Company registration number 10817598 (England and Wales)
ATRIUM HOTEL LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
Affinia
The Octagon
Suite E2, 2nd Floor
Middleborough
Colchester
CO1 1TG
ATRIUM HOTEL LIMITED
COMPANY INFORMATION
Directors
Mrs M E Hung
Mr S B S Hung
Company number
10817598
Registered office
Atrium Hotel Limited
Great South West Road
Feltham
TW14 0AW
Auditor
Affinia (Colchester)
The Octagon
Suite E2, 2nd Floor
Middleborough
Colchester
CO1 1TG
ATRIUM HOTEL LIMITED
CONTENTS
Page
Strategic report
1 - 2
Directors' report
3
Directors' responsibilities statement
4
Independent auditor's report
5 - 7
Profit and loss account
8
Balance sheet
9
Statement of changes in equity
10
Notes to the financial statements
11 - 22
ATRIUM HOTEL LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 1 -

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

Review of the business

The hotel industry, is facing an uncertain future, Uncertainty, due to the current economic climate resulting in higher levels of inflation and higher interest rates, as well as an economic slowdown, may impact corporate budgets and travel, a vital segment for hotels.

In the previous accounting period, the company extended its accounting period to 14 months, with the new year end being 31 March 2023. As such, this reporting period for the year ended 31 March 2024 is not directly comparable to the previous accounting period.

Turnover for the company was £18,985,950 for the year ended 31 March 2024, compared to £20,052,678 for the 14 months to 31 March 2023. and gross margins have increased. The company made a net profit of £7,238,670 for the year, compared to £7,881,972 for the previous period. This represents further growth in the reporting period when accounting for the previous period being 14 months.

The balance sheet has also been significantly strengthened as a direct result of the performance of the company, with the company showing a net current asset position of £12,709,993 compared to £5,018,559 at the end of the previous accounting period.

Principal risks and uncertainties

The key risk areas are:

- Changes in key market segments;

- Market Interest rate changes;

- Customer pricing;

- Cash flows and debt repayments

The directors consider there to be an appropriate structure in place to plan for and mitigate risks.

The group operates in a competitive market. The risks associated with this are mitigated by ensuring the group offers a high quality service across all areas of the business.

The group's financial instruments comprise cash at bank, trade debtors and trade creditors that arise directly from its operations. The main purpose of these financial instruments is to raise finance for the group's operations, and to settle the debts held within the related parties, to maintain cash liquidity buffer to mitigate this risk.

Customer pricing is under constant review. Excellent customer service and investment of capital expenditures, as well as strong client relationships are used to mitigate this risk.

Key performance indicators

Given the straight forward nature of the business, the company's directors are of the opinion that a more detailed analysis, using key performance indicators, is not necessary to understand the development, performance or position of the business.

ATRIUM HOTEL LIMITED
STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 2 -
Going Concern

Despite the success of the underlying trade, the group, which this company is within, has experienced short term cash flow challenges. This is mainly due to complexities within the group's financing arrangements and the continued impacts on the hotel and hospitality industry of the recent global pandemic.

The group is financed via a related party, that owns the properties from which the group generates its trade. As part of this arrangement, the related party is due a rental amount each year, in order for this related entity to continue to repay its own debts. At the period end, the related company is owed £10.4m, which the group would be unable to settle should the balance be called in.

As part of preparing these financial statements, the directors have been given support from this related company, to state that this balance will not be called in to the detriment of the trade. However, due to the structure of the debts within the related company, there was uncertainty as to whether this support could be provided. This led to a delay in the approval of these financial statements and in certain liabilities being settled. Since the period end, the related company has restructured its debt profile. This has allowed the group to obtain the required cash in order to settle the outstanding liabilities, and place reliance on the support offered.

This, when added to the underlying strength of the group's trade, demonstrated by the financial statements this year, and the forecasted position going forward, the directors believe that there is sufficient cash resource to meet all liabilities as they fall due. Therefore, the accounts continue to be prepared on a going concern basis.

On behalf of the board

Mr S B S Hung
Director
24 October 2025
ATRIUM HOTEL LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2024
- 3 -

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

Principal activities

The principal activity of the company continued to be that of the operation of a hotel.

Results and dividends

The results for the year are set out on page 8.

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

Directors

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

Mrs M E Hung
Mr S B S Hung
Auditor

In accordance with the company's articles, a resolution proposing that Affinia (Colchester) be reappointed as auditor of the company will be put at a General Meeting.

Statement of disclosure to auditor

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.

Medium-sized companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies regime.

On behalf of the board
Mr S B S Hung
Director
24 October 2025
ATRIUM HOTEL LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 31 MARCH 2024
- 4 -

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; and

- 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.

ATRIUM HOTEL LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ATRIUM HOTEL LIMITED
- 5 -
Opinion

We have audited the financial statements of Atrium Hotel Limited (the 'company') for the year ended 31 March 2024 which comprise the profit and loss account, 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 2024 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 auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

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

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

Other information

The 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' r eport 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.

ATRIUM HOTEL LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ATRIUM HOTEL LIMITED (CONTINUED)
- 6 -
Matters on which we are required to report by exception

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

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.

Responsibilities of directors

As explained more fully in the directors' r esponsibilities s tatement, 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.

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

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

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 company through discussions with directors and o ther management, and from our commercial knowledge and experience of the hotel 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 company, including the Companies Act 2006, taxation legislation, data protection, anti-bribery, 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.

ATRIUM HOTEL LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF ATRIUM HOTEL LIMITED (CONTINUED)
- 7 -

We assessed the susceptibility of the company’s 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.

- 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 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;

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

There are inherent limitations in our audit procedures described above. The more removed that laws and regulations are from financial transactions, the less likely it is that we would become aware of non-compliance. Auditing standards also limit the audit procedures required to identify non-compliance with laws and regulations to enquiry of directors and other management and the inspection of regulatory and legal correspondence, if any.

Material misstatements that arise due to fraud can be harder to detect than those that arise from error as they may involve deliberate concealment or collusion.

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

Use of our report

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

Shaun Roberts (Senior Statutory Auditor)
For and on behalf of Affinia (Colchester), Statutory Auditor
Chartered Accountants
The Octagon
Suite E2, 2nd Floor
Middleborough
Colchester
CO1 1TG
24 October 2025
ATRIUM HOTEL LIMITED
PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 MARCH 2024
- 8 -
Year
Period
ended
ended
31 March
31 March
2024
2023
Notes
£
£
Turnover
3
18,985,950
20,052,678
Cost of sales
(1,086,701)
(1,472,667)
Gross profit
17,899,249
18,580,011
Administrative expenses
(8,674,791)
(9,317,226)
Other operating income
400,000
158,201
Operating profit
4
9,624,458
9,420,986
Interest payable and similar expenses
6
(1,027)
(134,347)
Profit before taxation
9,623,431
9,286,639
Tax on profit
7
(2,384,761)
(1,404,667)
Profit for the financial year
7,238,670
7,881,972

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

ATRIUM HOTEL LIMITED
BALANCE SHEET
AS AT
31 MARCH 2024
31 March 2024
- 9 -
2024
2023
Notes
£
£
£
£
Fixed assets
Tangible assets
8
548,860
489,847
Current assets
Stocks
9
6,553
7,055
Debtors
10
19,676,952
13,702,866
Cash at bank and in hand
43,544
294,501
19,727,049
14,004,422
Creditors: amounts falling due within one year
11
(7,017,056)
(8,985,863)
Net current assets
12,709,993
5,018,559
Total assets less current liabilities
13,258,853
5,508,406
Provisions for liabilities
Provisions
12
500,000
-
0
Deferred tax liability
13
104,772
92,995
(604,772)
(92,995)
Net assets
12,654,081
5,415,411
Capital and reserves
Called up share capital
15
100
100
Profit and loss reserves
12,653,981
5,415,311
Total equity
12,654,081
5,415,411
The financial statements were approved by the board of directors and authorised for issue on 24 October 2025 and are signed on its behalf by:
Mr S B S Hung
Director
Company Registration No. 10817598
ATRIUM HOTEL LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2024
- 10 -
Share capital
Profit and loss reserves
Total
£
£
£
Balance at 1 February 2022
100
(2,466,661)
(2,466,561)
Period ended 31 March 2023:
Profit and total comprehensive income
-
7,881,972
7,881,972
Balance at 31 March 2023
100
5,415,311
5,415,411
Year ended 31 March 2024:
Profit and total comprehensive income
-
7,238,670
7,238,670
Balance at 31 March 2024
100
12,653,981
12,654,081
ATRIUM HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2024
- 11 -
1
Accounting policies
Company information

Atrium Hotel Limited is a private company limited by shares incorporated in England and Wales. The registered office is Atrium Hotel Limited, Great South West Road, Feltham, TW14 0AW.

1.1
Reporting period

The previous year's financial statements run for the period from 1 February 2022 to 31 March 2023. The comparative figures are therefore not directly comparable to this year's financial statements for the year ended 31 March 2024.

1.2
Accounting convention

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 a mounts 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.

1.3
Going concern

During the year the Group made a true profit of £8,444,937 f or the year ended 31 March 2024 and the group has net assets of £16,671,154, as at 31 March 2024.

The financial statements have been prepared on a going concern basis which assumes that the company will continue in operational existence for the foreseeable future. During the period subsequent to the year end the Group is trading strongly and is generating a positive cashflow to the benefit of the operations and related entities.

The validity of this assumption depends upon the continued financial support of the landlord and related entities of which there are amounts owing will not be recalled to the detriment of the company. Furthermore, the group of hotels at the end of the trading period have a liability in relation to Corporation Tax, based on the profits in the period, that will require ongoing funding and support in order to meet HMRC requirements. The directors are positive that additional funding, in excess of £42m, in related entities both as part of ongoing construction operations, and release of equity on a completed build at practical completion, will allow for the funds to be made available for the Group to meet its HMRC requirements. As at the date of the signing of the balance sheet the directors are aware of the main funding being complete via Bangkok Bank and are in the process of closure of the funding relating to the equity release on a completed build.

This funding, alongside the cash generation of the Group, and financial support of related entities will allow the entities to meet its tax requirements in a timely and efficient manner with HMRC and to settle all taxes due post year end.

In respects to the trading environment, the directors are aware that the post-Covid period has allowed for an increase in revenue generation for luxury hotel sites that the businesses operate, and will continue to support the entities. This has had a positive impact on the Group in relation to the fluctuation and uncertainty surrounding the business during the period and the government support required to maintain the financial support of the business.

Taking into account the factors above and positive generation of cashflow and debts from third parties, including support, the directors are confident in the going concern basis of the Group.

ATRIUM HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 12 -
1.4
Turnover

Turnover represents amounts receivable in respect of the provision of hotel accommodation, conference facilities, food, beverages and golf income during the year, excluding VAT. Income for accommodation is recognised on a daily basis of the customers use of the facility. Income related to Conference Facilities is recognised on the date the facility is used. Food and Beverage income is recognised at the point of sale to the customer.

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), 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.

1.5
Tangible fixed assets

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:

Plant and equipment
20% reducing balance
Computers
33% reducing balance

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.

1.6
Impairment of fixed assets

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.

ATRIUM HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 13 -
1.7
Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials and, where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and condition.

Stocks held for distribution at no or nominal consideration are measured at the lower of cost and replacement cost, adjusted where applicable for any loss of service potential.

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.

1.8
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 current liabilities.

1.9
Financial instruments

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

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

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.

ATRIUM HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 14 -
Impairment of financial assets

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.

Derecognition of financial assets

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.

Classification of financial liabilities

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

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, 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 paymen ts 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. A m ounts 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.

Other financial liabilities

Derivatives, including interest rate swaps and forward foreign exchange contracts, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are s ubsequently re-measured at their fair value. Changes in the fair value of derivatives are recognised in profit or loss in finance costs or finance income as appropriate, unless hedge accounting is applied and the hedge is a cash flow hedge.

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 th r ough 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.

ATRIUM HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 15 -
Derecognition of financial liabilities

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

1.10
Equity instruments

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.

1.11
Taxation

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

Current 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

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.

1.12
Provisions

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

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

ATRIUM HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
1
Accounting policies
(Continued)
- 16 -
1.13
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 is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

1.14
Retirement benefits

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

1.15
Government grants

Government grants are recognised at the fair value of the asset receive d or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant received before the recognition criteria are satisfied is recognised as a liability.

1.16
Foreign exchange

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

2
Judgements and key sources of estimation uncertainty

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.

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognised in the financial statements.

Going concern

The directors have determined that there are no material uncertainties in relation to going concern. This is based on the strength of the support provided by the landlord company, Planned Holdings Ltd and expected future cash flows of both the company and all related entities. Further detail has been included in Note 1.3.

ATRIUM HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
2
Judgements and key sources of estimation uncertainty
(Continued)
- 17 -
Key sources of estimation uncertainty

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.

Repairs provision

Within the repairs provision are estimated relating to the expected future costs of repair, based on third party quotes. A discount factor has also been applied based on other comparable borrowings and the anticipated timing of these repairs.

3
Turnover and other revenue
2024
2023
£
£
Turnover analysed by class of business
Accomodation
18,967,368
20,038,053
Miscellaneous
18,582
14,625
18,985,950
20,052,678
2024
2023
£
£
Other revenue
Grants received
-
809
4
Operating profit
2024
2023
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants
-
(809)
Fees payable to the company's auditor for the audit of the company's financial statements
12,000
12,000
Depreciation of owned tangible fixed assets
125,585
162,592
Operating lease charges
4,500,000
5,250,000
5
Employees

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

2024
2023
Number
Number
25
34
ATRIUM HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
5
Employees
(Continued)
- 18 -

Their aggregate remuneration comprised:

2024
2023
£
£
Wages and salaries
1,317,373
1,490,057
Social security costs
58,787
71,987
Pension costs
11,607
12,028
1,387,767
1,574,072
6
Interest payable and similar expenses
2024
2023
£
£
Interest on finance leases and hire purchase contracts
-
3,169
Other interest
1,027
131,178
1,027
134,347
7
Taxation
2024
2023
£
£
Current tax
UK corporation tax on profits for the current period
2,397,908
1,415,468
Adjustments in respect of prior periods
(24,924)
-
0
Total current tax
2,372,984
1,415,468
Deferred tax
Origination and reversal of timing differences
11,777
(10,801)
Total tax charge
2,384,761
1,404,667
ATRIUM HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
7
Taxation
(Continued)
- 19 -

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:

2024
2023
£
£
Profit before taxation
9,623,431
9,286,639
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2023: 19.00%)
2,405,858
1,764,461
Tax effect of expenses that are not deductible in determining taxable profit
1,738
57,257
Unutilised tax losses carried forward
-
0
(399,849)
Permanent capital allowances in excess of depreciation
(34,612)
(17,202)
Deferred tax
11,777
-
0
Taxation charge for the year
2,384,761
1,404,667
8
Tangible fixed assets
Plant and equipment
Computers
Total
£
£
£
Cost
At 1 April 2023
909,268
300,698
1,209,966
Additions
179,527
5,071
184,598
At 31 March 2024
1,088,795
305,769
1,394,564
Depreciation and impairment
At 1 April 2023
484,618
235,501
720,119
Depreciation charged in the year
102,827
22,758
125,585
At 31 March 2024
587,445
258,259
845,704
Carrying amount
At 31 March 2024
501,350
47,510
548,860
At 31 March 2023
424,650
65,197
489,847
9
Stocks
2024
2023
£
£
Raw materials and consumables
6,553
7,055
ATRIUM HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 20 -
10
Debtors
2024
2023
Amounts falling due within one year:
£
£
Amounts owed by group undertakings
6,556,871
6,782,222
Other debtors
13,099,215
6,898,528
Prepayments and accrued income
20,866
22,116
19,676,952
13,702,866
11
Creditors: amounts falling due within one year
2024
2023
Notes
£
£
Amounts owed to related undertakings
-
0
3,725,964
Trade creditors
248,196
73,873
Amounts owed to group undertakings
1,826,827
700,000
Corporation tax
3,919,630
1,546,645
Other taxation and social security
448,289
567,748
Other creditors
107,920
1,948,511
Accruals and deferred income
466,194
423,122
7,017,056
8,985,863
12
Provisions for liabilities
2024
2023
£
£
Repairs provision
500,000
-
Movements on provisions:
Repairs provision
£
Additional provisions in the year
500,000

A repairs provision has been included within the financial statements. This provision relates to expected costs of repair to the hotel to repair any damage that has occurred during the ongoing Home Office contract. This balance has been calculated based on a discounted future cash flow and time apportioned over the length of the contract.

ATRIUM HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 21 -
13
Deferred taxation

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

Liabilities
Liabilities
2024
2023
Balances:
£
£
Accelerated capital allowances
104,772
92,995
2024
Movements in the year:
£
Liability at 1 April 2023
92,995
Charge to profit or loss
11,777
Liability at 31 March 2024
104,772

The deferred tax liability set out above is expected to reverse in the foreseeable future and relates to accelerated capital allowances that are expected to mature within the same period.

14
Retirement benefit schemes
2024
2023
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
11,607
12,028

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.

15
Share capital
2024
2023
2024
2023
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
100
100
100
100
16
Financial commitments, guarantees and contingent liabilities

There is a floating charge on all of the assets of the company by the Bangkok Bank Public Company Limited.

17
Operating lease commitments
As lessee

The operating leases represent leases of £4,500,000 (2023: £4,500,000) to third parties. The leases are negotiated over terms of over five years, but are cancellable within 12 months.

ATRIUM HOTEL LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2024
- 22 -
18
Related party transactions
Balances with related parties

The following amounts were outstanding at the reporting end date:

Amounts owed by
Amounts owed to
related parties
related parties
2024
2023
2024
2023
£
£
£
£
Manor of Groves Limited
6,552,858
6,782,222
-
0
-
0
Planned Holdings Limited
1,639,036
-
0
-
0
3,725,964
Regency Homes Limited
11,432,683
6,464,207
-
0
-
0
Shendish Hotel Limited
-
0
-
0
1,882,814
700,000
Other information

The company was under ultimate control of Manor of Groves Limited throughout the year, which shares directors with Atrium Hotel Limited, Mr S B S Hung and Mrs M E Hung.

Mr S B S Hung and Mrs M E Hung are both directors and shareholders of Regency Homes Limited, a company registered in England and Wales.

All loans are interest free and repayable on demand. However, support has been provided by Planned Holdings Limited, who have confirmed that the amount will not be called in to the detriment of the company's trade.

19
Ultimate controlling party

Atrium Hotel Limited is owned by Manor of Groves Limited, a company registered in England and Wales.

The ultimate controlling parties are Mr S B S Hung and Mrs M E Hung.

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