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Registered number: 06008773









Leaf Hotels Limited









Annual report and financial statements

For the Year Ended 31 March 2025

 
Leaf Hotels Limited
 
 
Company Information


Director
Kanagaratnam Rajamenon 




Registered number
06008773



Registered office
Singledge Lane
Whitfield

Dover

Kent

CT16 3EL




Independent auditors
Mantax Lynton
Chartered Accountants & Registered Auditors

2nd Floor Equitable House

7 General Gordon Square

London

SE18 6FH




Accountants
Accountancy Group
SVS House

Oliver Grove

South Norwood

London

SE25 6EJ





 
Leaf Hotels Limited
 

Contents



Page
Group strategic report
1
Director's report
2 - 3
Independent auditors' report
4 - 7
Consolidated statement of comprehensive income
8
Consolidated statement of financial position
9 - 10
Company statement of financial position
11
Consolidated statement of changes in equity
12
Company statement of changes in equity
13
Consolidated statement of cash flows
14
Consolidated analysis of net debt
15
Notes to the financial statements
16 - 33


 
Leaf Hotels Limited
 
 
Group strategic report
For the Year Ended 31 March 2025

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

Business review
 
The principal activity of the Company during the year under review continued to be of a holding company controlling a group managing hotels. 
The results for the year and financial position of the group are shown in the annexed financial statements.
Due to difficult trading conditions and uncertainities in the economy, turnover of the group has decreased from £5.13 million in 2024 to £4.6 million in the current year. The reduction inturnover and increase in costs due to annual inflation led to reduction in profits from £289k in 2024 to £87k in the current year. Net assets of the group have increased  from £7.61 million in 2024 to £7.67 million in the current year.
The director is pleased with the results of the group and believe the group will be able to maintain the steady turnover and profits over the foreseeable future. Director is closely monitoring the liquidity position and is satisfied with the performance of the group since year end.

Principal risks and uncertainties
 
The business has performed as well as expected in the current year. However the future prospect is challenging due to bleak economic outlook, increasing interest rate and cost of living crisis. Also Brexit continues to pose a threat for the businesses in Dover area. However, the director is confident that with continuous support from its lenders and shareholder, the group will be able to maintain its growth well above the peer group.
The group’s hotels have its own distinct quality in terms of customer service. The group recently rebranded one of its hotels from "Ramada Dover" to "Holiday Inn Dover" hotel which is part of IHG group. Being rebranded to a stronger brand name the hotel is expected to increase the occupancy level and also command better rate.  
Borrowing covenants are monitored every month and the group has never breached any covenants. The directors are reviewing the interest rates available with the view to reduce interest expenses.
The group considers health and safety to be a priority and very important issue. We have a positive and professional attitude towards health and hygiene, accordingly our restaurant at Holiday Inn Dover is awarded 5 star rating from the council.
Given the straight forward nature of business, the director is of the opinion that analysis using other key performance indicator is not necessary for an understanding of the development, performance or position of the business.

Financial key performance indicators
 
The key performance indicators of the group are considered to be occupancy, turnover and earnings before interest, taxation, depreciation and amortisation (EBITDA).


This report was approved by the board on 30 December 2025 and signed on its behalf.



Kanagaratnam Rajamenon
Director

Page 1

 
Leaf Hotels Limited
 
 
 
Director's report
For the Year Ended 31 March 2025

The director presents his report and the financial statements for the year ended 31 March 2025.

Director's responsibilities statement

The director is responsible for preparing the Group strategic report, the Director's report and the consolidated 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 Company and the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the director is required to:


select suitable accounting policies for the Group's financial statements 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 Group 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 the Group and to enable him to ensure that the financial statements comply with the Companies Act 2006He is also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The profit for the year, after taxation, amounted to £57,380 (2024 - £183,506).



Director

The director who served during the year was:

Kanagaratnam Rajamenon 

Disclosure of information to auditors

The director at the time when this Director's report is approved has confirmed that:
 
so far as he is aware, there is no relevant audit information of which the Company and the Group's auditors are unaware, and

he has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditors are aware of that information.

Page 2

 
Leaf Hotels Limited
 
 
 
Director's report (continued)
For the Year Ended 31 March 2025

Auditors

The auditorsMantax Lyntonwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 30 December 2025 and signed on its behalf.
 





Kanagaratnam Rajamenon
Director

Page 3

 
Leaf Hotels Limited
 
 
 
Independent auditors' report to the members of Leaf Hotels Limited
 

Opinion


We have audited the financial statements of Leaf Hotels Limited (the 'parent Company') and its subsidiaries (the 'Group') for the year ended 31 March 2025, which comprise the Consolidated statement of comprehensive income, the Consolidated statement of financial position, the Company statement of financial position, the Consolidated statement of cash flows, the Consolidated statement of changes in equity, the Company statement of changes in equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the 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; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' 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 United Kingdom, including the Financial Reporting Council'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 director's 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 director with respect to going concern are described in the relevant sections of this report.


Page 4

 
Leaf Hotels Limited
 
 
 
Independent auditors' report to the members of Leaf Hotels Limited (continued)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The director is responsible for the other information contained within the Annual ReportOur opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


Opinion 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 Group 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 Group 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 parent Company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of director's 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 Director's responsibilities statement set out on page 2, 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 have no realistic alternative but to do so.


Page 5

 
Leaf Hotels Limited
 
 
 
Independent auditors' report to the members of Leaf Hotels Limited (continued)


Auditors' 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 Auditors' 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 Group 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:
We obtained an understanding of the legal and regulatory frameworks within which the group operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006, FRS 102, relevant taxation legislation and health and safety regulations including hygiene.
 
We identified the greatest risks of material impact on the financial statements from irregularities, including fraud, to be override of controls by management, inappropriate revenue recognition and going concern. Our audit procedures to respond to these risks included enquiries of management about their own identification and assessment of the risks of irregularities, reviewing accounting estimates for biases, corroborating revenue recognised by the company through agreements to supporting documentation and ensuring accounting policies are appropriate under United Kingdom Generally Accepted Accounting Practice and applicable law.
 
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing noncompliance and cannot be expected to detect non-compliance with all laws and regulations.
 
These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.


Page 6

 
Leaf Hotels Limited
 
 
 
Independent auditors' report to the members of Leaf Hotels Limited (continued)


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 2006Our 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 Auditors' 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.





Mr Janak Raj Pokhrel (Senior statutory auditor)
  
for and on behalf of
Mantax Lynton
 
Chartered Accountants
Registered Auditors
  
2nd Floor Equitable House
7 General Gordon Square
London
SE18 6FH

30 December 2025
Page 7

 
Leaf Hotels Limited
 
 
Consolidated statement of comprehensive income
For the Year Ended 31 March 2025

2025
2024
Note
£
£

  

Turnover
 4 
4,597,376
5,132,150

Cost of sales
  
(2,305,226)
(2,547,846)

Gross profit
  
2,292,150
2,584,304

Administrative expenses
  
(1,716,723)
(1,820,722)

Operating profit
  
575,427
763,582

Interest payable and similar expenses
 8 
(488,219)
(474,050)

Profit before taxation
  
87,208
289,532

Tax on profit
 9 
(29,828)
(106,026)

Profit for the financial year
  
57,380
183,506

Profit for the year attributable to:
  

Owners of the parent Company
  
57,380
183,506

  
57,380
183,506

Total comprehensive income for the year attributable to:
  

Owners of the parent Company
  
57,380
183,506

  
57,380
183,506

There were no recognised gains and losses for 2025 or 2024 other than those included in the consolidated statement of comprehensive income.

There was no other comprehensive income for 2025 (2024:£NIL).

The notes on pages 16 to 33 form part of these financial statements.

Page 8

 
Leaf Hotels Limited
Registered number: 06008773

Consolidated statement of financial position
As at 31 March 2025

2025
2024
Note
£
£

Fixed assets
  

Tangible assets
 10 
12,517,049
12,882,956

  
12,517,049
12,882,956

Current assets
  

Stocks
 12 
35,945
30,841

Debtors: amounts falling due within one year
 13 
5,072,585
4,326,643

Cash at bank and in hand
 14 
117,626
47,048

  
5,226,156
4,404,532

Creditors: amounts falling due within one year
 15 
(4,159,218)
(3,368,067)

Net current assets
  
 
 
1,066,938
 
 
1,036,465

Total assets less current liabilities
  
13,583,987
13,919,421

Creditors: amounts falling due after more than one year
 16 
(5,732,179)
(6,046,999)

Provisions for liabilities
  

Deferred taxation
 18 
(186,089)
(264,083)

  
 
 
(186,089)
 
 
(264,083)

Net assets excluding pension asset
  
7,665,719
7,608,339

Net assets
  
7,665,719
7,608,339


Capital and reserves
  

Called up share capital 
 19 
2
2

Revaluation reserve
 20 
3,826,287
3,850,567

Profit and loss account
 20 
3,839,430
3,757,770

Equity attributable to owners of the parent Company
  
7,665,719
7,608,339

  
7,665,719
7,608,339


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 30 December 2025.

Kanagaratnam Rajamenon
Director

The notes on pages 16 to 33 form part of these financial statements.
Page 9

 
Leaf Hotels Limited
Registered number: 06008773
    
Consolidated statement of financial position (continued)
As at 31 March 2025


Page 10

 
Leaf Hotels Limited
Registered number: 06008773

Company statement of financial position
As at 31 March 2025

2025
2024
Note
£
£

Fixed assets
  

Investments
 11 
3
3

  
3
3

  

Creditors: amounts falling due within one year
 15 
(11,430)
(11,430)

Net current liabilities
  
 
 
(11,430)
 
 
(11,430)

Total assets less current liabilities
  
(11,427)
(11,427)

  

  

Net assets excluding pension asset
  
(11,427)
(11,427)

Net liabilities
  
(11,427)
(11,427)


Capital and reserves
  

Called up share capital 
 19 
2
2

Profit and loss account brought forward
  
(11,429)
(11,429)

Profit and loss account carried forward
  
(11,429)
(11,429)

  
(11,427)
(11,427)


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 30 December 2025.


Kanagaratnam Rajamenon
Director

The notes on pages 16 to 33 form part of these financial statements.

Page 11

 
Leaf Hotels Limited
 

Consolidated statement of changes in equity
For the Year Ended 31 March 2025


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

£
£
£
£


At 1 April 2023
2
3,874,847
3,549,984
7,424,833


Comprehensive income for the year

Profit for the year

-
-
183,506
183,506

Surplus on revaluation of freehold property
-
-
24,280
24,280


Other comprehensive income for the year
-
-
24,280
24,280


Total comprehensive income for the year
-
-
207,786
207,786


Contributions by and distributions to owners

Transfer to/from profit and loss account
-
(24,280)
-
(24,280)


Total transactions with owners
-
(24,280)
-
(24,280)



At 1 April 2024
2
3,850,567
3,757,770
7,608,339


Comprehensive income for the year

Profit for the year

-
-
57,380
57,380

Surplus on revaluation of freehold property
-
-
24,280
24,280


Other comprehensive income for the year
-
-
24,280
24,280


Total comprehensive income for the year
-
-
81,660
81,660


Contributions by and distributions to owners

Transfer to/from profit and loss account
-
(24,280)
-
(24,280)


Total transactions with owners
-
(24,280)
-
(24,280)


At 31 March 2025
2
3,826,287
3,839,430
7,665,719


The notes on pages 16 to 33 form part of these financial statements.

Page 12

 
Leaf Hotels Limited
 

Company statement of changes in equity
For the Year Ended 31 March 2025


Called up share capital
Profit and loss account
Total equity

£
£
£


At 1 April 2023
2
(11,429)
(11,427)


Other comprehensive income for the year
-
-
-


Total comprehensive income for the year
-
-
-


Total transactions with owners
-
-
-



At 1 April 2024
2
(11,429)
(11,427)


Other comprehensive income for the year
-
-
-


Total comprehensive income for the year
-
-
-


Total transactions with owners
-
-
-


At 31 March 2025
2
(11,429)
(11,427)


The notes on pages 16 to 33 form part of these financial statements.

Page 13

 
Leaf Hotels Limited
 

Consolidated statement of cash flows
For the Year Ended 31 March 2025

2025
2024
£
£

Cash flows from operating activities

Profit for the financial year
57,380
183,506

Adjustments for:

Depreciation of tangible assets
463,734
458,815

Interest paid
488,219
474,050

Taxation charge
29,828
106,026

(Increase) in stocks
(5,104)
(11,887)

(Increase) in debtors
(745,942)
(1,052,966)

Increase/(decrease) in creditors
665,854
(2,232,518)

Corporation tax (paid)
(95,317)
(119,224)

Net cash generated from operating activities

858,652
(2,194,198)


Cash flows from investing activities

Purchase of tangible fixed assets
(97,827)
(147,850)

Net cash from investing activities

(97,827)
(147,850)

Cash flows from financing activities

Repayment of loans
(283,779)
(262,514)

Other new loans
479,043
141,242

Repayment of/new finance leases
(402,345)
(121,720)

Interest paid
(488,219)
(474,050)

Net cash used in financing activities
(695,300)
(717,042)

Net increase/(decrease) in cash and cash equivalents
65,525
(3,059,090)

Cash and cash equivalents at beginning of year
47,048
3,106,138

Cash and cash equivalents at the end of year
112,573
47,048


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
117,626
47,048

Bank overdrafts
(5,053)
-

112,573
47,048


The notes on pages 16 to 33 form part of these financial statements.

Page 14

 
Leaf Hotels Limited
 

Consolidated Analysis of Net Debt
For the Year Ended 31 March 2025

Analysis of Net Debt:




At 1 April 2024
Cash flows
At 31 March 2025
£

£

£

Cash at bank and in hand

47,048

70,578

117,626

Bank overdrafts

-

(5,053)

(5,053)

Debt due after 1 year

(6,012,943)

325,863

(5,687,080)

Debt due within 1 year

(545,264)

(205,350)

(750,614)

Finance leases

(34,056)

(11,043)

(45,099)


(6,545,215)
174,995
(6,370,220)

The notes on pages 16 to 33 form part of these financial statements.

Page 15

 
Leaf Hotels Limited
 
 
 
Notes to the financial statements
For the Year Ended 31 March 2025

1.


General information

Leaf Hotels  Ltd is a private company, limited by shares, registered in England and Wales. The company's registered office is provided at company information page. 

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK and the Republic of Ireland and the Companies Act 2006.

The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Statement of comprehensive income in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of financial position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated statement of comprehensive income from the date on which control is obtained. They are deconsolidated from the date control ceases.
In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102, being 01 April 2014.

 
2.3

Going concern

The group has a strong balance sheet and is maintaining reasonable liquidity  to deal with the amount that will fall due within one year. After making the necessary enquiries, the director has a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Hence financial statements are prepared under going concern basis. 

Page 16

 
Leaf Hotels Limited
 
 
 
Notes to the financial statements
For the Year Ended 31 March 2025

2.Accounting policies (continued)

 
2.4

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised:

Sale of goods

Revenue from the sale of goods is recognised when all of the following conditions are satisfied:
the Group has transferred the significant risks and rewards of ownership to the buyer;
the Group retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the transaction; and
the costs incurred or to be incurred in respect of the transaction can be measured reliably.

Rendering of services

Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied:
the amount of revenue can be measured reliably;
it is probable that the Group will receive the consideration due under the contract;
the stage of completion of the contract at the end of the reporting period can be measured reliably; and
the costs incurred and the costs to complete the contract can be measured reliably.

 
2.5

Finance costs

Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument.

 
2.6

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

Page 17

 
Leaf Hotels Limited
 
 
 
Notes to the financial statements
For the Year Ended 31 March 2025

2.Accounting policies (continued)

 
2.7

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Group in independently administered funds.

 
2.8

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively.

The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company and the Group operate and generate income.

Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that:
The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.


 
2.9

Tangible fixed assets

Tangible fixed assets under the cost model are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Page 18

 
Leaf Hotels Limited
 
 
 
Notes to the financial statements
For the Year Ended 31 March 2025

2.Accounting policies (continued)


2.9
Tangible fixed assets (continued)

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Freehold property
-
Over 100 years
Plant and machinery
-
15% Straight Line
Motor vehicles
-
25% Straught Line
Fixtures and fittings
-
15% Straight Line

The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.

 
2.10

Revaluation of tangible fixed assets

Individual freehold and leasehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the reporting date.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.

Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.

 
2.11

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

 
2.12

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a weighted average basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting 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 or loss.

Page 19

 
Leaf Hotels Limited
 
 
 
Notes to the financial statements
For the Year Ended 31 March 2025

2.Accounting policies (continued)

 
2.13

Debtors

Short-term debtors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.

 
2.14

Cash and cash equivalents

Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.

In the Consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

 
2.15

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.16

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.17

Financial instruments

The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Basic financial assets

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

Impairment of financial assets

At the end of each reporting period financial assets measured at amortised cost are assessed for
Page 20

 
Leaf Hotels Limited
 
 
 
Notes to the financial statements
For the Year Ended 31 March 2025

2.Accounting policies (continued)


2.17
Financial instruments (continued)

objective evidence of impairment. If an asset is impaired the impairment loss is the difference between the carrying amount and the present value of the estimated cash flows discounted at the asset’s original effective interest rate. The impairment loss is recognised in profit or loss. 

Financial assets are impaired when events, subsequent to their initial recognition, indicate the estimated future cash flows derived from the financial asset(s) have been adversely impacted. The impairment loss will be the difference between the current carrying amount and the present value of the future cash flows at the asset(s) original effective interest rate.

If there is a favourable change in relation to the events surrounding the impairment loss then the impairment can be reviewed for possible reversal. The reversal will not cause the current carrying amount to exceed the original carrying amount had the impairment not been recognised. The impairment reversal is recognised in the profit or loss.

Financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the Group after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

Debt instruments are subsequently carried at their amortised cost using the effective interest rate method.

Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.


3.


Judgments in applying accounting policies and key sources of estimation uncertainty

In preparing the financial statements, management are required to make estimates and judgments which may materially affect reported income, expenses, assets, liabilities or disclosure of contingent assets and liabilities, and the valuation of investment properties, which were based on open market transactions. The estimates and assumptions are reviewed on an on-going basis and are based on historical experience and other factors that are considered to be relevant. Revision to accounting estimates are recognised in the period in which the estimate is revised. 

Page 21

 
Leaf Hotels Limited
 
 
 
Notes to the financial statements
For the Year Ended 31 March 2025

4.


Turnover

An analysis of turnover by class of business is as follows:


2025
2024
£
£

Hotel revenue
4,597,376
5,132,150

4,597,376
5,132,150


All turnover arose within the United Kingdom.


5.


Auditors' remuneration

During the year, the Group obtained the following services from the Company's auditors:


2025
2024
£
£

Fees payable to the Company's auditors for the audit of the consolidated and parent Company's financial statements
12,800
12,800

Page 22

 
Leaf Hotels Limited
 
 
 
Notes to the financial statements
For the Year Ended 31 March 2025

6.


Employees

Staff costs, including director's remuneration, were as follows:


Group
Group
2025
2024
£
£


Wages and salaries
1,055,155
1,240,904

Social security costs
114,842
97,964

Cost of defined contribution scheme
19,577
19,308

1,189,574
1,358,176


The average monthly number of employees, including the director, during the year was as follows:


        2025
        2024
            No.
            No.







Management
4
4



Hotel staff
61
63

65
67

The Company has no employees other than the directors, who did not receive any remuneration (2024 - £NIL)

7.


Director's remuneration



During the year retirement benefits were accruing to no directors (2024 - NIL) in respect of defined contribution pension schemes.


8.


Interest payable and similar expenses

2025
2024
£
£


Bank interest payable
488,219
474,050

488,219
474,050

Page 23

 
Leaf Hotels Limited
 
 
 
Notes to the financial statements
For the Year Ended 31 March 2025

9.


Taxation


2025
2024
£
£

Corporation tax


Current tax on profits for the year
107,822
143,471


107,822
143,471


Total current tax
107,822
143,471

Deferred tax


Origination and reversal of timing differences
(77,994)
(37,445)

Total deferred tax
(77,994)
(37,445)


Tax on profit
29,828
106,026

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2024 - higher than) the standard rate of corporation tax in the UK of 25% (2024 - 25%). The differences are explained below:

2025
2024
£
£


Profit on ordinary activities before tax
87,208
289,532


Profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024 - 25%)
21,802
72,383

Effects of:


Depreciation for the year in excess of capital allowance
86,020
71,088

Origination and reversal of timing differences
(77,994)
(37,445)

Total tax charge for the year
29,828
106,026


Factors that may affect future tax charges



Page 24
 


 
Leaf Hotels Limited


 
 
 
Notes to the financial statements
For the Year Ended 31 March 2025


10.


Tangible fixed assets


Group







Freehold property
Plant and machinery
Motor vehicles
Fixtures, fittings & Equipments
Office equipment
Total

£
£
£
£
£
£



Cost or valuation


At 1 April 2024
12,670,536
674,797
56,144
3,557,416
89,859
17,048,752


Additions
-
1,416
-
67,685
28,726
97,827



At 31 March 2025

12,670,536
676,213
56,144
3,625,101
118,585
17,146,579



Depreciation


At 1 April 2024
913,623
551,131
14,036
2,597,147
89,859
4,165,796


Charge for the year on owned assets
83,631
45,253
14,036
313,632
7,182
463,734



At 31 March 2025

997,254
596,384
28,072
2,910,779
97,041
4,629,530



Net book value



At 31 March 2025
11,673,282
79,829
28,072
714,322
21,544
12,517,049

Page 25
 
Leaf Hotels Limited
 
 
 
Notes to the financial statements
For the Year Ended 31 March 2025

           10.Tangible fixed assets (continued)




The net book value of land and buildings may be further analysed as follows:


2025
£

Freehold
11,673,282

11,673,282


Cost or valuation at 31 March 2025 is as follows:

Freehold Property
£


At cost
8,577,165
At valuation:

Open market value basis
4,093,371



12,670,536

If the land and buildings had not been included at valuation they would have been included under the historical cost convention as follows:

2025
2024
£
£

Group


Cost
8,577,165
8,577,165

Accumulated depreciation
(730,212)
(670,769)

Net book value
7,846,953
7,906,396

The freehold property in Eurolantic Leisure Ltd  was revalued at open market value by Knight Franks LLP on 22 Aug 2008. The Group has taken advantage of the transitional provisions available on the introduction of FRS102 to carry those assets at the value less depreciation in subsequent years. Subsequent additions to freehold property were included at cost.
The Freehold property includes land with a value of £5,209,400 on which no depreciation charge is made.
There were no capital commitments at the balance sheet date.

Page 26

 
Leaf Hotels Limited
 
 
 
Notes to the financial statements
For the Year Ended 31 March 2025

11.


Fixed asset investments

Company





Investments in subsidiary companies

£



Cost or valuation


At 1 April 2024
3



At 31 March 2025
3





Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Class of shares

Holding

Eurolantic Leisure Ltd
Singledge Lane, Whitfield , Dover, Kent CT16 3EL
Ordinary
100%
Evecom Limited
Singledge Lane, Whitfield , Dover, Kent CT16 3EL
Ordinary
100%

The aggregate of the share capital and reserves as at 31 March 2025 and the profit or loss for the year ended on that date for the subsidiary undertakings were as follows:

Name
Aggregate of share capital and reserves
Profit/(Loss)
£
£

Eurolantic Leisure Ltd
3,486,362
(32,325)

Evecom Limited
4,190,786
89,703

Page 27

 
Leaf Hotels Limited
 
 
 
Notes to the financial statements
For the Year Ended 31 March 2025

12.


Stocks

Group
Group
2025
2024
£
£

Finished goods and goods for resale
35,945
30,841

35,945
30,841


The difference between purchase price and their replacement cost is not material.


13.


Debtors

Group
Group
2025
2024
£
£


Trade debtors
256,734
276,563

Other debtors
4,598,357
4,007,783

Prepayments and accrued income
217,494
42,297

5,072,585
4,326,643



14.


Cash and cash equivalents

Group
Group
2025
2024
£
£

Cash at bank and in hand
117,626
47,048

Less: bank overdrafts
(5,053)
-

112,573
47,048


Page 28

 
Leaf Hotels Limited
 
 
 
Notes to the financial statements
For the Year Ended 31 March 2025

15.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2025
2024
2025
2024
£
£
£
£

Bank overdrafts
5,053
-
-
-

Bank loans
294,059
251,975
-
-

Trade creditors
610,491
864,256
-
-

Other loans
294,935
130,781
-
-

Corporation tax
155,976
143,471
-
-

Other taxation and social security
150,697
133,840
-
-

Other creditors
2,559,436
1,731,252
11,430
11,430

Accruals and deferred income
88,571
112,492
-
-

4,159,218
3,368,067
11,430
11,430



The following liabilities were secured:
Group
Group
2025
2024
£
£

Bank loans
294,059
251,975

294,059
251,975

Details of security provided:

See note 18 for the details of security provided.

Page 29

 
Leaf Hotels Limited
 
 
 
Notes to the financial statements
For the Year Ended 31 March 2025

16.


Creditors: Amounts falling due after more than one year

Group
Group
2025
2024
£
£

Bank loans
5,687,080
6,012,943

Other loans
45,099
34,056

5,732,179
6,046,999



The following liabilities were secured:
Group
Company
2025
2025
£
£


Bank loans
5,687,080
6,012,943

5,687,080
6,012,943

Details of security provided:

See note 17 for the details of security provided.



Page 30

 
Leaf Hotels Limited
 
 
 
Notes to the financial statements
For the Year Ended 31 March 2025

17.


Loans


Analysis of the maturity of loans is given below:


Group
Group
2025
2024
£
£

Amounts falling due within one year

Bank loans
294,059
251,975


294,059
251,975

Amounts falling due 1-2 years

Bank loans
287,179
234,456


287,179
234,456

Amounts falling due 2-5 years

Bank loans
850,942
725,276


850,942
725,276

Amounts falling due after more than 5 years

Bank loans
4,548,959
5,053,211

4,548,959
5,053,211

5,981,139
6,264,918


Details of security provided:
Bank loans are secured by debenture and legal charge over following properties: 
1st legal charge over company's freehold property at Holiday Inn Dover, Singledge Lane, Whitfield, Dover, Kent and debenture over all assets of the company.
1st legal charge over freehold property at Holiday Inn express, Upper Harbledown, Canterbury, Kent and debenture over all assets.
1st legal charge over Best Western Clifton Hotel, the Leas, Clifton Gardens, Folkestone, Kent and debenture over all assets.
Bank loans carry interest at variable rate at @2.25% p.a. over Bank of England base rate.
Composite Company Limited Multilateral Guarantee was given in favour of company's lenders.

Page 31

 
Leaf Hotels Limited
 
 
 
Notes to the financial statements
For the Year Ended 31 March 2025

18.


Deferred taxation


Group



2025


£






At beginning of year
(264,083)


Released during the year
77,994



At end of year
(186,089)

Company


2025






At end of year
-
The provision for deferred taxation is made up as follows:

Group
Group
2025
2024
£
£

Accelerated capital allowances
(186,089)
(264,083)

(186,089)
(264,083)


19.


Share capital

2025
2024
£
£
Allotted, called up and fully paid



2 (2024 - 2) Ordinary shares of £1.00 each
2
2



20.


Reserves

Revaluation reserve

Revaluation reserve represents surplus on revaluation of the freehold property. This is non-distributable reserve.

Profit and loss account

Profit and loss account represents accumulated retained earnings and is a distributable reserve.

Page 32

 
Leaf Hotels Limited
 
 
 
Notes to the financial statements
For the Year Ended 31 March 2025

21.


Pension commitments

The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group  in an independently administered fund. The pension cost charge represents contributions payable by the Group  to the fund and amounted to £19,577 (2024: £19,308) . Contributions totaling £3,883 (2024: £4,026) were payable to the fund at the reporting date and are included in other creditors.


22.


Related party transactions

The group has taken exemption under FRS 102, not to disclose any transactions entered into between group companies that are eliminated on consolidation. Copy of group accounts are available from Singledge Lane, Whitfield, Dover, CT16 3EL.
During the year, the group had loan transactions, with companies under common control by the same director, as summarised below. These advances are unsecured, interest free and repayable on demand.  


1 Apr 23
Payments
Receipts
31 March 24
£
£
£
£

Owed by companies under common control
3,960,379
1,805,910
(1,217,694)
4,548,595
Owed to companies under common control
(1,523,482)
1,107,055
(1,922,306)
(2,338,733)
Director's current account
(156,199)
600
-
(155,599)


23.


Controlling party

The ultimate controlling party is Mr K Rajamenon, who owns entire share capital in the Company.

Page 33