Molo_Hotel_Group_Limited

Molo Hotel Group Limited

Group Strategic Report

For the year ended 31 December 2024

Introduction

The directors are pleased to present the Strategic Report for Molo Hotel Group Limited (‘Company') and its subsidiaries (the ‘Group').

Business review

The Group was pleased to open new hotels in Manchester and Liverpool, increasing the UK capacity to 1,157 keys (2023 – 684 keys).

Financial key performance indicators

The directors consider that the key financial performance indicators are those that communicate the financial performance and strength of the group, being turnover, net profit/ (loss) and net assets.

2024

2023

Turnover

34,422,968

22,786,000

Net loss

(720,302)

(141,436)

Net assets

44,636,236

45,356,538

Principal risks and uncertainties

The Board reviews risks and uncertainties facing the group by regular review of the group's performance, compliance activities and wider economic factors influencing the marketplace in which the group operates.

Interest rate risk

The group has a policy of partially fixing debt whilst leaving a proportion floating at SONIA-linked rates. The directors will continue to review the appropriateness of this policy at regular intervals.

Price risk

The group is exposed to commodity price risk as a result of its operations. However, given the size of the group's operations, the costs of managing exposure to commodity price risk exceed any potential benefits. The group has no exposure to equity securities price risk as it holds no listed investments.

Liquidity risk

The group actively maintains a mixture of short term and medium term debt finance that is designed to ensure the group has sufficient available funds for operations and planned expansions.

Foreign currency risk

When necessary, the group uses financial instruments to manage foreign exchange exposure, in the normal course of business.

Molo Hotel Group Limited

Group Strategic Report

For the year ended 31 December 2024

Future developments

The directors anticipate ongoing improvement to profitability of the Group as the new hotels ramp up their business. The economic environment in which the Group operated will continue to be monitored closely during the next 12 months, with conditions continually assessed and analysed to detect and forecast any notable changes and to facilitate timely action if required.

This report was approved by the board on 21 May 2025 and signed on its behalf.

Anwyl Richard Whitehead

Director

Molo Hotel Group 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.

Directors' responsibilities statement

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

Company law requires the directors to prepare consolidated financial statements for each financial year. Under that law they have elected to prepare the consolidated financial statements in accordance with International Financial Reporting Standards (IFRS) as adopted by the UK and the parent Company financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 101 'Reduced Disclosure Framework' (FRS 101).

Under company law the directors must not approve the consolidated financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and the Company and of the profit or loss of the Group for that period. In preparing each of the consolidated and parent Company financial statements, the directors are required to:

select suitable accounting policies and then apply them consistently;

make judgements and estimates that are reasonable and prudent;

for the consolidated financial statements, state whether they have been prepared in accordance with IFRS as adopted by the UK, subject to any material departures disclosed and explained in the financial statements;

for the parent Company financial statements, state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

assess the Group and Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern; and

use the going concern basis of accounting unless they either intend to liquidate the Group or the Company or to cease operations, or have no realistic alternative but to do so.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the parent Company's transactions and disclose with reasonable accuracy at any time the financial position of the parent Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error, and have general responsibility for taking such steps as are reasonably open to them to safeguard the assets of the Group and to prevent and detect fraud and other irregularities.

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

Principal activity

The principal activities of the group during the period was that of the provision of hotel, restaurant and bar facilities.

Molo Hotel Group Limited

Directors' Report (continued)

For the year ended 31 December 2024

Results and dividends

The loss for the year, after taxation, amounted to £720,302 (2023 loss £141,436).

The directors do not recommend the payment of a dividend (2023: £nil).

Directors

The directors who served during the year were:

Lukasz Wojciech Slominski

Anwyl Richard Whitehead

Marcin Mateusz Slominski

Future developments

The directors anticipate an ongoing improvement to profitability of the Group as the new hotel ramp up their business. The economic environment in which the group operates will continue to be monitored closely during the next 12 months, with conditions continually assessed and analysed to detect and forecast any notable changes and to facilitate timely action, if required.

Financial instruments

During the year, the Group fixed a proportion of its debt by the use of both interest rate swaps and fixed rate loans, leaving the remainder to float linked to SONIA rates.

Greenhouse gas emissions, energy consumption and energy efficiency action

Total Values

Annual UK Hotels Group GHG Emissions 2024

1,286,448 kg CO₂e

Annual UK Hotels Group Energy Consumption 2024

6,295,202 kWh / Year

Intensity Ratio (Factor) - Annual UK Hotels Group GHG emissions per m²

33.38 kg CO₂e/m²

Intensity Ratio (Factor) - Annual UK Hotels Group GHG emissions per occupied room

5.16 kg CO₂e

Emissions are calculated following the GHG Protocol Corporate Accounting and Reporting Standard methodology, using UK BEIS 2024 conversion factors. Marriott's MESH, IHG's Green Engage, and STARK ID platforms were used for tracking and analysis.

Energy Efficiency Measures 2024

Group Measures:

• Enhanced maintenance schedules and increased frequency of HVAC system checks to ensure optimal performance.

• Adjusted external and car park lighting schedules to align with daylight hours where possible.

• Refined common area lighting schedules and overnight dimming.

• Optimised refrigeration by adjusting freezer and cold storage temperatures to efficient levels and refining defrost

cycles to prevent energy spikes.

• Reduced standby power by switching off non-essential devices.

• Set room temperatures between 18°C and 19°C.

• Enhanced staff awareness of energy usage and provided energy efficiency training courses on Mapal platform.

Molo Hotel Group Limited

Directors' Report (continued)

For the year ended 31 December 2024

Greenhouse gas emissions, energy consumption and energy efficiency action (continued)

Individual Measures:

• Turning off AHU (Air Handling Unit) and extract fans during the day based on occupancy (Cambridge).

• Upgraded buffet hotplates to higher energy efficiency models (Cambridge & Inverness).

• Replaced 10 mini bars in the guestrooms with higher energy saving ones (Inverness).

• Repaired and optimised CHP plant to improve operational efficiency (Luton).

Matters covered in the strategic report

Under Schedule 7.1A of "Large and MediumSized Companies and Groups (Accounts and Reports) Regulations 2008", the group has elected to disclose the following Directors' Report information in the Group Strategic Report:

Financial key performance indicators;

Principal risks and uncertainties; and

Business review.

Disclosure of information to auditor

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 and the Group's auditor is 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 and the Group's auditor is aware of that information.

Auditor

The auditor, Grant Thornton (NI) LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on

21 May 2025

and signed on its behalf.

Anwyl Richard Whitehead

Director

Molo Hotel Group Limited

Independent Auditor's Report to the Shareholders of Molo Hotel Group Limited

Opinion

We have audited the financial statements of Molo Hotel Group Limited (the parent Company) and its subsidiaries (the Group), which comprise the Consolidated Statement of Profit or Loss and Other Comprehensive Income, the Consolidated Statement of Financial Position, the Company Statement of Financial Position, the Consolidated Statement of Cash Flows, the Consolidated Statement of Changes in Equity, the Company Statement of Changes in Equity for the financial year ended 31 December 2024, and the related notes to the financial statements, including the summary of significant accounting policies.

The financial reporting framework that has been applied in the preparation of the financial statements is applicable law and UKadopted International Accounting Standards.

In our opinion, Molo Hotel Group Limited's financial statements:

give a true and fair view in accordance with UKadopted International Accounting Standards of the assets, liabilities and financial position of the Group and the Company as at 31 December 2024 and of its financial performance and cash flows for the financial year then ended; and

have been properly 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 ‘Responsibilities of the auditor for the audit of the financial statements' section of our report. We are independent of the Group and the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, namely the FRC's Ethical Standard and the ethical pronouncements established by Chartered Accountants Ireland, applied as determined to be appropriate in the circumstances of the entity. 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 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 the Company's ability to continue as a going concern for a period of at least twelve months from the date 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

Other information comprises information included in the annual report, other than the financial statements and our auditor's report thereon, including the Directors' Report and the Group Strategic Report. The directors are responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Molo Hotel Group Limited

Independent Auditor's Report to the Shareholders of Molo Hotel Group Limited (continued)

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 in the financial statements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

the information given in the Group Strategic Report and the Directors' Report for the 31 December 2024 for which the financial statements are prepared is consistent with the financial statements; and

the Group 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 Group and its environment obtained in the course of the audit, we have not identified any material misstatements in the Group Strategic Report and the Directors' Report.

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

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

the financial statements are not in agreement with the accounting records and 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 management and those charged with governance for the financial statements

As explained more fully in the directors' responsibilities statement, management is responsible for the preparation of the financial statements which give a true and fair view in accordance with UKadopted International Accounting Standards, and for such internal control as directors determine necessary to enable the preparation of financial statements free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is responsible for assessing the Group and the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Company or to cease operations, or has no realistic alternative but to do so.

Those charged with governance are responsible for overseeing Group and the Company's financial reporting process.

Molo Hotel Group Limited

Independent Auditor's Report to the Shareholders of Molo Hotel Group Limited (continued)

Responsibilities of the auditor for the audit of the financial statements

The objectives of an auditor 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 their 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.

A further description of an auditor's 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 auditor's report.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of noncompliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. Owing to the inherent limitations of an audit, there is an unavoidable risk that material misstatement in the financial statements may not be detected, even though the audit is properly planned and performed in accordance with ISAs (UK).

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

Based on our understanding of the Company and industry, we identified that the principal risks of noncompliance with laws and regulations related to compliance with Data Privacy law, Employment Law and Pensions Legislation and we considered the extent to which noncompliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006 and UK tax legislation. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to manipulate financial performance and management bias through judgements and assumptions in significant accounting estimates, in particular in relation to significant oneoff or unusual transactions. We apply professional scepticism through the audit to consider potential deliberate omission or concealment of significant transactions, or incomplete/inaccurate disclosures in the financial statement.

In response to these principal risks, our audit procedures included but were not limited to:

inquiries of management on the policies and procedures in place regarding compliance with laws and regulations, including consideration of known or suspected instances of noncompliance and whether they have knowledge of any actual, suspected or alleged fraud;

inspection of the Group's regulatory and legal correspondence and review of minutes of board meetings during the year to corroborate inquiries made;

gaining an understanding of the internal controls established to mitigate risk related to fraud;

discussion amongst the engagement team in relation to the identified laws and regulations and regarding the risk of fraud, and remaining alert to any indications of noncompliance or opportunities for fraudulent manipulation of financial statements throughout the audit;

identifying and testing journal entries to address the risk of inappropriate journals and management override of controls;

Molo Hotel Group Limited

Independent Auditor's Report to the Shareholders of Molo Hotel Group Limited (continued)

In response to these principal risks, our audit procedures included but were not limited to (continued):

designing audit procedures to incorporate unpredictability around the nature, timing or extent of our testing;

challenging assumptions and judgements made by management in their significant accounting estimates, including carrying value of fixed assets; and

review of the financial statement disclosures to underlying supporting documentation and inquiries of management

The primary responsibility for the prevention and detection of irregularities including fraud rests with those charged with governance and management. As with any audit, there remains a risk of nondetection or irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations or override of internal controls.

The purpose of our audit work and to whom we owe our responsibilities

This report is made solely to the Group'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 Group's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Group and the Group's members as a body, for our audit work, for this report, or for the opinions we have formed.

Neal Taylor FCA (Senior statutory auditor)

for and on behalf of

Grant Thornton (NI) LLP

Chartered Accountants & Statutory Auditors

Belfast

21 May 2025

Molo Hotel Group Limited

Consolidated Statement of Profit or Loss and Other Comprehensive Income

For the year ended 31 December 2024

2024

2023

Note

34,422,968

22,786,000

Turnover

Cost of sales

(20,817,229)

(12,934,967)

Gross profit

13,605,739

9,851,033

Other operating income

710,813

10,215

Administrative expenses

(10,370,061)

(6,183,247)

Profit from operations

3,946,491

3,678,001

Finance income

93,314

7,375

Finance expense

(7,010,970)

(3,994,293)

Other finance expense

(401,054)

Loss before tax

(2,971,165)

(709,971)

Tax credit

2,250,863

568,535

Loss for the year

(720,302)

(141,436)

Total comprehensive loss

(720,302)

(141,436)

The notes on pages 22 to 57 form part of these financial statements.

Molo Hotel Group Limited

Registered number: 10651742

Consolidated Statement of Financial Position

As at 31 December 2024

31 December

2024

2023

Note

Assets

Noncurrent assets

Property, plant and equipment

159,678,533

156,428,910

Intangible assets

1,157,098

160,835,631

157,586,008

Current assets

Stock

113,137

60,273

Trade and other receivables

4,890,645

10,652,318

Cash and cash equivalents

7,823,776

6,258,852

Deferred tax asset

1,580,740

14,408,298

16,971,443

Total assets

175,243,929

174,557,451

Liabilities

Noncurrent liabilities

Trade and other liabilities

35,774,547

38,046,748

Loans and borrowings

83,225,237

39,736,413

Deferred tax liability

670,123

118,999,784

78,453,284

Current liabilities

Trade and other liabilities

11,555,600

21,767,289

Loans and borrowings

52,309

28,980,340

11,607,909

50,747,629

Total liabilities

130,607,693

129,200,913

Net assets

44,636,236

45,356,538

Molo Hotel Group Limited

Registered number: 10651742

Consolidated Statement of Financial Position (continued)

As at 31 December 2024

31 December

2024

2023

Note

Issued capital and reserves attributable to owners of the parent

Share capital

52,105,446

Retained earnings

(7,469,210)

(6,748,908)

44,636,236

45,356,538

TOTAL EQUITY

44,636,236

45,356,538

The financial statements on pages 1 to 57 were approved and authorised for issue by the board of directors on 21 May 2025 and were signed on its behalf by:

Lukasz Wojciech Slominski

Anwyl Richard Whitehead

Director

Molo Hotel Group Limited

Registered number: 10651742

Company Statement of Financial Position

As at 31 December 2024

31 December

2024

2023

Note

Assets

Noncurrent assets

Investments

50,842,253

45,842,253

50,842,253

45,842,253

Current assets

Trade and other receivables

44,071,337

42,533,356

Cash and cash equivalents

342,096

285,727

44,413,433

42,819,083

Total assets

95,255,686

88,661,336

Liabilities

Noncurrent liabilities

Trade and other liabilities

35,774,547

38,046,748

35,774,547

38,046,748

Current liabilities

Trade and other liabilities

14,077,209

4,543,914

Loans and borrowings

10,040

14,077,209

4,553,954

Total liabilities

49,851,756

42,600,702

Net assets

45,403,930

46,060,634

Molo Hotel Group Limited

Registered number: 10651742

Company Statement of Financial Position (continued)

As at 31 December 2024

31 December

2024

2023

Note

Issued capital and reserves attributable to owners of the parent

Share capital

52,105,446

Retained earnings

(6,701,516)

(6,044,812)

TOTAL EQUITY

45,403,930

46,060,634

The Company's loss for the year was £656,704 (2023 Profit £1,268,871).

The financial statements on pages 1 to 57 were approved and authorised for issue by the board of directors on

21 May 2025

and were signed on its behalf by:

Lukasz Wojciech Slominski

Anwyl Richard Whitehead

Director

Molo Hotel Group Limited

Consolidated Statement of Changes in Equity

For the year ended 31 December 2024

Total attributable to equity holders of parent

Retained earnings

Share capital

Total equity

52,105,446

(6,748,908)

45,356,538

At 1 January 2024

Loss for the year

(720,302)

Total comprehensive loss for the year

At 31 December 2024

52,105,446

(7,469,210)

44,636,236

The notes on pages 22 to 57 form part of these financial statements.

Molo Hotel Group Limited

Consolidated Statement of Changes in Equity

For the year ended 31 December 2023

Total attributable to equity holders of parent

Retained earnings

Share capital

Total equity

52,105,446

(6,607,472)

45,497,974

At 1 January 2023

Loss for the year

(141,436)

Total comprehensive loss for the year

At 31 December 2023

52,105,446

(6,748,908)

45,356,538

The notes on pages 22 to 57 form part of these financial statements.

Molo Hotel Group Limited

Company Statement of Changes in Equity

For the year ended 31 December 2024

Retained earnings

Share capital

Total equity

52,105,446

(6,044,812)

46,060,634

At 1 January 2024

Loss for the year

(656,704)

Total comprehensive loss for the year

At 31 December 2024

52,105,446

(6,701,516)

45,403,930

The notes on pages 22 to 57 form part of these financial statements.

Molo Hotel Group Limited

Company Statement of Changes in Equity

For the year ended 31 December 2023

Retained earnings

Share capital

Total equity

52,105,446

(7,313,683)

44,791,763

At 1 January 2023

Profit for the year

1,268,871

Total comprehensive income for the year

At 31 December 2023

52,105,446

(6,044,812)

46,060,634

The notes on pages 22 to 57 form part of these financial statements.

Molo Hotel Group Limited

Consolidated Statement of Cash Flows

For the year ended 31 December 2024

2024

2023

Note

Cash flows from operating activities

Loss for the year before tax

(2,971,165)

(709,971)

Adjustments for

Depreciation of property, plant and equipment

3,461,479

2,122,136

Finance income

(93,314)

(7,375)

Finance expense

7,010,970

3,994,293

7,407,970

5,399,083

Movements in working capital:

Decrease/ (increase) in trade and other receivables

5,761,673

(2,314,114)

(Increase)/ decrease in inventories

(52,864)

2,482

(Decrease)/increase in trade and other payables

(10,012,448)

4,900,355

Net cash from operating activities

3,104,331

7,987,806

Cash flows from investing activities

Purchases of property, plant and equipment

(6,711,102)

(15,280,989)

Interest received

93,314

7,375

Interest paid

(7,010,970)

(3,994,293)

Net cash used in investing activities

(13,628,758)

(19,267,907)

Cash flows from financing activities

Proceeds from bank borrowings

12,288,592

9,876,645

Payment of lease liabilities

(199,241)

(52,069)

Net cash from financing activities

12,089,351

9,824,576

Net increase/ (decrease) in cash and cash equivalents

1,564,924

(1,455,525)

Cash and cash equivalents at the beginning of year

6,258,852

7,714,377

Cash and cash equivalents at the end of the year

7,823,776

6,258,852

The notes on pages 22 to 57 form part of these financial statements.

Molo Hotel Group Limited

Notes forming part of the consolidated financial statements

For the year ended 31 December 2024

Page

General information

Basis of preparation

Accounting policies

Functional and presentation currency

Accounting estimates and judgments

Revenue

Other operating income

Auditor's remuneration

Employee benefit expenses

10.

Finance income and expense

11.

Tax credit

12.

Property, plant and equipment

13.

Intangible assets

14.

Subsidiaries

15.

Stock

16.

Trade and other receivables

17.

Cash and cash equivalents

Molo Hotel Group Limited

Notes forming part of the consolidated financial statements (continued)

For the year ended 31 December 2024

18.

Trade and other payables

19.

Loans and borrowings

20.

Deferred taxation

21.

Share capital

22.

Reserves

23.

Pension commitments

24.

Leases

25.

Financial instruments – fair values and risk management

26.

Related party transactions

27.

Controlling party

28.

Contingent liabilities

29.

Capital management

30.

Events after the reporting date

31.

Disclosure exemptions – Parent Company individual financial statements

Molo Hotel Group Limited

Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

General information

Molo Hotel Group Limited (the 'Company') is a private company, which is limited by shares and registered in England and Wales. The Company's registered office is at 1a The Moorings, Dane Road Industrial Estate, Cheshire, M33 7BH. These consolidated financial statements comprise the Company and its subsidiaries (collectively the 'Group' and individually 'Group companies').

Basis of preparation

The Group's consolidated financial statements have been prepared in accordance with International Financial Reporting Standards, International Accounting Standards and Interpretations as adopted by the UK (collectively IFRSs). The Company's individual financial statements were prepared in accordance with Financial Reporting Standard 101 'Reduced Disclosure Framework' (FRS 101) and the Companies Act 2006. They were authorised for issue by the Company's board of directors on 21 May 2025.

Details of the Group's accounting policies, including changes during the year, are included in note 3.

The Company has taken advantage of the exemption available under section 408 of the Companies Act 2006 and elected not to present its own Statement of Comprehensive Income in these financial statements.

In preparing these financial statements, management has made judgements, estimates and assumptions that affect the application of the Group accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognised prospectively.

The areas where judgements and estimates have been made in preparing the consolidated financial statements and their effects are disclosed in note 5.

The financial statements have been prepared on the historical cost.

2.1 Changes in accounting policies

i) New standards, interpretations and amendments effective from 1 January 2024

ii)

New standards, interpretations and amendments not yet effective

The following new standards, interpretations and amendments, which are not yet effective and have not been adopted early in these financial statements, will or may have an effect on the Company's future financial statements:

The following amendments are effective for the period beginning 1 January 2024:

Classification of Liabilities as Current or Non-current (Amendments to IAS 1)

Lease Liability in a Sale and Leaseback (Amendments to IFRS 16)

Supplier Finance Arrangements (Amendments to IAS 7 and IFRS 7)

Non-current Liabilities with Covenants (Amendments to IAS 1)

At the date of authorisation of these consolidated financial statements, several new, but not yet effective,

Molo Hotel Group Limited

Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

2.1 Changes in accounting policies (continued)

ii)

New standards, interpretations and amendments not yet effective (continued)

Standards and amendments to existing Standards, and Interpretations have been published by the IASB or IFRIC. None of these Standards or amendments to existing Standards have been adopted early by the Group and no Interpretations have been issued that are applicable and need to be taken into consideration by the Group at either reporting date.

Management anticipates that all relevant pronouncements will be adopted for the first period beginning on or after the effective date of the pronouncement. New Standards, amendments and Interpretations not adopted in the current year have not been disclosed as they are not expected to have a material impact on the Group's consolidated financial statements.

Accounting policies

3.1

Basis of consolidation

The consolidated financial statements incorporate the financial statements of the Company and entities (including structured entities) controlled by the Company and its subsidiaries at 31 December 2024. All subsidiaries have a reporting date of 31 December. Control is achieved when the Company:

has power over the investee;

is exposed, or has rights, to variable returns from its involvement with the investee; and

has the ability to use its power to affect its returns.

The Company reassesses whether or not it controls an investee if facts and circumstances indicate that there are changes to one or more of the three elements of control listed above.

When the Company has less than a majority of the voting rights of an investee, it has power over the investee when the voting rights are sufficient to give it the practical ability to direct the relevant activities of the investee unilaterally. The Company considers all relevant facts and circumstances in assessing whether or not the Company's voting rights in an investee are sufficient to give it power, including:

the size of the Company's holding of voting rights relative to the size and dispersion of holdings of the other vote holders;

potential voting rights held by the Company, other vote holders or other parties;

rights arising from other contractual arrangements; and

any additional facts and circumstances that indicate that the Company has, or does not have, the current ability to direct the relevant activities at this time that decisions need to be made, including voting patterns at previous shareholders' meetings.

Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ceases when the Company loses control of the subsidiary. Specifically, income and expenses of a subsidiary acquired or disposed of during the year are included in the consolidated statement of profit or loss and other comprehensive income from the date the Company gains control until the date when the Company ceases to control the subsidiary.

Molo Hotel Group Limited

Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

Accounting policies (continued)

3.1

Basis of consolidation (continued)

Profit or loss and each component of other comprehensive income are attributed to the owners of the Company and to the noncontrolling interests. Total comprehensive income of subsidiaries is attributed to the owners of the Company and to the noncontrolling interests even if this results in the noncontrolling interests having a deficit balance.

When necessary, adjustments are made to the financial statements of subsidiaries to bring their accounting policies into line with the Group's accounting policies.

All intragroup assets and liabilities, equity, income, expenses and cash flows relating to transactions between members of the Group are eliminated in full on consolidation.

3.2

Statement of compliance with IFRS and going concern assumption

The consolidated financial statements of the Group have been prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB).

They have been prepared under the assumption the Group operates on a going concern basis, which assumes the Group will be able to discharge its liabilities as they fall due.

After reviewing the Group's forecasts and projections, the directors have a reasonable expectation that the Company has adequate resources to continue for the foreseeable future. The Group opened two new hotels in the year which are still in ramp up and in the upcoming years will contribute substantially to the Group's profitability. The mature core hotels are performing profitably and are cash generative.

The Group has a strong balance sheet and substantial cash balances and in addition the shareholders of the Company's ultimate parent entity, Molo Holding SA, and its bankers have pledged to support the business throughout the opening years of ramp-up of the new hotels.

In addition, the shareholders have significant resources available to assist with the cash flow of the Group and have confirmed their support for the ongoing funding of the business in the event that such support is needed.

As a result of this review and the additional financial resources available to the business, the directors' therefore continue to adopt the going concern basis in preparing the financial statements.

3.3

Goodwill

Goodwill arising on an acquisition of a business is carried at cost as established at the date of acquisition of the business less accumulated impairment losses, if any.

For the purposes of impairment testing, goodwill is allocated to each of the Group's cashgenerating units (or groups of cashgenerating units) that is expected to benefit from the synergies of the combination.

A cashgenerating unit to which goodwill has been allocated is tested for impairment annually, or more frequently when there is an indication that the unit may be impaired. If the recoverable amount of the cashgenerating unit is less than its carrying amount, the impairment loss is allocated first to reduce the carrying amount of any goodwill allocated to the unit and then to the other assets of the unit pro rata based on the carrying amount of each asset in the unit. Any impairment loss for goodwill is recognised directly in profit or loss. An impairment loss recognised for goodwill is not reversed in subsequent periods.

Molo Hotel Group Limited

Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

Accounting policies (continued)

3.3

Goodwill (continued)

On disposal of the relevant cashgenerating unit, the attributable amount of goodwill is included in the determination of the profit or loss on disposal.

3.4

Revenue

Revenue is measured based on the consideration specified in a contract with a customer and excludes amounts collected on behalf of third parties. The Group recognises revenue when it transfers control over a product or service to a customer.

To determine whether to recognise revenue, the Group follows a 5step process:

Identifying the contract with a customer

Identifying the performance obligations

Determining the transaction price

Allocating the transaction price to the performance obligations, and then

Recognising revenue when/as performance obligation(s) are satisfied

The Group does not expect to have any contracts where the period between the transfer of the promised goods or services to the customer and payment by the customer exceeds one year. As a consequence, the Group does not adjust any of the transaction prices for the time value of money.

Sale of food and beverage

The contract is established when the customer orders the food or beverage item and the performance obligation is the provision of food and beverage by the outlet. To note, this is not generally including such food or beverage sold as a bundle with the room booking. The performance obligation is satisfied when the food and beverage is delivered to the customer, and revenue is recognized at this point at the price for the items purchased.

Payment is made on the same day and consequently there are no contract assets or liabilities.

Sale of accommodation

The contract to provide accommodation is established when the customer books accommodation. The performance obligation is to provide the right to use accommodation for a given number of nights, and the transaction price is the room rate for each night determined at the time of booking. The performance obligation is met when the customer is given the right to use the accommodation, and so revenue is recognized for each night as it takes place, at the room rate for that night.

Both revenue streams are presented in one line under contracts with customers.

Molo Hotel Group Limited

Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

Accounting policies (continued)

3.5

Leasing

Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. All other leases are classified as operating leases.

The Group as a lessee

The Group assesses whether a contract is or contains a lease, at inception of a contract. The Group recognises a rightofuse asset and a corresponding lease liability with respect to all lease agreements in which it is the lessee, except for shortterm leases (defined as leases with a lease term of 12 months or less) and leases of lowvalue assets. For these leases, the Group recognises the lease payments as an operating expense on a straightline basis over the term of the lease unless another systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily determined, the Group uses its incremental borrowing rate.

Lease payments included in the measurement of the lease liability comprise:

fixed lease payments (including insubstance fixed payments), less any lease incentives;

The lease liability is included in the 'Loans and borrowings' line in the Consolidated Statement of Financial Position.

The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability (using the effective interest method) and by reducing the carrying amount to reflect the lease payments made.

The rightofuse assets comprise the initial measurement of the corresponding lease liability, lease payments made at or before the commencement day and any initial direct costs. They are subsequently measured at cost less accumulated depreciation and impairment losses.

Rightofuse assets are depreciated over the shorter period of lease term and useful life of the underlying asset. If a lease transfers ownership of the underlying asset or the cost of the rightofuse asset reflects that the Group expects to exercise a purchase option, the related rightofuse asset is depreciated over the useful life of the underlying asset. The depreciation starts at the commencement date of the lease.

The rightofuse assets are included in the 'Property, Plant and Equipment' line in the Consolidated Statement of Financial Position.

The Group applies IAS 36 to determine whether a rightofuse asset is impaired and accounts for any identified impairment loss as described in note 3.9.

As a practical expedient, IFRS 16 permits a lessee not to separate nonlease components, and instead account for any lease and associated nonlease components as a single arrangement. The Group has used this practical expedient.

Molo Hotel Group Limited

Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

Accounting policies (continued)

3.6

Borrowing costs

Borrowing costs directly attributable to the acquisition, construction or production of qualifying assets, which are assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those assets, until such time as the assets are substantially ready for their intended use or sale.

Investment income earned on the temporary investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible for capitalisation.

All other borrowing costs are recognised in profit or loss in the period in which they are incurred.

3.7 Employee benefits

Contributions from employees to third parties to defined benefit plans

Discretionary contributions made by employees or third parties reduce service cost upon payment of these contributions to the plan.

When the formal terms of the plans specify that there will be contributions from employees or third parties, the accounting depends on whether the contributions are linked to service, as follows:

If the contributions are not linked to services (e.g. contributions are required to reduce a deficit arising from losses on plan assets or from actuarial losses), they are reflected in the remeasurement of the net defined benefit liability (asset).

If contributions are linked to services, they reduce service costs. For the amount of contribution that is dependent on the number of years of service, the entity reduces service cost by attributing the contributions to periods of service using the attribution method required by IAS 19 paragraph 70 for the gross benefits. For the amount of contribution that is independent of the number of years of service, the entity reduces service cost by attributing contributions to the employees' periods of service in accordance with IAS 19 paragraph 70.

3.8

Taxation

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

(i) Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from ‘profit before tax' as reported in the consolidated Consolidated Statement of Profit or Loss and Other Comprehensive Income because of items of income or expense that are taxable or deductible in other years and items that are never taxable or deductible. The Group's current tax is calculated using tax rates that have been enacted or substantively enacted by the end of the reporting period.

Molo Hotel Group Limited

Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

Accounting policies (continued)

3.8

Taxation (continued)

(ii) Deferred tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the consolidated financial statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable profits will be available against which those deductible temporary differences can be utilised. Such deferred tax assets and liabilities are not recognised if the temporary difference arises from the initial recognition (other than in a business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. In addition, deferred tax liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill.

Deferred tax liabilities are recognised for taxable temporary differences associated with investments in subsidiaries and associates, and interests in joint ventures, except where the Group is able to control the reversal of the temporary difference and it is probable that the temporary difference will not reverse in the foreseeable future. Deferred tax assets arising from deductible temporary differences associated with such investments and interests are only recognised to the extent that it is probable that there will be sufficient taxable profits against which to utilise the benefits of the temporary differences and they are expected to reverse in the foreseeable future.

The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the reporting period.

The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the manner in which the Group expects, at the end of the reporting period, to recover or settle the carrying amount of its assets and liabilities.

(iii) Current and deferred tax for the year

Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax are also recognised in other comprehensive income or directly in equity respectively. Where current tax or deferred tax arises from the initial accounting for a business combination, the tax effect is included in the accounting for the business combination.

Molo Hotel Group Limited

Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

Accounting policies (continued)

3.9

Property, plant and equipment

Items of property, plant and equipment are measured at cost less accumulated depreciation and any accumulated impairment losses.

If significant parts of an item of property, plant and equipment have different useful lives, then they are accounted for as separate items (major components) of property, plant and equipment. Any gain or loss on disposal of an item of property, plant and equipment is recognised in profit or loss. Subsequent expenditure is capitalised only if it is probable that the future economic benefits associated with the expenditure will flow to the Group.

Depreciation is provided on all other items of property, plant and equipment so as to write off their carrying value over their expected useful economic lives. It is provided on a straight line basis at the following rates:

Freehold property

1.33%

Plant and machinery

Office equipment

20%

Rightofuse assets

0.67% 0.83%

Assets under construction

N/a

Intangible assets

3.10

Intangible assets acquired in a business combination

Intangible assets acquired in a business combination and recognised separately from goodwill are initially recognised at their fair value at the acquisition date (which is regarded as their cost).

Subsequent to initial recognition, intangible assets acquired in a business combination are reported at cost less accumulated amortisation and accumulated impairment losses, on the same basis as intangible assets that are acquired separately.

Stock

3.11

Inventories are stated at the lower of cost and net realisable value. Costs of inventories are determined on a first in, first out basis. Net realisable value represents the estimated selling price for inventories less all estimated costs of completion and costs necessary to make the sale.

3.12

Financial instruments

The Group's financial assets include cash at bank, trade and other receivables and loans to related parties including accrued interests.

Recognition and derecognition

Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual terms of the financial instrument.

Molo Hotel Group Limited

Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

Accounting policies (continued)

3.12

Financial instruments (continued)

Financial assets are derecognised when the contractual rights to the cash flows from the financial asset expire, or when the financial asset and substantially all the risks and rewards are transferred. A financial liability is derecognised when it is extinguished, discharged, cancelled or expires.

For purposes of classifying financial assets, an instrument is considered as an equity instrument if it is nonderivative and meets the definition of equity for the issuer in accordance with the criteria of IAS 32 'Financial Instruments: Presentation'. All other nonderivative financial instruments are treated as debt instruments.

Classification and initial measurement of financial assets

Except for those trade receivables that do not contain a significant financing component and are measured at the transaction price in accordance with IFRS 15, all financial assets are initially measured at fair value adjusted for transaction costs. These are subsequently measured at amortised cost using the effective interest method, less allowance for expected credit losses (ECL).

Financial assets, other than those designated and effective as hedging instruments, are classified into one of the following categories:

amortised cost

fair value through profit or loss (FVTPL), or

fair value through other comprehensive income (FVOCI).

In the periods presented the Group does not have any financial assets categorised as FVOCI.

The classification is determined by both:

the entity's business model for managing the financial asset, and

the contractual cash flow characteristics of the financial asset.

All revenue and expenses relating to financial assets that are recognised in profit or loss are presented within finance costs, finance income or other financial items, except for impairment of trade receivables which is presented within other expenses.

Subsequent measurement of financial assets

Financial assets at amortised cost

Financial assets are measured at amortised cost if the assets meet the following conditions (and are not designated as FVTPL):

they are held within a business model whose objective is to hold the financial assets and collect its contractual cash flows, and

the contractual terms of the financial assets give rise to cash flows that are solely payments of principal and interest on the principal amount outstanding.

After initial recognition, these are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Molo Hotel Group Limited

Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

Accounting policies (continued)

3.12

Financial instruments (continued)

Financial assets at fair value through profit or loss (FVTPL)

Financial assets held within a different business model other than ‘hold to collect' or ‘hold to collect and sell' are categorised at FVTPL. Further, irrespective of the business model used, financial assets whose contractual cash flows are not solely payments of principal and interest are accounted for at FVTPL. All derivative financial instruments fall into this category, except for those designated and effective as hedging instruments, for which the hedge accounting requirements apply.

Financial assets at fair value through other comprehensive income (FVOCI)

The Group accounts for financial assets at FVOCI if the assets meet the following conditions:

they are held under a business model whose objective it is “hold to collect” the associated cash flows and sell, and

the contractual terms of the financial assets give rise to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Impairment of financial assets

IFRS 9's impairment requirements use forwardlooking information to recognise expected credit losses: – the ‘expected credit loss (ECL) model'. Instruments within the scope of the requirements included loans and other debttype financial assets measured at amortised cost and FVOCI, trade receivables, contract assets recognised and measured under IFRS 15 and loan commitments and some financial guarantee contracts (for the issuer) that are not measured at fair value through profit or loss.

The Group considers a broader range of information when assessing credit risk and measuring expected credit losses, including past events, current conditions, reasonable and supportable forecasts that affect the expected collectability of the future cash flows of the instrument.

In applying this forwardlooking approach, a distinction is made between:

financial instruments that have not deteriorated significantly in credit quality since initial recognition or that have low credit risk (‘Stage 1') and

financial instruments that have deteriorated significantly in credit quality since initial recognition and whose credit risk is not low (‘Stage 2').

The ‘12month expected credit losses' are recognised for the first category (i.e. Stage 1) while ‘lifetime expected credit losses' are recognised for the second category (i.e. Stage 2). Measurement of the expected credit losses is determined by a probabilityweighted estimate of credit losses over the expected life of the financial instrument.

Trade and other receivables

The Group makes use of a simplified approach in accounting for trade and other receivables, and other longterm financial assets and records the loss allowance as lifetime expected credit losses. These are the expected shortfalls in contractual cash flows, considering the potential for default at any point during the life of the financial instrument. In calculating, the Group uses its historical experience, external indicators and forwardlooking information to calculate the expected credit losses using a provision matrix.

The Group assesses impairment of trade receivables on a collective basis as they possess shared credit risk characteristics they have been grouped based on the days past due.

Molo Hotel Group Limited

Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

Accounting policies (continued)

3.12

Financial instruments (continued)

Classification and measurement of financial liabilities

The Group's financial liabilities include trade and other payables and loans from related parties including accrued interests. Financial liabilities are initially measured at fair value and adjusted for transaction costs unless the Group designated a financial liability at FVTPL.

All of the Group's financial liabilities are recognised initially at their fair values and subsequently at amortised cost using the effective interest method for maturities beyond one year, less settlement payments. All interestrelated charges are included within finance costs.

Financial liabilities are classified as current liabilities if payment is due to be settled within one year or less after the end of the reporting period (or in the normal operating cycle of the business, if longer), or the Group does not have an unconditional right to defer settlement of the liability for at least twelve (12) months after the end of the reporting period. Otherwise, they are presented as noncurrent liabilities.

Finance expense is recognised using the effective interest rate method. The effective interest method is a method of calculating the amortised cost of a financial liability and of allocating interest expense over the relevant period. The effective interest rate is the rate that exactly discounts estimated future cash payments (including all fees and points paid or received that form an integral part of the effective interest rate, transaction costs and other premiums or discounts) through the expected life of the financial liability, or (where appropriate) a shorter period, to the amortised cost of a financial liability.

Financial liabilities are derecognised from the statement of financial position only when the obligations are extinguished either through discharge, cancellation or expiration. The difference between the carrying amount of the financial liability derecognised and the consideration paid or payable is recognised in statement of profit or loss.

Offsetting Financial Instruments

Financial assets and financial liabilities are offset and the resulting net amount, considered as a single financial asset or financial liability, is reported in the statement of financial position when the Group currently has legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis, or realise the asset and settle the liability simultaneously. The right of setoff must be available at the end of the reporting period, that is, it is not contingent on any future event. It must also be enforceable in the normal course of business, in the event of default, and in the event of insolvency or bankruptcy; and must be legally enforceable for both entity and all counterparties to the financial instruments.

Functional and presentation currency

These consolidated financial statements are presented in pound sterling, which is the Company's functional currency. All amounts have been rounded to the nearest pound, unless otherwise indicated.

Molo Hotel Group Limited

Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

Accounting estimates and judgements

5.1 Judgement

Assessing indicators of impairment

The annual depreciation charge for tangible assets is sensitive to changes in the estimated useful economic lives and residual values of the assets. The useful economic lives and residual values are reassessed annually. They are amended when necessary to reflect current estimates, based on future investments, economic utilisation and physical condition of the assets.

5.2 Estimates and assumptions

Determining and reassessing the residual value and useful economic lives of tangible assets

Revenue

The following is an analysis of the Group's revenue for the year from continuing operations:

2024

2023

Contracts with customers

34,422,968

22,786,000

34,422,968

22,786,000

Analysis of revenue by country of destination:

2024

2023

United Kingdom

31,325,838

22,134,128

Europe

19,714

484,638

Rest of the world

3,077,416

167,234

34,422,968

22,786,000

Timing of revenue recognition:

2024

2023

Goods and services transferred over time

34,422,968

22,786,000

34,422,968

22,786,000

Molo Hotel Group Limited

Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

Other operating income

2024

2023

Other operating income

6,024

Government grants receivable

6,688

4,191

Key money income

704,125

710,813

10,215

Auditor's remuneration

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

2024

2023

Fees payable to the Company's auditor for the audit of the consolidated and parent Company's financial statements

89,000

69,750

Employee benefit expenses

Group

2024

2023

Employee benefit expenses (including directors) comprise:

Wages and salaries

8,603,040

5,719,870

National insurance

703,328

400,268

Defined contribution pension cost

105,163

74,114

9,411,531

6,194,252

Key management personnel compensation

Key management personnel are those persons having authority and responsibility for planning, directing and controlling the activities of the Group, including the directors of the Company listed on page 4, and the Financial Controller of the Company.

The average number of employees, including directors, during the year was 350 (2023: 243).

Molo Hotel Group Limited

Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

Finance income and expense

10.

Recognised in profit or loss

2024

2023

Finance income

Interest on:

Bank deposits

93,314

7,375

Total finance income

93,314

7,375

Finance expense

Bank interest payable

4,537,193

2,710,314

Finance leases (interest portion)

57,106

56,847

Related party interest

2,416,671

1,227,132

Total finance expense

7,010,970

3,994,293

Net finance expense recognised in profit or loss

(6,917,656)

(3,986,918)

Tax credit

11.

11.1 Income tax recognised in profit or loss

2024

2023

Current tax

Deferred tax expense

Origination and reversal of timing differences

(2,250,863)

(568,535)

Total deferred tax

(2,250,863)

(568,535)

Total tax credit

(2,250,863)

(568,535)

Tax credit excluding tax on sale of discontinued operation and share of tax of equity accounted associates and joint ventures

(2,250,863)

(568,535)

(2,250,863)

(568,535)

Molo Hotel Group Limited

Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

Tax credit (continued)

11.

11.1 Income tax recognised in profit or loss (continued)

2024

2023

Loss for the year

(720,302)

(141,436)

Income tax credit (including income tax on associate, joint venture and discontinued operations)

(2,250,863)

(568,535)

Loss before income taxes

(2,971,165)

(709,971)

Tax using the Company's domestic tax rate of 25%

(742,791)

(177,493)

Expenses not deductible for tax purposes

3,165

92,253

Use of prior year losses

4,342,945

Deferred tax charge

(2,112,611)

(568,535)

Accelerated capital allowances

(3,741,571)

85,240

Total tax credit

(2,250,863)

(568,535)

Changes in tax rates and factors affecting the future tax charges

The standard rate of UK Corporation Tax from 1 April 2023 has increased to 25% for companies generating taxable profits of more than £250,000. The previous 19% tax rate will continue to apply to 'small' companies with profits less than £50,000, with a 'taper relief rate' for those companies with profits between the new thresholds. Deferred tax assets and liabilities have been recognised using the tax rates applicable for the date the assets and liabilities are expected to reverse.

Molo Hotel Group Limited

Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

12.

Property, plant and equipment

Freehold property

Plant and machinery

Office equipment

Rightofuse assets

Assets under construction

Total

££

Cost or valuation

At 01 January 2023

61,669,001

39,107,330

7,000

1,043,610

48,831,371

150,658,312

Additions

8,324,347

583,365

6,587,777

15,495,489

Disposals

(207,500)

(7,000)

(214,500)

At 31 December 2023

69,993,348

39,483,195

1,043,610

55,419,148

165,939,301

Additions

3,692,855

3,828,242

18,508

8,040

7,547,645

(54,407,674)

Transfers between classes

32,142,484

22,265,190

Disposals

(965)

(835,623)

(836,588)

At 31 December 2024

105,828,687

65,575,662

18,508

1,043,610

183,891

172,650,358

Molo Hotel Group Limited

Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

Accumulated depreciation and impairment

Freehold property

Plant and machinery

Office equipment

Rightofuse assets

Assets under construction

Total

At 1 January 2023

2,705,835

4,671,627

2,450

8,343

7,388,255

Charge owned for the year

661,021

1,476,003

2,137,024

Charged financed for the year

8,343

Disposal

(20,781)

(2,450)

(23,231)

At 31 December 2023

3,366,856

6,126,849

16,686

9,510,391

Charge owned for the year

912,361

2,531,867

8,908

3,453,136

Charged financed for the year

8,343

Disposals

(45)

At 31 December 2024

4,279,217

8,658,671

8,908

25,029

(12,971,825)

Net book value

At 1 January 2023

58,963,166

34,435,703

4,550

1,035,267

48,831,371

143,270,057

At 31 December 2023

66,626,492

33,356,346

1,026,924

55,419,148

156,428,910

At 31 December 2024

101,549,470

56,916,991

9,600

1,018,581

183,891

159,678,533

Molo Hotel Group Limited

Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

12.

Property, plant and equipment (continued)

On year 2023, four operating hotels were valued at £93,500,000. The uplift in value of £15,561,162 was not reflected in the financial statements as these are prepared under the historical cost convention.

12.1. Assets held under leases

The net book value of owned and leased assets included as "Property, plant and equipment" in the Consolidated Statement of Financial Position is as follows:

31 December 2024

31 December 2023

Property, plant and equipment owned

158,659,952

155,401,986

Rightofuse assets, excluding investment property

1,018,581

1,026,924

159,678,533

156,428,910

Information about rightofuse assets is summarised below:

Net book value

31 December 2024

31 December 2023

Leasehold land

1,018,581

1,026,924

1,018,581

1,026,924

Depreciation charge for the year ended

31 December 2024

31 December 2023

Leasehold land

8,343

Molo Hotel Group Limited

Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

13.

Intangible assets

Group

Goodwill

Cost

At 1 January 2023

1,157,098

At 31 December 2023

1,157,098

At 31 December 2024

1,157,098

Goodwill

Net book value

At 1 January 2023

1,157,098

At 31 December 2023

1,157,098

At 31 December 2024

1,157,098

Molo Hotel Group Limited

Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

Subsidiaries

14.

Details of the Group's material subsidiaries at the end of the reporting period are as follows:

Place of incorporation and operation

Proportion of ownership interest and voting power held by the Group (%)

Name of subsidiary

Principal activity

2024

2023

1) Molo Hotels (Edinburgh) Limited

Business as a hotelier

England

100

2) Molo Hotels (London Luton) Limited

Business as a hotelier

England

100

3) Molo Hotels (Inverness) Limited

Business as a hotelier

England

100

4) Molo Hotels (Liverpool) Limited

Business as a hotelier

England

100

5) Molo Hotels (Cambridge West) Limited

Business as a hotelier

England

100

6) Molo Hotels (Luton) 2 Limited

Construction and development of a hotel

England

100

7) Molo Hotels (Manchester M4) Limited

England

100

Business as a hotelier

9) Lighthouse Hotel Management Limited

Management of hotels

England

100

15.

Stock

Group

2024

2023

Consumables

113,137

60,273

113,137

60,273

The difference between purchase price or production cost of stocks and their replacement cost is not material.

Molo Hotel Group Limited

Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

Trade and other receivables

16.

Group

2024

2023

Trade receivables

1,375,996

1,145,233

Trade receivables net

1,375,996

1,145,233

Receivables from related parties

448,704

1,749,249

Total financial assets other than cash and cash equivalents classified as financial assets measured at amortised cost

1,824,700

2,894,482

Prepayments and accrued income

269,409

3,751,369

Tax recoverable

219

4,245

Other receivables

2,796,317

4,002,222

Total trade and other receivables

4,890,645

10,652,318

Total current portion

(4,890,645)

(10,652,318)

Company

2024

2023

Trade receivables

17,643

10,373

Other receivables

5,080,258

4,648,486

Prepayments and accrued income

206

1,708,474

Receivables from related parties

38,963,060

36,153,023

VAT

10,170

13,000

Total current

44,071,337

42,533,356

Molo Hotel Group Limited

Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

17.

Cash and cash equivalents

Group

2024

2023

Cash at bank and in hand

7,823,776

6,258,852

7,823,776

6,258,852

Company

2024

2023

Cash at bank and in hand

342,096

285,727

342,096

285,727

Molo Hotel Group Limited

Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

Trade and other payables

18.

Group

2024

2023

Trade payables

849,139

1,678,018

Payable to related parties

35,774,547

49,221,483

Other payables

497,577

304,990

Accruals

8,978,358

7,729,824

Total financial liabilities, excluding loans and borrowings, classified as financial liabilities measured at amortised cost

46,099,621

58,934,315

Other payables tax and social security payments

1,230,526

879,722

Total trade and other payables

47,330,147

59,814,037

Less: current portion trade payables

(849,139)

(1,678,018)

Less: current portion payables to participating interests

(11,174,735)

Less: current portion other payables

(1,728,103)

(1,184,712)

Less: current portion accruals

(8,978,358)

(7,729,824)

Total current portion

(11,555,600)

(21,767,289)

Total noncurrent position

35,774,547

38,046,748

Molo Hotel Group Limited

Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

Trade and other payables (continued)

18.

Company

2024

2023

Payable to related parties

8,811,062

1,533,000

Trade payables

98,181

214,844

Other payables tax and social security payments

28,046

Other payables

17,145

16,281

Accruals

5,150,821

2,751,743

Total

14,077,209

4,543,914

2024

2023

Payable to related parties

35,774,547

38,046,748

Total noncurrent

35,774,547

38,046,748

Molo Hotel Group Limited

Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

Loans and borrowings

19.

Group

2024

2023

Noncurrent

Bank loans secured

82,218,832

38,734,806

Lease liabilities

1,006,405

1,001,607

83,225,237

39,736,413

Current

Bank loans secured

28,928,271

Lease liabilities

52,309

52,069

52,309

28,980,340

Total loans and borrowings

83,277,546

68,716,753

The bank loans are secured by debenture comprising fixed and floating charges over all assets and undertakings of the Group. The bank loans were refinanced during the year and repayable after 5 years. The rate of interest varies from 5.97% to 6.77%.

20.

Deferred taxation

Group

2024

At beginning of the year

670,123

Credited to profit or loss

(2,250,863)

At end of the year

(1,580,740)

Molo Hotel Group Limited

Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

21.

Share capital

Authorised

2024

2023

Shares treated as equity

Ordinary shares of £1.00 each

52,105,446

Issued and fully paid

2024

2023

Ordinary shares of £1.00 each

At 1 January and 31 December

52,105,446

Reserves

22.

Called up share capital

This represents the nominal value of shares that have been issued.

Retained earnings

This includes all current and prior period retained profits and losses.

23.

Pension commitments

The Company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the group in an independently administered fund. The pension cost charge of £48,437 (2023: £53,796) represents contributions payable by the Company to the fund.

Contributions totalling £110 (2023: £577) were payable to the fund at the balance sheet date.

Molo Hotel Group Limited

Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

24.

Leases

Group

(i) Leases as a lessee

The group recognises right of use assets for hotel properties which are used in the business and other equipment.

The Group leased adjoined property (land and building). Base Rent is aggregate of variable and fixed consideration subject to index changes each year. The Group has elected not to recognize a lease liability for short term leases (leases of expected term of 12 months or less) or for leases of low value assets. Payments made under such leases are expenses on a straight line basis.

Lease liabilities are due as follows:

2024

2023

Contractual undiscounted cash flows due

Not later than one year

52,309

52,069

Between one year and five years

318,922

210,675

Later than five years

8,534,935

8,331,023

8,906,166

8,593,767

Current

52,309

52,069

Noncurrent

1,006,405

1,001,607

The following amounts in respect of leases have been recognised in profit or loss:

2024

2023

Interest expense on lease liabilities

57,106

56,847

Expenses relating to shortterm leases

28,270

17,440

Variable lease payments not included in the measurement of lease liabilities

89,485

52,174

Molo Hotel Group Limited

Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

24.

Leases (continued)

Variable lease payments

Variable lease payments not recognised in the related lease liability are expensed as incurred and include rentals based on revenue from the use of the underlying asset which is a sum equal to the 0.5% of the Gross Room Revenue for the relevant Turnover.

On leases where variable lease payments are prevalent, fixed and variable lease payments for the year ended 31 December 2024 were as follows:

Fixed payments

Variable payments

Total payments

Fixed rent

297,725

Variable rent with no minimum

89,485

A 1% increase in sales would be expected to increase total lease payments by approximately 0.3%. A 5% increase in sales would be expected to increase total lease payments by approximately 1.5%.

Considering the impact of index on base rent, lessee expect the relative proportion of the lease to remain consistent in future.

Molo Hotel Group Limited

Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

25.

Financial instruments fair values and risk management

25.1 Accounting classifications and fair values

The carrying amounts presented in the consolidated statement of financial position relate to the following categories of assets and liabilities:

Carrying amount

31 December 2024

Note

Amortised cost

Total

Financial assets measured at amortised cost

Trade and other receivables

1,375,996

Cash and cash equivalents

7,823,776

Receivables from related parties

448,704

Prepayments and accrued income

269,409

Other receivables

2,796,317

Total financial assets

12,714,202

Financial liabilities measured at amortised cost

Secured bank loans

82,218,832

Payable to related parties

35,774,547

Other payables

497,577

Accruals

8,978,358

Other payables tax and social security payments

1,230,526

Financial lease liabilities

1,058,714

Trade payables

849,139

Total financial liabilities

130,607,693

Molo Hotel Group Limited

Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

25.

Financial instruments fair values and risk management (continued)

25.1 Accounting classifications and fair values (continued)

Carrying amount

31 December 2023

Note

Amortised cost

Total

Financial assets measured at amortised cost

Trade and other receivables

1,145,233

Cash and cash equivalents

6,258,852

Receivables from related parties

1,749,249

Prepayments and accrued income

3,751,369

Other receivables

4,002,222

Total financial assets

16,906,925

Financial liabilities measured at amortised cost

Secured bank loans

67,663,077

Payable to related parties

49,221,483

Other payables

304,990

Accruals

7,729,824

Other payables tax and social security payments

879,722

Financial lease liabilities

1,053,676

Trade payables

1,678,018

Total financial liabilities

128,530,790

The Group has no impairment losses on financial assets measured at amortised cost for the years ended 31

December 2024 and 2023.

Offsetting of Financial Assets and Financial Liabilities

The Group did not offset any of its financial assets against any financial liabilities as at 31 December 2024

and 2023.

Molo Hotel Group Limited

Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

25.

Financial instruments fair values and risk management (continued)

25.2 Financial risk management objectives

The Group is exposed to various risks in relation to financial instruments. The Group's financial assets and liabilities by category are summarised in Note 25.1. The main types of risks arising from the use of the financial instruments are market risk (including currency risk and interest rate risk), credit risk, and liquidity risk.

The Group's risk management is coordinated at its headquarters, in close cooperation with the board of directors, and focuses on actively securing the Group's short to mediumterm cash flows by minimising the exposure to volatile financial markets. Longterm financial investments are managed to generate lasting returns.

25.3 Market risk

The Group takes on exposure to market risks. Market risks arise from open positions in interest rate and currency products, all of which are exposed to general and specific market movements. The Group manages market risk through periodic estimation of potential losses that could arise from adverse changes in market conditions.

25.4 Foreign currency risk management

The Group is also exposed to effects of fluctuation in the prevailing foreign currency exchange rates on its financial position and cash flows. To mitigate Group's exposure to foreign currency risk, other local currencies (other than GBP) are monitored in accordance with the Group's risk management policies. Furthermore, there are no expected significant fluctuation in foreign currency risk as most of the Group's transactions are carried out in GBP.

25.5 Interest rate risk management

The Group's policy is to minimize interest rate cash flow risk exposures on long-term financing. Accordingly, long-term borrowings are contracted at both fixed and floating interest rates, with loans to and from related parties specifically arranged at fixed rates. As of 31 December 2024, the Group remains exposed to changes in market interest rates due to its borrowings at floating rates. However, it does not expect that fluctuations in prevailing market interest rates will have a material impact on its financial position.

25.6 Credit risk management

Credit risk is the risk that a counterparty may fail to discharge an obligation to the Group. The Group is exposed to this risk for various financial instruments arising from trade and other receivables, loans to related parties and placing deposits with banks. The Group continuously monitors defaults of customers and other counterparties, identified either individually or by group, and incorporates this information into its credit risk controls. The Group's policy is to deal only with creditworthy counterparties. None of the Group's financial assets are secured by collateral or other credit enhancements.

Loans to related parties and related accrued interest

In respect of loans to related parties, the Group is not exposed to any significant credit risk exposure to any single counterparty. Based on historical information about customer default rates, management consider the credit quality of loans that are not past due or impaired to be good. None of the Group's loans are past due.

Molo Hotel Group Limited

Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

25.

Financial instruments fair values and risk management (continued)

25.7 Liquidity risk management

Liquidity and interest risk tables

Liquidity risk refers to the availability of sufficient funds to meet fund withdrawals and other financial commitments associated with financial instruments as they actually fall due. In order to manage liquidity risk as part of the asset and liability management process, the Group regularly monitors future expected cash flows on operations.

At 31 December 2024 the Group's financial liabilities have expected maturities as follows:

Carrying amount

More than 5 years

Total

1 3 months

3 12 months

1 2 years

2 5 years

31 December 2024

Trade payables

(849,139)

Payable to related parties

(35,774,547)

Other payables

(497,577)

Accruals

(8,978,358)

(46,099,621)

(10,325,074)

(35,774,547)

Molo Hotel Group Limited

Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

Related party transactions

26.

Balances and transactions between the Company and its subsidiaries, which are related parties of the Company, have been eliminated on consolidation and are not disclosed in this note. Details of transactions between the Group and other related parties are disclosed below.

Details of transactions between the Company and its related parties are disclosed below.

Included within amounts owed to related parties is an amount owing to G. Slominska of £Nil (2023: £11,174,735). This balance includes the loan principal and interest compounded. During the year, interest of £280,782 was charged, of which £280,782 was forgiven (2023: £359,512).

The Payable to related parties pertain to the shareholders loans to Molo Holding SA amounting to £35,744,547 (2023: £39,579,748). During the year, interest amounted to £2,416,671 (2023: £1,227,132).

27.

Controlling party

During the prior years, the share capital of Molo Hotel Group Limited was acquired by Molo Holding SA.

Mr E Slominski and Mrs G Slominski are considered to be the ultimate controlling parties of the Group by virtue of their shareholdings in Molo Holding SA.

Molo Hotel Group Limited is the smallest and the largest group for which consolidated financial statements are prepared.

28.

Contingent liabilities

Molo Hotel Group Limited has guaranteed the liabilities of Molo Hotels (Luton) 2 Limited, a company incorporated in England, for the year ended 31 December 2024. Molo Hotels (Luton) 2 Limited (company number 10157418) has claimed exemption from audit under section 479A of the Companies Act 2006.

Molo Hotel Group Limited has guaranteed the liabilities of Lighthouse Hotel Management Limited, a company incorporated in England, for the year ended 31 December 2024. Lighthouse Hotel Management Limited (company number 12691462) has claimed exemption from audit under section 479A of the Companies Act 2006.

29.

Capital management

The Group's capital management objective is to ensure the Group's ability to continue as a going concern.

The Group manages its capital to ensure that the Group will be able to maximize the return to stakeholders through the optimisation of the debt and equity balance. The Group's overall strategy remains unchanged from the prior year.

Molo Hotel Group Limited

Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

30.

Events after the reporting date

There have been no significant events affecting the Group or Company since the period end.

Disclosure exemptions Parent Company individual financial statements

31.

In preparing its individual financial statements under FRS 101, the Company has taken advantage of the following disclosure exemptions permitted by FRS 101:

the requirements of paragraphs 45(b) and 46 to 52 of IFRS 2 Sharebased payment

the requirements of paragraphs 62, B64(d), B64(e), B64(g), B64(h), B64(j) to (m), B64(n)(ii), B64(o)(ii), B64(p), B64(q)(ii), B66 and B67 of IFRS 3 Business Combinations

the requirements of paragraph 33(c) of IFRS 5 Noncurrent Assets Held for Sale and Discontinued Operations

the requirements of paragraph 24(b) of IFRS 6 Exploration for and Evaluation of Mineral Resources to disclose the operating and investing cash flows arising from the exploration for and evaluation of mineral resources

the requirements of IFRS 7 Financial Instruments: Disclosures

the requirements of paragraphs 91 to 99 of IFRS 13 Fair Value Measurement

the requirements of the second sentence of paragraph 110 and paragraphs 113(a), 114, 115, 118, 119(a) to (c), 120 to 127 and 129 of IFRS 15 Revenue from Contracts with Customers

the requirements of paragraph 52, the second sentence of paragraph 89, and paragraphs 90, 91 and 93 of IFRS 16 Leases, as well as the requirements of paragraph 58 of the same standard, provided that the disclosure of details of indebtedness relating to amounts payable after 5 years required by company law is presented separately for lease liabilities and other liabilities, and in total

the requirements in paragraph 38 of IAS 1 Presentation of Financial Statements to present comparative information in respect of:

paragraph 79(a)(iv) of IAS 1

paragraph 73(e) of IAS 16 Property, Plant and Equipment

paragraph 118(e) of IAS 38 Intangible Assets

paragraphs 76 and 79(d) of IAS 40 Investment Property

paragraph 50 of IAS 41 Agriculture

the requirements of paragraphs 10(d), 10(f), 16, 38A, 38B, 38C, 38D, 40A, 40B, 40C, 40D, 111 and 134136 of IAS 1 Presentation of Financial Statements

the requirements of IAS 7 Statement of Cash Flows

the requirements of paragraphs 30 and 31 of IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors

the requirements of paragraph 74A(b) of IAS 16

the requirements of paragraphs 17 and 18A of IAS 24 Related Party Disclosures

Molo Hotel Group Limited

Notes to the Consolidated Financial Statements

For the year ended 31 December 2024

Disclosure exemptions Parent Company individual financial statements (continued):

31.

the requirements in IAS 24 Related Party Disclosures to disclose related party transactions entered into two or more members of a group, provided that any subsidiary which is a party to the transaction is wholly owned by such a member

the requirements of paragraphs 130(f)(ii), 130(f)(iii), 134(d) to 134(f) and 135(c) to 135(e) of IAS 36 Impairment of Assets

This information is included in the consolidated financial statements of Molo Hotel Group Limited as at 31 December 2024 and these financial statements may be obtained from 1a The Moorings, Dane Road Industrial Estate, Sale, Cheshire, United Kingdom, M33 7BH.