The director presents the strategic report for the period ended 31 July 2025.

The principal activity of the group continues to be the operation of two strategically positioned hotels in the Northwest of England; namely Lancashire Manor Hotel and Barton Manor Hotel and Spa. The principal activity of the company is that of holding and maintaining the properties held within fixed assets.

The financial year has realised revenues across both hotels increase by 22.6%. Accommodation rates remain competitive in the year and both hotels have been successful at improving their average room rates over. Function business including the wedding market has remained challenging for the second year, however future booking are up in terms of event numbers and size. Barton Manor enjoys a flourishing day time corporate market, and Lancashire Manor are marketing more actively in this area.

During this year Barton Manor Hotel completed and launch (end of March) the new bedroom extension doubling bedroom capacity to 103 rooms. This has transformed the opportunities in both accommodation revenue generation, food and beverage support and profile of this hotel. The 18-month development project was delivered close to budget and duration with minimal variations.

Investment has also been made in the leisure and spa facilities and reception area.

Continued high energy costs have impacted both hotels. Towards the end of the year, a new combined energy service agreement was negotiated, bringing future savings.

Food and liquor margins are improving at both hotels, supported by increased revenues, improved menu design and working closely with nominated suppliers.

The director is pleased to report that at the time of signing these accounts the year-on-year sales growth trend shown in the attached results has continued into the current trading period.

Guests’ experience and satisfaction ratings are high in both hotels, and staff motivation is good, reflected in a stable team at both hotels.

This 2024-25 financial year end has been extended from 28th April to 31st July. The benefits are to bring the end of year in line with other companies of common ownership, simplification of payroll arrangements and company audit. There are no plans for any further changes.

The director and management with the support of guests, customers, staff and suppliers have maintained the group’s solvent position such that it has the resources to trade effectively with profitable forecasts for the future supported by major development at Barton Manor Hotel and Spa

In order to provide long term energy cost security, long term contracts have been entered into in order to stabilise the costs to the business.

Future cost pressures of wage enhancements and full year employer’s national insurance will impact the whole of the hotel and hospitality sector of the UK. Double Dutch Hotels Ltd. will mitigate this aspect of cost pressures though labour hour controls, investment in IT and operational systems and customer price reviews.

Director Mr. Mark Timmerman has focused personal and senior management resources. Tony Trainor has been introduce to bring further fresh and commercial insight into the management of the hotels.

Ms. Julie Leigh has provided excellent support as Finance Director and Company Secretary this financial year, making effective changes to communication channels, audit files, financial reports, period dates and financial year ends. Mr. James Treadwell (non-executive director) has continued to provided quality support and financial advice for the company and the finalisation of past director, Klaas Timmerman ‘s estate.

The major bedroom and link developed at Barton Manor Hotel and Spa was successful delivered by end of March 2025. Main contractor Triton Construction proved a quality choice. Investment was raised through the company’s bank, NatWest, which included the subordination of the company’s loan to Carpenter Hepton Ltd. This project also delivered new roof based solar panels, new mains electricity supply, new plant room and new car charging stations.

Designs and planning permission has been secured for a new ten bedroom two story extension at Lancashire Manor Hotel. The progress of this extension will tale place at time of improved market in Skelmersdale and available of funding.

The director concludes that the attached accounts represent a true and fair view of the company’s financial position as represented by the Balance Sheet as at the accounts date and that the asset values have not been impaired.

The individual businesses continue to report on a regular business indicators such as occupancy percentage, room / sleeper rates, food, liquor and labour cost margins to revenues as well as the standard reports such as sales, costs and contribution.

The director, company secretary and management team recognise that a key performance indicator is the growth in shareholder’s funds generated from year-on-year profitability however for this group of businesses where there is significant investment undertaken in year for future growth.

The director can also confirm that up to the date of signing the group has continued to trade with positive contributions.

The group’s growth in sales has given the director the confidence to continue to invest in the properties in order to continue to grow the sales and, in time, the profitability of the group and its activities.

The company’s director has not declared a dividend for this year.

On behalf of the board

The director presents his annual report and financial statements for the period ended 31 July 2025.

The principal activity of the company and group continued to be the operation of two strategically positioned hotels in England's North West. The principal activity of the company is that of holding and maintaining the properties held within fixed assets.

The results for the period are set out on page 9.

No ordinary dividends were paid. The director does not recommend payment of a further dividend.

The director who held office during the period and up to the date of signature of the financial statements was as follows:

The auditor, PM+M Solutions for Business LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

The director is responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the director to prepare financial statements for each financial year. Under that law the director has elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the group and company, 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 and then apply them consistently;

• make judgements and accounting estimates that are reasonable and prudent;

• state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;

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

The director is responsible for keeping adequate accounting records that are sufficient to show and explain the group’s and company’s transactions and disclose with reasonable accuracy at any time the financial position of the group and company and enable them to ensure that the financial statements comply with the Companies Act 2006. He is also responsible for safeguarding the assets of the group and company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the auditor of the company is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the auditor of the company is aware of that information.

This report has been prepared in accordance with the provisions applicable to companies entitled to the medium-sized companies exemption.

We have audited the financial statements of Double Dutch Hotels Limited (the 'parent company') and its subsidiaries (the 'group') for the period ended 31 July 2025 which comprise the group statement of comprehensive income, the group balance sheet, the company balance sheet, the group statement of changes in equity, the company statement of changes in equity, the group statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• give a true and fair view of the state of the group's and the parent company's affairs as at 31 July 2025 and of the group's loss for the period then ended;

• have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and

• have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group and parent company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the 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 and 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.

Other information

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

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

• The information given in the strategic report and the director's report for the financial period for which the financial statements are prepared is consistent with the financial statements; and

• The strategic report and the director's report have been prepared in accordance with applicable legal requirements.

In the light of the knowledge and understanding of the group and the parent company and their environment obtained in the course of the audit, we have not identified material misstatements in the 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 directors' remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit.

As explained more fully in the director's responsibilities statement, the director is responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the director determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the director is responsible for assessing the 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 parent company or to cease operations, or has no realistic alternative but to do so.

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

Extent to which the audit was considered capable of detecting irregularities, including fraud

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 identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion.

Identifying and assessing potential risks related to irregularities

In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we have considered the following:

• the nature of the industry and sector, control environment and business performance including the design of the Group's remuneration policies, key drivers for directors’ remuneration, bonus levels and performance targets;

• results of our enquiries of management about their own identification and assessment of the risks of irregularities;

• the matters discussed among the audit engagement team including significant component audit teams and involving relevant specialists regarding how and where fraud might occur in the financial statements and any potential indicators of fraud;

• any matters we identified having obtained and reviewed the Group's documentation of their policies and procedures relating to:

  • identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance;

  • detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud;

  • the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations.

As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in the following areas: timing of recognition of commercial income, posting of unusual journals and complex transactions; and manipulating the Group's performance profit measures and other key performance indicators to meet remuneration targets and externally communicated targets. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override.

We also obtained an understanding of the legal and regulatory frameworks that the Group operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included UK Companies Act, employment law, health and safety regulations, pensions legislation and tax legislation.

Audit response to risks identified

Our procedures to respond to risks identified included the following:

• reviewing the financial statement disclosures and testing to supporting documentation to assess compliance with provisions of relevant laws and regulations described as having a direct effect on the financial statements;

• enquiring of management concerning actual and potential litigation and claims;

• performing analytical procedures to identify any unusual or unexpected relationships that may indicate risks of material misstatement due to fraud;

• reading minutes of meetings of those charged with governance and reviewing correspondence with HMRC; and

• in addressing the identified risks of fraud through management override of controls, testing the appropriateness of journal entries and other adjustments; assessing whether the judgements made in making accounting estimates are indicative of a potential bias; and evaluating the business rationale of any significant transactions that are unusual or outside the normal course of business.

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. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company’s members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company’s members as a body, for our audit work, for this report, or for the opinions we have formed.

These financial statements have been prepared in accordance with the provisions relating to medium-sized groups.

As permitted by s408 Companies Act 2006, the company has not presented its own profit and loss account and related notes. The company’s loss for the year was £352,953 (2024 - £453,999 loss).

These financial statements have been prepared in accordance with the provisions relating to medium-sized companies.

Double Dutch Hotels Limited (“the company”) is a private limited company domiciled and incorporated in England and Wales. The registered office is West Lancs Technology Management Centre, White Moss Business Park, Moss Lane View, Skelmersdale, England, WN8 9TN.

The group consists of Double Dutch Hotels Limited and all of its subsidiaries.

During the current financial year, the group changed its reporting date from 28 April to 31 July. This change was made to better align the financial reporting cycle with operational and strategic planning timelines.

In accordance with FRS 102 Section 3.3, the company has prepared financial statements for the extended period from 29 April 2024 to 31 July 2025, resulting in a financial year of 15 months and 3 days. Comparative figures relate to the previous 12-month period ending 28 April 2024.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The company is a qualifying entity for the purposes of FRS 102, being a member of a group where the parent of that group prepares publicly available consolidated financial statements, including this company, which are intended to give a true and fair view of the assets, liabilities, financial position and profit or loss of the group. The company has therefore taken advantage of exemptions from the following disclosure requirements for parent company information presented within the consolidated financial statements:

• Section 7 ‘Statement of Cash Flows’: Presentation of a statement of cash flow and related notes and disclosures;

• Section 33 ‘Related Party Disclosures’: Compensation for key management personnel.

In the parent company financial statements, the cost of a business combination is the fair value at the acquisition date of the assets given, equity instruments issued and liabilities incurred or assumed, plus costs directly attributable to the business combination. The excess of the cost of a business combination over the fair value of the identifiable assets, liabilities and contingent liabilities acquired is recognised as goodwill.

The consolidated group financial statements consist of the financial statements of the parent company Double Dutch Hotels Limited together with all entities controlled by the parent company (its subsidiaries).

All financial statements are made up to 31 July 2025. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.

All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.

Subsidiaries are consolidated in the group’s financial statements from the date that control commences until the date that control ceases.

At the time of approving the financial statements, the director has a reasonable expectation that the group has adequate resources to continue in operational existence for the foreseeable future. Thus the director continues to adopt the going concern basis of accounting in preparing the financial statements.

The financial statements have been prepared on a going concern basis, which assumes that the Company will continue in operational existence for the foreseeable future.

In making this assessment, the directors have considered the Company’s financial position, cash flow forecasts and committed expenditure for a period of at least twelve months from the date of approval of the financial statements. The Company is reliant on continued financial support to meet its working capital requirements.

The directors have received letters of support from Mellors Consolidated Limited and its subsidiaries and from Carpenter‑Hepton Limited, confirming their intention to provide such financial support as may be required to enable the Company to meet its liabilities as they fall due for a period of at least twelve months from the date of approval of the financial statements.

Based on the directors’ assessment and the existence of these letters of support, the directors believe that it is appropriate to prepare the financial statements on a going concern basis.

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. Sales are recognised at the point at which the company has fulfilled its contractual obligations and the risks and rewards attaching to the product or service, have been transferred to the customer, which at the point the room is occupied.

Deposits received in respect of Wedding and Conference bookings are recognised at the point when the rooms are occupied for the event.

Goodwill represents the excess of the cost of acquisition of a business over the fair value of net assets acquired. It is initially recognised as an asset at cost and is subsequently measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is considered to have a finite useful life and is amortised on a systematic basis over its expected life, which is 10 years.

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is recognised in the profit and loss account.

Borrowing costs directly attributable to the acquisition of the property have been capitalised and included in the asset’s cost. These costs are being depreciated over the useful life of the property in line with the depreciation policy.

Investment property, which is property held to earn rentals and/or for capital appreciation, is initially recognised at cost, which includes the purchase cost and any directly attributable expenditure. Subsequently it is measured at fair value at the reporting end date. Changes in fair value are recognised in profit or loss.

Equity investments are measured at fair value through profit or loss, except for those equity investments that are not publicly traded and whose fair value cannot otherwise be measured reliably, which are recognised at cost less impairment until a reliable measure of fair value becomes available.

In the parent company financial statements, investments in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses.

A subsidiary is an entity controlled by the group. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.

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

At each reporting date, an assessment is made for impairment. Any excess of the carrying amount of stocks over its estimated selling price less costs to complete and sell is recognised as an impairment loss in profit or loss. Reversals of impairment losses are also recognised in profit or loss.

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset and the net amounts presented in the financial statements when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Financial assets, other than those held at fair value through profit and loss, are assessed for indicators of impairment at each reporting end date.

Financial 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 deducting all of its liabilities.

Basic financial liabilities, including creditors, bank loans and loans from fellow group companies are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

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

Equity instruments issued by the group are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the group.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The group’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset if, and only if, there is a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

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

In the application of the group’s accounting policies, the director is required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

The main areas of judgement that have a risk of causing material adjustment to the carrying amounts of assets and liabilities within the next financial year, are in relation to debtor provisions and useful economic lives of the company's fixed assets.

All turnover arose from the United Kingdom and from the operation of hotels.

The average monthly number of persons (including directors) employed by the group and company during the period was:

Their aggregate remuneration comprised:

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

More information on impairment movements in the period is given in note .

The fair value of the investment property has been arrived at on the basis of a valuation carried out at 28 April 2024 by the directors. The valuation was made on an open market value basis by reference to market evidence of transaction prices for similar properties.

Details of the company's subsidiaries at 31 July 2025 are as follows:

Amounts owed to group undertakings in the company are not subject to any formal terms and are repayable on demand.

The long-term loans are secured by fixed and floating charges over the fixed assets of the group.

Bank loans

In June 2020 a loan facility was arranged, and the company received a loan of £1,000,000. The bank loan is subject to interest at 3.9% over base rate. The loan is repayable in full 84 months after draw down. At year end the amount outstanding was £664,375. Equal monthly repayments are due on the loan.

In June 2020 a loan facility was arranged, and the company received a loan of £1,400,000. The bank loan is subject to interest at 4.3% over base rate. The loan is repayable in full 84 months after draw down. At year end the amount outstanding was £865,799. Equal monthly repayments are due on the loan.

In 2020 a CBILLS loan facility was arranged, and the group received a loan of £250,000. The bank loan is subject to interest of 1.69% over base rate, for the first 12 months the annual interest applicable is interest free. At year end the amount outstanding was £56,740. Equal monthly repayments are due on the loan.

In August 2022 a loan facility was arranged, and the company received a loan of £2,000,000. The bank loan is subject to interest at 2.35% over base rate. The loan is repayable in full 240 months after draw down. At the year end the amount outstanding is £1,826,302. Equal monthly repayments are due on the loan.

In January 2025 a loan facility was arranged, and the company received a loan of £5,000,000. The bank loan is subject to interest at 2.15% over base rate. The loan is repayable in full 264 months after draw down. At the year end the amount outstanding is £4,837,028. Equal monthly repayments are due on the loan. Interest is payable quarterly and capital repayments begin 24 months after the initial drawdown.

The bank loans are secured by all assets of the group, as well as assets of related group Mellors Consolidated Limited.

Loans from related parties

In 2022 the company received a loan of £1,000,000 from a related party, by virtue of common shareholders. The loan is subject to interest at 3% above base rate with no fixed repayment date on the capital element, the interest is repayable as it is charged. It has been confirmed the full loan will not be repayable for at least the next 12 months. At the year end the amount outstanding was £1,000,000.

During the 2025 year, the company took additional loans with related parties by virtue of common shareholders of £1,665,759, the additional loans are subject to the same terms as existing loans. During the year the company repaid £3,225 to another related party, by virtue of common shareholders. At the year end the post discounted remaining loan with the related party was £2,890,554. The loan is not subject to any formal agreement and is interest free. It has been confirmed by the directors of the related party that the loan will not be recalled within 12 months of the year end. During the financial period, the company discounted a long-term loan from Mellors Consolidated Limited, a related party by virtue of directorship, to its present value, resulting in a reduction of the payable by £202,339. This adjustment has been recognised as a capital contribution reserve within the company.

The following are the major deferred tax liabilities and assets recognised by the group and company, and movements thereon:

The deferred tax liability set out above is expected to reverse over the life of the fixed assets within the group and relates to accelerated capital allowances that are expected to mature within the same period.

A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.

The balance outstanding at year end amounted to £12,796 (2024 - £7,173)

During the year, the Company recognised a related party loan at fair value, resulting in a discount of £202,339. As the lender is related by virtue of a common shareholder, the discount has been treated as a capital contribution and credited to a capital contribution reserve within equity.

During the year, related parties other than directors received pension contributions of £42,326 (2024 - £42,326).

The ultimate controlling party are the directors, who controlled the whole of the company's issued ordinary share capital throughout the year.