Company No: 09740919 (England and Wales)

Contents

• Balance Sheet
• Notes to the Financial Statements

	Note	2025		2024
		£		£
Fixed assets
Tangible assets	3	6,977,824		7,118,266
		6,977,824		7,118,266
Current assets
Stocks		12,154		18,366
Debtors	4	213,221		219,393
Cash at bank and in hand		756,413		519,581
		981,788		757,340
Creditors: amounts falling due within one year	5	( 7,628,965)		( 5,531,654)
Net current liabilities		(6,647,177)		(4,774,314)
Total assets less current liabilities		330,647		2,343,952
Creditors: amounts falling due after more than one year	6	( 10,286,440)		( 12,018,191)
Net liabilities		( 9,955,793)		( 9,674,239)
Capital and reserves
Called-up share capital		200		200
Profit and loss account		( 9,955,993 )		( 9,674,439 )
Total shareholders' deficit		( 9,955,793)		( 9,674,239)

For the financial year ending 31 August 2025 the company was entitled to exemption from audit under section 477 of the Companies Act 2006 relating to small companies.

Directors' responsibilities:

• The members have 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 Zeal Hotel (Bridgwater J23) Limited (registered number: 09740919) were approved and authorised for issue by the Board of Directors. They were signed on its behalf by:

T J Wheeldon Director

05 December 2025

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

Zeal Hotel (Bridgwater J23) 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 First Floor, 5 Fleet Place, London, EC4M 7RD, United Kingdom.

The financial statements have been prepared under the historical cost convention 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.

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 £9,955,793. The company is supported through loans from the largest shareholder. The directors have received assurances that the loan facilities will continue to be available for at least 12 months from the date of signing these financial statements and the largest shareholder will continue to support the company. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

Foreign currency

Transactions in foreign currencies are recorded at the rate of exchange at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies at the Balance Sheet date are reported at the rates of exchange prevailing at that date.

Exchange differences are recognised in the Profit and Loss Account in the period in which they arise except for exchange differences arising on gains or losses on non-monetary items which are recognised in the Statement of Comprehensive Income.

Turnover

The company is a hotel operator and revenue is recognised at the fair value of the consideration receivable for goods and services provided in the normal course of business, and is shown net of VAT.

Employee benefits

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

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

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

Tangible fixed assets

Property, plant and equipment are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost of assets less their residual values over their useful lives on the following bases:

Land and buildings	50 years straight line
Plant and machinery etc.	5 years straight line

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.

Assets held under finance leases are depreciated over the shorter of the lease term and their useful lives unless it is reasonably certain that the company will obtain ownership, in which case the depreciation period is the useful life.

Leases

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

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

Assets held under finance leases are included in tangible fixed assets and are depreciated and assessed for impairment losses in the same way as owned assets.

Impairment of 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.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to sell, which is equivalent to the net realisable value.

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.

Financial instruments

The Company only enters into basic financial instruments and transactions that result in the recognition of financial assets and liabilities like trade and other debtors and creditors, loans from banks and other third parties, loans to and from related parties and investments in non-puttable ordinary shares.

Financial assets
Basic financial assets, including trade and other debtors, and amounts due from related companies, are initially recognised at transaction price, 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 liabilities
Basic financial liabilities, including trade and other payables, 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 payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

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

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

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. If payment is deferred and the time value of money is material, the initial measurement is on a present value basis. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

2. Employees

	2025		2024
	Number		Number
Monthly average number of persons employed by the company during the year, including directors	41		38

3. Tangible assets

	Land and buildings		Plant and machinery etc.		Total
	£		£		£
Cost
At 01 September 2024	12,884,342		23,978		12,908,320
Additions	0		21,870		21,870
At 31 August 2025	12,884,342		45,848		12,930,190
Accumulated depreciation
At 01 September 2024	5,777,427		12,627		5,790,054
Charge for the financial year	154,498		7,814		162,312
At 31 August 2025	5,931,925		20,441		5,952,366
Net book value
At 31 August 2025	6,952,417		25,407		6,977,824
At 31 August 2024	7,106,915		11,351		7,118,266

Accumulated depreciation brought forward on land and buildings includes impairment provisions of £5,036,974.

4. Debtors

	2025		2024
	£		£
Trade debtors	66,167		81,733
Other debtors	147,054		137,660
	213,221		219,393

5. Creditors: amounts falling due within one year

	2025		2024
	£		£
Bank loans	1,698,125		0
Trade creditors	198,231		275,516
Other taxation and social security	89,154		71,602
Other creditors	5,643,455		5,184,536
	7,628,965		5,531,654

The bank loans are secured by charges over the long leasehold land and buildings.

Other payables include £4,314,183 (2024 - £3,838,883) due to the company's largest shareholder Bridgwater J23 Ltd. This amount is secured by way of a charge over the long leasehold land and buildings. Interest is charged at a commercial rate, apart from £1,000,000, which is interest free. The amount is repayable on demand, subject to bank approval.

Other payables also include amounts due to T J Wheeldon, A P Clark and J W Scott of £462,455 (2024 - £462,455), £308,175 (2024 - £308,175) and £231,813 (2024 - £231,813) respectively. These amounts are unsecured, provided interest free and whilst are repayable on demand any repayments require bank approval.

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

	2025		2024
	£		£
Bank loans	3,339,080		5,068,191
Obligations under finance leases and hire purchase contracts	6,947,360		6,950,000
	10,286,440		12,018,191

In 2021 the company entered into a sale for £6,950,000 and leaseback agreement of its hotel. Under the terms of this agreement the company was granted a 175 year lease of the hotel with rent payable being subject to annual rent reviews with an RPI increase of between 0% and 5% per annum. The rent charge for the year amounted to £247,864 (2024 - £237,523). The total commitment at the year end in relation to the lease was £43,005,920.

Amounts repayable after more than 5 years are included in creditors falling due over one year:

	2025		2024
	£		£
Obligations under finance leases and hire purchase contracts (repayable by instalments)	6,944,205		6,950,000