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

The principal activity of the company continued to be owning and operating a hotel.

The company owns a hotel that trades in the three principal accommodation markets of business, events, and leisure.

Average occupancies for the financial year were 69.7% (2023: 69.1%). RevPar averaged £83 (2023: £81). This was driven by the continued strong performance of the UK hotel market, particularly in Leeds.

The performance of the company is set out in the profit and loss account within these financial statements. Total turnover increased by 2.4% to £13,000,585 (2023: £12,695,309). Total cost of sales have seen an increase of 3.5% to £3,654,521 (2023 restated amount of £3,525,841) and administration expenses have decreased by 7.3% to £7,869,182 (2023: restated amount of £8,444,440). As a result of the overall increased costs the company generated a loss before tax for the financial year of £1,628,966 (2023: loss before tax of £2,164,207).

In preparing the financial statements, the Directors have assessed the entity's ability to continue as a going concern.

The Company is partly funded by loans from other Pandox AB group companies and is therefore reliant on the continued financial support of its ultimate parent company, Pandox AB, in order to meet its obligations as and when they fall due.

Management have reforecasted the expected financial performance and cash flows for the period up to 31 December 2026 and performed additional sensitivity analysis in order to understand the level of support that may be required. This has been discussed with Pandox AB and a letter of support has been provided to the Board of Directors.

Whilst the letter of support is not legally binding the Board of Directors believe that the company will be provided financial support from Pandox AB in order for the company to meet its obligations as and when they fall due until at least 31 December 2026. The Directors have also considered the financial position of Pandox AB and concluded that they have sufficient financial resources with which to provide the support detailed in the letter.

Therefore on the basis of the above, the Directors have approved the financial statements utilising the going concern basis of preparation.

To deliver the Company’s business objectives, the Company needs to deliver to three key stakeholder groups:

1. Staff

2. Guests

3. Investors

The Company uses several measures to assess how well the Company is delivering to its stakeholders.

Staff measures

Team turnover – This measures how many people leave the Company each year and is an indicator of engagement and job satisfaction. Motivated and committed staff are key to delivering good customer service.

Health and Safety – This measures how well the Company looks after its people and its guests. It is critical to the Company to provide safe working environments and safe hotels for its guests to stay in. This is measured by Health and Safety audits by external independent experts.

Guest Measures

Guest Satisfaction – The Company actively seeks feedback from its guests so that it can act on their experiences to improve the services provided. Guest satisfaction is measured continually and analysed on a monthly basis.

Investors

Profit Growth – The Company measures its profit growth against last year focusing on Earnings before interest, Taxation, Depreciation and Amortisation (EBITDA), and against its budgets and reports on a monthly basis. EBITDA for the year 2024 was £3,419,491 (2023: £2,440,245).

The company's objective is to reduce the risk of financial loss due to a counter party's failure to honour its obligations. Credit is only given to corporates and standard payment terms are quoted on all contracts. The hotel is primarily responsible for implementing the group's credit control procedures with monitoring provided by the group finance function. This responsibility includes the determination of credit-worthy customers, management of individual exposures and ensuring payment is secured in accordance with the agreed terms.

The company aims to mitigate liquidity risk by managing cash generation by its operations.

Hotel investment is approved following a detailed appraisal process and an assessment of the financial needs of the investment. All capital items are approved at board level whether purchased outright, leased, rented or subject to hire purchase agreements. The method of funding for each is dictated in each case by cash flow implications.

IT

With the majority of the group's processes and information systems being held on central file servers situated within a single site data centre, the group's objective is to eliminate the principal single points of failure within the key elements of hardware, software and data communications. This is achieved by having automated fail-over systems as well as a replication of the central data centre located in off-site premises.

Competition

Competitive risk exists in all business and the company's objective is to be able to identify such risks at an early stage so that an appropriate strategy can be implemented to reduce that risk. This is achieved through a regime of regular forecasting and budgeting together with a systematic review process of historic and future performance by senior management.

On behalf of the board

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

The loss after tax for the financial year amounted to £1,113,082 (2023: restated loss after tax of £3,050,903) which has been transferred to reserves.

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

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

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards 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 of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

• select suitable accounting policies 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 transactions and disclose with reasonable accuracy at any time the financial position of the company 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 hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

We have audited the financial statements of Pandox Leeds City Centre Limited (the 'company') for the year ended 31 December 2024 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including 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 company's affairs as at 31 December 2024 and of its loss for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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 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 included in the annual report, other than the financial statements and our auditor’s report 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 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 our audit:

• the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

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

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

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

• the financial statements are not in agreement with the accounting records and returns; or

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

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

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

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

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

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

Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to regulatory requirements in respect of employment law, including but not limited to minimum wage regulation, foods standards requirements, and alcohol licencing. We considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, income tax, payroll tax and sales tax.

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 and management bias in accounting estimates. Audit procedures performed by the engagement team included:

• Inspecting correspondence with regulators and tax authorities;

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

• Evaluating management’s controls designed to prevent and detect irregularities;

• Identifying and testing journals, in particular journal entries posted with unusual account combinations, postings by unusual users or with unusual descriptions; and

• Challenging assumptions and judgements made by management in their critical accounting estimates

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

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

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

The profit and loss account has been prepared on the basis that all operations are continuing operations.

The notes on pages 13 to 24 form part of these financial statements.

The notes on pages 13 to 24 form part of these financial statements.

Pandox Leeds City Centre Limited is a private company limited by shares incorporated in England and Wales. The registered office is 5 Churchill Place, 10th Floor, London, United Kingdom, E14 5HU.

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

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

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

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

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

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

• Section 26 ‘Share based Payment’: Share-based payment expense charged to profit or loss, reconciliation of opening and closing number and weighted average exercise price of share options, how the fair value of options granted was measured, measurement and carrying amount of liabilities for cash-settled share-based payments, explanation of modifications to arrangements;

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

The financial statements of the company are consolidated in the financial statements of Pandox AB. These consolidated financial statements are available from its website: https://www.pandox.se/investor-relations/financial-reports-and-presentations/

In preparing the financial statements, the Directors have assessed the entity's ability to continue as a going concern.true

The Company is partly funded by loans from other Pandox AB group companies and is therefore reliant on the continued financial support of its ultimate parent company, Pandox AB, in order to meet its obligations as and when they fall due.

Management have reforecasted the expected financial performance and cash flows for the period up to 30 September 2026 and performed additional sensitivity analysis in order to understand the level of support that may be required. This has been discussed with Pandox AB and a letter of support has been provided to the Board of Directors.

Whilst the letter of support is not legally binding the Board of Directors believe that the company will be provided financial support from Pandox AB in order for the company to meet its obligations as and when they fall due until at least 30 September 2026. The Directors have also considered the financial position of Pandox AB and concluded that they have sufficient financial resources with which to provide the support detailed in the letter.

Therefore on the basis of the above, the Directors have approved the financial statements utilising the going concern basis of preparation.

Turnover comprises income from the operation of a hotel, which excludes value added tax and trade discounts, represents the invoiced value of goods and services supplied and is recognised at the point of sale at which the accommodation and related services are provided.

Interest payable and similar charges

Interest payable and similar charges include interest payable on bank loans and finance costs on bank loans. Interest payable is recognised in the profit and loss account in the period to which it relates. Finance costs are released to the profit and loss account over the term of bank loan.

Tangible fixed assets are stated using the revaluation model and are valued at each reporting period at fair value less accumulated depreciation and accumulated impairment losses. Revaluations are undertaken with sufficient frequency to ensure that the carrying amount reflects that which would be determined at the Statement of Financial Position date. Fair values are determined from market-based evidence.

Revaluation gains and losses are recognised in the Statement of Comprehensive Income unless the losses exceed the previously recognised gains ore reflect a clear consumption of economic benefits, in which case the excess losses are recognised in the profit and loss. Where parts of an item of tangible fixed assets have different useful lives, they are accounted for as separate items of tangible fixed assets, for example land is treated separately from buildings.

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

Depreciation methods, useful lives and residual values are reviewed if there is an indication of a significant change since last annual reporting date in the pattern by which the company expects to consume an asset's future economic benefits. Fixed asset improvements are initially recognised at cost, until the next valuation when they are included within the fair value.

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.

Debtors

Basic financial assets, including trade and other debtors, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Such assets are subsequently carried at amortised cost using the effective interest method, less any impairment.

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

Basic financial liabilities, including trade and other creditors, loans from third parties and loans from related parties, are initially recognised at transaction price, unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of Interest. Such instruments are subsequently carried at amortised cost using the effective interest method, less any impairment.

Tax on the profit or loss for the year comprises current and deferred tax. Tax is recognised in the profit and loss account except to the extent that it relates to items recognised directly in equity or other comprehensive income, in which case it is recognised directly in equity or other comprehensive income.

Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the balance sheet date, and any adjustment to tax payable in respect of previous years.

Deferred tax is provided on timing differences which arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in the financial statements. The following timing differences are not provided for: differences between accumulated depreciation and tax allowances for the cost of a fixed asset if and when all conditions for retaining the tax allowances have been met; to the extent that it is not probable that they will reverse in the foreseeable future and the reporting entity is able to control the reversal of the timing difference. Deferred tax is not recognised on permanent differences arising because certain types of income or expense are non-taxable or are disallowable for tax or because certain tax charges or allowances are greater or smaller than the corresponding income or expense. Deferred tax is measured at the tax rate that is expected to apply to the reversal of the related difference, using tax rates enacted or substantively enacted at the balance sheet date. Deferred tax balances are not discounted. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that is it probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Provisions are recognised when the company has a legal or constructive present obligation as a result of a past event, it is probable that the company will be required to settle that obligation and a reliable estimate can be made of the amount of the obligation.

The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the reporting end date, taking into account the risks and uncertainties surrounding the obligation. Where the effect of the time value of money is material, the amount expected to be required to settle the obligation is recognised at present value. When a provision is measured at present value, the unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

In the process of applying its accounting policies, the company is required to make certain estimates, judgements and assumptions that it believes are reasonable based on the information available. These judgements, estimates and assumptions affect the amounts of assets and liabilities at the date of the financial statements and the amounts of revenues and expenses recognised during the reporting periods presented.

On an ongoing basis, the company evaluates its estimates using historical experience, consultation with experts and other methods considered reasonable in the particular circumstances. Actual results may differ significantly from the estimates, the effect of which is recognised in the period in which the facts that give rise to the revision become known. The following paragraphs detail the estimates and judgements the company believes to have the most significant impact on the annual results under FRS 102.

Tangible assets Judgements and estimates are required in assessing the fair value of fixed assets. Given the significance of the assets, any change in these assumptions could lead to a material difference in the value of the fixed asset. Judgement is also required in assessing the depreciation rates for fixed assets which is largely dependent on the remaining period left on the lease, but consideration is also given to the expected life of the asset itself. Any change in useful economic life which drives the depreciation rates could lead to a material change in value of fixed assets.

The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.

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

Their aggregate remuneration comprised:

The director emoluments are covered by the corporate directorship fee charged by CSC CLS (UK) Ltd. The fee is not split out in terms of the services provided and any amount indirectly paid to the Directors would be of negligible value.

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

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

An Independent valuation was performed by Jones Lang LaSalle as at February 2025. The Directors deem this to be the fair value of the property and equipment as at 31 December 2024. The valuation was prepared in accordance with RICS valuation - Global Standards 2017, (incorporating the international;valuation standards) and the UK national supplement 2018 ('the Red Book').

Had the assets been recognised under the cost method the carrying amounts would of been;

Leasehold Land and buildings

Carrying value of £48,544,113 (2023: £49,059,964).

Equipment

Carrying value of £1,981,461 (2023: £2,013,261).

Amounts due to fellow group undertakings consist of an inter group loan that attracts interest at the rate of 7%.

Defined contribution plans

The amount recognised in profit or loss as an expense in relation to defined contribution plans was £62,834 (2023: £47,455).

The amount payable in relation to defined contribution plans was £60,850 (2023: £57,761).

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

During 2023, 1 ordinary share of £1 was issued for £5,644,273.

"Profit and loss account" represents all other gains and losses reported by the company that have not been reported elsewhere.

"Revaluation reserve" represents the gains and losses realised on the valuation of the Long leasehold properties

"Share Capital" represents the nominal value of shares that have been issued.

"Share premium" represents the amount by which the amount received by a company for a stock issue exceeds its nominal value.

At 31 December 2024, the company had no capital commitments (2023: nil).

The immediate parent company is Pandox UK Holdco Limited, a company incorporated in the United Kingdom at 5 Churchill Place, 10th Floor, London, E14 5HU.

The ultimate controlling party is Pandox AB, a company registered in Sweden, Financial statements for Pandox AB are available from the following website:

https://www.pandox.se/investor-relations/financial-reports-and-presentations

In the prior period, fixed asset additions were understated by £2,902,374 and the intercompany creditor owing to Pandox UK Holdco Limited was understated by the same amount. As the total value of fixed assets as at 31 December 2023 was correctly stated as being £53,600,000, the error resulted in the revaluation gain/loss recognised being overstated by £2,902,374, with an associated incorrect movement on deferred tax being recognised. The Company has corrected this error by way of a prior period adjustment. The impact on the comparatives in the financial statements has been as follows:

• An increase in the amounts due to group undertakings of £2,902,374

• decrease in the unrealised gain on revaluation of tangible fixed assets recognised in Other comprehensive income of £2,902,374.

• decrease in the tax charge recognised in the profit and loss of £725,594

• An increase in the tax charge recognised in respect of other comprehensive income of £725,594.

The impact of the above adjustment is a £725,594 increase in the loss in the prior year P&L and a £2,903,274 reduction in the prior year net asset position.

The prior year adjustments above have resulted in an increase in the loss for the financial year of £725,594 and an equivalent reduction in profit and loss reserve. In addition, these have resulted in a decrease in total comprehensive income for the year £2,176,780. There has also been an increase in prior year current liabilities and a decrease in net assets of £2,903,274. The corrected movements in the revaluation reserve, has resulted in a reduction of £2,176,780 to the previously reported balance as at 31 December 2023.

Prior year reclassifications

During the year a review of administrative expenses was carried out and it was identified that £1,277,488 should have been allocated within cost of sales in the prior year financial statements. Therefore the 2023 comparative has been restated to reduce administrative expenses and increase cost of sales by this amount.