Pennco Limited

Contents

Balance Sheet	1
Notes to the Financial Statements	2 to 10

Pennco Limited

Balance Sheet

31 January 2025

	Note	31 January 2025 £	(As restated) 31 March 2024 £
Fixed assets
Tangible assets	4	3,607,593	3,766,938
Current assets
Stocks	5	16,925	14,897
Debtors	6	23,041	2,074,186
Cash at bank and in hand		171,545	85,744
		211,511	2,174,827
Creditors: Amounts falling due within one year	7	(4,005,993)	(4,251,596)
Net current liabilities		(3,794,482)	(2,076,769)
Total assets less current liabilities		(186,889)	1,690,169
Provisions for liabilities		(134,049)	(164,584)
Net (liabilities)/assets		(320,938)	1,525,585
Capital and reserves
Called up share capital	8	2	2
Capital redemption reserve		3	3
Profit and loss account		(320,943)	1,525,580
Shareholders' (deficit)/funds		(320,938)	1,525,585

These financial statements have been prepared and delivered in accordance with the special provisions relating to companies subject to the small companies regime within Part 15 of the Companies Act 2006 and the option not to file the Profit and Loss Account has been taken.

Approved and authorised by the Board on 30 October 2025 and signed on its behalf by:
 

......................................... J J Nel Director

Company Registration Number: 04910357

Pennco Limited

Notes to the Financial Statements

Period from 1 April 2024 to 31 January 2025

1	General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
The Crown Hotel
Wetheral
Carlisle
Cumbria
CA4 8ES

The principal place of business is:
Borrowdale Gates Hotel
Grange
Keswick
CA12 5UQ
England

These financial statements were authorised for issue by the Board on 30 October 2025.

2	Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

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 as applicable to companies subject to the small companies regime. The disclosure requirements of Section 1A of FRS102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in pounds sterling which is the functional currency of the company.

Monetary amounts in these financial statements are rounded to the nearest pound.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Disclosure of long or short period

The company has prepared accounts for the ten month period to 31 January 2025, at which date the shares in the company were sold by Fairtree Hotels Midco Limited to Kronen Hotels Limited.

Pennco Limited

Notes to the Financial Statements

Period from 1 April 2024 to 31 January 2025

Going concern

At the balance sheet date the company had net current liabilities of £3,794,482 (2024 - £2,076,769) and net liabilities of £320,938 (2024 - net assets of £1,525,585). Included in current liabilities is £3,584,683 (2024 - £3,791,235) due to group undertakings, under the common control of Kronen Hotels Ltd. Kronen Hotels Ltd have confirmed that they do not require repayment of this balance within the next 12 months from the balance sheet date.

The company is party to a composite guarantee provided to NatWest Bank in relation to the agreement entered into between Kronen Hotels Limited and NatWest Bank, with the total outstanding balance of £14,364,500 at the year end. This guarantee agreement is in conjunction with the other UK group companies.

The Company has been released from its prior obligations in relation to the composite guarantee provided to NatWest Bank in relation to the agreement between Fairtree Hotels Midco Limited and NatWest Bank for which the outstanding balance as at 31 March 2024 was £16,664,259.

The group's ability to continue as a going concern is dependent upon both the ongoing support of its bankers and its shareholders. However, in the event that this is not forthcoming then a material uncertainty would exist with regards to the appropriateness of the going conern assertion.

After due consideration the Directors assess the Company as a going concern and continue to apply the going concern basis to the preparation of the financial statements.

Critical judgements and estimation uncertainty

In applying the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amounts 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 if the revision affects only that period, or in the period of the revision and future periods if the revision affects both current and future periods.
 

Pennco Limited

Notes to the Financial Statements

Period from 1 April 2024 to 31 January 2025

Changes in accounting policy

The following have been applied for the first time from 1 April 2024 and have had an effect on the financial statements:

Prior Period Adjustment - Property, Plant, Equipment, and Provisions for Liabilities

The company has made the decision to change the accounting policy applied to Property, Plant and Equipment from a revaluation basis to a historical cost basis. This has been applied at the balance sheet date of 31 January 2025, at which date the shares in the company were sold. The adopted historical cost policy aligns with the policy applied by the rest of the group.

The resulting impact on the financial statements is a reduction to the value of Land and Buildings by £3,733,062; the Provision for Liabilities have been reduced by £933,265 and the Revaluation Reserves have been eliminated.

Key sources of estimation uncertainty

Carrying value of fixed assets (note 4)
Management have carefully considered the depreciation estimates applied on the tangible assets held by the group and company. This assessment is performed on an annual basis and would be amended when necessary to reflect current estimates based on technological advancements, future investments, economic utilisation and physical condition of each asset. The directors have considered the current trading performance for the year to 31 January 2025 which does not indicate any impairment to the business or underlying assets.

The carrying value of tangible fixed assets at the balance sheet date is £3,607,593 (2024 - £3,766,938), with depreciation being recognised in the year of £177,707 (2024 - £212,243).

Recognition of deferred tax asset
As outlined in a separate note the group and company has carried forward tax losses available to utilise in future periods. A deferred tax asset has been recognised on the basis that the losses will be utilised within the group in subsequent accounting periods.

Revenue recognition

Turnover represents amounts chargeable, net of value added tax, in respect of the sale of goods and services to customers.

Accommodation revenue is recognised at the point of the customer staying in the room. Deposits received in advance of customer stays are treated as payments on account and recognised within creditors due within one year.

Food, beverage and other income is recognised at the point of sale.

Pennco Limited

Notes to the Financial Statements

Period from 1 April 2024 to 31 January 2025

Tangible assets

Tangible assets are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses.

The cost of tangible assets includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class	Depreciation method and rate
Leasehold Property	10% reducing balance
Office Equipment	20% reducing balance
Fixtures & Fittings	20% reducing balance

No depreciation has been provided for on freehold property as it is the company's policy to maintain its property in good condition to prolong its useful life. Maintenance is regularly undertaken and systematically charged to the profit and loss account. In the opinion of the directors, any depreciation would not be material.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the company has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.

Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Pennco Limited

Notes to the Financial Statements

Period from 1 April 2024 to 31 January 2025

Financial instruments

Classification
The company holds the following financial instruments:

• Short term trade and other debtors and creditors; and
• Cash and bank balances.

All financial instruments are classified as basic.

 Recognition and measurement
The company has chosen to apply the recognition and measurement principles in FRS102.

Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are cancelled.

Financial instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.

 

Tax

Tax is recognised in profit or loss, 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.

The current corporation tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the company operates and generates taxable income.

Deferred tax is recognised on all timing differences at the balance sheet date unless indicated below. Timing differences are differences between taxable profits and the results as stated in the profit and loss account and other comprehensive income. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

The carrying amount of deferred tax assets are reviewed at each reporting date and a valuation allowance is set up against deferred tax assets so that the net carrying amount equals the highest amount that is more likely than not to be recovered based on current or future taxable profit.

3	Staff numbers

The average number of persons employed by the company (including directors) during the period, was 26 (2024 - 25).

Pennco Limited

Notes to the Financial Statements

Period from 1 April 2024 to 31 January 2025

4	Tangible assets

	Land and buildings £	Fixtures and fittings £	Plant and machinery £	Total £
Cost or valuation
At 1 April 2024	3,493,260	1,603,025	70,755	5,167,040
Additions	-	13,784	4,578	18,362
At 31 January 2025	3,493,260	1,616,809	75,333	5,185,402
Depreciation
At 1 April 2024	707,579	651,334	41,189	1,400,102
Charge for the year	19,743	152,446	5,518	177,707
At 31 January 2025	727,322	803,780	46,707	1,577,809
Carrying amount
At 31 January 2025	2,765,938	813,029	28,626	3,607,593
At 31 March 2024	2,785,681	951,691	29,566	3,766,938