Company No: 07755818 (England and Wales)

Contents

• Balance Sheet
• Notes to the Financial Statements

	Note	2025		2024
		£		£
				Restated
Fixed assets
Investment property	5	1,275,000		1,275,000
		1,275,000		1,275,000
Current assets
Debtors	6	5,464		4,630
Cash at bank and in hand		14,158		376
		19,622		5,006
Creditors: amounts falling due within one year	7	( 1,774,060)		( 1,762,349)
Net current liabilities		(1,754,438)		(1,757,343)
Total assets less current liabilities		(479,438)		(482,343)
Creditors: amounts falling due after more than one year	8	0		( 3,000)
Net liabilities		( 479,438)		( 485,343)
Capital and reserves
Called-up share capital		100		100
Fair value reserve	9	( 134,138 )		( 134,138 )
Profit and loss account		( 345,400 )		( 351,305 )
Total shareholder's deficit		( 479,438)		( 485,343)

For the financial year ending 28 February 2025 the Company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

• The member has not required the Company to obtain an audit of its financial statements for the financial year in accordance with section 476;
• The directors acknowledge their responsibilities for complying with the requirements of the Companies Act 2006 with respect to accounting records and the preparation of financial statements; and
• These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime and a copy of the Profit and Loss Account has not been delivered.

The financial statements of South Sands Hotel 2 Limited (registered number: 07755818) were approved and authorised for issue by the Board of Directors on 24 October 2025. They were signed on its behalf by:

S J Ball Director

1. Accounting policies

The principal accounting policies are summarised below. They have all been applied consistently throughout the financial year and to the preceding financial year, unless otherwise stated.

General information and basis of accounting

South Sands Hotel 2 Limited (the Company) is a private company, limited by shares, incorporated in the United Kingdom under the Companies Act 2006 and is registered in England and Wales. The address of the Company's registered office is South Sands Hotel, Bolt Head, Salcombe, TQ8 8LL, United Kingdom.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold properties and to include investment properties and certain items at fair value, and in accordance with Section 1A of Financial Reporting Standard 102 (FRS 102) ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland’ issued by the Financial Reporting Council and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime.

This is the first year in which the financial statements have been prepared in accordance with FRS102 Section 1A. The prior year figures were restated to reflect the reclassification of freehold properties to investment properties on transition.

The financial statements are presented in pounds sterling which is the functional currency of the Company and rounded to the nearest £.

Going concern

The directors have assessed the Balance Sheet and likely future cash flows at the date of approving these financial statements. The directors note that the business has net liabilities of £479,438. The Company is supported through loans from its shareholder. The directors and shareholder have confirmed that the loan facilities will continue to be available for at least 12 months from the date of signing these financial statements and the directors will continue to support the Company. Given the current position, the directors believe that any foreseeable debts can be met for at least 12 months from the date of signing these financial statements. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

Turnover

Turnover represents amounts receivable for the rent of investment properties. Income is recognised when there is a right to consideration, and is recorded at the value of the consideration due.

Rental income received in advance of the period to which it relates is included as deferred income within creditors.

Taxation

Current tax
Current tax is provided at amounts expected to be paid (or recoverable) using the tax rates and laws that have been enacted or substantively enacted at the Balance Sheet date. Tax is recognised in the profit and loss account, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

Tangible fixed assets

Tangible fixed assets are stated at cost or valuation, net of depreciation and any provision for impairment. The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation. Depreciation is provided on all tangible fixed assets, other than investment property and freehold land, at rates calculated to write off the cost or valuation, less estimated residual value, of each asset on a straight-line or reducing balance basis over its expected useful life, as follows:

Fixtures and fittings

4 years straight line

Residual value represents the estimated amount which would currently be obtained from disposal of an asset, after deducting estimated costs of disposal, if the asset were already of the age and in the condition expected at the end of its useful life.

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.

Investment property

Investment property is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at each reporting date with changes in fair value recognised in profit or loss. Deferred taxation is provided on these gains at the rate expected to apply when the property is sold.

The fair value is determined annually by the directors, on an open market value for existing use basis.

Trade and other debtors

Trade and other debtors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method less impairment losses for bad and doubtful debts, except where the effect of discounting would be immaterial. In such cases the receivables are stated at cost less impairment losses for bad and doubtful debts.

Cash and cash equivalents

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 creditors: amounts falling due within one year.

Trade and other creditors

Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest rate method, unless the effect of discounting would be immaterial, in which case they are stated at cost. If there is an unconditional right to defer settlement for at least twelve months after the reporting date, they are presented as non-current liabilities.

Financial instruments

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

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.

Financial assets and liabilities are only offset in the Balance Sheet when, and only when there exists a legally enforceable right to set off the recognised amounts and the Company intends either to settle on a net basis, or to realise the asset and settle the liability simultaneously.

Equity instruments
Equity instruments issued by the Company are recorded at the fair value of cash or other resources received or receivable, net of direct issue costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the Company.

Loans and borrowings
Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. Borrowings are classified as current liabilities unless the company has an unconditional right to defer settlement of the liability for at least twelve months after the reporting date.

Ordinary share capital

The ordinary share capital of the Company is presented as equity.

2.Transition to FRS102

The Company has adopted FRS 102 for the year ended 28 February 2025 and has restated the comparative year amounts.

Reconciliation of equity

		01.03.2023		29.02.2024
		£		£
Capital and reserves (as previously stated)		(655,163)		(663,888)
Reversal of previously recognised depreciation on freehold property		284,500		312,683
Revaluation of investment properties		0		(134,138)
Capital and reserves (as restated)		(370,663)		(485,343)

Reconciliation of profit or loss

				29.02.2024
				£
Result for the year (as previously stated)				(8,725)
Reversal of previously recognised depreciation on freehold property				28,183
Revaluation of investment properties				(134,138)
Loss for the year (as restated)				(114,680)

The Company has adopted FRS 102 for the year ended 28 February 2025 and has restated the comparative year amounts.
Following the transition from FRS 105 to FRS 102 Section 1A, freehold property has been reclassified as investment property. As a result of transition to FRS 102 Section 1A previously recognised depreciation was reversed and properties revalued to their fair value. This adjustment has been reflected in the fair value reserve with a corresponding impact on the profit and loss reserve.

3. Employees

	2025		2024
	Number		Number
Monthly average number of persons employed by the Company during the year, including directors	2		2

4. Tangible assets

	Fixtures and fittings		Total
	£		£
Cost
At 01 March 2024	137,921		137,921
At 28 February 2025	137,921		137,921
Accumulated depreciation
At 01 March 2024	137,921		137,921
At 28 February 2025	137,921		137,921
Net book value
At 28 February 2025	0		0
At 29 February 2024	0		0

5. Investment property

	Investment property
	£
Valuation
As at 01 March 2024	1,275,000
As at 28 February 2025	1,275,000

Valuation

The fair value of the company's investment property was revalued on 28 February 2024 by the directors. The valuation was conducted at current open market value.

The directors consider the valuations of the investment properties to remain materially correct at the balance sheet date.

There has been no valuation of investment property by an independent valuer.

6. Debtors

	2025		2024
	£		£
Trade debtors	3,000		2,166
Other debtors	2,464		2,464
	5,464		4,630

7. Creditors: amounts falling due within one year

	2025		2024
	£		£
Bank overdrafts	0		10
Accruals and deferred income	51,854		870
Corporation tax	601		3,945
Other creditors	1,721,605		1,757,524
	1,774,060		1,762,349

8. Creditors: amounts falling due after more than one year

	2025		2024
	£		£
Other creditors	0		3,000

There are no amounts included above in respect of which any security has been given by the small entity.

9. Changes in equity

	Fair value reserve
	£
At 01 March 2024	( 134,138)
At 28 February 2025	( 134,138)
At 01 March 2023	0
Transfer of revaluation of investment properties from profit and loss account	( 134,138)
Total comprehensive loss	( 134,138)
At 29 February 2024	( 134,138)

10. Related party transactions

Transactions with owners holding a participating interest in the entity

Within other creditors, there is a balance of £52,561 (2024 - £52,480) owed to Companies controlled by D G Noble. These loans are interest free and repayable on demand.

11. Events after the Balance Sheet date

After the end of the reporting period the company has sold one of its investment properties. The sale was completed on 12 May 2025 for a total consideration of £525,000.
The directors have used this agreed sales price as an indicator of the fair value of the investment property at the reporting date. Accordingly, the financial statements reflect this fair value.