REGISTERED NUMBER: 09964449 (England and Wales)

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 MARCH 2025

FOR

104 LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Consolidated Statement of Income and Retained Earnings

9

Consolidated Balance Sheet

10

Company Balance Sheet

11

Consolidated Cash Flow Statement

12

Notes to the Consolidated Financial Statements

13

DIRECTORS:

F Yeganeh

P Stewart

T Schwerdtfeger

REGISTERED OFFICE:

The Queens Hotel

Clarence Parade

Southsea

Hampshire

PO5 3LJ

REGISTERED NUMBER:

09964449 (England and Wales)

AUDITORS:

Lewis Brownlee (Chichester) Limited

Statutory Auditors

Appledram Barns

Birdham Road

Chichester

West Sussex

PO20 7EQ

The directors present their strategic report of the company and the group for the year ended 31 March 2025.

REVIEW OF BUSINESS

The principal activity of the group is the operation of The Queens Hotel, a three star (aspiring 4 star), 74-bedroom Victorian hotel, located in Southsea on the South Coast of England.

Turnover for the year for the hotel was £4.56m, an increase of 10% on the previous year .

Average occupancy rates of rooms during the year were 64% (2024: 61%).

Gross profit margin for the year was 32% (2024: 32%).

Adjusted EBITDA for the year was £710k (2024: £605k).

The hotel has now been fully refurbished, with just the currently vacant 4th floor remaining unused. A period of trading consolidation is underway, while we prepare to bring the 4th floor back into operational use, at the same time enhancing the structural integrity of the roof.

All other subsidiaries, except Rego Property (Southsea) Limited, continue to be asset holding, for active development.

Rego Property (Southsea) Limited is a company specifically formed to undertake planning services for assets held for development owned by our other subsidiaries. During the year, 104 Limited acquired the remaining 50% of the share capital of Rego Property (Southsea) Limited.

PRINCIPAL RISKS AND UNCERTAINTIES

The management of the business and execution of the group's strategy are subject to a number of risks. The key business risks and uncertainties affecting the group are considered to relate to government policy changes, competitor activity, market trends and forecasts and customer behaviour. These risks are addressed by the board undertaking regular strategic reviews including assessments of competitor activity and pricing and by focusing on investment in training and development of staff and their long-term retention within the group. We have a flexible workforce, providing us with flexibility to draw on extra staff or conversely, reduce staff presence to counteract occupancy levels. As we provide non-residency facilities for events such as weddings, conferences and fine dining we can call upon external security teams to provide reassurance to attendees and protect our licence, have CCTV systems in place to discourage inappropriate behaviour and number plate recognition in our car park which visitors log in upon arrival.

KEY PERFORMANCE INDICATORS

The trading company's KPIs included the following, and are monitored on a monthly basis:

-

Turnover: performance is compared with prior year and current year forecast.

-

Occupancy %: performance is compared with prior year and current year forecast.

-

Average Room Rate (ARR): accommodation income for the month, divided by the number of days in the month and number of rooms (74 ).

-

Revenue Per Available Room (Rev Par): similar to ARR but rooms can be decommissioned at various times, for various reasons, e.g. maintenance, refurbishment. This KPI provides a higher room rate achieved than ARR.

-

Gross Profit %: we set a percentage of return we strive for when deducting cost of sales e.g. direct wages, food and liquor costs from turnover, and compare this to prior year, current year forecast and competitors / market trends where available.

OTHER INFORMATION AND EXPLANATIONS

Environment

The group recognises its corporate responsibility to carry out its operations whilst minimising environmental impacts.

Health and Safety

The safety of our staff and customers is of paramount importance to the group. We are committed to and strive to achieve the highest practicable standards.

Dividends

As in previous years, a dividend has not been paid to shareholders. Retained profits have been reinvested into the group.

Future Developments

Future plans include the reintroduction of the 4th floor into operational use for the hotel and obtaining planning permissions for assets.

ON BEHALF OF THE BOARD:

F Yeganeh - Director

9 October 2025

The directors present their report with the financial statements of the company and the group for the year ended 31 March 2025.

DIVIDENDS

No dividends will be distributed for the year ended 31 March 2025.

EVENTS SINCE THE END OF THE YEAR

Information relating to events since the end of the year is given in the notes to the financial statements.

DIRECTORS

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

F Yeganeh

P Stewart

T Schwerdtfeger

FINANCIAL INSTRUMENTS

The group has a normal level of exposure to price, credit, liquidity and cash flow risks arising from trading activities which are conducted in sterling only. The group does not enter into any formally designated hedging arrangements.

The group operates policies to ensure there is sufficient liquidity and cash with regular reviews of the cash position to ensure the group is able to cover its interest and capital payments.

DISCLOSURE IN THE STRATEGIC REPORT

The group has chosen in accordance with the Companies Act 2006 to set out in the group's strategic report information required by Schedule 7 of the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008 to be contained in the directors' report. It has done so in respect of future developments.

DIRECTORS' RESPONSIBILITIES STATEMENT

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

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

-	select suitable accounting policies and then apply them consistently;

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

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

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

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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

AUDITORS

Lewis Brownlee (Chichester) Limited were appointed auditor to the company and in accordance with section 485 of the Companies Act 2006, a resolution proposing that they be re-appointed will be put at a General Meeting.

ON BEHALF OF THE BOARD:

F Yeganeh - Director

9 October 2025

Opinion

We have audited the financial statements of 104 Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2025 which comprise the Consolidated Statement of Income and Retained Earnings, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Cash Flow Statement and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

-	give a true and fair view of the state of the group's and of the parent company affairs as at 31 March 2025 and of the group's profit for the year then ended;

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

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

Basis for opinion

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

Conclusions relating to going concern

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

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

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

Other information

The 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 the audit:

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

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

Matters on which we are required to report by exception

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

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

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

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

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

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

Responsibilities of directors

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

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

Auditors' responsibilities for the audit of the financial statements

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

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.

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

-

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

-

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

-

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

-

we assessed the extent of compliance with the laws and regulations identified above through making enquiries of management and inspecting legal correspondence; and

-

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

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

-

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

-

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

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

-

performed analytical procedures to identify any unusual or unexpected relationships;

-

tested journal entries to identify unusual transactions;

-

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

-

investigated the rationale behind significant or unusual transactions.

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

-

agreeing financial statement disclosures to underlying supporting documentation;

-

reading the minutes of meetings of those charged with governance, where applicable;

-

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

-

reviewing correspondence with HMRC, relevant regulators and the group's legal advisors.

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

Use of our report

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

Sam Ede BFP FCA FCCA (Senior Statutory Auditor)

for and on behalf of Lewis Brownlee (Chichester) Limited

Statutory Auditors

Appledram Barns

Birdham Road

Chichester

West Sussex

PO20 7EQ

9 October 2025

TURNOVER

3

4,559,069

4,140,650

Cost of sales

3,078,340

2,808,340

GROSS PROFIT

1,480,729

1,332,310

Administrative expenses

1,081,309

973,681

GROUP OPERATING PROFIT

5

399,420

358,629

Share of operating (loss)/profit in

Joint ventures

(1,220

)

46

Interest receivable and similar income

3,945

2,461

402,145

361,136

Interest payable and similar expenses

6

223,368

223,341

PROFIT BEFORE TAXATION

178,777

137,795

Tax on profit

7

57,458

(73,740

)

PROFIT FOR THE FINANCIAL YEAR

121,319

211,535

Retained earnings at beginning of year

(2,834,841

)

(3,046,376

)

RETAINED EARNINGS FOR THE GROUP AT END OF YEAR

(2,713,522

)

(2,834,841

)

Profit attributable to:

Owners of the parent

121,319

211,535

FIXED ASSETS

Intangible assets

9

1,135

-

Tangible assets

10

4,151,465

4,305,300

Investments

11

Interest in joint venture

Share of gross assets

-

117,347

Share of gross liabilities

-

(117,300

)

4,152,600

4,305,347

CURRENT ASSETS

Stocks

12

7,158,871

6,647,182

Debtors

13

548,430

702,911

Cash at bank and in hand

261,246

172,053

7,968,547

7,522,146

CREDITORS

Amounts falling due within one year

14

12,289,953

14,603,000

NET CURRENT LIABILITIES

(4,321,406

)

(7,080,854

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(168,806

)

(2,775,507

)

CREDITORS

Amounts falling due after more than one year

15

2,543,716

58,334

NET LIABILITIES

(2,712,522

)

(2,833,841

)

CAPITAL AND RESERVES

Called up share capital

19

1,000

1,000

Retained earnings

20

(2,713,522

)

(2,834,841

)

SHAREHOLDERS' FUNDS

(2,712,522

)

(2,833,841

)

The financial statements were approved by the Board of Directors and authorised for issue on 9 October 2025 and were signed on its behalf by:

F Yeganeh - Director

FIXED ASSETS

Intangible assets

9

-

-

Tangible assets

10

-

-

Investments

11

4,772,685

4,772,730

4,772,685

4,772,730

CURRENT ASSETS

Stocks

12

784,004

671,146

Debtors

13

8,619,360

8,733,522

Cash at bank

4,709

7,063

9,408,073

9,411,731

CREDITORS

Amounts falling due within one year

14

11,018,552

10,992,498

NET CURRENT LIABILITIES

(1,610,479

)

(1,580,767

)

TOTAL ASSETS LESS CURRENT LIABILITIES

3,162,206

3,191,963

PROVISIONS FOR LIABILITIES

18

177,732

185,071

NET ASSETS

2,984,474

3,006,892

CAPITAL AND RESERVES

Called up share capital

19

1,000

1,000

Retained earnings

20

2,983,474

3,005,892

SHAREHOLDERS' FUNDS

2,984,474

3,006,892

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

(22,418

)

110,062

The financial statements were approved by the Board of Directors and authorised for issue on 9 October 2025 and were signed on its behalf by:

F Yeganeh - Director

Cash flows from operating activities

Cash generated from operations

24

468,725

613,180

Interest paid

(223,368

)

(223,341

)

Net cash from operating activities

245,357

389,839

Cash flows from investing activities

Purchase of tangible fixed assets

(102,462

)

(66,559

)

Purchase of fixed asset investments

-

(1

)

Goodwill on business acquisition

(1,174

)

-

Loans to joint ventures

102,000

(44,000

)

Interest received

3,945

2,461

Net cash from investing activities

2,309

(108,099

)

Cash flows from financing activities

Repayment of bank loans

(74,918

)

(207,033

)

Amount introduced by directors

-

26,740

Amount withdrawn by directors

(83,555

)

(4,117

)

Net cash from financing activities

(158,473

)

(184,410

)

Increase in cash and cash equivalents

89,193

97,330

Cash and cash equivalents at beginning of year

25

172,053

74,723

Cash and cash equivalents at end of year

25

261,246

172,053

1.	STATUTORY INFORMATION

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

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

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

Going concern

The financial statements have been prepared on a going concern basis.

The group made another profit during the year. This is in line with the directors' strategic plans of investing into the group to improve the hotel, its activities, and the surrounding owned properties under development to increase revenue levels and therefore profitability.

A subsidiary company is reliant on the continued support of its bankers. A new long term bank loan was agreed in the year, repayable over a total period of 15 years. Therefore, there has been a significant improvement in the net current liabilities position this year. The group still reports a significant net liabilities position and is reliant on the continued support of the directors and shareholders. The directors and shareholders remain fully committed through their desire and ability financially to support the group further, as they have done previously, if required.

Having taken all of the above into consideration, assessing cash reserves at the time these financial statements are approved and preparing financial modelling scenarios together with accessing the external financing available post year end, the directors are of the opinion that the going concern basis remains applicable for at least 12 months following the date of approval of the financial statements.

Financial Reporting Standard 102 - reduced disclosure exemptions

The group has taken advantage of the following disclosure exemption in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":

•

the requirement of paragraph 33.7.

The group is exempt from the requirements of paragraph 33.7 as the key management personnel and directors are the same, under paragraph 33.7A.

Basis of consolidation

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill. The cost of the combination includes the estimated amount of contingent consideration that is probable and can be measured reliably, and is adjusted for changes in contingent consideration after the acquisition date. Provisional fair values recognised for business combinations in previous periods are adjusted retrospectively for final fair values determined in the 12 months following the acquisition date. Investments in subsidiaries are accounted for at cost less impairment. Investments in joint ventures are accounted for under the equity method, recognised at cost plus a share of the profit or loss, other comprehensive income and equity of the joint venture.

The consolidated financial statements incorporate those of 104 Limited and all of its subsidiaries (i.e. entities that the group controls through its power to govern the financial and operating policies so as to obtain economic benefits). Subsidiaries acquired during the year are consolidated using the purchase method. Their results are incorporated from the date that control passes.

The subsidiary, Rego Property (Southsea) Limited, has been included in the consolidated financial statements using the purchase method of accounting. 104 Limited acquired the remaining 50% of the share capital of Rego Property (Southsea) Limited on 16 December 2024. The consolidated income statement and consolidated statement of cash flows include the results of this company from this date.

Deferred tax is recognised on differences between the value of assets (other than goodwill) and liabilities recognised in a business combination accounted for using the purchase method and the amounts that can be deducted or assessed for tax, considering the manner in which the carrying amount of the asset or liability is expected to be recovered or settled. The deferred tax recognised is adjusted against goodwill or negative goodwill.

Related party exemption

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

Transactions between group entities which have been eliminated on consolidation are not disclosed within the financial statements.

Turnover

Turnover represents the amounts (excluding value added tax) derived from the provision of services to customers during the year. Turnover in respect of accommodation is recognised overnight during each night the customer stays. Other sales, including restaurant and bar revenue, are recognised at the point of purchase by the customer.

Goodwill

Goodwill, being the amount paid in connection with the acquisition of a business in 2024, is being amortised evenly over its estimated useful life of ten years.

Tangible fixed assets

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

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

Land and buildings

- 2% on cost

Plant and machinery

- 33% on cost and 10% on reducing balance

Assets under construction are not depreciated until they are brought into use.

Stocks

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

Work in progress is valued at the lower of cost and net realisable value.

Cost is calculated using the first-in, first-out method and includes all purchase, transport, and handling costs in bringing stocks to their present location and condition.

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 complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

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.

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

Financial instruments

Financial instruments are classified by the directors as basic or advanced following the conditions in FRS 102 Section 11. Basic financial instruments are recognised at amortised cost using the effective interest method, unless the effect of discounting would be immaterial, in which case they are stated at cost. The group has no advanced financial instruments.

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

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

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

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

Pension costs and other post-retirement benefits

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

Employee benefits

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 and group is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Significant judgements and estimates

In the application of the group’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.

Included in stock for the group is work-in-progress of £7,108,963 (2024: £6,605,731). There is a high level of estimation uncertainty relating to considerations of impairment for the work-in-progress. The directors consider there to be no impairment adjustment required.

3.

TURNOVER

The turnover and profit before taxation are attributable to the one principal activity of the group.

An analysis of turnover by class of business is given below:

2025

2024

£

£

Hotel and event services

1,819,797

1,800,199

Food and drink

2,739,272

2,340,451

4,559,069

4,140,650

4.	EMPLOYEES AND DIRECTORS

2025

2024

£

£

Wages and salaries

1,827,070

1,650,803

Social security costs

120,157

103,180

Other pension costs

27,055

21,971

1,974,282

1,775,954

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

2025

2024

Management

2

2

Housekeeping

27

25

Front of house

6

6

Food and beverage

45

44

Kitchen

22

21

Maintenance

2

2

Nights

3

3

Sales and marketing

5

6

112

109

The average number of employees by undertakings that were proportionately consolidated during the year was 112 (2024 - 109 ) .

2025

2024

£

£

Directors' remuneration

-

-

5.	OPERATING PROFIT

The operating profit is stated after charging:

2025

2024

£

£

Depreciation - owned assets

177,800

190,031

Loss on disposal of fixed assets

78,497

-

Goodwill amortisation

39

-

Audit fees

18,622

16,320

Auditors' remuneration for non-audit fees was £2,000 (2024: £2,000).

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2025

2024

£

£

Bank loan interest

223,368

223,341

Borrowing costs excluded from interest payable and included in the cost of assets during the year are as follows:

2025

2024

£

£

Interest payable added to Work-in-progress

112,858

113,315

7.

TAXATION

Analysis of the tax charge/(credit)

The tax charge/(credit) on the profit for the year was as follows:

2025

2024

£

£

Deferred tax

57,458

(73,740

)

Tax on profit

57,458

(73,740

)

UK corporation tax has been charged at 25 % (2024 - 25 %).

Reconciliation of total tax charge/(credit) included in profit and loss

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

2025

2024

£

£

Profit before tax

178,777

137,795

Profit multiplied by the standard rate of corporation tax in the UK of 25 % (2024 - 25 %)

44,694

34,449

Effects of:

Expenses not deductible for tax purposes

89

1,172

Change in deferred tax assets

12,675

(109,361

)

Total tax charge/(credit)

57,458

(73,740

)

8.	INDIVIDUAL STATEMENT OF COMPREHENSIVE INCOME

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