Company No: 09169505 (England and Wales)

Contents

• Balance Sheet
• Notes to the Financial Statements

	Note	2025		2024
		£		£
Fixed assets
Tangible assets	38	10,001,845		11,592,618
		10,001,845		11,592,618
Current assets
Stocks		940		1,476
Debtors	4	240,444		170,683
Cash at bank and in hand		1,051,767		836,417
		1,293,151		1,008,576
Creditors: amounts falling due within one year	5	( 8,306,524)		( 7,565,815)
Net current liabilities		(7,013,373)		(6,557,239)
Total assets less current liabilities		2,988,472		5,035,379
Creditors: amounts falling due after more than one year	6	( 9,430,359)		( 9,760,000)
Net liabilities		( 6,441,887)		( 4,724,621)
Capital and reserves
Called-up share capital	7	100		100
Profit and loss account		( 6,441,987 )		( 4,724,721 )
Total shareholders' deficit		( 6,441,887)		( 4,724,621)

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) Limited (registered number: 09169505) 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) 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 £6,441,887. The company is supported through loans from the Parent Company. 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 Parent Company will continue to support the company. Accordingly, they continue to adopt the going concern basis in preparing the financial statements.

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 costs of short-term employee benefits are recognised as a liability and an expense.

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.

Defined benefit 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 the statement of income.

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 the statement of income 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 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 assets classified as receivable within one year are not amortised.

Financial liabilities
Basic financial liabilities, including trade and other creditors and accruals, 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 receipts 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. Trade creditors 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.

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	19		22

3. Tangible assets

	Land and buildings		Plant and machinery etc.		Total
	£		£		£
Cost
At 01 September 2024	12,846,823		97,674		12,944,497
Additions	0		2,171		2,171
At 31 August 2025	12,846,823		99,845		12,946,668
Accumulated depreciation
At 01 September 2024	1,254,205		97,674		1,351,879
Charge for the financial year	263,469		326		263,795
Impairment losses	1,329,149		0		1,329,149
At 31 August 2025	2,846,823		98,000		2,944,823
Net book value
At 31 August 2025	10,000,000		1,845		10,001,845
At 31 August 2024	11,592,618		0		11,592,618

4. Debtors

	2025		2024
	£		£
Trade debtors	74,735		1,147
Other debtors	165,709		169,536
	240,444		170,683

5. Creditors: amounts falling due within one year

	2025		2024
	£		£
Bank loans	325,000		525,000
Trade creditors	67,699		42,483
Amounts owed to group undertakings	7,597,047		6,743,971
Other taxation and social security	118,075		95,193
Other creditors	198,703		159,168
	8,306,524		7,565,815

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

Amounts owed to group undertakings are secured by way of a charge over the long leasehold land and buildings. Interest is charged at a commercial rate and whilst repayable on demand any repayments require bank approval.

Other creditors include amounts due to T J Wheeldon, A P Clark and J W Scott of £8,381 (2024 - £8,381), £6,820 (2024 - £6,820) and £12,450 (2024 - £12,450) respectively. These amounts are unsecured, provided interest free and are repayable on demand.

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

	2025		2024
	£		£
Bank loans	3,150,000		3,475,000
Obligations under finance leases and hire purchase contracts	6,280,359		6,285,000
	9,430,359		9,760,000

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

On 28 February 2018 the company entered into a sale for £6,285,000 and leaseback agreement of its hotel. Under the terms of this agreement the company was granted a 150 lease of the hotel with rent payable of £261,850 per annum. The rent payable is then subject to a 5 yearly rent review with an RPI increase of between 0% and 4% per annum. The total commitment at the year end in relation to the lease was £37,405,940.

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

	2025		2024
	£		£
Bank loans (repayable by instalments)	1,850,000		2,175,000
Obligations under finance leases and hire purchase contracts (repayable by instalments)	6,276,135		6,285,000
	8,126,135		8,460,000

7. Called-up share capital

	2025		2024
	£		£
Allotted, called-up and fully-paid
60 Ordinary A shares of £ 1.00 each	60		60
40 Ordinary B shares of £ 1.00 each	40		40
	100		100

8. Impairment on fixed assets

Impairment tests have been carried out where appropriate and the following impairment losses have been recognised in profit or loss:

	2025		2024
	£		£
In respect of: Property, plant and equipment	1,329,149		0