REGISTERED NUMBER: 03545956 (England and Wales)

Audited Financial Statements

For The Year Ended 30 June 2025

for

Treats Investments Limited

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTORS:

Mr A Merali

Mrs S Merali

SECRETARY:

Mr S Damani

REGISTERED OFFICE:

7 Greenock Road

Acton

London

W3 8DU

REGISTERED NUMBER:

03545956 (England and Wales)

AUDITORS:

RNS Business Solutions Limited

Chartered Accountants

Statutory Auditors

276 Preston Road

Harrow

Middlesex

HA3 0QA

FIXED ASSETS

Tangible assets

5

25,150,870

24,192,052

Investment property

6

2,200,000

2,900,000

27,350,870

27,092,052

CURRENT ASSETS

Debtors: amounts falling due within one year

7

7,874,247

8,247,397

Cash at bank and in hand

744,278

179,300

8,618,525

8,426,697

CREDITORS

Amounts falling due within one year

8

(3,154,839

)

(3,166,019

)

NET CURRENT ASSETS

5,463,686

5,260,678

TOTAL ASSETS LESS CURRENT LIABILITIES

32,814,556

32,352,730

CREDITORS

Amounts falling due after more than one year

9

(10,069,807

)

(10,134,150

)

PROVISIONS FOR LIABILITIES

12

(531,533

)

(648,713

)

NET ASSETS

22,213,216

21,569,867

CAPITAL AND RESERVES

Called up share capital

13

300

300

Profit and loss account

14

22,212,916

21,569,567

SHAREHOLDERS' FUNDS

22,213,216

21,569,867

The financial statements have been prepared and delivered in accordance with the provisions applicable to companies subject to the small companies regime.

In accordance with Section 444 of the Companies Act 2006, the Profit and Loss Account has not been delivered.

The financial statements were approved by the Board of Directors and authorised for issue on 27 April 2026 and were signed on its behalf by:

Mr A Merali - Director

1.	STATUTORY INFORMATION

Treats Investments Limited is a private company, limited by shares , registered in England and Wales. The company's registered number and registered office address can be found on the Company Information page.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with applicable United Kingdom accounting standards, including Financial Reporting Standard 102 - 'The Financial Reporting Standard applicable in the United Kingdom and Republic of Ireland' ('FRS 102'), and with the Companies Act 2006. The financial statements have been prepared on the historical cost basis except for the modification to a fair value basis for certain financial instruments as specified in the accounting policies below.

The financial statements are presented in Sterling (£), which is the company's functional currency.

Financial Reporting Standard 102 - reduced disclosure exemptions

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland"

- the requirement of Section 7 Statement of Cash Flows;

- the requirement of Section 3 Financial Statement Presentation paragraph 3.17(d);

- the requirement of Section 33 Related Party Disclosure paragraph 33.7.

Under FRS 102, the Company has taken advantage of the above exemption on the basis that it is a qualifying entity and the parent company includes the results of this company in its published consolidated financial statements as stated in the Ultimate Parent Company note.

Significant judgements and estimates

The company makes certain judgements and estimates regarding the future. Judgements and estimates are continually evaluated based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. In the future, actual experience may differ from these judgements and estimates. The judgements and estimates that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.

Judgements:

(i) Depreciation rates

Annual rates applied in the depreciation policies are based on experience and past performance. Rates are continuously under assessment which may lead to revision in the future.

(ii) Valuation of investment property

Valuation of investment property is based on the directors' best estimate from the knowledge of the market.

Turnover

Turnover represents sales (excluding VAT) of services, net of discounts, provided in the normal course of its trading activity. The sales are recognised when services have been rendered. The turnover of the hotel is derived primarily from the room rental and sale of food and beverage.

Rental income

Rental income represents rent receivable from letting of own investment property.

Tangible fixed assets

Depreciation is provided at the following annual rates in order to write off each asset over its estimated useful life.

Freehold property

-

nil rate

Long leasehold

-

nil rate

Plant and machinery

-

15% on reducing balance

Fixtures and fittings

-

15% on reducing balance

Computer equipment

-

25% on cost

Tangible fixed assets 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 either a straight line or reducing balance method, as indicated above.

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.

Freehold property is not depreciated on the grounds that the carrying value is maintained in excess of the historical costs. This departs from the requirements of S.17 FRS 102 in order to present a true and fair view.

Investment property

In accordance with FRS 102, investment properties shall be measured at fair value at each reporting date with changes in fair value recognised in the Statement of Comprehensive Income.

Taxation

Current tax is recognised for the amount of income tax payable in respect of the taxable profit for the current or past reporting periods using the tax rates and laws that that have been enacted or substantively enacted by the reporting date.

Deferred tax is provided in full on timing differences which result in an obligation at the balance sheet date to

pay more tax, or a right to pay less tax, at a future date, at rates expected to apply when they crystallise, based on current tax rates and law. Timing differences arise from the inclusion of items of income and expenditure in taxation computations in periods different from those in which they are included in the financial statements. Deferred tax assets are recognised to the extent that it is regarded as more likely than not that they will be recovered. Deferred tax assets and liabilities are not discounted.

Hire purchase and leasing commitments

Rentals paid under operating leases are charged to profit or loss on a straight line basis over the period of the lease.

Pension costs and other post-retirement benefits

The company operates a defined contribution pension scheme. Contributions payable to the company's pension scheme are charged to profit or loss in the period to which they relate.

Financial instruments

The Company has chosen to adopt Sections 11 and 12 of FRS 102 in respect of financial instruments.

(i) Financial assets

Basic financial assets (including trade and other receivables, cash and bank balances) are initially recognised at transaction price, 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. Such assets are subsequently carried at amortised cost using the effective interest method.

At the end of each reporting period, financial assets measured at amortised cost are assessed for objective evidence of impairment. The impairment loss is recognised in the Statement of Comprehensive Income.

(ii) Financial liabilities

Basis financial liabilities (including trade and other payables, bank loans, 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 receipts discounted at a market rate of interest. Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

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.

Creditors

Short term trade 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.

Cash and cash equivalents

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

Going concern

The directors have reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future, which is a period of at least 12 months from the date of signing these financial statements. The company also has support from group companies and has secured finance with the company's banks. Therefore, the financial statements have been prepared on a going concern basis.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the year was 16 (2024 - 12 ) .

4.	AUDITORS' REMUNERATION

30/6/25

30/6/24

£

£

Fees payable to the company's auditors for the audit of the company's financial statements

8,900

7,500

Auditors' remuneration for non audit work

2,850

17,075

5.	TANGIBLE FIXED ASSETS

Freehold

Long

Plant and

property

leasehold

machinery

£

£

£

COST

At 1 July 2024

24,007,652

-

46,984

Additions

26,652

702,550

-

Disposals

-

-

(21,937

)

At 30 June 2025

24,034,304

702,550

25,047

DEPRECIATION

At 1 July 2024

-

-

34,550

Charge for year

-

-

1,124

Eliminated on disposal

-

-

(17,000

)

At 30 June 2025

-

-

18,674

NET BOOK VALUE

At 30 June 2025

24,034,304

702,550

6,373

At 30 June 2024

24,007,652

-

12,434

Fixtures

and

Computer

fittings

equipment

Totals

£

£

£

COST

At 1 July 2024

506,325

44,555

24,605,516

Additions

317,947

-

1,047,149

Disposals

(30,202

)

-

(52,139

)

At 30 June 2025

794,070

44,555

25,600,526

DEPRECIATION

At 1 July 2024

351,666

27,248

413,464

Charge for year

70,340

8,279

79,743

Eliminated on disposal

(26,551

)

-

(43,551

)

At 30 June 2025

395,455

35,527

449,656

NET BOOK VALUE

At 30 June 2025

398,615

9,028

25,150,870

At 30 June 2024

154,659

17,307

24,192,052

6.	INVESTMENT PROPERTY

Total

£

FAIR VALUE

At 1 July 2024

2,900,000

Fair value movement

(700,000

)

At 30 June 2025

2,200,000

NET BOOK VALUE

At 30 June 2025

2,200,000

At 30 June 2024

2,900,000

Fair value at 30 June 2025 is represented by:

£

Valuation in 2014

2,113,197

Valuation in 2015

20,000

Valuation in 2016

40,000

Valuation in 2017

70,000

Valuation in 2018

80,000

Valuation in 2021

290,000

Valuation in 2025

(700,000

)

Cost

286,803

2,200,000

If the investment property had not been revalued it would have been included at the following historical cost:

30/6/25

30/6/24

£

£

Cost

286,803

286,803

The investment property was valued on an open market basis on 30 June 2025 by the directors .

7.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

30/6/25

30/6/24

£

£

Trade debtors

24,906

229,888

Amounts owed by group undertakings

7,733,393

7,978,265

Other debtors

115,948

39,244

7,874,247

8,247,397

The amounts owed by group undertakings are non interest bearing loans and receivable on demand.

8.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

30/6/25

30/6/24

£

£

Trade creditors

194,250

49,163

Amounts owed to group undertakings

2,372,670

2,350,812

Taxation and social security

316,600

476,436

Other creditors

271,319

289,608

3,154,839

3,166,019

The amounts owed to group undertakings are non interest bearing loans and repayable on demand.

9.

CREDITORS: AMOUNTS FALLING DUE AFTER MORE THAN ONE YEAR

30/6/25

30/6/24

£

£

Bank loans (see note 10)

10,069,807

10,134,150

Amounts falling due in more than five years:

Repayable otherwise than by instalments

Bank loans more 5 yrs non-inst

7,537,502

7,581,930

Repayable by instalments

Bank loans more 5 yr by instal

2,532,305

2,552,220

10.

LOANS

An analysis of the maturity of loans is given below:

30/6/25

30/6/24

£

£

Amounts falling due in more than five years:

Repayable otherwise than by instalments

Bank loans more 5 yrs non-inst

7,537,502

7,581,930

Repayable by instalments

Bank loans more 5 yr by instal

2,532,305

2,552,220

Interest payable on bank loans are calculated at 2% per annum over Base Rate plus mandatory costs. There are financial covenants attached to this loan such as minimum EBITDA and maximum Dividends and gross leverage.

11.	SECURED DEBTS

The following secured debts are included within creditors:

30/6/25

30/6/24

£

£

Bank loans

10,069,807

10,134,150

The bank loans are secured by a fixed and floating charge over the assets and related undertakings of the company and inter company guarantees.

12.	PROVISIONS FOR LIABILITIES

30/6/25

30/6/24

£

£

Deferred tax

Accelerated capital allowances

101,130

43,310

Fair value of investment

property

430,403

605,403

531,533

648,713

Deferred

tax

£

Balance at 1 July 2024

648,713

Accelerated capital allowances

57,820

Tax on fair value movement

(175,000

)

Balance at 30 June 2025

531,533

13.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

30/6/25

30/6/24

value:

£

£

300

Ordinary

£1

300

300

14.

RESERVES

Profit

and loss

account

£

At 1 July 2024

21,569,567

Profit for the year

1,143,349

Dividends

(500,000

)

At 30 June 2025

22,212,916

The retained earnings at the balance sheet date include £6,877,302 (2024: £7,402,302) which are not distributable profits arising on revaluation of investment property after provision for deferred taxation and other property acquired as a result of group reorganisation.

15.	DISCLOSURE UNDER SECTION 444(5B) OF THE COMPANIES ACT 2006

The Auditors' Report was unqualified.

Rakesh Sangani BA FCA (Senior Statutory Auditor)

for and on behalf of RNS Business Solutions Limited

16.	RELATED PARTY DISCLOSURES

The company has taken advantage of exemption, under the terms of Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland', not to disclose related party transactions with wholly owned subsidiaries within the group.

17.	POST BALANCE SHEET EVENTS

On 1 April 2026 there was a reorganisation of the Group. The reorganisation resulted in the demerger of different parts of the Group. Treats Investments Limited remains a wholly owned subsidiary of Treats Holdings Limited. However, Treats Holdings Limited is now a wholly owned subsidiary of Treats Hotels Holdings Limited. The ultimate controlling parties remain unchanged.

As part of reorganisation, an interim dividend of 3,900,000p per share was paid on the Ordinary Shares during the year ending 30 June 2026, totaling £11,700,000. A further interim dividend of 733,333.33p per share was paid in specie on the Ordinary Shares during the year ending 30 June 2026, totaling £2,200,000. The dividends were declared and paid after 30 June 2025 but prior to the date of this report. The dividends represent a non-adjusting event after the reporting period and have not been recognised as a liability as at 30 June 2025. The dividends will be recognised in the financial statements for the year ending 30 June 2026.

18.	ULTIMATE CONTROLLING PARTY

For the year ended 30 June 2025 and 30 June 2024:

The ultimate controlling party is Mr A Merali.

19.	ULTIMATE PARENT COMPANY

For the year ended 30 June 2025 and 30 June 2024:

In the opinion of the directors the ultimate parent company is Treats Holdings Limited, a company incorporated in England and Wales. The smallest and largest group of which the company is a member and for which group consolidated financial statements are prepared is Treats Holdings Limited. The group financial statements are available at the company's registered office address, 7 Greenock Road, Acton, London W3 8DU.