REGISTERED NUMBER: 11258233 (England and Wales)

GROUP STRATEGIC REPORT,

REPORT OF THE DIRECTORS AND

CONSOLIDATED FINANCIAL STATEMENTS

FOR THE YEAR ENDED 31 DECEMBER 2024

FOR

BGAM HOTELS (TM) LIMITED

Page

Company Information

1

Group Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

5

Consolidated Income Statement

8

Consolidated Other Comprehensive Income

9

Consolidated Balance Sheet

10

Company Balance Sheet

11

Consolidated Statement of Changes in Equity

12

Company Statement of Changes in Equity

13

Consolidated Cash Flow Statement

14

Notes to the Consolidated Cash Flow Statement

15

Notes to the Consolidated Financial Statements

17

DIRECTORS:

J D Levy

J P Levy

L M Becker

M D Rubin

N S Rubin

REGISTERED OFFICE:

Greenhill House

90/93 Cowcross Street

London

EC1M 6BF

REGISTERED NUMBER:

11258233 (England and Wales)

AUDITORS:

Goldwyns Limited

Statutory Auditors and Chartered Accountants

1 Nelson Mews

Southend on Sea

Essex

SS1 1AL

The directors present their strategic report of the company and the group for the year ended 31 December 2024.

Principal activity

The principal activity of the group during the year under review was a hotel.

REVIEW OF BUSINESS

The results for the year show revenues generated of £5,818,851 (2023 - £5,617,136) and a loss before tax of £(35,221) (2023 - profit of £166,502). Full details of the group's financial performance can be found in the annexed financial statements.

The directors are pleased to note customer demand remaining strong and occupancy levels continued to improve. Meanwhile, the group continues to work closely with its suppliers and associates, to ensure its delivery continues to meet or exceed expectations.

Given the nature of its business structure, rising employment costs squeeze the group's available margins, although the directors look to mitigate that where possible.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risk to the business is inadequate occupancy of its available rooms and therefore an inability to generate sufficient revenues to service operations. The directors closely monitor the group's performance against similar businesses operating in comparable markets and respond accordingly.

Similarly, the group carefully monitors its compliance with brand standards, and regularly compares its performance against other (local and national) hotels to ensure it remains competitive.

The group is also susceptible to any loss in key members of operational staff and therefore operates a number of performance reward and incentive programmes to mitigate these risks.

Finally, the group is as susceptible to economic fluctuations as any other. The UK economic climate therefore poses a further risk to the group, and its customer base, of which the directors are very aware. As above, ensuring sufficient demand is key to combatting the threats this poses.

SECTION 172(1) STATEMENT

Stakeholder engagement

The board of directors have a legal responsibility under section 172 of the Companies Act 2006 to act in the way we consider, in good faith, would be most likely to promote the group's success for the benefit of its members as a whole, and to have regard to the long-term effect of our decisions on the group and its stakeholders. This statement addresses the ways in which we as a board handle this responsibility.

Decision making

Regular operational and strategic meetings are held by the directors and general managers. This ensures the board has access to the key factors affecting all areas of the business' decision making, shorter term or longer.

Employee engagement

The subsidiary maintains a diverse workforce of local employees spanning all aspects of the hotel delivery, supplemented by outsourced staff and suppliers where necessary. Staff are rewarded in line with comparable local markets, provided with specific training relevant to their needs and have access to wider industry opportunities as a result of the same.

Business relationships

The group actively maintains strong relationships with its key suppliers and support functions, to ensure it has access to the resources it needs to operate effectively.

Community and environmental impact

The directors remain ever conscious of the impact their business has on the local community and environment.

Business conduct

The directors closely monitor the group's service delivery to ensure at all times the business is honest, fair and professional in its conduct with all stakeholders.

Shareholder engagement

The group is actively managed by its ultimate shareholders, who are all represented on the board of directors.

ON BEHALF OF THE BOARD:

J D Levy - Director

28 November 2025

The directors present their report with the financial statements of the company and the group for the year ended 31 December 2024.

DIVIDENDS

No dividends will be distributed for the year ended 31 December 2024.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 January 2024 to the date of this report.

J D Levy

J P Levy

L M Becker

M D Rubin

N S Rubin

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Group Strategic Report, the Report of the Directors 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 the group and of the profit or loss of the group 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;

-	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 and the group's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group 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 the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the group's auditors are unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the group's auditors are aware of that information.

AUDITORS

The auditors, Goldwyns Limited, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

J D Levy - Director

28 November 2025

Opinion

We have audited the financial statements of BGAM Hotels (TM) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 December 2024 which comprise the Consolidated Income Statement, Consolidated Other Comprehensive Income, Consolidated Balance Sheet, Company Balance Sheet, Consolidated Statement of Changes in Equity, Company Statement of Changes in Equity, Consolidated Cash Flow Statement and Notes to the Consolidated Cash Flow Statement, Notes to the Financial Statements, including a summary of 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 group's and of the parent company affairs as at 31 December 2024 and of the group's loss 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 Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the group 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 group's and the parent 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 directors are responsible for the other information. The other information comprises the information in the Group Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors thereon.

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.

In connection with our audit of the financial statements, 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 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 the audit:

-	the information given in the Group Strategic Report and the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Group Strategic Report and the Report of the Directors have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion:

-	adequate accounting records have not been kept by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or

-	the parent company 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 Statement of Directors' Responsibilities set out on page four, 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 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 group's and the parent 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 group or the parent company or to cease operations, or have no realistic alternative but to do so.

Auditors' 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 a Report of the Auditors 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.

In order to address the risks of misstatements in respect of irregularities, including fraud, we have:

-

obtained an understanding of the key laws and regulations applicable to the group, including the Companies Act 2006, it's Mercure franchise agreement and applicable taxation legislation;

-

assessed the group's own internal controls and systems for the prevention and detection of irregularities and particularly the control environment within which they operate;

-

determined a materiality level and audit approach sufficient to identify most irregularities, including fraud, that may occur;

-

considered our own involvement in the preparation of the group's statutory financial statements and taxation returns;

-

conducted audit verification work, on a sample basis, on the key audit areas and risks we have identified; and

-

reflected on the outcome of our work, and the likelihood that conclusions drawn may be indicative of other areas of potential irregularity.

We therefore consider our audit approach has been sufficient to detect material irregularities, including fraud.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at www.frc.org.uk/auditorsresponsibilities. This description forms part of our Report of the Auditors.

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 a Report of the Auditors 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.

S T Blundell FCA (Senior Statutory Auditor)

for and on behalf of Goldwyns Limited

Statutory Auditors and Chartered Accountants

1 Nelson Mews

Southend on Sea

Essex

SS1 1AL

14 December 2025

TURNOVER

5,818,851

5,617,136

Cost of sales

3,445,575

3,242,145

GROSS PROFIT

2,373,276

2,374,991

Administrative expenses

1,629,961

1,509,821

OPERATING PROFIT

4

743,315

865,170

Interest receivable and similar income

124,000

-

867,315

865,170

Interest payable and similar expenses

6

902,536

698,668

(LOSS)/PROFIT BEFORE TAXATION

(35,221

)

166,502

Tax on (loss)/profit

7

-

-

(LOSS)/PROFIT FOR THE FINANCIAL YEAR

(35,221

)

166,502

(Loss)/profit attributable to:

Owners of the parent

(35,221

)

166,502

(LOSS)/PROFIT FOR THE YEAR

(35,221

)

166,502

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(35,221

)

166,502

Total comprehensive income attributable to:

Owners of the parent

(35,221

)

166,502

FIXED ASSETS

Intangible assets

9

5,831,977

5,866,512

Tangible assets

10

12,808,807

12,948,340

Investments

11

-

-

Negative goodwill

12

-

-

18,640,784

18,814,852

CURRENT ASSETS

Stocks

13

58,982

78,748

Debtors

14

1,428,556

1,311,039

Cash in hand

6,571

4,281

1,494,109

1,394,068

CREDITORS

Amounts falling due within one year

15

2,883,201

2,958,148

NET CURRENT LIABILITIES

(1,389,092

)

(1,564,080

)

TOTAL ASSETS LESS CURRENT LIABILITIES

17,251,692

17,250,772

CREDITORS

Amounts falling due after more than one year

16

19,760,118

19,723,977

NET LIABILITIES

(2,508,426

)

(2,473,205

)

CAPITAL AND RESERVES

Called up share capital

20

5

5

Retained earnings

21

(2,508,431

)

(2,473,210

)

SHAREHOLDERS' FUNDS

(2,508,426

)

(2,473,205

)

The financial statements were approved by the Board of Directors and authorised for issue on 28 November 2025 and were signed on its behalf by:

J D Levy - Director

FIXED ASSETS

Intangible assets

9

-

-

Tangible assets

10

-

-

Investments

11

8,912,111

8,912,111

Negative goodwill

12

-

-

8,912,111

8,912,111

CURRENT ASSETS

Debtors

14

796,989

796,989

Cash in hand

5

5

796,994

796,994

CREDITORS

Amounts falling due within one year

15

9,717,556

9,717,556

NET CURRENT LIABILITIES

(8,920,562

)

(8,920,562

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(8,451

)

(8,451

)

CAPITAL AND RESERVES

Called up share capital

20

5

5

Retained earnings

21

(8,456

)

(8,456

)

SHAREHOLDERS' FUNDS

(8,451

)

(8,451

)

Company's loss for the financial year

-

(5,250

)

The financial statements were approved by the Board of Directors and authorised for issue on 28 November 2025 and were signed on its behalf by:

J D Levy - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

5

(2,639,712

)

(2,639,707

)

Changes in equity

Total comprehensive income

-

166,502

166,502

Balance at 31 December 2023

5

(2,473,210

)

(2,473,205

)

Changes in equity

Total comprehensive income

-

(35,221

)

(35,221

)

Balance at 31 December 2024

5

(2,508,431

)

(2,508,426

)

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 January 2023

5

(3,206

)

(3,201

)

Changes in equity

Total comprehensive income

-

(5,250

)

(5,250

)

Balance at 31 December 2023

5

(8,456

)

(8,451

)

Changes in equity

Balance at 31 December 2024

5

(8,456

)

(8,451

)

Cash flows from operating activities

Cash generated from operations

1

816,331

944,772

Interest paid

(511,416

)

(309,197

)

Interest element of hire purchase and finance lease rental payments paid

(391,120

)

(389,471

)

Net cash from operating activities

(86,205

)

246,104

Cash flows from investing activities

Purchase of tangible fixed assets

(112,096

)

(140,634

)

Interest received

124,000

-

Net cash from investing activities

11,904

(140,634

)

Cash flows from financing activities

Finance lease advances

-

85,275

Rolled up interest

124,863

194,873

Finance repayments in year

(83,373

)

(404,407

)

Net cash from financing activities

41,490

(124,259

)

Decrease in cash and cash equivalents

(32,811

)

(18,789

)

Cash and cash equivalents at beginning of year

2

(36,271

)

(17,482

)

Cash and cash equivalents at end of year

2

(69,082

)

(36,271

)

1.	RECONCILIATION OF (LOSS)/PROFIT BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

2024

2023

£

£

(Loss)/profit before taxation

(35,221

)

166,502

Depreciation charges

285,793

146,145

Loss on disposal of fixed assets

371

-

Finance costs

902,536

698,668

Finance income

(124,000

)

-

1,029,479

1,011,315

Decrease/(increase) in stocks

19,766

(41,269

)

Increase in trade and other debtors

(117,517

)

(421,235

)

(Decrease)/increase in trade and other creditors

(115,397

)

395,961

Cash generated from operations

816,331

944,772

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 December 2024

31/12/24

1/1/24

£

£

Cash and cash equivalents

6,571

4,281

Bank overdrafts

(75,653

)

(40,552

)

(69,082

)

(36,271

)

Year ended 31 December 2023

31/12/23

1/1/23

£

£

Cash and cash equivalents

4,281

34,506

Bank overdrafts

(40,552

)

(51,988

)

(36,271

)

(17,482

)

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1/1/24

Cash flow

At 31/12/24

£

£

£

Net cash

Cash at bank and in hand

4,281

2,290

6,571

Bank overdrafts

(40,552

)

(35,101

)

(75,653

)

(36,271

)

(32,811

)

(69,082

)

Debt

Hire purchase and finance leases

(13,715,085

)

(95,902

)

(13,810,987

)

Debts falling due within 1 year

(54,412

)

(4,048

)

(58,460

)

Debts falling due after 1 year

(6,019,830

)

58,460

(5,961,370

)

(19,789,327

)

(41,490

)

(19,830,817

)

Total

(19,825,598

)

(74,301

)

(19,899,899

)

1.	STATUTORY INFORMATION

BGAM Hotels (TM) Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the General Information page.

The group trades from its leased property in Barnsley, South Yorkshire.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

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

Turnover

Turnover represents the income receivable by the group from its trading activities as a hotel. Sales encompass room hire, food and beverage income and all other associated ancillary hotel and guest services. Turnover is recognised in the period in which the physical goods are sold, as services are performed or otherwise as entitlement accrues to the group.

Intangible assets

Intangible assets are initially measured at cost. After initial recognition, intangibles assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

Other intangibles is being amortised evenly over its estimated useful life of 175 years.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life or, if held under a finance lease, over the lease term, whichever is the shorter.

Leasehold property

-

over a period of 175 years

Improvements to property

-

20% on cost

Equipment

-

20% on cost

Fixtures and fittings

-

20% on cost

Goodwill

Due to a series of beneficial negotiations during 2018, the company managed to acquire its interest in the trading subsidiary for less than the fair value of the subsidiary's net assets at that time. Consequently, it has generated negative goodwill on the acquisition.

The negative goodwill has been recognised as an intangible fixed asset and is being released over the 5 year period from which the company expects to immediately benefit from the acquisition.

3.	EMPLOYEES AND DIRECTORS

2024

2023

£

£

Wages and salaries

1,848,003

1,741,541

Social security costs

125,141

115,754

Other pension costs

28,518

26,659

2,001,662

1,883,954

The average number of employees during the year was as follows:

2024

2023

Operational

128

126

2024

2023

£

£

Directors' remuneration

-

-

4.	OPERATING PROFIT

The operating profit is stated after charging:

2024

2023

£

£

Hire of plant and machinery

5,531

8,615

Depreciation - owned assets

165,632

37,353

Depreciation - assets on hire purchase contracts and finance leases

85,626

74,257

Loss on disposal of fixed assets

371

-

Other intangibles amortisation

34,535

34,534

5.	AUDITORS' REMUNERATION

2024

2023

£

£

Fees payable to the company's auditors for the audit of the company's financial statements

15,750

20,500

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

2024

2023

£

£

Loan

511,416

309,197

Leasing

373,096

375,012

Other interest payable

18,024

14,459

902,536

698,668

7.

TAXATION

Analysis of the tax charge

No liability to UK corporation tax arose for the year ended 31 December 2024 nor for the year ended 31 December 2023.