The directors present the strategic report for the year ended 31 March 2025.

The company’s principal activity during the year continued to be the operation of Lancaster House Hotel, The Wild Boar and The Sandpiper Club.

The company experienced a mixed trading year across its three businesses. Overall performance reflected steady underlying demand, set against operational and cost pressures in the hospitality and leisure sector.

At Lancaster House, room rates increased, although occupancy declined, partly due to weaker conference activity, which fell by around one third. Despite the softer performance, the hotel continues to benefit from a strong brand and loyal customer base, and actions are underway to rebuild occupancy.

At The Wild Boar, room rates grew but occupancy levels also fell. Reduced sleeper numbers impacted food and beverage revenue. Operational initiatives implemented during the year are supporting improved performance in early 2025–26.

The Sandpiper Club delivered broadly stable revenue with steady membership levels, although profitability was affected by higher wage costs and increased commission charges. Membership volumes remain robust and continue to underpin the club’s long-term stability.

Across the portfolio, food and beverage performance varied, reflecting differing trading dynamics at each site. The overall result for the year reflects the combined effect of reduced occupancies in the hotels and increased operating costs at the Sandpiper Club. Early trading in the new financial year is broadly in line with expectations.

Profitability for the year was influenced by reduced occupancy in both hotels, lower conference activity at Lancaster House and higher wage and commission costs at the Sandpiper Club. These pressures were partly offset by room rate growth and stable membership income. Underlying demand remains resilient across the company’s operations.

The company operates in competitive regional markets, with economic conditions continuing to influence discretionary leisure spending. Corporate and conference demand in Lancashire remains weaker than pre-pandemic levels. The Sandpiper Club competes with a range of local fitness providers but retains strong member loyalty due to its facilities and service offering. The hotels face competition from independent operators, national brands and serviced accommodation providers.

The directors consider the following to be the main risks affecting the business:

• Staffing challenges across operational departments

• Wage inflation

• Cost inflation in food, beverage, consumables and utilities

• Variability in leisure and conference demand linked to economic conditions

• Competition from local hotel and leisure providers

• Membership attrition or increased competition affecting the Sandpiper Club

These risks are broadly consistent with those faced by the wider hospitality sector.

Risks are monitored throughout the year. Key mitigation measures include:

• Recruitment, retention and training initiatives

• Active procurement management and cost-control measures

• Planned maintenance programmes

• Regular review of pricing and promotional strategies

• Customer experience initiatives to encourage repeat business

• Financial support through the company and related companies' refinancing arrangements

The company’s financial risks include liquidity, credit and interest rate risk.

• Liquidity risk is managed through cash flow forecasting and maintaining appropriate cash reserves.

• Credit risk is limited due to the nature of the customer base and low levels of outstanding receivables.

• Interest rate risk is monitored across the company and related companies. The recent refinancing is expected to improve margins and provide a two-year capital repayment holiday to support future investment.

• Operational and supply chain risks are managed through procurement controls and diversified suppliers.

• Capital risk is monitored through planning of refurbishment and maintenance programmes.

The company benefits from strong support from its related companies and has no liquidity concerns.

Management monitors a range of KPIs, including:

• Room rates, occupancy and revenue per room at Lancaster House and The Wild Boar

• Food and beverage sales and margins

• Conference and events performance

• Membership numbers, retention and sales at the Sandpiper Club

• Wage cost ratios across all operating units

• Energy consumption trends

• Operating profit and cash flow performance

• Guest satisfaction and review scores

These KPIs assist the directors in monitoring performance and informing operational decisions.

On behalf of the board

The directors present their annual report and financial statements for the year ended 31 March 2025.

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

Ordinary dividends were paid amounting to £134,102 (2024: £116,730). The directors do not recommend payment of a final dividend.

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

The directors expect a stable trading year ahead. Preparatory work is underway for a major spa development at The Wild Boar, with construction expected to commence in early 2026 and complete in early 2027. Continued menu and service enhancements are planned at Lancaster House and The Wild Boar to strengthen the food and beverage offer, alongside ongoing bedroom and public-area improvements. The Sandpiper Club will focus on operational developments and member experience initiatives. Digital improvements will continue with planned platform upgrades.

The auditor, JS. Audit Limited, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

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;

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; 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.

The company has chosen in accordance with Companies Act 2006, s.414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the directors' report. It has done so in respect of the review of the business, principal risks and uncertainties, and financial risk management objectives and policies of the company.

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.

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

We have audited the financial statements of Crosthwaite Hotels (Westmorland) Limited (the 'company') for the year ended 31 March 2025 which comprise the statement of income and retained earnings, the balance sheet, the statement of cash flows 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 2025 and of its 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 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' report 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.

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

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.

As explained more fully in the Statement of Directors' Responsibilities included within the Directors' Report, 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.

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 and 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.

Based on our understanding of the company and sector, we identified that the principal risks of non-compliance with laws and regulations related to, but was not limited to, the Companies Act 2006, distributable profits legislation, UK tax legislation, employment law, pensions regulations and health and safety regulations and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as UK financial reporting standards and the Companies Act 2006.

We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls) and determined that the principal risks were related to management bias in accounting estimates and judgements and risk of fraud in revenue recognition.

Our procedures to respond to risks identified included the following:

• reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

• enquiring of management about actual and potential litigation and claims, their policies and procedures to prevent and detect fraud as well as whether they have knowledge of any actual, suspected or alleged fraud;

• performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

• reading minutes of meetings of those charged with governance;

• obtaining an understanding of provisions and holding discussions with management to understand the basis of recognition or non-recognition of tax provisions; and

• in addressing the risk of fraud through management override of controls: testing the appropriateness of journal entries; assessing whether the accounting estimates, judgements and decisions made by management are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

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 the 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.

There were no other items of comprehensive income in the year (2024: £nil).

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

Crosthwaite Hotels (Westmorland) Limited is a private company limited by shares incorporated in England and Wales. The registered office is Low Wood, Windermere, Cumbria, LA23 1LP. There is no single principal place of business.

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 amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention, modified to include the revaluation of freehold and long leasehold land and buildings at deemed cost. The principal accounting policies adopted are set out below.

The financial statements have been prepared on a going concern basis. At 31 March 2025, the company had net assets of £6.3m and net current liabilities of £1.4m having reported an operating profit for the year then ended of £0.1m. true

Preparation of financial statements on a going concern basis assumes that the company will have sufficient funds to continue to pay its debts as and when they fall due and thus continue to trade. The directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future based on its forecasts and projections.

In making their assessment, the directors have reviewed and considered the expected performance of the business. They have also taken into consideration the timing of key debts when they fall due and the impact these have on expected cash flows. This has been modelled for a period covering 12 months from the date of signing these financial statements. The key risk over the period of the forecasts is that of a significant decline in revenue generating activity over the forecast period, but given the recent performance of the company and the continued flow of revenues to date, the directors consider the forecast to be a robust assessment of likely activity.

The company has banking facilities including a loan which was due for repayment on 31 March 2026. The net current liabilities position at 31 March 2025 arose principally from the presentation of this loan within creditors falling due in less than one year. The directors are in the final stages of refinancing the banking facilities and loan in the post balance sheet period on new terms such that the repayment profile is extended beyond the 31 March 2026 date.

Based on this assessment, the directors believe that it remains appropriate to prepare the financial statements on a going concern basis.

Turnover represents amounts receivable for goods and services provided as hoteliers before the balance sheet date, net of VAT.

Income from the provision of hotel rooms is recognised on a straight-line basis over the period of stay, when the room is occupied and the services have been provided to the guest.

Income derived from the restaurants and bars from food and beverage sales are recognised at the point of sale when the goods and services are provided to the customer.

Income from spa treatments is recognised when the treatment is delivered. Income from spa day passes and facility access is recognised over the period the facilities are made available.

Income from events, including venue hire for weddings, conferences or functions, is recognised when the event takes place and the services have been provided.

Deposits are paid on hotel bookings. The income from these deposits is recognised when the provision of the service to the customer has been incurred. Deposits and voucher revenues are deferred until the earlier of the provision of the service and the date of expiration.

Freehold land and buildings are held by the company at deemed cost being their fair value at the date of transition to Financial Reporting Standard 102. The fair value was based on a professional valuation undertaken in accordance with the valuation standards of the Royal Institution of Chartered Surveyors. To comply with the requirements of company law, the revaluation reserve has been retained in capital and reserves.

Tangible fixed assets are stated at cost less depreciation. Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life, as follows:

Freehold buildings and assets in the course of construction are not depreciated.

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.

Depreciation is not provided on freehold hotel properties or long term leasehold hotel properties with a lease with more than 20 years remaining at the balance sheet date. It is the company's policy to maintain these assets in a continual state of sound repair and to make improvements from time to time. Accordingly the directors consider that the useful economic lives of these assets are so long, and the residual values so high, that any depreciation is insignificant.

Moreover whilst the initial costs of extensive refurbishment or repair programmes are capitalised, those in respect of subsequent expenditure are written off to the profit and loss account as incurred. In accordance with FRS 102 the directors perform an annual impairment review. Any deficits are charged to the profit and loss account except where the asset has been revalued, they are charged to the revaluation reserve.

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.

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost comprises direct materials.

The company uses the First-In, First-Out (FIFO) method to value its inventory.

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.

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.

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, 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.

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.

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.

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, including creditors and bank loans, 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 creditors 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 creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

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

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.

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

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement 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 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 income statement, 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.

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.

Rentals payable under operating leases, including any lease incentives received, are charged to profit or loss on a straight line basis over the term of the relevant lease except where another more systematic basis is more representative of the time pattern in which economic benefits from the leased asset are consumed.

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.

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.

The company depreciates tangible assets over their estimated useful lives. The estimation of the useful lives of assets is based on historic performance as well as expectations about the future use and therefore requires estimates and assumptions to be applied by management. The actual lives of these assets can vary depending on a variety of factors, including technical innovation, product life cycles and maintenance programmes.

Judgement is applied by management when determining the residual values of tangible fixed assets. When determining the residual value, management aim to assess the amount that the company would currently obtain for the disposal of the asset if it were already of the condition expected at the end of its useful economic life. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values.

No other critical judgements or estimates have been made by the directors in preparing these financial statements.

An analysis of the company's turnover is as follows:

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

Their aggregate remuneration comprised:

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 1 (2024 - 1).

The actual credit for the year can be reconciled to the expected credit for the year based on the profit or loss and the standard rate of tax as follows:

The company has losses totalling £828,775 (2024: £545,937) available to carry forward, on which a deferred tax asset of £207,194 (2024: £136,484) has been recognised based on substantively enacted corporation tax rates of 25%.

The bank loans are secured by an unscheduled debenture and a floating charge over all property and assets including book debts. Interest on the bank loans is charged at 1.8% above SONIA and the loans are repayable by 31 March 2026.

Deferred tax assets and liabilities are offset where the company has a legally enforceable right to do so. The following is the analysis of the deferred tax balances (after offset) for financial reporting purposes:

The accelerated capital allowances are expected to reverse within 2 years. The available tax losses are expected to be used in the next 4 years against future expected profits.

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.

At the reporting date there were outstanding contributions amounting to £10,570 (2024 - £11,925).

All share classes are entitled to receive dividends declared by the directors. Dividends may be declared in different amounts for each class, and the directors may exclude any class from a dividend at their discretion, subject to the provisions of the Companies Act 2006 and the Articles of Association.

Only the holders of A Ordinary Shares have the right to attend, speak and vote at general meetings, with one vote per share. B Ordinary Shares and C Ordinary Shares do not carry voting or attendance rights, except where required by statute.

In the event of a winding up, all share classes rank equally for repayment of their paid-up capital. After repayment of capital, each B Ordinary Share carries an additional entitlement to a £10 premium. Each C Ordinary Share carries an additional entitlement to a £5 premium, payable after the B share premium. Any remaining surplus is distributed to holders of A Ordinary Shares.

Profit and loss reserves - includes all current and prior period retained profits and losses net of distributions to shareholders.

Share premium account - represents the amount received for the issue of shares in the company above their nominal value.

Revaluation reserve - represents the recognised gain on freehold land and buildings.

The company, Low Wood Hotel (1958) Limited and English Lakes Hotels Limited have given unlimited guarantees for each others' bank borrowings. The guarantees are secured by fixed and floating charges on all the assets of the companies. The amount so guaranteed by the company at 31 March 2025 was £11,850,000 (2024: £12,750,000).

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

During the year the company entered into the following transactions with related parties:

The following amounts were outstanding at the reporting end date:

The following amounts were outstanding at the reporting end date:

Dividends totalling £134,102 (2024: £116,730) were paid in the year in respect of shares held by the company's directors.

The directors consider there to be no one ultimate controlling party.