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

The company’s principal activity continues to be the operation of the Low Wood Bay Resort and Spa, including the hotel, the spa and the water sports centre and marina.

Trading for the year ended 31 March 2025 was strong, reflecting continued recovery in leisure demand and the benefits of the investment programme undertaken in recent years.

Turnover increased to £16.74m (2024: £14.43m), driven by improved room revenues, strong spa performance and growth across the resort’s food and beverage outlets. Gross profit increased accordingly, supported by firmer pricing, improved operational delivery and effective cost control. Operating profit rose to £2.50m (2024: £0.99m), with profit after tax increasing to £1.27m (2024: £0.14m).

The spa continued to perform well following the enhancements completed in 2024, with increased demand for both thermal facilities and treatments. Room revenues also strengthened, supported by resilient leisure demand in the Lake District and the resort’s enhanced offering. Food and beverage activity remained robust, benefitting from quality and service improvements implemented in the prior year.

The watersports centre and marina delivered steady results overall. While activity levels in equipment hire varied with weather conditions, marina income and associated revenue streams remained stable.

Operational efficiency remained a focus during the year. Cost pressures arising from inflation were managed successfully, and purchasing processes continued to support margin protection. The resort also benefited from stable occupancy levels and strong brand positioning in a competitive regional market.

The company is exposed to a range of internal and external risks. Key risks include:

• Staffing pressures across operational departments, reflecting sector-wide recruitment challenges.

• Inflationary pressures on food, beverage and utility costs.

• Economic conditions affecting leisure demand and discretionary spending.

• Seasonality and weather-related risk, particularly affecting the watersports business.

• Competition from independent hotels and branded operators in the region.

• IT and cybersecurity risks, given increasing reliance on online systems.

These risks are monitored regularly. The company mitigates them through workforce planning, procurement processes, active energy management, financial monitoring, ongoing facilities investment and robust IT controls.

The company faces several financial risks typical of the hospitality sector:

• Liquidity risk is managed through cash flow forecasting and the maintenance of strong cash reserves. The business has no liquidity concerns.

• Interest rate risk is monitored across the company and related companies, and banking arrangements are structured to provide longer-term stability.

• Credit risk remains low given the nature of the customer base.

• Capital risk is managed through careful planning of refurbishment and maintenance projects.

The move to a new banking partner is expected to finalise before the end of the calendar year. All covenants are standard and achievable, and the refinancing includes a Revolving Credit Facility to provide additional financial flexibility.

The directors monitor several financial and non-financial KPIs across the resort, including:

• Room rate and occupancy performance

• Food and beverage sales and margins

• Spa throughput and treatment volumes

• Labour cost percentages across departments

• Customer satisfaction scores and online review trends

• Energy usage and utility cost trends

• Watersports activity levels and profitability

• Operating profit and cash flow against budget

These indicators are reviewed regularly and form a key part of operational decision-making.

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 £369,014 (2024: £354,397). 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 trading to remain stable in the forthcoming year. Planned developments include ongoing refurbishment of guest areas and continued improvement of the resort’s food, beverage and spa offerings. Operational efficiencies will continue to be pursued through procurement processes and cost management initiatives. No major capital projects are planned.

The company and related companies have refinanced their banking facilities after the year end, extending the loan repayment profile and providing additional flexibility through a revolving credit facility. The directors consider the revised arrangements to provide appropriate financial support for the business.

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 Low Wood Hotel (1958) Limited (the 'company') for the year ended 31 March 2025 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity, 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 profit 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 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. 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 the 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.

Low Wood Hotel (1958) Limited is a private company limited by shares incorporated in England and Wales. The registered office and principal place of business is Low Wood, Windermere, Westmorland, LA23 1LP.

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 freehold 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 £16.7m and net current liabilities of £10.5m having reported an operating profit for the year then ended of £2.5m. 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 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.

Boat mooring income is recognised over the period to which the mooring relates. Where mooring fees are received in advance for longer periods, amounts relating to future periods are deferred and recognised as income on a straight-line basis over the period of the agreement.

Income from the hire of equipment is recognised over the period of hire when the equipment is made available to the customer.

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.

Tangible fixed assets 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:

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.

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.

Depreciation is not provided on freehold hotel properties. 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 income statement 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 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.

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

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 charge/(credit) for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

The company has losses totalling £596,762 (2024: £1,741,207) available to carry forward, on which a deferred tax asset of £149,190 (2024: £435,302) has been recognised based on substantively enacted corporation tax rates of 25%.

The bank loans are secured by an unscheduled debenture and a fixed and floating charge over all property and assets including book debts. Interest on the bank loans is charged at 1.8% over 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 for financial reporting purposes:

The accelerated capital allowances are expected to reverse within the next 4 years. The available tax losses are expected to be used in the next financial year 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 £20,082 (2024: £18,601).

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, Crosthwaite Hotels (Westmorland) Limited and English Lakes Hotels Limited have given unlimited guarantees for each others' bank borrowings. The guarantees are secured by a debenture, and fixed and floating charges on all the assets of the companies. The amount so guaranteed by the company at 31 March 2025 was £6,440,000 (2024: £6,440,000).

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:

Amounts contracted for but not provided in the financial statements:

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 £369,014 (2024 - £354,397) were paid in the year in respect of shares held by the company's directors.

The directors consider there to be no one controlling party.