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Registered number: SC114360 BALBIRNIE HOUSE HOTEL LIMITED DIRECTORS' REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2025
BALBIRNIE HOUSE HOTEL LIMITED COMPANY INFORMATION
Directors | Mr N N Russell
| Mrs R S Spenke (resigned 29 October 2024)
| Mrs G Russell
Registered number | SC114360
Registered office | Balbirnie House Balbirnie Park
| Markinch
| Glenrothes
| Fife
| KY7 6NE
Independent auditors | Sumer Auditco Limited
| Chartered Accountants & Statutory Auditors
| Pentland House
| Saltire Centre
| Glenrothes
| Fife
| KY6 2AH
BALBIRNIE HOUSE HOTEL LIMITED CONTENTS
| Page
Strategic report | 1 - 4
Directors' report | 5 - 6
Independent auditors' report | 7 - 10
Statement of comprehensive income | 11
Statement of financial position | 12 - 13
Statement of changes in equity | 14 - 15
Statement of cash flows | 16 - 17
Analysis of net debt | 17
Notes to the financial statements | 18 - 33
BALBIRNIE HOUSE HOTEL LIMITED STRATEGIC REPORT FOR THE YEAR ENDED 30 APRIL 2025
Introduction
The directors have the pleasure in presenting their strategic report for the year ended 30 April 2025. Business review The principal activity of the company during the year was the operation of a country house hotel, a destination for private and corporate special events. Bottom line financial results within this year have finalised with a marginal loss. During the year we were successful in transitioning into a new relationship for long term funding, with ethical lender The Cumberland Building Society. There were many one-off factors and costs in association with this transition, and had these one-off costs not been applicable, broadly speaking the company would have been in profit for the year. Whilst moving to new lender, excluding vehicle financing, all existing leases were otherwise settled in full. This has subsequently delivered a very significant improvement in cash flow. The directors continue to be satisfied with the present and future operations of the company. In context and with regards to the future, the directors have an ongoing perspective of wishing to keep maintaining, improving and safeguarding the Category A Listed 1777 assets of Balbirnie House, as premises within which we are able to keep delivering the remits of heading £75M of successful trading over the next decade. Over the last few years, significant re-investment into the fabric of the assets has been successfully enabled to a level which, in percentage terms, is above industry norms. The ability to maintain such reinvestment has been beneficial to the company, and as a result, the property is presented and equipped to an exceptionally high standard. In the financial year, we made investments in repairs and renewals to a sum of over £140k. This included a caring restoration of The Long Gallery, central room of the original 1777 house. The directors acknowledge these latest accounts show a marginal loss, which was also partly created due to the continuing financial implications once again, of having government-enforced national hospitality severely restricted with previous operational restrictions due to Covid pandemic, and the financial knock-ons thereafter. We have been carrying new debts which arose due to those previous government enforced lockdowns. Additionally, the hospitality sector is contending with very significant increases in the cost of electricity and gas supplies. Over the trading year we also saw very significant inflationary increases across the entire span of food and beverage supplies. Today, we are also contending with significantly maintained interest rates as well. The loss of £136,236 is less than the previous year financial year profit of £122,957, as explained above. Writing this report as at September 2025 (five months after the end of the financial year in question) we are very optimistic as regards the trading future, and confirmed bookings within core trade diaries are looking excellent. As always cash flow remains to be managed on a very efficient basis ahead, somewhat heightened by seasonal fluctuations with core trade client deposits. Having traded through the many challenges of the pandemic, we are now contending with tourism VAT sustained at a rate beyond the norm for EU countries. Scotland’s hospitality sector does not receive the reduction in business rates which has now been applicable for years in England. And recent significant rises in Employer National Insurance in particular, have meant that as a necessity, we have needed to very efficiently restrict some opening hours within our facilities, without compromising guest service. As such, we are now operating with a 9.5% year-on-year reduction in payroll, compared to previous year. Page 1
BALBIRNIE HOUSE HOTEL LIMITED STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 30 APRIL 2025
Broadly speaking, Gross Profit is the same percentage as previous year. Our ongoing focus remains on doing everything possible with efficient purchasing and procurement, together with necessary ongoing adjustments to our pricing. The directors are optimistic based on current projections, and with management accounts now showing a record-breaking first third of the 2025/26 financial year, that financial results to the end of April 2026 are also on track. In early 2023 we invested in new systems and totally new consideration, with regards to how we create future annual budgeting and forecasting, with methodology defined on a day-by-day and departmental basis, also revolving around statistics for core trade. We are optimistic that this can bring more accuracy into planning for, and forecasting the future. This approach has continued for 2025/26. The company’s key performance indicators during the year were as follows: 2025 2024 £ £ Turnover 4,025,408 4,158,975 Gross profit 3,291,416 3,369,509 Profit/(Loss) before interest and tax 168,730 353,010 In 2022 the directors transitioned from an entirely optional gratuity system, into one of being discretionary yet defined on billing. This has been successfully actioned. The amounts in question are split monthly pro rata between Balbirnie’s brigade, as opposed to previous 6 monthly. The result has been to improve employee retention. The directors also acknowledge the continuing timeline of an element of great uncertainty in the hospitality marketplace, caused by the UK Brexit. Whilst our company lost the ability to recruit EU nationals, we have countered this by successfully being able to recruit mainly and directly from our local population. Thankfully we are surrounded by sufficient population to enable us to do this. In 2025 a further definitive award has been received from Haute Grandeur global hotel awards, ‘Best Country Hotel’, on a global level. This is the second time this award has been received. In 2025 a further definitive award has been received from Haute Grandeur global hotel awards, ‘Best Wedding Hotel’, on a European level. The hotel has seen very significant 2025 media coverage because of this. The directors consider that this unprecedented recognition will assist with current and future marketing. As part of the day to day running of the hotel, the directors are always looking at the services on offer and thinking of ways that the hotel can enhance these further, to give them a competitive edge. The directors have strived to build close relationships with all of the suppliers the hotel uses, with many of these relationships going back over numerous years. Potentials for the future. As at 2007, the company made very significant investments in the region of £750,000 into achieving full planning consent for significant extensions circa 2,500 sq m, with a design footprint to comprise of additional bedrooms, and a state-of-the-art 550+ members spa and fitness facility. The planning consent is extant, with that status continuing ongoing. The directors feel that this addition would establish even greater commercial viability for decades to come. The potential of project completion remains on hold however, pending ability to finance. The directors highlight their expectation is that as the original £750,000 was impaired within accounts, the original investment will fully pave its way back into annual accounts, as and when the project finalises. Page 2
BALBIRNIE HOUSE HOTEL LIMITED STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 30 APRIL 2025 Via 2020 Scottish Enterprise £60,000 funding, the directors successfully actioned an extremely comprehensive Feasibility Study via specialised spa consultancy, designer and architect services, in a complete internal redesign and modernisation of the buildings for which we have extant planning permission consent for in 2007, but have not yet built. The directors consider that the end result of this project will enable the company to potentially move to actual project consideration at any point over many years to come, subject of course to being able to finance. We highlight, that as and when decisions are taken to proceed, the project is conceived and designed absolutely, in such a way, that it can be screened off in entirety, and physically created whilst there is no disruption whatsoever to normal trade. In the interim the directors have noted that there have recently been very significant advancements with 3D print construction, whereby there are massive and revolutionary savings on construction costs, elimination of waste during construction, and a faster timeline for construction. Over the last three financial years specifically, the directors have also noted that there has been revolutionary design progress within the specific provincial hotel sector, whereby subject to the necessary consents, possibilities have arisen to very efficiently create external bedrooms in the form of luxury eco-friendly individual bedrooms. We have had dialogue with multiple manufacturers in these regards, and are now considering future additions, subject to financing. Fundamentally, it has always been the case that we are regularly providing the backdrop for weddings with over 100 destination guests, but we only have overnight accommodation across 31 current bedrooms. New additional bedrooms would resolve this shortfall, and open up new markets, for both private and corporate events. Following 6 months of consideration, and a design project centred on inherent respect for centuries of landscape and evolution. as at 30th June 2025 the company submitted for planning consent for 12 new woodland cabins, representing a potential £1.1M investment. If planning consent is achieved, and funding is confirmed, we may be able to go ahead and open these new facilities in May 2026. These are modern Scandinavian cabins which seamlessly blend the comfort of hotel accommodation with an immersive experience in nature. Due to economies of scale, if these 12 new cabins are added, it is envisaged that this has capacity to deliver a very positive increase to the bottom line company performance, thereby further enabling all envisaged continuing reinvestment back into the fabric of the assets. In addition, the directors are currently in the process of deploying a further £200k of investment, across the span of roof repairs, new windows (entire 3rd floor), a new passenger lift to enable 100% guest access to lower floor areas, and conversion of existing Business Centre, into a new purpose-designed breakfast suite. Additional annual reinvestment continues as well, one particular project of current note is one brand new guest bedroom within the historic 1800s Courtyard, which is being converted from an area which has been used for many years, for storage. The directors are fully committed to continuing to embrace all director legal and regulatory compliance within Companies Act 2006. The directors have a focus on considering industry trends, innovation, and evolution. The ongoing development is all encompassed within the overview of the interests of our company employees, relationships with suppliers, the company’s impact upon local community and environment, and accelerating the existing high reputation for business conduct. Page 3
BALBIRNIE HOUSE HOTEL LIMITED STRATEGIC REPORT (CONTINUED) FOR THE YEAR ENDED 30 APRIL 2025
Principal risks and uncertainties
As with all other companies operating in the hospitality sector, the directors acknowledge that there are many varied risks which the company faces. Other than the implications previously imposed by the Covid-19 pandemic, the directors acknowledge that the main risks include competition from competitors, maintaining a desire from the public for the use of the hotel, and disruption to the supply chain. The directors also acknowledge, in complete contrast to other countries which provide ongoing financial assistance for architectural and cultural heritage, that there is no defined government assistance in Scotland, for contributing towards the maintenance, safeguarding, and improvement of the main asset of the company, Balbirnie House itself. This is despite Balbirnie House being a national treasure, category A Listed 1777 with national and international architectural and design importance, which also doubles today as a very significant tourism tax generator. Balbirnie House Insurance reinstatement value is now above £25M – and Business Interruption insurance is a further £25M. The directors mitigate risks by focusing on cutting edge marketing using organically-grown in-house digitalised platforms, and modern era automated efficiencies. We retain 30,000+ GDPR compliant email addresses for monthly marketing, and we produce our own in-house monthly E:newsletters. Social media presence continues to grow, with more than 50,000 followers. The company provides excellent services to all guests, and has a reputation and awards to back up the completely unique facilities. The company’s principal financial instruments comprise bank balances, and loans to the company. The main purpose of these instruments is to finance company operations. In respect of bank balances, the liquidity risk is envisaged as being managed via maintained and positive cash flow. In respect of loans, these comprise loans from financial institutions. The interest rate on the loans from the financial institutions is both fixed and variable. The company manages the liquidity risk by ensuring there are sufficient funds to meet the payments.
Safety and health, the environment and quality
The company operates in the hotel industry and aims to provide a first class service to the public. This includes being safety conscious, complying with health and safety regulations and generally demanding high standards. It recognises the importance of, and has policies in place, to ensure its environmental, health and safety requirements are met at all times. This report was approved by the board and signed on its behalf.
Mr N N Russell Director
Date: 17 September 2025
Page 4
BALBIRNIE HOUSE HOTEL LIMITED DIRECTORS' REPORT FOR THE YEAR ENDED 30 APRIL 2025 The directors present their report and the financial statements for the year ended 30 April 2025.
Directors' responsibilities statement
The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with 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 directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period. In preparing these financial statements, the directors are required to: ∙select suitable accounting policies for the Company'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 Company will continue in business. The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Results and dividends
The loss for the year, after taxation, amounted to £136,236 (2024 - profit £122,957). Dividends of £9,500 have been paid during the year (2024 - £NIL)
Directors
The directors who served during the year were:
Mr N N Russell
Mrs R S Spenke (resigned 29 October 2024)
Mrs G Russell
Disclosure of information to auditors
Each of the persons who are directors at the time when this Directors' report is approved has confirmed that: ∙so far as the director is aware, there is no relevant audit information of which the Company's auditors are unaware, and ∙the director 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's auditors are aware of that information.
Post balance sheet events
There have been no significant events affecting the Company since the year end. Page 5
BALBIRNIE HOUSE HOTEL LIMITED DIRECTORS' REPORT (CONTINUED) FOR THE YEAR ENDED 30 APRIL 2025
Auditors
The auditors, Sumer Auditco Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006. This report was approved by the board and signed on its behalf.
Mr N N Russell Director
Date: 17 September 2025
Page 6
BALBIRNIE HOUSE HOTEL LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BALBIRNIE HOUSE HOTEL LIMITED
Opinion
We have audited the financial statements of Balbirnie House Hotel Limited (the 'Company') for the year ended 30 April 2025, which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of cash flows, the Statement of changes in equity 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 Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: ∙give a true and fair view of the state of the Company's affairs as at 30 April 2025 and of its loss for the year then ended; ∙have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and ∙have been prepared in accordance with the requirements of the Companies Act 2006.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the 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. Page 7
BALBIRNIE HOUSE HOTEL LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BALBIRNIE HOUSE HOTEL LIMITED (CONTINUED)
Conclusions relating to going concern
The directors have prepared the financial statements on the going concern basis and have concluded that there are no material uncertainties that would cast significant doubt over the company’s ability to continue in operational existence for a period of at least 12 months from the date of approval of the financial statements (‘’the going concern period’’). Further details in relation to their assessment and conclusions are included within the accounting policies in the notes to the financial statements. In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate. In making this conclusion we have evaluated the directors’ assessment of the company’s financial operations and cash flow requirements, in conjunction with a review of the inherent risk factors associated with the company’s business model, and analysed how those risks may impact upon the company’s performance and cash flow requirements for it to continue in operation for the going concern period. In performing our evaluation, we have not identified any material uncertainties related to events or conditions that, individually or collectively, may cast significant doubt on the company’s ability to continue as a going concern for the period of at least 12 months from the date of approval of the financial statements. However, we recognise that although the assumptions that underpin the financial projections and assessment for the period of at least 12 months from the date of approval of the financial statements appear reasonable, we are not able to predict all future events or conditions that may have a material impact upon those assumptions and projections, in particular those that may impact upon the ability of the company to operate within its current credit facilities. Therefore, our conclusions should not be considered a guarantee as to the company’s ability to continue as a going concern. Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report. Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue. Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Other information
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Page 8
BALBIRNIE HOUSE HOTEL LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BALBIRNIE HOUSE HOTEL LIMITED (CONTINUED)
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 Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and ∙the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.
Matters on which we are required to report by exception
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: ∙adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or ∙the financial statements are not in agreement with the accounting records and returns; or ∙certain disclosures of directors' remuneration specified by law are not made; or ∙we have not received all the information and explanations we require for our audit.
Responsibilities of directors
As explained more fully in the Directors' responsibilities statement set out on page 5, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so. Page 9
BALBIRNIE HOUSE HOTEL LIMITED INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF BALBIRNIE HOUSE HOTEL 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 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 gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We designed audit procedures to respond to the risk, recognising that the risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example, forgery or intentional misrepresentations, or through collusion. We focused on laws and regulations which could give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management. There are inherent limitations in the audit procedures described above and, the further removed non-compliance with laws and regulations is from the events and transactions reflected in the financial statements, the less likely we would become aware of it. As in all our audits, we also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud. 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.
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 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. Greg Stapley (Senior statutory auditor) for and on behalf of Sumer Auditco Limited Chartered Accountants & Statutory Auditors Pentland House Saltire Centre Glenrothes Fife KY6 2AH 17 September 2025 Page 10
BALBIRNIE HOUSE HOTEL LIMITED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 APRIL 2025
| 2025 | 2024
| £ | £
Turnover | 4 | 4,025,408 | 4,158,975
Cost of sales |  | (733,992) | (789,466)
Gross profit |  | 3,291,416 | 3,369,509
Administrative expenses |  | (3,125,785) | (3,019,598)
Other operating income | 5 | 3,099 | 3,099
Operating profit | 6 | 168,730 | 353,010
Interest receivable and similar income | 10 | - | 470
Interest payable and similar expenses | 11 | (304,966) | (230,523)
(Loss)/profit before tax |  | (136,236) | 122,957
(Loss)/profit for the financial year |  | (136,236) | 122,957
Other comprehensive income for the year |  |  |
Revaluation of property, plant and equipment |  | - | 940,716
Other comprehensive income for the year |  | - | 940,716
Total comprehensive income for the year |  | (136,236) | 1,063,673
The notes on pages 18 to 33 form part of these financial statements.
Page 11
BALBIRNIE HOUSE HOTEL LIMITED REGISTERED NUMBER: SC114360 STATEMENT OF FINANCIAL POSITION AS AT 30 APRIL 2025
|  | 2025 |  | 2024
|  | £ |  | £
Fixed assets |  |  |  |  |
Tangible assets | 14 |  | 7,957,501 |  | 8,059,808
|  |  | 7,957,501 |  | 8,059,808
Current assets |  |  |  |  |
Stocks | 15 | 56,022 |  | 37,351 |
Debtors: amounts falling due within one year | 16 | 62,655 |  | 163,800 |
Cash at bank and in hand | 17 | 418,937 |  | 63,385 |
|  | 537,614 |  | 264,536 |
Creditors: amounts falling due within one year | 18 | (1,562,063) |  | (1,867,920) |
Net current liabilities |  |  | (1,024,449) |  | (1,603,384)
Total assets less current liabilities |  |  | 6,933,052 |  | 6,456,424
Creditors: amounts falling due after more than one year | 19 |  | (3,202,264) |  | (2,276,800)
Provisions for liabilities |  |  |  |  |
Deferred tax |  | (406,166) |  | (702,876) |
|  |  | (406,166) |  | (702,876)
Accruals and deferred income | 23 |  | (97,772) |  | (100,871)
Net assets |  |  | 3,226,850 |  | 3,375,877
Capital and reserves |  |  |  |  |
Called up share capital | 24 |  | 38,787 |  | 54,675
Share premium account |  |  | - |  | 246,350
Revaluation reserve |  |  | 2,521,424 |  | 5,475,138
Capital redemption reserve |  |  | 15,888 |  | -
Other reserves |  |  | 10,329 |  | 10,329
Profit and loss account |  |  | 640,422 |  | (2,410,615)
|  |  | 3,226,850 |  | 3,375,877
Page 12
BALBIRNIE HOUSE HOTEL LIMITED REGISTERED NUMBER: SC114360 STATEMENT OF FINANCIAL POSITION (CONTINUED) AS AT 30 APRIL 2025 The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
Mr N N Russell
Director
Date: 17 September 2025
The notes on pages 18 to 33 form part of these financial statements. Page 13

|  | BALBIRNIE HOUSE HOTEL LIMITED |
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 APRIL 2025
|  | Called up share capital | Share premium account | Capital redemption reserve | Revaluation reserve | Other reserves | Profit and loss account | Total equity
|  | £ | £ | £ | £ | £ | £ | £
| At 1 May 2024 | 54,675 | 246,350 | - | 5,475,138 | 10,329 | (2,410,615) | 3,375,877
| Loss for the year | - | - | - | - | - | (136,236) | (136,236)
| Transfer to/from revaluation reserve | - | - | - | 149,542 | - | 185,901 | 335,443
| Dividends: Equity capital | - | - | - | - | - | (9,500) | (9,500)
| Purchase of own shares | - | - | 15,888 | - | - | (300,001) | (284,113)
| Shares redeemed during the year | (15,888) | - | - | - | - | - | (15,888)
| Transfer to/from profit and loss account | - | (246,350) | - | (3,103,256) | - | 3,310,873 | (38,733)
| At 30 April 2025 | 38,787 | - | 15,888 | 2,521,424 | 10,329 | 640,422 | 3,226,850
Page 14

|  | BALBIRNIE HOUSE HOTEL LIMITED |
STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 APRIL 2024
|  | Called up share capital | Share premium account | Revaluation reserve | Other reserves | Profit and loss account | Total equity
|  | £ | £ | £ | £ | £ | £
| At 1 May 2023 | 54,675 | 246,350 | 4,651,886 | 10,329 | (2,651,036) | 2,312,204
| Profit for the year | - | - | - | - | 122,957 | 122,957
| Transfer to/from revaluation reserve | - | - | - | - | 117,464 | 117,464
| Revaluation | - | - | 940,716 | - | - | 940,716
| Transfer to/from profit and loss account | - | - | (117,464) | - | - | (117,464)
| At 30 April 2024 | 54,675 | 246,350 | 5,475,138 | 10,329 | (2,410,615) | 3,375,877
| The notes on pages 18 to 33 form part of these financial statements.
Page 15

BALBIRNIE HOUSE HOTEL LIMITED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 APRIL 2025
|  |  | 2025 | 2024
|  |  | £ | £
Cash flows from operating activities |  |
(Loss)/profit for the financial year | (136,236) | 122,957
Adjustments for: |  |
Amortisation of intangible assets | (3,099) | (3,099)
Depreciation of tangible assets | 277,852 | 235,747
(Gain)/loss on disposal of tangible assets | 588 | (1,083)
Interest paid | 304,966 | 230,523
Interest received | - | (470)
(Increase)/decrease in stocks | (18,671) | 10,619
Decrease/(increase) in debtors | 101,145 | (109,163)
(Decrease) in creditors | (68,132) | (940)
Net cash generated from operating activities | 458,413 | 485,091
Cash flows from investing activities |  |
Purchase of tangible fixed assets | (177,633) | (90,645)
Sale of tangible fixed assets | 1,500 | 1,083
Interest received | - | 470
HP interest paid | (69,425) | (31,703)
Net cash from investing activities | (245,558) | (120,795)
Page 16
BALBIRNIE HOUSE HOTEL LIMITED STATEMENT OF CASH FLOWS (CONTINUED) FOR THE YEAR ENDED 30 APRIL 2025
|  | 2025 | 2024
|  | £ | £
Cash flows from financing activities |  |
Purchase of ordinary shares | (300,001) | -
New loans | 865,282 | 100,000
Repayment of loans | - | (178,528)
Repayment of/new finance leases | (119,796) | (18,649)
Dividends paid | (9,500) | -
Interest paid | (235,541) | (198,820)
Net cash used in financing activities | 200,444 | (295,997)
Net increase in cash and cash equivalents | 413,299 | 68,299
Cash and cash equivalents at beginning of year | 5,638 | (62,661)
Cash and cash equivalents at the end of year | 418,937 | 5,638
Cash and cash equivalents at the end of year comprise: |  |
Cash at bank and in hand | 418,937 | 63,385
Bank overdrafts | - | (57,747)
| 418,937 | 5,638
ANALYSIS OF NET DEBT FOR THE YEAR ENDED 30 APRIL 2025
|  | At 1 May 2024 | Cash flows | At 30 April 2025
|  | £ | £ | £
Cash at bank and in hand | 63,385 | 355,552 | 418,937
Bank overdrafts | (57,747) | 57,747 | -
Debt due after 1 year | (2,149,612) | (1,009,309) | (3,158,921)
Debt due within 1 year | (184,411) | 144,027 | (40,384)
Finance leases | (183,882) | 119,796 | (64,086)
| (2,512,267) | (332,187) | (2,844,454)
The notes on pages 18 to 33 form part of these financial statements.
Page 17
BALBIRNIE HOUSE HOTEL LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2025
1. | General information
Balbirnie House Hotel Limited is a limited liability company incorporated in Scotland, registration number SC114360. The registered office address is Balbirnie House, Balbirnie Park, Markinch, Glenrothes, Fife, KY7 6NE. The principal activity of the company during the year was the operation of a country house hotel. The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £. 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 management to exercise judgment in applying the Company's accounting policies (see note 3). The following principal accounting policies have been applied:
| 2.2 | Going concern
In determining the appropriate basis of preparation of the financial statements, the directors are required to consider whether there is a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future, being a period of at least 12 months from the date of approval of the financial statements. The directors have prepared a detailed assessment of the company’s financial operations and cash flow requirements to determine the company’s ability to meet its obligations as they fall due for the foreseeable future, taking into account current and anticipated future performance, cash flows and projected liquidity headroom. Profit and loss account forecasts and post year end performance suggest the company returning to profitability, however, cash flow remains challenging with the company fully utilising available resources at certain points. Should additional working capital be required in the short term the directors are confident that this will be secured with their continued support and external sources of finance. Based on the going concern assessment undertaken by the directors, they are of the opinion that the company will have adequate resources available to continue in operational existence over a period of at least 12 months from the date of approval of the financial statements, and so have prepared the financial statements on the going concern basis. Page 18
BALBIRNIE HOUSE HOTEL LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2025 2.Accounting policies (continued)
| 2.3 | Turnover
Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company 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. The following criteria must also be met before turnover is recognised: Sale of goods Turnover from the sale of goods is recognised when all of the following conditions are satisfied: ∙the Company has transferred the significant risks and rewards of ownership to the buyer; ∙the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; ∙the amount of turnover can be measured reliably; ∙it is probable that the Company 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 Turnover 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 turnover can be measured reliably; ∙it is probable that the Company 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.
| 2.4 | Operating leases: the Company as lessee
Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term. Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset. Assets obtained under hire purchase contracts and finance leases are capitalised as tangible fixed assets. Assets acquired by finance lease are depreciated over the shorter of the lease term and their useful lives. Assets acquired by hire purchase are depreciated over their useful lives. Finance leases are those where substantially all of the benefits and risks of ownership are assumed by the company. Obligations under such agreements are included in creditors net of the finance charge allocated to future periods. The finance element of the rental payment is charged to profit or loss so as to produce a constant periodic rate of charge on the net obligation outstanding in each period.
| 2.5 | Interest income
Interest income is recognised in profit or loss using the effective interest method. Page 19
BALBIRNIE HOUSE HOTEL LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2025 2.Accounting policies (continued)
| 2.6 | 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.
| 2.7 | Borrowing costs
All borrowing costs are recognised in profit or loss in the year in which they are incurred.
| 2.8 | Pensions
Defined contribution pension plan The Company operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Company pays fixed contributions into a separate entity. Once the contributions have been paid the Company 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 Company in independently administered funds.
| 2.9 | 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 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 operates and generates 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; and ∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met. 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. Page 20
BALBIRNIE HOUSE HOTEL LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2025 2.Accounting policies (continued)
| 2.10 | 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. 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 | - | 2% straight line
|  |  |  | Plant and machinery | - | 20% straight line
|  |  |  | Motor vehicles | - | 20% straight line
|  |  |  | Fixtures and fittings | - | 10% straight line
|  |  |  | Spa development | - | fully amortised in 2011
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.
| 2.11 | 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.
| 2.12 | 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 first in, first out 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 21
BALBIRNIE HOUSE HOTEL LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 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 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 Company'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 Company has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments. Financial instruments are recognised in the Company's Statement of financial position when the Company becomes party to the contractual provisions of the instrument. Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.
| 2.18 | Dividends
Equity dividends are recognised when they become legally payable. Interim equity dividends are recognised when paid. Final equity dividends are recognised when approved by the shareholders at an annual general meeting. Page 22
BALBIRNIE HOUSE HOTEL LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2025
3. | Judgments in applying accounting policies and key sources of estimation uncertainty
The most significant estimation within the company's financial statements relates to depreciation. The directors review depreciation rates on a regular basis to ensure that the policy rate remains appropriate. The directors also require to exercise judgement in assessing recoverability of trade debtors and make appropriate provision where their credit control procedures indicate that trade debtor balances may not be fully recoverable.
4. | Turnover
| An analysis of turnover by class of business is as follows:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Accommodation | 872,699 | 824,687
| Room hire | 268,711 | 250,079
| Food and drink | 2,760,277 | 2,975,841
| Other income | 123,721 | 108,368
|  | 4,025,408 | 4,158,975
| All turnover arose within the United Kingdom.
5. | Other operating income
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Grant amortisation | 3,099 | 3,099
|  | 3,099 | 3,099
6. | Operating profit
| The operating profit is stated after charging:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Depreciation of tangible fixed assets | 277,852 | 235,747
| Other operating lease rentals | 2,252 | 6,756
| (Profit)/loss on sale of tangible assets | 588 | (1,083)
Page 23
BALBIRNIE HOUSE HOTEL LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2025
7. | Auditors' remuneration
| During the year, the Company obtained the following services from the Company's auditors:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Fees payable to the Company's auditors for the audit of the Company's financial statements | 14,350 | 13,650
8. | Employees
| Staff costs, including directors' remuneration, were as follows:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Wages and salaries | 1,495,871 | 1,621,123
| Social security costs | 150,986 | 139,146
| Cost of defined contribution scheme | 25,022 | 28,616
|  | 1,671,879 | 1,788,885
| The average monthly number of employees, including the directors, during the year was as follows:
|  |  | 2025 | 2024
|  |  | No. | No.
|  | Kitchen staff | 21 | 26
|  | Reception and front of house staff | 32 | 44
|  | Management and admin staff | 10 | 11
|  | Housekeeping and maintenance | 10 | 13
|  |  | 73 | 94
9. | Directors' remuneration
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Directors' emoluments | 152,799 | 136,842
| Company contributions to defined contribution pension schemes | 2,440 | 2,642
|  | 155,239 | 139,484
| During the year retirement benefits were accruing to 2 directors (2024 - 2) in respect of defined contribution pension schemes.
Page 24
BALBIRNIE HOUSE HOTEL LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2025
10. | Interest receivable
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Other interest receivable | - | 470
|  | - | 470
11. | Interest payable and similar expenses
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Bank interest payable | 235,541 | 198,820
| Finance leases and hire purchase contracts | 69,425 | 31,703
|  | 304,966 | 230,523
12. | Taxation
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Total current tax | - | -
| Deferred tax |  |
| Total deferred tax | - | -
| Tax on (loss)/profit | - | -
Page 25
BALBIRNIE HOUSE HOTEL LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2025 12.Taxation (continued)
| Factors affecting tax charge for the year
| The tax assessed for the year is higher than (2024 - lower than) the standard rate of corporation tax in the UK of 25% (2024 - 25%). The differences are explained below:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| (Loss)/profit on ordinary activities before tax | (136,236) | 122,957
| (Loss)/profit on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024 - 25%) | (34,059) | 30,739
| Effects of: |  |
| Expenses not deductible for tax purposes, other than goodwill amortisation and impairment | 50,021 | 39,397
| Unrecognised deferred tax asset/(liability) | (15,962) | (70,136)
| Total tax charge for the year | - | -
| Factors that may affect future tax charges
There were no factors that may affect future tax charges.
13. | Dividends
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Equity dividends on ordinary shares | 9,500 | -
|  | 9,500 | -
Page 26
BALBIRNIE HOUSE HOTEL LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2025
14. | Tangible fixed assets
|  | Freehold property | Plant and machinery | Motor vehicles | Fixtures and fittings | Spa develop-ment | Total
|  | £ | £ | £ | £ | £ | £
| Cost or valuation |  |  |  |  |  |
| At 1 May 2024 | 7,522,841 | 812,430 | 119,006 | 2,744,822 | 820,647 | 12,019,746
| Additions | 15,903 | - | 54,748 | 106,982 | - | 177,633
| Disposals | - | - | (3,542) | - | - | (3,542)
| At 30 April 2025 | 7,538,744 | 812,430 | 170,212 | 2,851,804 | 820,647 | 12,193,837
| Depreciation |  |  |  |  |  |
| At 1 May 2024 | - | 785,865 | 59,198 | 2,294,228 | 820,647 | 3,959,938
| Charge for the year on owned assets | 150,703 | 9,204 | 25,343 | 92,602 | - | 277,852
| Disposals | - | - | (1,454) | - | - | (1,454)
| At 30 April 2025 | 150,703 | 795,069 | 83,087 | 2,386,830 | 820,647 | 4,236,336
| Net book value |  |  |  |  |  |
| At 30 April 2025 | 7,388,041 | 17,361 | 87,125 | 464,974 | - | 7,957,501
| At 30 April 2024 | 7,522,841 | 26,565 | 59,808 | 450,594 | - | 8,059,808
| Freehold land and buildings, comprising the hotel property, fixtures, fittings, plant and equipment were revalued during the year to 30 April 2024 at £8,000,000 based on a professional valuation prepared in August 2024. This revaluation was prepared by Colliers International Property Consultants Limited at market value as a continuing trading entity in accordance with the RICS Valuation - Global Standards (incorporating the IVSC International Valuation Standards). The directors are of the opinion that the carrying value per the accounts accurately reflects the current market value.
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BALBIRNIE HOUSE HOTEL LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2025 14.Tangible fixed assets (continued)
| The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Freehold property | - | 8,765
| Plant and machinery | - | 9,791
| Motor vehicles | 40,641 | 57,672
| Furniture, fittings and equipment | - | 208,932
|  | 40,641 | 285,160
Cost or valuation at 30 April 2025 is as follows:
|  |  | Land and buildings
|  |  | £
|  | At cost | 2,534,001
|  | At valuation: |
|  | Revaluations as at 30 April 2025 | 5,004,743
|  |  | 7,538,744
| 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
|  |  |  |  | £ | £
| Cost | 2,534,001 | 2,518,098
| Accumulated depreciation | (1,285,241) | (1,173,271)
| Net book value | 1,248,760 | 1,344,827
15. | Stocks
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Food and drink stock | 56,022 | 37,351
|  | 56,022 | 37,351
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BALBIRNIE HOUSE HOTEL LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2025
16. | Debtors
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Trade debtors | 6,465 | 4,980
| Other debtors | 24,841 | 13,147
| Prepayments and accrued income | 31,349 | 145,673
|  | 62,655 | 163,800
17. | Cash and cash equivalents
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Cash at bank and in hand | 418,937 | 63,385
| Less: bank overdrafts | - | (57,747)
|  | 418,937 | 5,638
18. | Creditors: Amounts falling due within one year
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Bank overdrafts | - | 57,747
| Bank loans | 40,384 | 184,411
| Trade creditors | 173,808 | 276,638
| Other taxation and social security | 188,616 | 198,308
| Obligations under finance lease and hire purchase contracts | 20,743 | 56,694
| Other creditors | 18,330 | 24,023
| Accruals and deferred income | 1,120,182 | 1,070,099
|  | 1,562,063 | 1,867,920
| Secured loans Bank loans of £40,384 (2024 - £90,000) and overdraft of £nil (2024 - £57,747) are secured by way of a standard security over the property of the company and a bond and floating charge. Finance leases and hire purchase liabilities of £20,743 (2024 - £56,694) are secured by the relevant assets.
Page 29
BALBIRNIE HOUSE HOTEL LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2025
19. | Creditors: Amounts falling due after more than one year
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Bank loans | 3,158,921 | 2,149,612
| Net obligations under finance leases and hire purchase contracts | 43,343 | 127,188
|  | 3,202,264 | 2,276,800
| Secured loans Bank loans of £3,158,921 (2024 - £1,771,835) are secured by way of a standard security over the property of the company and a bond and floating charge. Finance leases and hire purchase liabilities of £43,343 (2024 - £127,188) are secured by the relevant assets.
20. | Loans
| Analysis of the maturity of loans is given below:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Amounts falling due within one year |  |
| Bank loans | 40,384 | 184,411
|  | 40,384 | 184,411
| Amounts falling due 1-2 years |  |
| Bank loans | 85,218 | 193,673
|  | 85,218 | 193,673
| Amounts falling due 2-5 years |  |
| Bank loans | 295,329 | 574,104
|  | 295,329 | 574,104
| Amounts falling due after more than 5 years |  |
| Bank loans | 2,778,374 | 1,381,835
|  | 2,778,374 | 1,381,835
|  | 3,199,305 | 2,334,023
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BALBIRNIE HOUSE HOTEL LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2025
21. | Financial instruments
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Financial assets |  |
| Financial assets measured at fair value through profit or loss | 418,937 | 63,385
| Financial assets that are debt instruments measured at amortised cost | 31,306 | 18,127
|  | 450,243 | 81,512
| Financial liabilities |  |
| Financial liabilities measured at amortised cost | (4,511,625) | (3,762,530)
| Financial assets measured at fair value through profit or loss comprise of cash at bank and in hand.
| Financial assets that are debt instruments measured at amortised cost comprise of trade debtors and other debtors.
| Financial liabilities measured at amortised cost comprise of trade creditors, accruals, other creditors and bank loans and overdrafts.
22. | Deferred taxation
|  | 2025
|  | £
| At beginning of year | (702,876)
| Charged to revaluation reserve | 296,710
| At end of year | (406,166)
| The provision for deferred taxation is made up as follows:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Accelerated capital allowances | (146,797) | (79,869)
| Tax losses carried forward | 146,372 | 79,352
| Short term timing differences | 425 | 517
| Revaluation gains | (406,166) | (702,876)
|  | (406,166) | (702,876)
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BALBIRNIE HOUSE HOTEL LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2025
23. | Accruals and deferred income
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Grants received | 154,959 | 154,959
| Amortisation | (57,187) | (54,088)
|  | 97,772 | 100,871
24. | Share capital
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
|  | Allotted, called up and fully paid |  |
|  | 29,087 (2024 - 54,675) Ordinary A shares of £1.00 each | 29,087 | 54,675
|  | 1,940 (2024 - ) Ordinary B shares of £1.00 each | 1,940 | -
|  | 1,940 (2024 - ) Ordinary C shares of £1.00 each | 1,940 | -
|  | 1,940 (2024 - ) Ordinary D shares of £1.00 each | 1,940 | -
|  | 1,940 (2024 - ) Ordinary E shares of £1.00 each | 1,940 | -
|  | 1,940 (2024 - ) Ordinary F shares of £1.00 each | 1,940 | -
|  |  | 38,787 | 54,675
| During the year the company purchased and cancelled 15,888 £1.00 ordinary shares for a total consideration of £300,000. During the year the shares were redesignated from 9,700 ordinary shares into 1,940 ordinary A shares, 1,940 ordinary B shares, 1,940 ordinary C shares, 1,940 ordinary D shares, 1,940 ordinary E shares and 1,940 ordinary F shares.
25. | Pension commitments
The company operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the company in an independently administered fund. The pension cost charge represents contributions payable by the company to the fund and amounted to £25,002 (2024 - £28,616). Contributions totaling £3,968 (2024 - £4,828) were payable to the fund at the balance sheet date. Page 32
BALBIRNIE HOUSE HOTEL LIMITED NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 APRIL 2025
26. | Commitments under operating leases
| At 30 April 2025 the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £ | £
| Not later than 1 year | - | 54,111
| Later than 1 year and not later than 5 years | - | 189,326
| Later than 5 years | - | 77,452
|  | - | 320,889
27. | Related party transactions
| A director has provided a personal guarantee over unsecured loans of £NIL (2024 - £162,450). The unsecured loan was fully repaid during the year. A director has provided a personal guarantee over secured loans with a maximum exposure of £160,000. The oustanding loan balance as at 30 April 2025 totals £3,199,305.
Page 33