The directors present the strategic report for the year ended 31 March 2025.

The London Golf Club PLC made a profit for the year of £736,137, compared to a profit in 2024 of £786,560.

Turnover for the year is £7,651,193 which represents an increase of 5.4% on prior year. The London Golf Club remains committed to providing high quality facilities and services, therefore the club has increased prices in line with inflation to combat rising costs. An exceptionally wet winter saw rounds played down 5% on prior year, however green fee revenue increased 19% following an exceptionally busy summer of golf days. Reduced weddings, events and member spend saw F&B revenue remain flat and indicate that whilst golf remains popular, consumers are clearly monitoring their spend in a difficult economic environment.

Membership revenue was up 1% in the year with new members being recruited to replace exiting members following increased attrition in 2024.

The London Golf Club continues to face challenges with a flat economy and significant cost increases; however, the club continues to invest and innovate to ensure the highest possible service standards. During the year the club has invested significant sums into capital projects with new greenkeeping equipment, a refit of the spike bar kitchen, new carpets in our 1st floor banqueting areas and an upgrade to the IT systems.

The club has conducted a review of its courses with recent excessively wet winters impacting the playing surfaces and player experience. Following that review the club has started a program of drainage improvements with works completed on the 16th and 18th holes of the heritage course in August 2024. Further works have been planned for the coming years on both courses.

The Group’s risk management framework includes a process for identifying, assessing and responding to risk and supporting the company’s strategy and business objectives.

Risk management operates at all levels throughout the business. However, the Board takes overall responsibility, determining the nature and extent of principal risks it is willing to take to achieve the company’s strategic objectives, and maintaining the company’s risk governance structure and appropriate internal control framework.

The principal risks faced by the business are as follows:

Economic factors such as consumer confidence, supply chain issues and rising inflation are a concern for The London Golf Club. The year to 31 March 2025 saw significant cost increases in greenkeeping equipment, food, beverage and staffing. The London Golf Club continues to monitor and plan for such issues to ensure the club is well placed to cope with changes to economic conditions.

Weather remains an important risk factor for The London Golf Club with excessive wet or dry periods having an equally detrimental effect. The club currently has adequate water reserves to cope with dry periods but continues to work with local water suppliers to ensure a consistent supply should it be required. The club continues to invest in drainage to ensure the effects of wet weather is mitigated as much as possible.

The directors plan to continue to offer an increasingly high standard of golf and ancillary services to its customers and to make The London Golf Club one of the most prestigious in the region.

The club continues to investigate potential investment projects to increase services and facilities for members and external customers in order to introduce new revenue streams.

The London Golf Club has submitted an updated planning request for a substantial hotel, lodge accommodation and high-quality services and facilities in February 2025. This is an improved version of an already granted planning permission that would see The London Golf Club build into an exclusive resort with the advantage of easy access to and from London. The ability of the Club to host larger events would be substantially enhanced by being able to offer accommodation on site and will make application for major events in the future more viable. There would be considerable ongoing benefits for the area with increased demand for employment, products and services from local suppliers when the project is completed.

The directors have a duty to all stakeholders of the London Golf Club. The directors achieve this by extensively researching both the short term and long-term consequences of decisions before they are made. All decisions taken have regard for the interests of the clubs’ customers, people, relationships with its suppliers and the impact of its operations on the communities in which it operates, and to ensure that it maintains a reputation for high standards of business conduct.

Increasingly stakeholders are becoming more interested in the club’s performance and operations. The directors endeavour to gain an understanding of the perception and attitude of each stakeholder group and assess the correct course of action to ensure the clubs long term success.

Customers

The club aims to provide outstanding facilities and service to meet its customer expectation. The directors assess customer need using surveys, focus groups and competitor review and monitors performance against the customer need using visitor review surveys, 59 club service excellence reviews, mystery shoppers and informal customer feedback.

People

The club’s people are key to the business and as such the directors want the people to feel engaged and empowered to deliver a great service for its customers. The club communicates plans regularly with employees in staff newsletters, provides training, promotes employee feedback via staff surveys and conducts annual career development reviews for each employee. The club has an extensive employee benefits package.

Suppliers

The clubs’ suppliers are critical to its ability to be able to provide excellent service to its customers. The club ensures that suppliers are treated fairly and payment to suppliers are made in an agreed timescale.

Community and Environment

The club promotes the health and wellbeing of the local community by providing excellent facilities and opportunity for all to enjoy the game of golf. Services at the club include The LGC academy, the London Cubs junior tuition program and female only coaching groups. The London Golf club as part of its charity effort supports a charity each year (2025 Teenage Cancer Trust) and helps them raise significant funds for their cause. The club continues to support other charities by hosting large charity golf days and providing auction prizes.

The club continues to work closely with the European tour, Kent County Council and Visit Kent to bring international tournaments and exposure to Kent. The London Golf Club has been selected as a finalist host venue for the 2035 Ryder Cup.

The social and environmental impact of the club has never been more important. The club’s investment in more environmentally friendly greenkeeping techniques and water management continues. The club continues to work closely with its partners to improve the sustainability of its business practices and reduce its carbon footprint.

On behalf of the board

The directors present their annual report and financial statements for the year ended 31 March 2025.

The principal activity of the company continued to be that of a golf club of international championship standard based close to Southeast London and Canary Wharf. The company has no plans to change the basic strategy however, the club has submitted an updated planning request to upgrade its secured planning permission for the construction of a 5-star hotel on site with accompanying facilities, the club’s appeal has the potential to be wider than that of just a golfing destination.

The results for the year are set out on page 9.

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:

It is not the policy of the company to follow a code of standard payment practice. It is the policy of the company to agree appropriate terms and conditions for its transactions with suppliers (by means ranging from standard written terms to individually negotiated contracts) and that payment should be made in accordance with those terms and conditions, provided that the supplier has also complied with them. The number of day’s purchases outstanding at 31 March 2025 was 49 days (2024: 59 days).

The company is funded by equity, loans from related parties, bank loans and cash generated from normal business activities. The board monitors the company’s exposure to commercial, environmental and financial risks on a regular basis and does not consider that these factors have a material impact when assessing the assets, liabilities and overall financial position of the company.

The auditor, Azets Audit Services, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

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.

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of the review and analysis of the business during the current year.

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.

We have audited the financial statements of The London Golf Club PLC (the 'company') for the year ended 31 March 2025 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 March 2025 and of its profit for the year then ended;

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the 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 forming our opinion on the financial statements, which is not modified, we have considered the adequacy of the disclosure made in Note 1.2 of the financial statements regarding the net current liabilities position of the company. These conditions indicate the existence of a material uncertainty, which may cast doubt about the company’s ability to continue as a going concern.

We consider that this should be drawn to your attention, but our opinion is not qualified in this respect.

Other information

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

We have nothing to report in this regard.

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 directors' 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.

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.

Extent to which the audit was considered capable of detecting irregularities, including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above and on the Financial Reporting Council’s website, to detect material misstatements in respect of irregularities, including fraud.

We obtain and update our understanding of the entity, its activities, its control environment, and likely future developments, including in relation to the legal and regulatory framework applicable and how the entity is complying with that framework.  Based on this understanding, we identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.  This includes consideration of the risk of acts by the entity that were contrary to applicable laws and regulations, including fraud.

In response to the risk of irregularities and non-compliance with laws and regulations, including fraud, we designed procedures which included:

• Enquiry of management and those charged with governance around actual and potential litigation and claims as well as actual, suspected and alleged fraud; 

• Assessing the extent of compliance with the laws and regulations considered to have a direct material effect on the financial statements or the operations of the company through enquiry and inspection; 

• Reviewing financial statement disclosures and testing to supporting documentation to assess compliance with applicable laws and regulations;

• Performing audit work over the risk of management bias and override of controls, including testing of journal entries and other adjustments for appropriateness, evaluating the business rationale of significant transactions outside the normal course of business and reviewing accounting estimates for indicators of potential bias. 

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 of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

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 London Golf Club PLC is a public company limited by shares incorporated in England and Wales. The registered office is South Ash Manor Estate, Stansted Lane, Ash, Sevenoaks, Kent, United Kingdom, TN15 7EN.

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: The disclosure requirements of paragraphs 11.42, 11.44, 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b), 11.48(c), 12.26, 12.27, 12.29(a), 12.29(b), and 12.29A;

• Section 26 ‘Share based Payment’: Share based payment arrangements required under FRS 102 paragraphs 26.18(b), 26.19 to 26.21 and 26.23;

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

The financial statements of the company are consolidated in the financial statements of The London Golf Club Developments Limited. These consolidated financial statements are available from its registered office, South Ash Manor Estate, Stansted Lane, Ash, Sevenoaks, Kent, TN15 7EN.

The company’s business activities, together with plans for its future development and position are set out in the Business Review section of the Strategic Report on pages 1 to 3, together with details of its financial instruments and actions taken to deal with risks and uncertainties.

The company participates in the group’s treasury arrangements and therefore shares banking arrangements with its parent company. The directors of the parent company, The London Golf Club Developments Limited, are also directors of the company.

The company meets its day-to-day working capital requirements through operating cash flows and an overdraft facility. Included within creditors due in more than one year is a bank loan of £3,125,000 which is due for repayment on 31 July 2028. The overdraft was extended following the year end and is to be reviewed again on 31 July 2026. In July 2020 the club engaged in a £500,000 CBILS loan which is due to be paid down quarterly over 6 years beginning in January 2022. At the year end the balance outstanding was £175,000, included in creditors due within one year is £100,000 with the remaining £75,000 in creditors due after more than one year.

Whilst the company has net current liabilities of £1.1m (2024: £1.7m), the company’s forecasts, taking account of reasonably possible changes in trading performance, show that the company should be able to operate within the level of its current facility to meet its financial obligations as they fall due. However significant capital projects will require further funding from the ultimate parent company, Balearic Holdings N.V., or additional third party finance. Balearic Holdings N.V. has committed its financial support to the company should it be required.

Cost of living and inflation

The company has seen significant increases in costs in all areas. The directors whilst implementing tight cost controls and review processes, have increased pricing substantially over a 2-year period to mitigate the impact of the current economic challenges whilst maintaining high standards. The price increases have not impacted demand, but the directors recognise that pricing could have a detrimental impact going forward. The directors continue to monitor costs and benchmark against the golf industry.

The directors therefore have a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable and continue to adopt the going concern basis of accounting in preparing the annual statements.

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes.

Revenue from the sale of goods and services is recognised when the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Annual individual membership fees are recognised over the period of membership on a straight line basis. Corporate memberships are recognised on a usage basis throughout the year with unused levy (limited to 25% of annual fee) carried over into the following year. Green fees and restaurant transactions are recognised in full when the service is provided.

Non-refundable joining fees which are payable by members on admission to The Club are recognised in full in the statement of comprehensive income in the year that membership is granted. These amounts are included within turnover.

The company offers life membership to certain members in return for those members agreeing to transfer their shares and debentures to the parent company at nil consideration. The directors consider the value of the life membership to be the same as the forfeited repurchase price and this is being credited to turnover over a period of 10 years, being the period the directors estimate the members will continue to use the company’s facilities.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

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:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

Works of art are not depreciated because the directors consider that the estimated residual value is not materially different from the net book value shown in the financial statements due to the current market conditions of the assets. As a result any depreciation charge required is not considered material.

At each reporting period end date, the company reviews the carrying amounts of its tangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset (or cash-generating unit) is estimated to be less than its carrying amount, the carrying amount of the asset (or cash-generating unit) is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the impairment loss is treated as a revaluation decrease.

Recognised impairment losses are reversed if, and only if, the reasons for the impairment loss have ceased to apply. Where an impairment loss subsequently reverses, the carrying amount of the asset (or cash-generating unit) is increased to the revised estimate of its recoverable amount, but so that the increased carrying amount does not exceed the carrying amount that would have been determined had no impairment loss been recognised for the asset (or cash-generating unit) in prior years. A reversal of an impairment loss is recognised immediately in profit or loss, unless the relevant asset is carried at a revalued amount, in which case the reversal of the impairment loss is treated as a revaluation increase.

Stocks are stated at the lower of cost and estimated selling price less costs to sell. Cost is based on cost to purchase on a first in first out basis. Provision is made for obsolete and slow-moving items.

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

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.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

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

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method 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. Financial assets classified as receivable within one year are not amortised.

Other financial assets, including investments in equity instruments which are not subsidiaries, associates or joint ventures, are initially measured at fair value, which is normally the transaction price. Such assets are subsequently carried at fair value and the changes in fair value are recognised in profit or loss, except that investments in equity instruments that are not publicly traded and whose fair values cannot be measured reliably are measured at cost less impairment.

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial assets are impaired where there is objective evidence that, as a result of one or more events that occurred after the initial recognition of the financial asset, the estimated future cash flows have been affected. If an asset is impaired, the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss.

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

Financial assets are derecognised only when the contractual rights to the cash flows from the asset expire or are settled, or when the company transfers the financial asset and substantially all the risks and rewards of ownership to another entity, or if some significant risks and rewards of ownership are retained but control of the asset has transferred to another party that is able to sell the asset in its entirety to an unrelated third party.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans and loans from fellow group companies, 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. Financial liabilities classified as payable within one year are not amortised.

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

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

Debt instruments that do not meet the conditions in FRS 102 paragraph 11.9 are subsequently measured at fair value through profit or loss. Debt instruments may be designated as being measured at fair value through profit or loss to eliminate or reduce an accounting mismatch or if the instruments are measured and their performance evaluated on a fair value basis in accordance with a documented risk management or investment strategy.

Financial liabilities are derecognised when the company’s contractual obligations expire or are discharged or cancelled.

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

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

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date 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 is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

The company provides contributions to the personal pension plans of certain senior employees. The amount charged as an expense represents the contributions payable in the year.

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

Assets held under finance leases are recognised as assets at the lower of the assets fair value at the date of inception and the present value of the minimum lease payments. The related liability is included in the balance sheet as a finance lease obligation. Lease payments are treated as consisting of capital and interest elements. The interest is charged to profit or loss so as to produce a constant periodic rate of interest on the remaining balance of the liability.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leases asset are consumed.

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

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

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on a number of factors. In re-assessing asset lives, factors such as technological innovation, product life cycles and maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

Brought forward and current year trading losses are not currently recognised as an asset as there is significant uncertainty around the existence and level of future profits to offset these losses.

Turnover and results of the company are attributable to its principal business activity of operating a 36 hole golf club. All turnover is earned in the UK.

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

Their aggregate remuneration comprised:

No directors' emoluments were paid directly to M Galvin, K Nigra and S Oberly. Instead general management fees are paid to Morningstar Golf & Hospitality LLC, a related party (note 23).

Under the group’s treasury management interest on the company’s bank loans and overdraft of £279,552 (2024: £285,715) is borne by the immediate parent company.

No corporation tax charge arises on the profit before tax in either year.

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

The following deferred tax assets have not been recognised as there is insufficient evidence that the asset will be recovered: trading losses of £1,657,939 (2024: £1,620,698) and other short term timing differences of £1,171 (2024: £2,660). The company has losses of approximately £6.6 million (2024: £6.5 million) available to be carried forward and set off against profits from the same trade, subject to agreement with HM Revenue and Customs.

The net carrying value of tangible fixed assets includes the following in respect of assets held under finance leases or hire purchase contracts.

The amount owed by the immediate parent undertaking is interest free and has no fixed repayment date.

The bank loan and overdraft are secured by a mortgage debenture over all of the company’s assets. In addition, group borrowings from the bank, which are subject to a right of set off between the company and The London Golf Club Developments Limited, are secured by an unlimited cross guarantee given by The London Golf Club Developments Limited. The total borrowings secured under this arrangement as at 31 March 2025 were £3,300,000 (2024: £3,400,000).

Obligations under finance lease contracts are secured on related assets. The finance lease contracts are held either in the name of The London Golf Club Developments Limited on behalf of the company, or in the company’s own name.

Due to the COVID-19 pandemic, the company secured a ‘Coronavirus Business Interruption Loan’ ("CBIL") of £500,000 during 2021. The loan is repayable over six years from the draw-down date with interest charged at 4.50% above base rate, with the interest charge in year one covered by the UK Government. The loan is secured by way of the bank’s existing security held over the company’s assets.

The remaining bank loan is repayable in full on 31 July 2028 and interest is charged at 3.25% per annum over Sterling Overnight Index Average.

The debentures are unsecured and interest free with a nominal value of £1 each and confer rights of nomination for membership of the golf club and have no fixed date of redemption. The earliest date of redemption, so long as the holder remains a member of the club, is on expiration of seven years from the date of issue.

Obligations under finance lease contracts are secured on related assets.

Finance lease payments represent rentals payable by the company for certain items of plant and machinery. Leases include purchase options at the end of the lease period, and no restrictions are placed on the use of the assets. All leases are on a fixed repayment basis and no arrangements have been entered into for contingent rental payments.

Obligations under finance lease contracts are secured on related assets. The finance lease contracts are held either in the name of The London Golf Club Developments Limited on behalf of the company, or in the company’s own name.

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

Non-voting shares carry the right to participate equally with each other and with the ordinary shares held by The London Golf Club Development Limited (the parent company) in any dividends declared and paid by the company. These non-voting shares carry the right, on a return of capital on a winding-up, to repayment of the amount paid up thereon, including any premium, in priority to any payment in respect of the shares held by the parent company but carry no right to participate in any surplus of the company.

On the expiration of seven years from the date of issue of a non-voting share, the then holder of the share has the right, exercisable at any time, to relinquish their membership of The London Golf Club PLC, and to require the parent company to purchase the share at its issue price, including any premium. The parent company does not have any right to compel shareholders to sell their shares.

The Company’s reserves are as follows:

• Called up share capital reserve represents the nominal value of the shares issued.

• The share premium account includes the premium on issue of equity shares, net of any issue costs.

• Other reserves comprise premiums arising on the issue of debentures.

• Profit and loss account represents cumulative profits or losses, net of dividends paid and other adjustments.

At the reporting end date the company had a commitment under a non-cancellable operating lease in respect of the Club’s property at South Ash Manor Estate. The lessor is The London Golf Club Developments Limited, the immediate parent company. The lease commenced on 1 March 1993, for a term of fifty years. The annual fixed rental is £24,996 (2024: £24,996). Under the lease the company has the following total rental commitments:

Amounts contracted for but not provided in the financial statements:

On 14 August 2025 the London Golf Club renewed its overdraft facility for a further 12 months, to be reviewed again on 31 July 2026.

The London Golf Club PLC’s immediate parent is at an advanced stage of planning approval for an improvement to already granted planning for a substantial 5 star hotel, additional accommodation and high quality ancillary services.

During the year management and travel fees of £178,615 (2024: £213,331) were payable to Morningstar Golf & Hospitality LLC. M Galvin is a director of the company, has a material interest in, and is a director of, Morningstar Golf & Hospitality LLC.

The company’s immediate parent company is The London Golf Club Developments Limited. The ultimate parent company is Balearic Holdings N.V., a company registered in the Netherlands Antilles.

The company is ultimately controlled by the NJAFS78 Trust, Guernsey, the trustees of which are Wakil Trustee Limited.