Brook Hotels Group Limited Group accounts (Group and Company)

COMPANY REGISTRATION NUMBER: 06809029

Brook Hotels Group Limited

Financial Statements

25 March 2025

Brook Hotels Group Limited

Financial Statements

Year ended 25 March 2025

Contents	Page

Officers and professional advisers	1

Strategic report	2

Director's report	4

Independent auditor's report to the members	6

Consolidated statement of comprehensive income	10

Consolidated statement of financial position	11

Company statement of financial position	12

Consolidated statement of changes in equity	13

Company statement of changes in equity	14

Consolidated statement of cash flows	15

Notes to the financial statements	16

Brook Hotels Group Limited

Officers and Professional Advisers

Director	Mr U Ummat

Registered office	Mollington Banastre Hotel
	Parkgate Road
	Mollington, Chester
	Cheshire
	England
	CH1 6NN

Company number 06809029

Auditor	Chowdhary & Co
	Chartered accountants & statutory auditor
	46 Syon Lane
	Isleworth
	Middlesex
	TW7 5NQ

Bankers	Santander UK Plc
	P O Box 10102
	23 Prescott Street
	London
	BD1 5AN

Brook Hotels Group Limited

Strategic Report

Year ended 25 March 2025

The director presents the strategic report for the period ended 25 March 2025. The subsidiaries of Brook Hotels Group Limited are Kingston Lodge Hotel Limited and Brook Hotels No. 1 Limited. It is well documented that the general economic climate has continued to be extremely challenging for most businesses and the director therefore is pleased with the core trading results for the year, both in respect of turnover and profitability. Maximising room occupancy continues to be the focus for the director. The director continues to apply cost control procedures implemented in previous years. This has continued to strengthen the operating performance of the company. FINANCIAL KEY PERFORMANCE INDICATORS (KPI) The director considers the following KPIs in evaluating the performance of the business: - Revenue per available room - Occupancy levels - Average room rates; and - EBITDA All the above improved significantly during the year following effects of pandemic and continues to improve. POST BALANCE SHEET EVENTS During the year, the group disposed of one of its hotels. The bulk of the proceed was used to reduce the bank loans. In addition, the group underwent refinancing post yearend.

Principal risks and uncertainties

Principal risks The director has considered the exposure of the group to risks. The principal risks are interest rate risk, credit risk and liquidity risk. The group is funded through its retained earnings and borrowings. The director regularly monitors cash flow projections of the group in order to ensure that it has sufficient available funds for its continuing operations. The group currently has borrowings that are at a floating rate of interest that have been used to finance the business and, including integral fixed assets. The risk is managed by monitoring key ratios Such as interest cover, as well as cash flow. The group does not use derivative financial instruments to manage this risk and, as such, no hedge accounting is applied. The group is not exposed to any significant direct currency risk since there are no foreign subsidiaries or balances held in foreign locations, and all invoicing is in sterling. The group has policies in place such that credit checks are made on all potential customers as part of of setting new account procedures. Key suppliers are also subject to credit checks in order to mitigate supply chain failure. As it is well documented, the hospitality industry operates in a cyclic marketplace where there is a fierce competition both offline and online. The group has extensive internal controls which allows a flexible financial control and revenue management to assist monitor costs and achieve better returns in a volatile market. Despite well managed occupancy and optimisation of room rates, the profitability can naturally be adversely affected by various external events which may reduce the level of travel and increase operating costs. Such events can include global pandemics, political unrest, acts of terrorism. Insurance has been taken out to mitigate eventual loss form such events. Future developments The director will continue to focus on maximising hotel occupancy and closely managing operating costs. The group is looking to raise further capital for refurbishment of the hotels. Going forward, the group is expected to have more competition and more staffing costs. However, the director believes that the group is well established with more investment in people and technology allowing it to continue successfully in the future.

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

Mr U Ummat
Director

Registered office:

Mollington Banastre Hotel

Parkgate Road

Mollington, Chester

Cheshire

England

CH1 6NN

Brook Hotels Group Limited

Director's Report

Year ended 25 March 2025

The director presents his report and the financial statements of the group for the year ended 25 March 2025 .

Principal activity

The principal activity of the company during the year was that of hotels ownership.

Director

The director who served the company during the year was as follows:

Mr U Ummat

Results and dividends

No ordinary dividends were paid. The directors do not recommend the payment of a final dividend. During the year, loss after taxation amounted to £433,181.

Director's responsibilities statement

The director is responsible for preparing the strategic report, director's report and the financial statements in accordance with applicable law and regulations. Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is 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 director is 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 director is 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. He is 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 (as defined by section 418(3) of the Companies Act 2006) of which the company's auditor are 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 company's auditor is aware of that information.

The auditor, Chowdhary & Co, were re-appointed under section 487/(2) of the Companies Act 2006.

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

Mr U Ummat
Director

Registered office:

Mollington Banastre Hotel

Parkgate Road

Mollington, Chester

Cheshire

England

CH1 6NN

Brook Hotels Group Limited

Independent Auditor's Report to the Members of Brook Hotels Group Limited

Year ended 25 March 2025

Opinion

We have audited the financial statements of Brook Hotels Group Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 25 March 2025 which comprise the consolidated statement of comprehensive income, consolidated statement of financial position, company statement of financial position, consolidated statement of changes in equity, company statement of changes in equity, 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 25 March 2025 and of the group's loss 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.

Material uncertainty related to going concern

We draw your attention to Note (24) in the financial statements, the group has secured a loan facility for 12 month period and the director is in discussions with other banks to secure a long term loan. The director feels confident of achieving renewal after that period.

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 director is 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 director's report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

- the strategic report and the director's 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 group strategic report or the director's 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 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 the director

As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the group or the parent company or to cease operations, or has 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. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: Obtaining an understanding of the legal and regulatory framework applicable to the entity and how the entity is complying with that framework. Assessing the susceptibility of the entity's financial statements to material misstatement, including how fraud might occur. Discussions with management of any unknown or suspected fraud or instances of non-compliance with laws and irregularities. Identifying and testing any unusual journal entries, specifically those impacting revenue or costs classification. The engagement team collectively had the appropriate competence and capabilities to identify or recognise non-compliance with laws and regulations. Understanding and evaluating the entity's current activities, and effectiveness of management controls to prevent and detect irregularities. A further description of our responsibilities is located on the Financial Reporting Council's website at: https:www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report. Given the inherent limitations of an audit, there is a risk that we will not detect all irregularities including those leading to a material misstatement in the financial statements. This risk increases not only by the requirement to law compliance, but also with irregularities occurring because of fraud as this involves intentional concealment, forgery, collusion, omission or misrepresentation. 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.

Bhupindar Chowdhary FCA

(Senior Statutory Auditor)

For and on behalf of

Chowdhary & Co

Chartered accountants & statutory auditor

46 Syon Lane

Isleworth

Middlesex

TW7 5NQ

22 December 2025

Brook Hotels Group Limited

Consolidated Statement of Comprehensive Income

Year ended 25 March 2025

		2025			2024
		Continuing operations	Discont'd operations	Total	Continuing operations	Discont'd operations	Total
Note		£	£	£	£	£	£
Turnover	4	2,573,863	680,667	3,254,530	3,515,537	–	3,515,537

Cost of sales	( 1,482,080)	( 261,249)	( 1,743,329)	( 1,770,124)	–	( 1,770,124)
	------------	---------	------------	------------	----	------------
Gross profit	1,091,783	419,418	1,511,201	1,745,413	–	1,745,413

Administrative expenses		( 751,805)	( 370,867)	( 1,122,672)	( 1,165,936)	–	( 1,165,936)
		------------	---------	------------	------------	----	------------
Operating profit	5	339,978	48,551	388,529	579,477	–	579,477

Income from other fixed asset investments	8	–	( 703,209)	( 703,209)	–	–	–
Interest payable and similar expenses	9	( 138,372)	( 1,235)	( 139,607)	( 260,579)	–	( 260,579)
		------------	---------	------------	------------	----	------------
(Loss)/profit before taxation		201,606	( 655,893)	( 454,287)	318,898	–	318,898

Tax on (loss)/profit	10	21,106	–	21,106	( 17,809)	–	( 17,809)
		---------	---------	---------	---------	----	---------
(Loss)/profit for the financial year and total comprehensive income		222,712	( 655,893)	( 433,181)	301,089	–	301,089
		---------	---------	---------	---------	----	---------

(Loss)/profit for the financial period is all attributable to the owners of the parent company.

Brook Hotels Group Limited

Consolidated Statement of Financial Position

25 March 2025

	2025	2024
Note	£	£

Fixed assets

Tangible assets	12	5,687,287	8,518,144

Current assets

Stocks	13	7,247	17,703
Debtors	14	183,277	187,015
Cash at bank and in hand		22,036	18,942
		---------	---------
		212,560	223,660

Creditors: amounts falling due within one year	16	( 5,666,321)	( 6,676,394)
		------------	------------
Net current liabilities		( 5,453,761)	( 6,452,734)
		------------	------------
Total assets less current liabilities		233,526	2,065,410

Creditors: amounts falling due after more than one year	17	–	( 1,310,011)

Provisions	18	( 207,372)	( 296,064)
		---------	------------
Net assets		26,154	459,335
		---------	------------

Capital and reserves

Called up share capital	21	56,190	56,190
Profit and loss account	22	( 30,036)	403,145
		--------	---------
Shareholders funds		26,154	459,335
		--------	---------

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.

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 U Ummat
Director

Company registration number: 06809029

Brook Hotels Group Limited

Company Statement of Financial Position

25 March 2025

	2025	2024
Note	£	£

Fixed assets

Tangible assets	12	20,003	20,003

Current assets

Debtors	14	6,265,785	6,265,784

Creditors: amounts falling due within one year	16	( 6,257,392)	( 6,257,391)
		------------	------------
Net current assets		8,393	8,393
		--------	--------
Total assets less current liabilities		28,396	28,396
		--------	--------

Capital and reserves

Called up share capital	21	56,190	56,190
Profit and loss account	22	( 27,794)	( 27,794)
		--------	--------
Shareholders funds		28,396	28,396
		--------	--------

The profit for the financial year of the parent company was £Nil (2024: £Nil).

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the medium companies regime.

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 U Ummat
Director

Company registration number: 06809029

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.

Brook Hotels Group Limited

Consolidated Statement of Changes in Equity

Year ended 25 March 2025

	Called up share capital	Profit and loss account	Total
	£	£	£
At 26 March 2023	56,190	102,056	158,246

Profit for the year		301,089	301,089
	--------	---------	---------
Total comprehensive income for the year	–	301,089	301,089

At 25 March 2024	56,190	403,145	459,335

Loss for the year		( 433,181)	( 433,181)
	--------	---------	---------
Total comprehensive income for the year	–	( 433,181)	( 433,181)

	--------	---------	---------
At 25 March 2025	56,190	( 30,036)	26,154
	--------	---------	---------

Brook Hotels Group Limited

Company Statement of Changes in Equity

Year ended 25 March 2025

	Called up share capital	Profit and loss account	Total
	£	£	£
At 26 March 2023	56,190	( 27,794)	28,396

Profit for the year		–	–

At 25 March 2024	56,190	( 27,794)	28,396

Profit for the year		–	–

	--------	--------	--------
At 25 March 2025	56,190	( 27,794)	28,396
	--------	--------	--------

Brook Hotels Group Limited

Consolidated Statement of Cash Flows

Year ended 25 March 2025

		2025	2024
Note		£	£
Cash generated from operations	23	1,410	453,622

Interest paid	( 139,607)	( 260,579)
Tax received	–	30,547
	---------	---------
Net cash (used in)/from operating activities	( 138,197)	223,590
	---------	---------

Cash flows from investing activities

Purchase of tangible assets	( 112,494)	( 83,611)
Proceeds from sale of tangible assets	2,796,904	–
Proceeds from sale of other investments	(703,209)	–
	------------	---------
Net cash from/(used in) investing activities	1,981,201	( 83,611)
	------------	---------

Cash flows from financing activities

Proceeds from borrowings	( 1,310,011)	( 79,628)
	------------	---------
Net cash used in financing activities	( 1,310,011)	( 79,628)
	------------	---------

Net increase in cash and cash equivalents		532,993	60,351
Cash and cash equivalents at beginning of year		(657,999)	(718,350)
		---------	---------
Cash and cash equivalents at end of year	15	( 125,006)	( 657,999)
		---------	---------

Brook Hotels Group Limited

Notes to the Financial Statements

Year ended 25 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 Mollington Banastre Hotel, Parkgate Road, Mollington, Chester, Cheshire, CH1 6NN, 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 on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

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

Going concern

The financial statements have been prepared on a going concern basis. In doing so, the director has prepared budget projections for the foreseeable future, considering the uncertain trading environment. Furthermore, after the end of the reporting period, the Company ceased to be a party to a multi-lateral cross-guarantee between itself, Brook Hotels No. 1 Ltd and its fellow subsidiary, Kingston Lodge Hotel Ltd, following a settlement reached with the creditor of the fellow subsidiary. This should enable the company to continue in operational existence for the foreseeable future by meeting its liabilities as they fall due for payments. As with any company placing reliance on other related parties for financial support, the director acknowledges that there are no certainty that this support will continue although at the date of approval of these financial statements, he has no reason to believe that they will not do so. On this basis, the director believes that it remains appropriate to prepare the financial statements on a going concern basis.

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 financial instruments have not been presented. (b) Disclosures in respect of share-based payments have not been presented.

Consolidation

The financial statements consolidate the financial statements of Brook Hotels Group Limited and all of its subsidiary undertakings.

The results of subsidiaries acquired or disposed of during the year are included from or to the date that control passes.

The parent company has applied the exemption contained in section 408 of the Companies Act 2006 and has not presented its individual profit and loss account.

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. 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.

Revenue recognition

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the group and the turnover can be reliably measured. Turnover is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. Turnover is accrued throughout the guests' stay and room charges are recognised in the statement of Income and Retained earnings prior to checking out of the hotel. All other income generated from restaurants that is not charged to the guests' room is recognised at the point of sale.

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.

Goodwill

Goodwill arises on business acquisitions and represents the excess of the cost of the acquisition over the company's interest in the net amount of the identifiable assets, liabilities and contingent liabilities of the acquired business. Goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. It is amortised on a straight-line basis over its useful life. Where a reliable estimate of the useful life of goodwill or intangible assets cannot be made, the life is presumed not to exceed ten years.

Amortisation

Amortisation is calculated so as to write off the cost of an asset, less its estimated residual value, over the useful life of that asset as follows:

	Goodwill	-	fully amortised

If there is an indication that there has been a significant change in amortisation rate, useful life or residual value of an intangible asset, the amortisation is revised prospectively to reflect the new estimates.

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 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:

Land and buildings freehold	-	2% straight line
Land and buildings leasehold	-	Over the life of the lease
Fixtures, fittings and equipment	-	5% straight line
Motor vehicles	-	25% straight line

Land is not depreciated.

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 consist of food and drink stated at the lower of cost and estimated selling price less cots to complete and sell. At each balance sheet date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit and loss.

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
	£	£
Accommodation, food and beverage	3,254,530	3,515,537
	------------	------------

The whole turnover is attributable to hotel ownership and management.

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	146,447	133,152
Impairment of trade debtors	23,811	61,113
	---------	---------

6. Auditor's remuneration

	2025	2024
	£	£
Fees payable for the audit of the financial statements	16,000	16,000
	--------	--------

7. Staff costs

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

	2025	2024
	No.	No.
Administrative staff	4	4
Hospitality staff	60	65
	----	----
	64	69
	----	----

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

	2025	2024
	£	£
Wages and salaries	1,157,755	1,143,803
Other pension costs	11,028	10,951
	------------	------------
	1,168,783	1,154,754
	------------	------------

Directors emoluments totalled £113,756 (2024 : £113,865). The director was the only key management personnel. During the year retirement benefits of £1,211 were accruing to the director in respect of money purchase pension schemes.

8. Income from other fixed asset investments

	2025	2024
	£	£
(Gain)/loss on disposal of other fixed asset investments	(703,209)	–
	---------	----

9. Interest payable and similar expenses

	2025	2024
	£	£
Interest on banks loans and overdrafts	139,607	260,579
	---------	---------

10. Tax on profit

Major components of tax income

	2025	2024
	£	£

Current tax:

UK current tax income	67,586	44,573
Adjustments in respect of prior periods	–	( 30,547)
Deferred tax	(88,692)	3,783
	--------	--------
Total current tax	( 21,106)	17,809
	--------	--------
Tax on profit	( 21,106)	17,809
	--------	--------

Reconciliation of tax (income)/expense

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

	2025	2024
	£	£
(Loss)/profit on ordinary activities before taxation	( 454,287)	318,898
	---------	---------
(Loss)/profit on ordinary activities by rate of tax	( 113,572)	93,368
Adjustment to tax charge in respect of prior periods	–	( 30,547)
Effect of capital allowances and depreciation	5,356	8,653
Effect of different UK tax rates on some earnings	–	(180)
Utilisation of tax losses	–	( 21,754)
Deferred tax provision	(88,692)	3,783
Marginal relief	–	(989)
Group loss relief	–	(34,525)
Other tax adjustment to increase/(decrease) tax liability 5 - desc in a/cs	175,802	–
	---------	---------
Tax on profit	( 21,106)	17,809
	---------	---------

There are no factors which may affect future tax charges.

11. Intangible assets

Group	Goodwill
	£
Cost
At 26 March 2024 and 25 March 2025	120,349
	---------
Amortisation
At 26 March 2024 and 25 March 2025	120,349
	---------
Carrying amount
At 26 March 2024 and 25 March 2025	–
	---------
At 25 March 2024	–
	---------

The company has no intangible assets.

12. Tangible assets

Group	Land and buildings Freehold	Land and buildings Leasehold	Fixtures, fittings & equipment	Motor vehicles	Total
	£	£	£	£	£
Cost
At 26 March 2024	9,731,453	468,662	3,944,390	132,658	14,277,163
Additions	–	–	112,494	–	112,494
Disposals relating to discontinued operations	( 2,454,681)	–	( 930,607)	–	( 3,385,288)
	------------	---------	------------	---------	-------------
At 25 March 2025	7,276,772	468,662	3,126,277	132,658	11,004,369
	------------	---------	------------	---------	-------------
Depreciation
At 26 March 2024	2,864,429	96,576	2,665,356	132,658	5,759,019
Charge for the year	–	8,878	137,569	–	146,447
Disposals relating to discontinued operations	–	–	( 588,384)	–	( 588,384)
	------------	---------	------------	---------	-------------
At 25 March 2025	2,864,429	105,454	2,214,541	132,658	5,317,082
	------------	---------	------------	---------	-------------
Carrying amount
At 25 March 2025	4,412,343	363,208	911,736	–	5,687,287
	------------	---------	------------	---------	-------------
At 25 March 2024	6,867,024	372,086	1,279,034	–	8,518,144
	------------	---------	------------	---------	-------------

Company	Fixed Asset Investment
	£
Cost
At 26 March 2024 and 25 March 2025	20,003
	--------
Depreciation
At 26 March 2024 and 25 March 2025	–
	--------
Carrying amount
At 25 March 2025	20,003
	--------
At 25 March 2024	20,003
	--------

Included in land and building is freehold land of £3,013,200 which is not depreciated. Nil depreciation on buildings due to residual value. All of the assets of the group are pledged as security for the bank borrowings.

13. Stocks

	Group		Company
	2025	2024	2025	2024
	£	£	£	£
Raw materials and consumables	7,247	17,703	–	–
	-------	--------	----	----

14. Debtors

	Group		Company
	2025	2024	2025	2024
	£	£	£	£
Trade debtors	112,082	116,183	–	–
Amounts owed by group undertakings	–	–	6,265,673	6,265,764
Prepayments and accrued income	42,673	59,973	–	–
Other debtors	28,522	10,859	112	20
	---------	---------	------------	------------
	183,277	187,015	6,265,785	6,265,784
	---------	---------	------------	------------

15. Cash and cash equivalents

Cash and cash equivalents comprise the following:

	2025	2024
	£	£
Cash at bank and in hand	22,036	18,942
Bank overdrafts	( 147,042)	( 676,941)
	---------	---------
	( 125,006)	( 657,999)
	---------	---------

16. Creditors: amounts falling due within one year

	Group		Company
	2025	2024	2025	2024
	£	£	£	£
Bank loans and overdrafts	147,042	676,941	–	–
Trade creditors	202,933	286,603	–	–
Amounts owed to group undertakings	–	–	6,257,392	6,257,391
Accruals and deferred income	229,740	205,868	–	–
Corporation tax	121,893	54,307	–	–
Social security and other taxes	88,063	165,766	–	–
Other creditors	4,876,650	5,286,909	–	–
	------------	------------	------------	------------
	5,666,321	6,676,394	6,257,392	6,257,391
	------------	------------	------------	------------

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

	Group		Company
	2025	2024	2025	2024
	£	£	£	£
Bank loans and overdrafts	–	1,310,011	–	–
	----	------------	----	----

Bank loans and overdrafts are secured over the freehold and leasehold land and buildings to which they relate.

Net obligations under finance lease and hire purchase contracts are secured by fixed charges on the assets concerned.

18. Provisions

Group	Deferred tax (note 19)
	£
At 26 March 2024	296,064
Additions	( 88,692)
	---------
At 25 March 2025	207,372
	---------

The company does not have any provisions.

19. 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 18)	207,372	296,064	–	–
	---------	---------	----	----

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

	Group		Company
	2025	2024	2025	2024
	£	£	£	£
Accelerated capital allowances	207,372	296,064	–	–
	---------	---------	----	----

20. Employee benefits

Defined contribution plans

The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 11,028 (2024: £ 10,951 ).

The group operates a defined contributions pension scheme. These assets are held separately from those of the group in an independently administered fund. Contributions totalling £1,452 (2023: £2,733) were payable to the funds at the balance sheet date and are included in creditors.

21. Called up share capital

Issued, called up and fully paid

	2025		2024
	No.	£	No.	£
Ordinary A shares of £ 0.10 each	56,190	5,619	56,190	5,619
Ordinary B shares of £ 0.10 each	505,710	50,571	505,710	50,571
	---------	--------	---------	--------
	561,900	56,190	561,900	56,190
	---------	--------	---------	--------

22. Reserves

Profit and loss account - This reserve records retained earnings and accumulated losses.

23. Cash generated from operations

	2025	2024
	£	£
(Loss)/profit for the financial year	( 433,181)	301,089

Adjustments for:
Depreciation of tangible assets	146,447	133,152
Income from other fixed asset investments	703,209	–
Interest payable and similar expenses	139,607	260,579
Tax on profit	(21,106)	17,809
Accrued expenses/(income)	23,872	( 46,684)
Other operating cash flow adjustment	–	1

Changes in:
Stocks	10,456	32,000
Trade and other debtors	3,738	( 23,307)
Trade and other creditors	( 571,632)	( 221,037)
Other operating cash flow changes	–	20
	---------	---------
	1,410	453,622
	---------	---------

24. Financial commitments, guarantees and contingent liabilities

After the end of the reporting period, the Company ceased to be a party to a multi-lateral cross-guarantee between itself, Brook Hotels No. 1 Ltd and its fellow subsidiary, Kingston Lodge Hotel Ltd, following a settlement reached with the creditor of the fellow subsidiary.

25. Analysis of changes in net debt

	At 26 Mar 2024	Cash flows	At 25 Mar 2025
	£	£	£
Cash at bank and in hand	18,942	3,094	22,036
Bank overdrafts	(676,941)	529,899	(147,042)
Debt due after one year	(1,310,011)	1,310,011	–
	------------	------------	---------
	( 1,968,010)	1,843,004	( 125,006)
	------------	------------	---------

26. Subsidiary undertakings

The following were 100% subsidiary undertaking of the company: Company details Principal activities No. of shares Brook Hotels No.1 Limited Hotelier 1 ordinay share Kingston Lodge Hotel Limited Non trading 1 ordinay share Marston Farm Hotel Ltd Limited Non trading 10,000 ordinay shares The Mollington Hotel & Spa Limited Non trading 1 ordinay share The Whipper-In Hotel Limited Non trading 10,000 ordinay shares The registered office of the above subsidiary undertakings is: Mollington Banastre Hotel, Parkgate Road, Mollington, Chester, Cheshire, England, CH1 6NN.

27. Post balance sheet events

Subsequent to the yearend, the company disposed of one of its hotels. The bulk of the proceed was used to reduce the bank loans.

In addition, the company underwent refinancing post yearend to amend the existing loan agreement.

28. Ultimate controlling party

As at the year end, the ultimate controlling party was Mr U Ummat by virtue of his majority shareholding.