Lou Kendal Hotels Limited 31/03/2025 iXBRL

Company registration number: 11090434

Lou Kendal Hotels Limited

Filleted financial statements

For the year ended 31 March 2025

Lou Kendal Hotels Limited

Contents

Statement of financial position

Statement of changes in equity

Notes to the financial statements

Lou Kendal Hotels Limited

Statement of financial position

31 March 2025

		2025		2024
	Note	£	£	£	£

Fixed assets
Tangible assets	6	6,366,000		5,520,000
		_________		_________
			6,366,000		5,520,000

Current assets
Debtors	7	14,239		8,906
Cash at bank and in hand		288,921		1,429
		_________		_________
		303,160		10,335
Creditors: amounts falling due
within one year	8	( 534,000)		( 292,222)
		_________		_________
Net current liabilities			( 230,840)		( 281,887)
			_________		_________
Total assets less current liabilities			6,135,160		5,238,113

Creditors: amounts falling due
after more than one year	9		( 4,585,106)		( 4,585,106)

Provisions for liabilities	10		( 171,057)		( 117,566)

			_________		_________
Net assets			1,378,997		535,441
			_________		_________

Capital and reserves
Called up share capital			100		100
Revaluation reserve			1,145,205		352,696
Profit and loss account			233,692		182,645
			_________		_________
Shareholders funds			1,378,997		535,441
			_________		_________

These financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies' regime and in accordance with Section 1A of FRS 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

In accordance with section 444 of the Companies Act 2006, the statement of comprehensive income has not been delivered.

These financial statements were approved by the board of directors and authorised for issue on 10 December 2025 , and are signed on behalf of the board by:

Mr Graham Edwards

Director

Company registration number: 11090434

Lou Kendal Hotels Limited

Statement of changes in equity

For the year ended 31 March 2025

	Called up share capital	Revaluation reserve	Profit and loss account	Total
	£	£	£	£


At 1 April 2023	100	355,420	144,993	500,513

Profit for the year	-	-	34,928	34,928
	_______	_________	_________	_________
Total comprehensive income for the year:	-	-	34,928	34,928

Reclassification of fair value adjustments to investment property net of taxation	-	( 2,724)	2,724	-

	_______	_________	_________	_________
At 31 March 2024 and 1 April 2024	100	352,696	182,645	535,441

Profit for the year	-	-	843,556	843,556
	_______	_________	_________	_________
Total comprehensive income for the year:	-	-	843,556	843,556

Reclassification of fair value adjustments to investment property net of taxation	-	792,509	( 792,509)	-

	_______	_________	_________	_________
At 31 March 2025	100	1,145,205	233,692	1,378,997
	_______	_________	_________	_________

Lou Kendal Hotels Limited

Notes to the financial statements

For the year ended 31 March 2025

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is Ort House, 147 Arlington Road, London, NW1 7ET.

2. Statement of compliance

These financial statements have been prepared in compliance with the provisions of FRS 102, Section 1A, 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

Under FRS102 Section 1A, advantage has been taken of disclosure exemption available not to publish a cash flow statement. The preparation of financial statements in compliance with FRS102 Section 1A requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the company's accounting policies.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Going concern

In preparing these financial statements, the directors are required to make an assessment of the company's ability to continue as a going concern. The company's liquidity position at the balance sheet date is set out in notes 7 to 9 of the financial statements and, the company owed an amount due to Lou Investments Limited in less than one year. The directors have prepared a cash flow forecast for the company which covers the 12 month period from the date of signing these financial statements and Lou Investments Limited has provided written confirmation that it will not call for repayment of the amount due for a period of at least 12 months from the date of signing of these financial statements.On the basis of these forecasts, the company's balance sheet position and the written confirmation provided by Lou Investments Ltd, the directors have reasonable expectation that the company has adequate financial resources to continue in operational existence and to meet its obligations and liabilities as they fall due for at least 12 months from the date of approval of these financial statments. Accordingly, the company continues to adopt the going concern basis in preparing its financial statements.

Revenue recognition

Turnover is recognised net of value added tax in the Statement of Comprehensive Income as follows:Rental income, service charge income and other income receivable from operating leases, net of lease incentives, is recognised evenly over the lease term except where an alternative basis represents the timing of the economic benefits to be derived from leases.

3. Accounting policies (continued)

Taxation

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in the statement of comprehensive income, except to the extent that it relates to items recognised in other comprehensive income or directly in capital and reserves. In this case, tax is recognised in other comprehensive income or directly in capital and reserves, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Investment property

Investment property comprises land and buildings held under long leases. Investment properties are initially recognised at cost which comprises the purchase price and any directly attributable expenditure. Valuations are carried out at each reporting date to measure investment property at fair value. Any gain or loss is calculated by reference to the fair value at the last reporting date and is recognised in the Statement of Comprehensive Income.Subsequent expenditure is included in the investment properties carrying amount only when it is probable that future economic benefits associated with the item will flow to the Company and the cost of the item can be measured reliably. All other repairs and maintenance costs are charged to the Statement of Comprehensive Income during the year in which they are incurred.

Impairment

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event; it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset. When a provision is measured at the present value of the amount expected to be required to settle the obligation, the unwinding of the discount is recognised in finance costs in profit or loss in the period it arises.

3. Accounting policies (continued)

Revaluation Reserve

The revaluation reserve represents the difference between the acquisition cost and carrying (fair) value of investment property net of taxation that would arise should the property be disposed at its carrying value at the balance sheet date. These reserves represent unrealised amounts and are non- distributable. The company maintains such reserves in order to differentiate between distributable and non-distributable reserves.

Financial instruments

Financial AssetsBasic financial assets, including trade and other receivables, cash and bank balances and investments in commercial paper, 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.Such assets are subsequently carried at amortised cost using the effective interest method.At the end of each reporting period financial assets measured at amortised cost are assessed for objective evidence of impairment. 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.Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party, or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.Financial LiabilitiesBasic 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 receipts discounted at a market rate of interest.Debt instruments are subsequently carried at amortised cost, using the effective interest rate method. Fees paid on the establishment of loan facilities are recognised as transaction costs of the loan to the extent that it is probable that some or all of the facility will be drawn down. In this case, the fee is deferred until the draw-down occurs. To the extent there is no evidence that it is probable that some or all of the facility will be drawn down, the fee is capitalised as a pre-payment for liquidity services and amortised over the period of the facility to which it relates.Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

4. Significant accounting judgements, estimates and assumptions

The preparation of financial statements requires management to make judgements, estimates and assumptions in determining the carrying amounts of assets and liabilities. Inherent uncertainty about these assumptions and estimates could result in differing outcomes when assets are realised or when liabilities are settled. Judgements In applying the Company's accounting policies, management has made the following judgements which have the most significant effect on the amounts recognised in the financial statements: Impairments Management considers external and internal sources of information such as market conditions, counterparty credit ratings and experience of recoverability to judge whether there is an indicator of impairment of an asset. A provision for impairment or non-recoverability of an asset is recognised / (reversed) where evidence indicates to management that the asset's recoverable amount is less than its carrying amount / (greater than its previously impaired carrying amount). Estimates Fair valuation of investment property The fair value of investment property is the directors' opinion of the estimated amount for which a property could exchange under an arm's length transaction at the Company's financial year end date. The directors, in forming their opinion, make a series of assumptions, which are typically market related such as investment yields and expected rental values, which are based on the directors' professional judgement, experience and market knowledge provided by external estate agents. There is an inherent degree of estimation uncertainty present in property valuations such that the net proceeds receivable on the future disposal of a property to a third party under an arm's length transaction within the next financial year may differ from the carrying amounts of properties presented

5. Employee numbers

The average number of persons employed by the company during the year amounted to Nil (2024: Nil).

6. Tangible assets

		Investment property
		£
	Cost or valuation
	At 1 April 2024	5,520,000
	Revaluation	846,000
		_________
	At 31 March 2025	6,366,000
		_________
	Depreciation
	At 1 April 2024 and 31 March 2025	-
		_________
	Carrying amount
	At 31 March 2025	6,366,000
		_________
	At 31 March 2024	5,520,000
		_________

Investment property with a fair value of £6,366,000 (2024: £5,520,000) has been pledged as third party security for financiang obtained by Lou Investments Limited, a group company.

7. Debtors

	2025	2024
	£	£
Deposits held with property managing agents	12,963	358
Amounts owed by group undertakings	100	100
Other debtors	1,176	8,448
	_________	_________
	14,239	8,906
	_________	_________

8. Creditors: amounts falling due within one year

	2025	2024
	£	£
Trade creditors	2,049	11,643
Amounts owed to group companies	439,352	242,187
Other creditors	92,599	38,392
	_________	_________
	534,000	292,222
	_________	_________
Amounts owed to group companies are repayable on demand.

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

	2025	2024
	£	£
Amounts owed to group undertakings	4,585,106	4,585,106
	_________	_________

Amounts owed to group companies comprise secured loans issued at the prevailing market interest rate of 5% repayable at varying dates up to 31 December 2030.

10. Provisions

		Deferred tax
		£
	At 1 April 2024	117,566
	Additions	53,491
		_________
	At 31 March 2025	171,057
		_________

11. Prior period errors

The statement of comprehensive income for the comparative period has been subject to a presentational restatement to present investment property operating costs amounting to £56,235, which were previously classified as administrative expenses, to cost of sales. This presentational restatement did not impact the results for the comparative period.

12. Operating leases

The company as lessor

The total future minimum lease payments receivable under non-cancellable operating leases are as follows:


	£	£

Not later than 1 year	317,400	317,400
Later than 1 year and not later than 5 years	1,269,600	1,269,600
Later than 5 years	4,988,832	5,306,232
	_________	_________
	6,575,832	6,893,232
	_________	_________

13. Summary audit opinion

The auditor's report dated 12 December 2025 was unqualified.

The senior statutory auditor was Daniel Foster for and on behalf of BDO LLP

14. Related party transactions

The company has taken advantage of the exemption conferred by FRS102 Section 1AC.35, not to disclose transactions with wholly owned group companies.

The smallest and the largest group in which the results of the company are consolidated is Montoya Investments Ltd whose registered office is Luna Tower, Waterfront Drive, Road Town, Tortola, British Virgin Islands.

15. Controlling party

The company's ultimate parent company is Montoya Investments Limited which is registered in the British Virgin Islands. Graham Edwards is the ultimate controlling party.