDERS' FUNDS

(5,949,476

)

(6,407,031

)

Company's profit/(loss) for the financial year

457,555

(8,728,960

)

The financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the Board of Directors and authorised for issue on 26th September 2025 and were signed on its behalf by:

Sunil Patel - Director

Called up

Fair

share

Retained

Revaluation

value

Total

capital

earnings

reserve

equity

£

Balance at 1st January 2023

100

29,576,191

35,864,274

4,126,750

69,567,315

Changes in equity

Total comprehensive income

-

8,474,795

3,722,358

-

12,197,153

Balance at 31st December 2023

100

38,050,986

39,586,632

4,126,750

81,764,468

Changes in equity

Total comprehensive income

-

10,274,228

2,775,000

(1,511,250

)

11,537,978

Balance at 31st December 2024

100

48,325,214

42,361,632

2,615,500

93,302,446

Called up

share

Retained

Total

capital

earnings

equity

£

Balance at 1st January 2023

100

2,321,829

2,321,929

Changes in equity

Total comprehensive income

-

(8,728,960

)

(8,728,960

)

Balance at 31st December 2023

100

(6,407,131

)

(6,407,031

)

Changes in equity

Total comprehensive income

-

457,555

Balance at 31st December 2024

100

(5,949,576

)

(5,949,476

)

Cash flows from operating activities

Cash generated from operations

1

16,102,625

19,399,107

Interest paid

(3,188,112

)

(3,226,174

)

Interest element of finance lease payments
paid

(863,869

)

(925,519

)

Tax paid

(2,096,871

)

(134,627

)

Net cash from operating activities

9,953,773

15,112,787

Cash flows from investing activities

Purchase of tangible fixed assets

(615,478

)

(1,455,887

)

Sale of tangible fixed assets

4,726

-

Interest received

241,134

4,039

Net cash from investing activities

(369,618

)

(1,451,848

)

Cash flows from financing activities

Net new bank loans/(repayments) in year

(2,260,051

)

(7,738,392

)

Net other loans in year

(593,721

)

(1,865,202

)

Finance lease capital repayments in year

(13,154

)

(166,263

)

Amount introduced by directors

-

271,899

Amount withdrawn by directors

(553,282

)

(3,073,949

)

Net cash from financing activities

(3,420,208

)

(12,571,907

)

Increase in cash and cash equivalents

6,163,947

1,089,032

Cash and cash equivalents at beginning of
year

2

12,038,275

10,949,243

Cash and cash equivalents at end of year

2

18,202,222

12,038,275

1.	RECONCILIATION OF PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2024

2023

£

Profit before taxation

11,272,267

11,755,025

Depreciation charges

52,580

42,760

Loss on disposal of fixed assets

4,888

-

Loss on revaluation of fixed assets

2,115,000

2,884,485

Finance costs

4,051,981

4,421,156

Finance income

(241,134

)

(4,039

)

17,255,582

19,099,387

Increase in stocks

-

(20,987

)

Decrease/(increase) in trade and other debtors

216,170

(187,120

)

(Decrease)/increase in trade and other creditors

(1,369,127

)

507,827

Cash generated from operations

16,102,625

19,399,107

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31st December 2024

31.12.24

1.1.24

£

Cash and cash equivalents

18,205,128

12,039,491

Bank overdrafts

(2,906

)

(1,216

)

18,202,222

12,038,275

Year ended 31st December 2023

31.12.23

1.1.23

£

Cash and cash equivalents

12,039,491

10,955,395

Bank overdrafts

(1,216

)

(6,152

)

12,038,275

10,949,243

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1.1.24

Cash flow

At 31.12.24

£

Net cash

Cash at bank and in hand

12,039,491

6,165,637

18,205,128

Bank overdrafts

(1,216

)

(1,690

)

(2,906

)

12,038,275

6,163,947

18,202,222

Debt

Finance leases

(28,605,192

)

11,130

(28,594,062

)

Debts falling due within 1 year

(2,864,271

)

(1,157,417

)

(4,021,688

)

Debts falling due after 1 year

(55,713,553

)

4,012,879

(51,700,674

)

(87,183,016

)

2,866,592

(84,316,424

)

Total

(75,144,741

)

9,030,539

(66,114,202

)

1.	STATUTORY INFORMATION

Axcel Group Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

The presentation currency of the financial statements is the Pound Sterling (£).

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention as modified by the revaluation of certain assets.

The presentation currency of the financial statements is pound sterling.

Significant judgements and estimates

The preparation of the financial statements in accordance with UK GAAP requires management to make judgements, estimates and assumptions that affect the application of policies and reported amounts of assets and liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making judgements about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised if the revision affects only that period, or in the period of revision and future periods if the revision affects both current and future periods.

Significant estimates and assumptions are made in particular with regard to determining the valuation of the group's hotels included in Tangible Fixed Assets. In line with many other companies in the industry, the hotels values are derived from assumed future trading results which are discounted using interest rates provided by commercial property experts.

Turnover

Turnover represents the fair value of consideration received or receivable for the provision of goods and services in the ordinary course of business, excluding value added tax and trade discounts. Revenue is recognised when it is probable that the economic benefits will flow to the company and the amount of revenue can be measured reliably.

Room revenue

Revenue from the provision of accommodation is recognised on a straight-line basis over the period of the guest’s stay. Amounts received in advance of the period of stay are recorded as deferred income and recognised as revenue when the related services are provided.

Other revenue

Revenue from other goods and services, including food and beverage sales, conferences and events, leisure services, and car parking, is recognised at the point when the goods are supplied or the services are rendered to the customer. Deposits and advance payments received in respect of these services are recorded as deferred income until the service obligation has been fulfilled.

Goodwill

Goodwill, being the amount paid in connection with the subsidiaries acquired, is being amortised evenly over its useful life of 150 years.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Patents and licences are being amortised evenly over their estimated useful life of thirty years.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its useful life:

Freehold property - 2% on cost

Leasehold property - over the life of the lease

Fixtures and fittings - 25% on reducing balance

Freehold and leasehold property includes hotels which are carried at revalued amounts, being fair value at the date of valuation less subsequent depreciation and impairment losses. Revaluations are performed by professional qualified valuers with sufficient regularity to ensure that the carrying amounts do not differ materially from those that would be determined using fair values at the end of each reporting period. Any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset.

Any revaluation increase in the carrying amount of land and buildings is recognised in other comprehensive income and included in a revaluation reserve in equity, except to the extent that it reverses a revaluation decrease of the same asset previously recognised in profit or loss, in which case the increase is credited to profit and loss to the extent of the decrease previously expended.

Decreases that offset previous increases of the same asset are charged in other comprehensive income and debited against revaluation reserve in equity; decreases exceeding the balance in revaluation reserve relating to an asset are recognised in profit or loss. The use of a policy of revaluation provided more relevant and reliable information about the value of the property owned by the company. Land is not depreciated.

Investment property

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

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

Taxation for the year comprises current and deferred tax. Tax is recognised in the Consolidated Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

Hire purchase and leasing commitments

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

Pension costs and other post-retirement benefits

The group operates a defined contribution pension scheme. Contributions payable to the group's pension scheme are charged to profit or loss in the period to which they relate.

Financial instruments

Financial instruments are classified and accounted for, according to the substance of the contractual arrangement, as either financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

(i) Financial assets

Basic financial assets, including trade and other receivables, cash and bank balances are initially recognised at transaction price, unless the arrangement constitutes a financial transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Such assets are subsequently carried at amortised cost using the effective interest method.

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.

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

Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party, or (c) control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

(ii) Financial Liabilities

Basic financial liabilities, including trade and other payables, loans from fellow group companies that are classified as debt, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest.

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

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

Cash and cash equivalents

Cash at bank and in hand includes cash and short-term highly liquid investments with a maturity of three months or less from the date of acquisition. Bank overdrafts are shown within borrowings in current liabilities.

Expenditure

Expenditure is recognised in the profit and loss account on an accruals basis as the related goods and services are received. Costs are charged to the profit and loss account except where they relate to the acquisition of an asset, in which case they are capitalised in accordance with the company’s capitalisation policy.

3.	EMPLOYEES AND DIRECTORS

2024

2023

£

Wages and salaries

6,951,005

6,706,130

Social security costs

494,086

446,097

Other pension costs

52,381

60,812

7,497,472

7,213,039

The average number of employees during the year was as follows:

2024

2023

313

360

2024

2023

£

Directors' remuneration

-

4.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

2024

2023

£

Hire of plant and machinery

61,687

31,607

Depreciation - owned assets

24,358

14,668

Loss on disposal of fixed assets

4,888

-

Goodwill amortisation

27,068

27,067

Patents and licences amortisation

1,025

Auditors' remuneration

67,476

51,119

Foreign exchange differences

5,685

(12,119

)

5.

INTEREST PAYABLE AND SIMILAR EXPENSES

2024

2023

£

Bank loan interest

3,068,792

3,430,876

Other interest

119,320

64,761

Leasing

863,869

925,519

4,051,981

4,421,156

6.

TAXATION

Analysis of the tax charge

The tax charge on the profit for the year was as follows:

2024

2023

£

Current tax:

UK corporation tax

3,038,169

2,192,808

Deferred tax

(528,880

)

(350,152

)

Tax on profit

2,509,289

1,842,656

Reconciliation of total tax charge included in profit and loss

The tax assessed for the year is lower than the standard rate of corporation tax in the UK. The difference is explained below:

2024

2023

£

Profit before tax

11,272,267

11,755,025

Profit multiplied by the standard rate of corporation tax in the UK of 25 %
(2023 - 25 %)

2,818,067

2,938,756

Effects of:

Expenses not deductible for tax purposes

541,939

855,012

Capital allowances in excess of depreciation

(321,676

)

(406,876

)

Movement on deferred tax

(528,880

)

(350,152

)

Loss relief

-

(995,095

)

Change in tax rate

(161

)

(198,989

)

Total tax charge

2,509,289

1,842,656

Tax effects relating to effects of other comprehensive income

2024

Gross

Tax

Net

£

Revaluation

3,700,000

(925,000

)

2,775,000

2023

Gross

Tax

Net

£

Revaluation

3,454,503

(1,169,719

)

2,284,784

7.	INDIVIDUAL INCOME STATEMENT

As permitted by Section 408 of the Companies Act 2006, the Income Statement of the parent company is not presented as part of these financial statements.

8.	INTANGIBLE FIXED ASSETS

Group

Patents

and

Goodwill

licences

Totals

£

COST

At 1st January 2024

and 31st December 2024

4,060,058

30,746

4,090,804

AMORTISATION

At 1st January 2024

144,436

7,174

151,610

Amortisation for year

27,068

1,025

28,093

At 31st December 2024

171,504

8,199

179,703

NET BOOK VALUE

At 31st December 2024

3,888,554

22,547

3,911,101

At 31st December 2023

3,915,622

23,572

3,939,194

9.	TANGIBLE FIXED ASSETS

Group

Fixtures

Freehold

Long

and

property

leasehold

fittings

Totals

£

COST OR VALUATION

At 1st January 2024

139,627,842

34,800,000

416,416

174,844,258

Additions

240,350

-

375,128

615,478

Disposals

-

(81,275

)

(81,275

)

Revaluations

(3,900,000

)

7,500,000

-

3,600,000

At 31st December 2024

135,968,192

42,300,000

710,269

178,978,461

DEPRECIATION

At 1st January 2024

-

97,377

Charge for year

-

24,358

Eliminated on disposal

-

(71,661

)

(71,661

)

At 31st December 2024

-

50,074

NET BOOK VALUE

At 31st December 2024

135,968,192

42,300,000

660,195

178,928,387

At 31st December 2023

139,627,842

34,800,000

319,039

174,746,881

The freehold and leasehold properties were revalued at market value during 2024 by independent professional valuers.

10.	FIXED ASSET INVESTMENTS

Company

Shares in

group

undertakings

£

COST

At 1st January 2024

8,510,104

Additions

300,000

Impairments

(4,531,193

)

At 31st December 2024

4,278,911

NET BOOK VALUE

At 31st December 2024

4,278,911

At 31st December 2023

8,510,104

The group or the company's investments at the Balance Sheet date in the share capital of companies include the following:

Subsidiaries

Phoenix Property Investment Company Limited

Registered office: 2nd Floor 29 Dingwall Road, Croydon, England, CR0 2NB

Nature of business: Property investment

%

Class of shares:

holding

Ordinary

100.00

2024

2023

£

Aggregate capital and reserves

2,601,272

4,111,227

(Loss)/profit for the year

(1,509,955

)

60,831

Croydon Hotels Limited

Registered office: 2nd Floor 29 Dingwall Road, Croydon, England, CR0 2NB

Nature of business: Hotel operator

%

Class of shares:

holding

Ordinary

100.00

2024

2023

£

Aggregate capital and reserves

14,231,853

14,244,071

Profit for the year

587,782

1,013,637

Edinburgh City Hotels Limited

Registered office: 2nd Floor 29 Dingwall Road, Croydon, England, CR0 2NB

Nature of business: Hotel operator

%

Class of shares:

holding

Ordinary

100.00

2024

2023

£

Aggregate capital and reserves

15,734,162

15,426,068

Profit for the year

1,583,094

1,267,334

Axcel Hospitality (Manchester) Limited

Registered office: 2nd Floor 29 Dingwall Road, Croydon, England, CR0 2NB

Nature of business: Hotel operator

%

Class of shares:

holding

Ordinary

100.00

2024

2023

£

Aggregate capital and reserves

13,512,734

13,890,598

Profit for the year

1,122,136

1,215,870

Hollin Hill Properties Limited

Registered office: 2nd Floor 29 Dingwall Road, Croydon, England, CR0 2NB

Nature of business: Hotel operator

%

Class of shares:

holding

Ordinary

100.00

2024

2023

£

Aggregate capital and reserves

3,631,686

8,162,859

(Loss)/profit for the year

(4,531,173

)

870,105

Axcel Hospitality (York) Limited

Registered office: 2nd Floor 29 Dingwall Road, Croydon, England, CR0 2NB

Nature of business: Hotel developer and operator

%

Class of shares:

holding

Ordinary

100.00

2024

2023

£

Aggregate capital and reserves

4,436,771

3,650,483

Profit for the year

786,288

11,004

Axcel Hospitality (Management) Limited

Registered office: 2nd Floor 29 Dingwall Road, Croydon, England, CR0 2NB

Nature of business: Hotel management

%

Class of shares:

holding

Ordinary

100.00

2024

2023

£

Aggregate capital and reserves

(2,200

)

(24,696

)

Profit for the year

22,496

5,215

Axcel Hospitality (Learmonth) Limited

Registered office: 2nd Floor 29 Dingwall Road, Croydon, England, CR0 2NB

Nature of business: Hotel operator

%

Class of shares:

holding

Ordinary

100.00

2024

2023

£

Aggregate capital and reserves

2,512,395

1,525,151

(Loss)/profit for the year

(362,756

)

448,363

Axcel Hospitality (Manchester) Limited

Registered office: 2nd Floor 29 Dingwall Road, Croydon, England, CR0 2NB

Nature of business: Hotel operator

%

Class of shares:

holding

Ordinary

100.00

2024

2023

£

Aggregate capital and reserves

13,512,734

13,890,598

Profit for the year

1,122,136

1,215,870

Axcel Hospitality (Lansdown) Limited

Registered office: 2nd Floor 29 Dingwall Road, Croydon, England, CR0 2NB

Nature of business: Hotel operator

%

Class of shares:

holding

Ordinary

100.00

2024

2023

£

Aggregate capital and reserves

(951,467

)

(2,027,726

)

Profit/(loss) for the year

1,076,259

(167,453

)

Axcel Hospitality (Inverness) Limited

Registered office: 2nd Floor 29 Dingwall Road, Croydon, England, CR0 2NB

Nature of business: Hotel operator

%

Class of shares:

holding

Ordinary

100.00

2024

2023

£

Aggregate capital and reserves

7,850,325

8,418,607

Profit for the year

256,718

1,088,337

Axcel Hospitality (Gatwick) Limited

Registered office: 2nd Floor 29 Dingwall Road, Croydon, England, CR0 2NB

Nature of business: Hotel operator

%

Class of shares:

holding

Ordinary

100.00

2024

2023

£

Aggregate capital and reserves

4,284,729

(1,114,574

)

Profit for the year

1,049,303

2,864,466

Axcel Hospitality (Bath) Limited

Registered office: 2nd Floor 29 Dingwall Road, Croydon, England, CR0 2NB

Nature of business: Hotel operator

%

Class of shares:

holding

Ordinary

100.00

2024

2023

£

Aggregate capital and reserves

(5,439,244

)

(5,654,866

)

Profit/(loss) for the year

215,622

(1,221,651

)

Axcel Hospitality (Edinburgh) Limited

Registered office: 2nd Floor 29 Dingwall Road, Croydon, England, CR0 2NB

Nature of business: Hotel operator

%

Class of shares:

holding

Ordinary

100.00

2024

2023

£

Aggregate capital and reserves

36,494,545

31,742,332

Profit for the year

3,477,213

2,936,923

For the financial year ended 31 December 2024, the company was entitled to exemption from audit under the Companies Act 2006, s. 480 relating to dormant companies and the members have not required the company to obtain an audit of its financial statements for the year in question in accordance with s. 476.

11.	INVESTMENT PROPERTY

Group

Total

£

FAIR VALUE

At 1st January 2024

7,767,500

Revaluations

(2,015,000

)

At 31st December 2024

5,752,500

NET BOOK VALUE

At 31st December 2024

5,752,500

At 31st December 2023

7,767,500

The investment properties were revalued at market value during 2024 by independent professional valuers.

12.

STOCKS

Group

2024

2023

£

Stocks

90,319

13.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group

Company

2024

2023

2024

2023

£

Trade debtors

556,725

732,425

-

Amounts owed by group undertakings

-

6,950

Other debtors and prepayments

1,716,561

1,757,031

29,205

-

Directors' current accounts

5,284

-

2,278,570

2,489,456

29,205

6,950

14.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

Group

Company

2024

2023

2024

2023

£

Bank loans and overdrafts (see note 16)

4,012,315

2,259,487

-

Other loans (see note 16)

12,279

606,000

-

Trade creditors

1,301,570

1,857,965

-

Finance Lease

11,621

13,645

-

Amounts owed to group undertakings

-

371,786

383,830

Tax

2,951,259

2,009,961

34,649

Social security and other taxes

59,207

98,725

-

VAT

864,156

950,653

-

Other creditors and accruals

1,597,581

1,524,220

45,240

8,850

Other loan

-

254,319

-

169,242

Directors' current accounts

-

547,998

-

2,659

Accruals and deferred income

444,754

754,149

-

11,254,742

10,877,122

451,675

599,230

15.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE
YEAR

Group

Company

2024

2023

2024

2023

£

Bank loans (see note 16)

51,700,674

55,713,553

-

Finance leases (see note 17)

28,594,062

28,605,192

-

Amounts owed to group undertakings

-

9,846,102

14,537,085

Other creditors

2,274,901

2,469,445

-

82,569,637

86,788,190

9,846,102

14,537,085

16.

LOANS

An analysis of the maturity of loans is given below:

Group

2024

2023

£

Amounts falling due within one year or on

demand:

Bank overdrafts

2,906

1,216

Bank loans

4,009,409

2,258,271

Other loans

12,279

606,000

4,024,594

2,865,487

Amounts falling due between two and five

years:

Bank loans - 2-5 years

51,700,674

27,571,612

Amounts falling due in more than five years:

Repayable by instalments

Bank loans more 5 yr by instal

-

28,141,941

17.	LEASING AGREEMENTS

Minimum lease payments fall due as follows:

Group

Finance leases

2024

2023

£

Net obligations repayable:

Between one and five years

50,085

58,546

In more than five years

28,543,977

28,546,646

28,594,062

28,605,192

18.	SECURED DEBTS

The following secured debts are included within creditors:

Group

2024

2023

£

Bank loans

55,710,083

57,971,824

Bank loans are secured over the assets of the group.

19.	PROVISIONS FOR LIABILITIES

Group

2024

2023

£

Deferred tax

22,039,180

21,643,061

Group

Deferred

tax

£

Balance at 1st January 2024

21,643,061

Provided during year

396,119

Balance at 31st December 2024

22,039,180

20.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2024

2023

value:

£

10,004

Ordinary

.01

100

21.

RESERVES

Group

Fair

Retained

Revaluation

value

earnings

reserve

Totals

£

At 1st January 2024

38,050,986

39,586,632

4,126,750

81,764,368

Profit for the year

8,762,978

Revaluation transfer

-

3,700,000

-

3,700,000

Deferred tax

(503,750

)

(925,000

)

503,750

(925,000

)

Revaluation transfer

2,015,000

-

(2,015,000

)

-

At 31st December 2024

48,325,214

42,361,632

2,615,500

93,302,346

Company

Retained

earnings

£

At 1st January 2024

(6,407,131

)

Profit for the year

457,555

At 31st December 2024

(5,949,576

)

Retained earnings

Retained earnings are the cumulative earnings of the company.

Revaluation reserve

The revaluation reserve is used to record the movement in the market value of freehold land and buildings.

Fair value reserve

The fair value reserve is used to record the movement in the market value of investment properties.

22.	PENSION COMMITMENTS

The charge to the profit and loss account for the defined contribution pension scheme was £52,381 (2023: £60,811). At the year end, £14,964 (2023: £24,779) was outstanding and included in creditors.

23.	RELATED PARTY DISCLOSURES

At the reporting date, a balance of £4,005 was receivable from Mrs S Patel, the spouse of a company director (2023: payable balance of £169,242).

The directors' current account balances of -£5,284 (2023 £545,339) is due from Sunil Patel and Shamir Patel in equal shares.

24.	ULTIMATE CONTROLLING PARTY

The ultimate controlling parties are the directors Sunil Patel and Shamir Patel.