Michels and Taylor (London) Limited Group accounts (Group and Company)

COMPANY REGISTRATION NUMBER: 07886297

Michels and Taylor (London) Limited

Financial Statements

31 March 2025

Michels and Taylor (London) Limited

Financial Statements

Year ended 31 March 2025

Contents	Page

Strategic report	1

Directors' report	2

Independent auditor's report to the members	5

Consolidated statement of income and retained earnings	9

Company statement of income and retained earnings	10

Consolidated statement of financial position	11

Company statement of financial position	12

Consolidated statement of cash flows	13

Notes to the financial statements	14

Michels and Taylor (London) Limited

Strategic Report

Year ended 31 March 2025

PRINCIPAL ACTIVITIES AND BUSINESS REVIEW The principal activity of the group is trading in the hotel and leisure sector. The company continued to provide consultancy, advise clients on various aspects of the running of their hotels including brand selection and provided management services on a day-to-day basis for a number of hotels . KEY PERFORMANCE INDICATORS The directors monitor the performance using a wide range of financial and non-financial indicators including like for like turnover and cost management. The key KPIs that are considered most relevant to the group due to its size and activities were turnover and profit before tax. The group's total sales were £28m (2024: £30m) and the primary driver for the decrease is due to the increase in cost of living hence travel and hospitality industry overall is in decline. The profit before taxation, amounted to £187k (2024: £728k) and the decline is as a result of rising cost especially from the energy sector. The board does not foresee any changes to the strategy of the business for the next three years and therefore does not anticipate anu significant changes to the structure of the company PRINCIPAL RISKS AND UNCERTAINTIES The hotel industry costs have risen especially payroll and energy costs. As a result of the change of Government, tax increases and changes to employment legislation, employment costs have risen substantially. Together with the inflationary pressure e.g. food price increases and utility costs there has been a significant reduction in profits. OTHER INFORMATION Section 172 of the Companies Act 2006 requires directors to take into consideration the interest of stakeholders and other matters in their decision making. The directors continue to have regard to the interests of the company's employees and other stakeholders, the impact of its activities on the community, the environment and the company reputation for good business conduct, when making decisions. The company seeks to ensure that all employees, job applications and prospective job applicants are afforded equality of job opportunity in all areas of employment. The company place value on the involvement of its employees and has continued its practice of keeping them informed of matters affecting them as employees, and on various matters affecting performance.

This report was approved by the board of directors on 22 December 2025 and signed on behalf of the board by:

Mr I Noble

Director

Registered office:

Suite 3 Caspian House

The Waterfront, Elstree Road,

Elstree,

England

WD6 3BS

Michels and Taylor (London) Limited

Directors' Report

Year ended 31 March 2025

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

Directors

The directors who served the company during the year were as follows:

Mr D Hughes
Mr D.M Michels
Mr I Noble
Mr H A Forusz
Mr H.M Taylor
PGH Hales

Dividends

The directors paid during the year a dividend of £250k (2024: £250k).

Future developments

The company will continue to provide management services to hotels and leisure sector.

Employment of disabled persons

The group's policy will continue to operate as follows: a/ full and fair consideration is given to disable applicants for the employment, have regard to their particular aptitudes and abilities. b/ where an employee becomes disabled the objectives is the continued provision of suitable employment either in the same or an alternative position, with appropriate training being given if necessary and c/ disable employees share in the opportunities for the training being, career development and promotion.

Employee involvement

The group has continued to operate communication cycles that requires general managers of each hotel to meet departmental management and then meet with ther superiors and/ or staff to discuss a/ performance to date. b/ problems or difficulties being experienced c/ future plans and other relevant matter

Events after the end of the reporting period

Particulars of events after the reporting date are detailed in note 22 to the financial statements.

Disclosure of information in the strategic report

On 24 October 2024, there was a restructuring of the ownership of the company. Several share sales took place, and the ultimate result is that 75.1% of the shares are now owned by MTS Hospitality Investment Ltd.

Directors' responsibilities statement

The directors are responsible for preparing the strategic report, directors' 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 group and the company and the profit or loss of the group for that period.

In preparing these financial statements, the directors are required to:

- select suitable accounting policies and then apply them consistently;

- make judgments and accounting estimates that are reasonable and prudent;

- prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's 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.

Auditor

Each of the persons who is a director at the date of approval of this report confirms that:

- so far as they are aware, there is no relevant audit information of which the group and the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the group and the company's auditor is aware of that information.

This report was approved by the board of directors on 22 December 2025 and signed on behalf of the board by:

Mr I Noble

Director

Registered office:

Suite 3 Caspian House

The Waterfront, Elstree Road,

Elstree,

England

WD6 3BS

Michels and Taylor (London) Limited

Independent Auditor's Report to the Members of Michels and Taylor (London) Limited

Year ended 31 March 2025

Opinion

We have audited the financial statements of Michels and Taylor (London) Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 March 2025 which comprise the consolidated statement of income and retained earnings, company statement of income and retained earnings, consolidated statement of financial position, company statement of financial position, consolidated statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: - give a true and fair view of the state of the group's and of the parent company's affairs as at 31 March 2025 and of the group's profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - 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 group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's or the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The 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. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of the audit:

- the information given in the 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.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the 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 by the parent company, or returns adequate for our audit have not been received from branches not visited by us; or - the parent company financial statements are not in agreement with the accounting records and returns; or - certain disclosures of directors' remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, 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 group's and the parent company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the group or the parent company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue 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: The following laws and regulations were identified as being of significance to the entity: * Those laws and regulations considered to have a direct effect on the financial statements include UK financial reporting standards, Company Law, Tax and Pensions legislation, and distributable profits legislation. * Those laws and regulations for which non-compliance may be fundamental to the operating aspects of the business and therefore may have a material effect on the financial statements include operating licence, environmental regulations, health and safety legislation Audit procedures undertaken in response to the potential risks relating to irregularities (which include fraud and non-compliance with laws and regulations) comprised of: inquiries of management and those charged with governance as to whether the entity complies with such laws and regulations; enquiries with the same concerning any actual or potential litigation or claims; inspection of relevant legal correspondence; testing the appropriateness of journal entries; and the performance of analytical review to identify unexpected movements in account balances which may be indicative of fraud. No instances of material non-compliance were identified. However, the likelihood of detecting irregularities, including fraud, is limited by the inherent difficulty in detecting irregularities, the effectiveness of the entity's controls, and the nature, timing and extent of the audit procedures performed. Irregularities that result from fraud might be inherently more difficult to detect than irregularities that result from error. As explained above, there is an unavoidable risk that material misstatements may not be detected, even though the audit has been planned and performed in accordance with ISAs (UK). As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the group's internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the group's or the parent company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the group or the parent company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. - Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 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.

Jeffrey Baker

(Senior Statutory Auditor)

For and on behalf of

Baker Friend Audit Limited

Chartered accountants & statutory auditor

2nd Floor

32-33 Gosfield Street

Fitzrovia

London

W1W 6HL

22 December 2025

Michels and Taylor (London) Limited

Consolidated Statement of Income and Retained Earnings

Year ended 31 March 2025

		2025	2024
Note		£	£
Turnover	4	28,991,329	30,840,016

Cost of sales	8,839,416	11,020,271
	-------------	-------------
Gross profit	20,151,913	19,819,745

Administrative expenses		19,970,695	19,090,782
		-------------	-------------
Operating profit	5	181,218	728,963

Other interest receivable and similar income	9	6,692	–
		-------------	-------------
Profit before taxation		187,910	728,963

Tax on profit	10	50,632	194,907
		---------	---------
Profit for the financial year and total comprehensive income		137,278	534,056
		---------	---------

Retained earnings at the start of the year	2,080,799	1,546,242
	------------	------------
Retained earnings at the end of the year	2,218,077	2,080,298
	------------	------------

All the activities of the group are from continuing operations.

Michels and Taylor (London) Limited

Company Statement of Income and Retained Earnings

Year ended 31 March 2025

	2025	2024
Note	£	£
Profit for the financial year and total comprehensive income	137,278	534,056
Retained earnings at the start of the year	2,080,298	1,546,242
	------------	------------
Retained earnings at the end of the year	2,217,576	2,080,298
	------------	------------

Michels and Taylor (London) Limited

Consolidated Statement of Financial Position

31 March 2025

	2025	2024
Note	£	£

Fixed assets

Tangible assets	11	52,898	64,436

Current assets

Stocks	13	58,403	56,159
Debtors	14	5,972,078	3,894,927
Cash at bank and in hand		968,102	1,151,826
		------------	------------
		6,998,583	5,102,912

Creditors: amounts falling due within one year	15	4,774,560	3,028,462
		------------	------------
Net current assets		2,224,023	2,074,450
		------------	------------
Total assets less current liabilities		2,276,921	2,138,886

Provisions	16	12,894	12,638
		------------	------------
Net assets		2,264,027	2,126,248
		------------	------------

Capital and reserves

Called up share capital	19	1,000	1,000
Share premium account	20	44,950	44,950
Profit and loss account	20	2,218,077	2,080,298
		------------	------------
Shareholders funds		2,264,027	2,126,248
		------------	------------

These financial statements were approved by the board of directors and authorised for issue on 22 December 2025 , and are signed on behalf of the board by:

Mr I Noble

Director

Company registration number: 07886297

Michels and Taylor (London) Limited

Company Statement of Financial Position

31 March 2025

	2025	2024
Note	£	£

Fixed assets

Tangible assets	11	52,898	64,436
Investments	12	501	501
		--------	--------
		53,399	64,937

Current assets

Debtors	14	3,176,128	2,407,029
Cash at bank and in hand		174,011	708,948
		------------	------------
		3,350,139	3,115,977

Creditors: amounts falling due within one year	15	1,127,118	1,042,028
		------------	------------
Net current assets		2,223,021	2,073,949
		------------	------------
Total assets less current liabilities		2,276,420	2,138,886

Provisions	16	12,894	12,638
		------------	------------
Net assets		2,263,526	2,126,248
		------------	------------

Capital and reserves

Called up share capital	19	1,000	1,000
Share premium account	20	44,950	44,950
Profit and loss account	20	2,217,576	2,080,298
		------------	------------
Shareholders funds		2,263,526	2,126,248
		------------	------------

The profit for the financial year of the parent company was £ 137,278 (2024: £ 534,056 ).

These financial statements were approved by the board of directors and authorised for issue on 22 December 2025 , and are signed on behalf of the board by:

Mr I Noble

Director

Company registration number: 07886297

Michels and Taylor (London) Limited

Consolidated Statement of Cash Flows

Year ended 31 March 2025

	2025	2024
	£	£

Cash flows from operating activities

Profit for the financial year	137,278	534,056

Adjustments for:
Depreciation of tangible assets	26,400	21,478
Other interest receivable and similar income	( 6,692)	–
Tax on profit	50,632	194,907
Accrued expenses	865	30,556

Changes in:
Stocks	( 2,244)	( 3,710)
Trade and other debtors	( 1,982,876)	( 1,023,159)
Trade and other creditors	1,755,750	( 571,423)
	------------	------------
Cash generated from operations	( 20,887)	( 817,295)

Interest received	6,692	–
Tax paid	( 14,667)	( 297,988)
	--------	------------
Net cash used in operating activities	( 28,862)	( 1,115,283)
	--------	------------

Cash flows from investing activities

Purchase of tangible assets	( 14,862)	( 28,081)
	--------	------------
Net cash used in investing activities	( 14,862)	( 28,081)
	--------	------------

Cash flows from financing activities

Proceeds from borrowings	( 140,000)	( 140,000)
	---------	------------
Net cash used in financing activities	( 140,000)	( 140,000)
	---------	------------

Net decrease in cash and cash equivalents	( 183,724)	( 1,283,364)
Cash and cash equivalents at beginning of year	1,151,826	2,435,190
	------------	------------
Cash and cash equivalents at end of year	968,102	1,151,826
	------------	------------

Michels and Taylor (London) Limited

Notes to the Financial Statements

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 Suite 3 Caspian House, The

Waterfront, Elstree Road,, Elstree,, WD6 3BS, England.

2. Statement of compliance

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

3. Accounting policies

Basis of preparation

The financial statements have been prepared in accordance with the United Kingdom Accounting Standards including Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and Republic of Ireland ("FRS 102"). The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities 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 the financial statements, the directors are required to make an assessment of the ability of the group and the company to continue as a going concern. The directors have prepared a cash flow forecast for the group and company which covers 12 months period from the date of signing these financial statement. The company operates entirely in the hospitality sector with a profitable net result for the year £137,278 (2024 :£534,056). The business continues to be making profit with substantial net current assets and as a result the directors have concluded that it remains appropriate to adopt a going concern basis of preparation in these financial statement.

Disclosure exemptions

The parent company satisfies the criteria of being a qualifying entity as defined in FRS 102. As such, advantage has been taken of the following reduced disclosures available under FRS 102: (a) Disclosures in respect of each class of share capital have not been presented. (b) No cash flow statement has been presented for the company. (c) Disclosures in respect of financial instruments have not been presented. (d) Disclosures in respect of share-based payments have not been presented. (e) No disclosure has been given for the aggregate remuneration of key management personnel. (f) The company has taken advantage of the exemption allowed under section 408 Companies act 2006 and has not presented its own statement of comprehensive income.

Consolidation

Basis of Consolidation The financial statements include the results of the company and its subsidiary undertakings (collectively the "group"). Investments into the subsidiaries are included in the financial statements until the date when the company ceases to control or exercise influence over them. In preparing these financial statements any intergroup transactions and balances have been eliminated . The below subsidiary companies are included in the consolidated financial statements and are incorporated in England and Wales registered office is Suite 3 Caspian House, The Waterfront, Elstree Road, WD6 3BS, England Subsidiaries Michels & Taylor Opco B Limited Michels & Taylor Opco E Limited Michels & Taylor Opco S Limited Michels & Taylor (Brighton) Limited Michels & Taylor Midco Limited Principal activities for these subsidiaries are Hotel operation - Michels & Taylor Midco Limited is a dormant company Incorporated country: England Class of shares: 100% Percentage of share held in each subsdiary - 100%

Judgements and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

Revenue recognition

Turnover represents income from the management of hotels, food and beverage sales, hotels services, room hire and related services, excluding value added tax. Turnover is stated at the fair value of the consideration receivable, net of value added tax, rebates, and discount Turnover from the service provided is recognised when the company has performed its obligation and in exchange obtained the right to consideration. All turnover arose wholly in the United Kingdom. Revenue from the rendering of services is measured by reference to the stage of completion of the service transaction at the end of the reporting period provided that the outcome can be reliably estimated. When the outcome cannot be reliably estimated, revenue is recognised only to the extent that it is probable the expenses recognised will be recovered.

Income tax

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, 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.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses. Any tangible assets carried at revalued amounts are recorded at the fair value at the date of revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. An increase in the carrying amount of an asset as a result of a revaluation, is recognised in other comprehensive income and accumulated in equity, except to the extent it reverses a revaluation decrease of the same asset previously recognised in profit or loss. A decrease in the carrying amount of an asset as a result of revaluation, is recognised in other comprehensive income to the extent of any previously recognised revaluation increase accumulated in equity in respect of that asset. Where a a revaluation decrease exceeds the accumulated revaluation gains accumulated in equity in respect of that asset, the excess shall be recognised in profit or loss.

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

Plant and machinery	-	25% straight line
Fixtures and fittings	-	25% straight line
Equipment	-	25% straight line

Investments

Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.

Listed investments are measured at fair value with changes in fair value being recognised in profit or loss.

Investments in associates

Investments in associates are accounted for using the equity method of accounting, whereby the investment is initially recognised at the transaction price and subsequently adjusted to reflect the group's share of the profit or loss, other comprehensive income and equity of the associate.

Investments in joint ventures

Investments in joint ventures are accounted for using the equity method of accounting, whereby the investment is initially recognised at the transaction price and subsequently adjusted to reflect the group's share of the profit or loss, other comprehensive income and equity of the joint venture.

Impairment of fixed assets

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. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets. For impairment testing of goodwill, the goodwill acquired in a business combination is, from the acquisition date, allocated to each of the cash-generating units that are expected to benefit from the synergies of the combination, irrespective of whether other assets or liabilities of the company are assigned to those units.

Stocks

Stocks are state at the lower of cost and estimated selling price less cost to complete and sell. Cost comprises direct materials and where applicable, direct labour costs and those overheads that have been incurred in bringing the stocks to their present location and conditions.

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 as a finance cost in profit or loss in the period it arises.

Financial instruments

A financial asset or a financial liability is recognised only when the company becomes a party to the contractual provisions of the instrument. Basic financial instruments are initially recognised at the transaction price, unless the arrangement constitutes a financing transaction, where it is recognised at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Debt instruments are subsequently measured at amortised cost. Where investments in non-convertible preference shares and non-puttable ordinary shares or preference shares are publicly traded or their fair value can otherwise be measured reliably, the investment is subsequently measured at fair value with changes in fair value recognised in profit or loss. All other such investments are subsequently measured at cost less impairment. Other financial instruments, including derivatives, are initially recognised at fair value, unless payment for an asset is deferred beyond normal business terms or financed at a rate of interest that is not a market rate, in which case the asset is measured at the present value of the future payments discounted at a market rate of interest for a similar debt instrument. Other financial instruments are subsequently measured at fair value, with any changes recognised in profit or loss, with the exception of hedging instruments in a designated hedging relationship.

Financial assets that are measured at cost or amortised cost are reviewed for objective evidence of impairment at the end of each reporting date. If there is objective evidence of impairment, an impairment loss is recognised in profit or loss immediately. For all equity instruments regardless of significance, and other financial assets that are individually significant, these are assessed individually for impairment. Other financial assets are either assessed individually or grouped on the basis of similar credit risk characteristics. Any reversals of impairment are recognised in profit or loss immediately, to the extent that the reversal does not result in a carrying amount of the financial asset that exceeds what the carrying amount would have been had the impairment not previously been recognised.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

4. Turnover

Turnover arises from:

	2025	2024
	£	£
Turnover	28,991,329	30,840,016
	-------------	-------------

The whole of the turnover is attributable to the principal activity of the group wholly undertaken in the United Kingdom.

5. Operating profit

Operating profit or loss is stated after charging:

	2025	2024
	£	£
Depreciation of tangible assets	26,400	21,478
Impairment of trade debtors	56,378	64,852
	--------	--------

6. Auditor's remuneration

	2025	2024
	£	£
Fees payable for the audit of the financial statements	85,000	85,000
	--------	--------

7. Staff costs

The average number of persons employed by the group during the year, including the directors, amounted to:

	2025	2024
	No.	No.
Average Staff Numbers	462	451
	----	----

The aggregate payroll costs incurred during the year, relating to the above, were:

	2025	2024
	£	£
Wages and salaries	14,686,042	13,939,122
Social security costs	1,122,600	1,155,421
Other pension costs	245,013	242,456
	-------------	-------------
	16,053,655	15,336,999
	-------------	-------------

8. Directors' remuneration

The directors' aggregate remuneration in respect of qualifying services was:

	2025	2024
	£	£
Remuneration	1,222,158	1,188,869
	------------	------------

Remuneration of the highest paid director in respect of qualifying services:

	2025	2024
	£	£
Aggregate remuneration	354,608	346,276
	---------	---------

9. Other interest receivable and similar income

	2025	2024
	£	£
Interest on bank deposits	6,692	–
	-------	----

10. Tax on profit

Major components of tax expense

	2025	2024
	£	£

Current tax:

UK current tax expense	50,632	194,907
Tax on profit	50,632	194,907
	--------	---------

Reconciliation of tax expense

The tax assessed on the profit on ordinary activities for the year is higher than (2024: the same as) the standard rate of corporation tax in the UK of 25 % (2024: 25 %).

	2025	2024
	£	£
Profit on ordinary activities before taxation	187,910	728,963
	---------	---------
Profit on ordinary activities by rate of tax	46,978	194,907
Effect of expenses not deductible for tax purposes	842	–
Effect of capital allowances and depreciation	2,812	–
	---------	---------
Tax on profit	50,632	194,907
	---------	---------

11. Tangible assets

Group and company	Plant and machinery	Fixtures and fittings	Equipment	Total
	£	£	£	£
Cost
At 1 April 2024	20,442	2,512	231,881	254,835
Additions	–	–	14,862	14,862
	--------	-------	---------	---------
At 31 March 2025	20,442	2,512	246,743	269,697
	--------	-------	---------	---------
Depreciation
At 1 April 2024	20,442	1,805	168,152	190,399
Charge for the year	–	–	26,400	26,400
	--------	-------	---------	---------
At 31 March 2025	20,442	1,805	194,552	216,799
	--------	-------	---------	---------
Carrying amount
At 31 March 2025	–	707	52,191	52,898
	--------	-------	---------	---------
At 31 March 2024	–	707	63,729	64,436
	--------	-------	---------	---------

12. Investments

The group has no investments.

Company	Shares in group undertakings
	£
Cost
At 1 April 2024 and 31 March 2025	501
	----
Impairment
At 1 April 2024 and 31 March 2025	–
	----

Carrying amount
At 1 April 2024 and 31 March 2025	501
	----
At 31 March 2024	501
	----

Subsidiaries, associates and other investments

Details of the investments in which the parent company has an interest of 20% or more are as follows:

	Class of share	Percentage of shares held
Subsidiary undertakings
Michels & Taylor Op-Co B Limited Suite 3 Caspian House, The Waterfront, Elstree Road, Elstree, United Kingdom, WD6 3BS	Ordinary	100
Michels & Taylor Op-Co E Limited Suite 3 Caspian House, The Waterfront, Elstree Road, Elstree, United Kingdom, WD6 3BS	Ordinary	100
Michels & Taylor Op-Co S Limited Suite 3 Caspian House, The Waterfront, Elstree Road, Elstree, United Kingdom, WD6 3BS	Ordinary	100
Michels & Taylor Midco Limited Suite 3 Caspian House, The Waterfront, Elstree Road, Elstree, United Kingdom, WD6 3BS	Ordinary	100
Michels & Taylor (Brighton) Limited Suite 3 Caspian House, The Waterfront, Elstree Road, Elstree, United Kingdom, WD6 3BS	Ordinary	100

Fixed Asset Investment Investment in subsidiary undertakings are stated at cost. The carrying value of investment is reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable.

13. Stocks

	Group		Company
	2025	2024	2025	2024
	£	£	£	£
Raw materials and consumables	58,403	56,159	–	–
	--------	--------	----	----

14. Debtors

	Group		Company
	2025	2024	2025	2024
	£	£	£	£
Trade debtors	2,808,482	2,709,314	2,342,878	1,967,124
Prepayments and accrued income	328,294	483,989	248,975	354,421
Other debtors	2,835,302	701,624	584,275	85,484
	------------	------------	------------	------------
	5,972,078	3,894,927	3,176,128	2,407,029
	------------	------------	------------	------------

15. Creditors: amounts falling due within one year

	Group		Company
	2025	2024	2025	2024
	£	£	£	£
Bank loans and overdrafts	245,000	385,000	245,000	385,000
Trade creditors	2,532,916	801,857	178,192	128,330
Accruals and deferred income	784,577	32,803	191,392	19,070
Corporation tax	230,872	194,907	230,872	194,907
Social security and other taxes	851,478	224,959	281,662	301,605
Other creditors - desc in a/cs	129,717	1,389,034	–	13,116
Other creditors	–	( 98)	–	–
	------------	------------	------------	------------
	4,774,560	3,028,462	1,127,118	1,042,028
	------------	------------	------------	------------

16. Provisions

Group and company	Deferred tax (note 17)
	£
At 1 April 2024	12,638
Additions	256
	--------
At 31 March 2025	12,894
	--------

17. Deferred tax

The deferred tax included in the statement of financial position is as follows:

	Group		Company
	2025	2024	2025	2024
	£	£	£	£
Included in provisions (note 16)	12,894	12,638	12,894	12,638
	--------	--------	--------	--------

The deferred tax account consists of the tax effect of timing differences in respect of:

	Group		Company
	2025	2024	2025	2024
	£	£	£	£
Deferred tax - other timing differences	12,894	12,638	12,894	12,638
	--------	--------	--------	--------

18. Employee benefits

Defined contribution plans

The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 245,013 (2024: £ 242,456 ).

19. Called up share capital

Issued, called up and fully paid

2025		2024
No.	£	No.	£

Amounts presented in equity:

Called up share capital shares of £ 1 each	1,000	1,000	1,000	1,000
	-------	-------	-------	-------

Amounts presented in liabilities:

Share premium account shares of £ 1 each	44,950	44,950	44,950	44,950
	--------	--------	--------	--------

20. Reserves

Share premium account - This reserve records the amount above the nominal value received for shares sold, less transaction costs. Profit and loss account - This reserve records retained earnings and accumulated losses.

21. Analysis of changes in net debt

	At 1 Apr 2024	Cash flows	At 31 Mar 2025
	£	£	£
Cash at bank and in hand	1,151,826	(183,724)	968,102
Debt due within one year	(385,000)	140,000	(245,000)
	------------	---------	---------
	766,826	( 43,724)	723,102
	------------	---------	---------

22. Events after the end of the reporting period

During December 2025, the group disposed of its interest in Michels & Taylor Op-Co B Ltd, Michels & Taylor Op-Co E Ltd and Michels & Taylor Op-Co s Ltd

23. Related party transactions

Group

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

	Transaction value		Balance owed by/(owed to)
	2025	2024	2025	2024
	£	£	£	£
Associated Companies	1,458,275	2,715,363	222,231	732,715
	------------	------------	---------	---------

During the period the ccmpany received hotel management fees totaling £1,458,275 (2024:£1,357,682) from companies of which the director Sir David Michels is also a director and shareholder. Of these amount £222,231(2024:£412,298) was amount due to Michels and Taylor (London) Limited as at 31 March 2025.

Company

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

	Transaction value		Balance owed by/(owed to)
	2025	2024	2025	2024
	£	£	£	£
Associated Companies	1,458,275	1,357,682	222,231	412,298
	------------	------------	---------	---------

Michels and Taylor (London) Limited

Notes to the Financial Statements (continued)

Year ended 31 March 2025

24. Controlling party

Michels and Taylor (London) Limited is a company incorporated and registered in England and Wales and the ultimate parent undertaking to consolidate finanacial statement as at 31 March 2024. The immediate beneficial owner is MTS Hospitality Investment BV Limited.