ZEAL OPERATIONS EXETER LIMITED

AUDITED FINANCIAL STATEMENTS

FOR THE PERIOD

7TH AUGUST 2024 TO 30TH SEPTEMBER 2025

Page

Company Information

1

Balance Sheet

2

Notes to the Financial Statements

3

DIRECTOR:

S C Lousada

REGISTERED OFFICE:

The Estate Office

Oakley House

Oakley

Bedfordshire

MK43 7ST

REGISTERED NUMBER:

15884517 (England and Wales)

AUDITORS:

HW Bedford Limited

First Floor, Woburn Court

2 Railton Road

Woburn Rd Ind Est

Kempston

Bedfordshire

MK42 7PN

FIXED ASSETS

Tangible assets

4

1,713,890

CURRENT ASSETS

Stocks

102,445

Debtors

5

177,921

Cash at bank and in hand

232,553

512,919

CREDITORS

Amounts falling due within one year

6

3,095,328

NET CURRENT LIABILITIES

(2,582,409

)

TOTAL ASSETS LESS CURRENT LIABILITIES

(868,519

)

CAPITAL AND RESERVES

Called up share capital

8

100

Retained earnings

(868,619

)

SHAREHOLDERS' FUNDS

(868,519

)

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 Statement of Comprehensive Income has not been delivered.

The financial statements were approved by the director and authorised for issue on 1st May 2026 and were signed by:

S C Lousada - Director

1.	STATUTORY INFORMATION

Zeal Operations Exeter 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

The financial statements are presented in sterling which is the functional currency of the company and rounded to the nearest £.

The significant accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all years presented unless otherwise stated.

Related party exemption

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.

Significant judgements and estimates

The critical judgements that the director has made in the process of applying the Company's accounting policies which have the most significant effect on the amounts recognised in the statutory financial statements are discussed below.

(i) Accruals and provisions

The board makes judgements regarding whether it is appropriate to accrue or provide for various liabilities, as well as estimating the sum which is appropriate to provide or accrue.

(ii) Impairment of tangible fixed assets

The Company tests whether tangible fixed assets are impaired when there are indications that there is a risk of impairment. This requires an estimation of the value in use of the cash-generating units in which these assets reside. The assessment of the value in use is compared to the carrying value of the assets. This requires estimation of future cash flows.

(iii) Provision for stocks

The Company holds a range of consumable inventories, including food and beverage items, minibar stock, guest amenities and housekeeping supplies. Judgement is required in assessing provisions for items that may expire, deteriorate, become obsolete or be subject to shrinkage. Estimates are based on stock ageing, expected usage patterns, historical wastage levels, and management’s assessment of the condition and recoverability of individual inventory categories. Actual results may differ from these estimates, and adjustments are recognised when identified.

Turnover

Turnover is recognised to the extent that it is probable that the economic benefits will flow to the Company and the amount of revenue can be measured reliably. Turnover is measured at 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 - Food, Beverage and Retail Items

Revenue from the sale of food, beverages, minibar items and other retail goods is recognised when all of the following conditions are satisfied:

- the Company has transferred the significant risks and rewards of ownership of the goods to the customer;

- the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold;

- the amount of revenue can be measured reliably;

- it is probable that the 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.

This typically occurs at the point of sale when the goods are delivered to and accepted by the customer.

Rendering of services - Accommodation and Other Hotel Services

Revenue from the provision of accommodation and related hotel services is recognised in the period in which the services are provided, in accordance with the stage of completion, when all of the following conditions are satisfied:

- the amount of revenue can be measured reliably;

- it is probable that the Company will receive the consideration due under the contract;

- the stage of completion of the service at the reporting date can be measured reliably; and

- the costs incurred and the costs to complete the service can be measured reliably.

Accommodation revenue is recognised on a daily basis over the customer’s stay, as the customer simultaneously receives and consumes the benefits of the service.

Deposits

Customer deposits for future accommodation, events or services are recognised as liabilities until the related goods or services are provided, at which point the revenue is recognised.

Tangible fixed assets

Tangible fixed assets are stated at historical cost less accumulated depreciation. Historical cost includes the original purchase price and expenditure 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.

The company adds to the carrying amount of any item of tangible fixed assets the cost of replacing parts of such an item when the cost is incurred if the replacement part is expected to provide incremental future benefits to the company. The carrying amount of the replaced part is derecognised. All other repairs and maintenance are charged to the income statement during the period in which they are incurred. Assets in the course of construction are stated at cost. These assets are not depreciated until they are available for use.

Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset on the following basis:

Improvements to Property

6 - 10 years straight line

Plant and Machinery

5 - 15 years straight line

Furniture and Fittings

5 - 7 years straight line

Computer Equipment

4 years straight line

The assets residual values and useful lives are reviewed and adjusted if appropriate, at the end of each reporting period, the effect of any change is accounted for prospectively.

Stocks

Inventories comprise consumables used in hotel operations, including linen and similar long-life operating supplies. In accordance with FRS 102 Section 13, inventories are measured at the lower of cost and net realisable value.

Hotel linen and similar long-life consumables are capitalised and depreciated on a straight-line basis over their estimated useful life of 36 months, reflecting the pattern of consumption of economic benefits. Net realisable value for these items is assessed with reference to their remaining service potential, as they are not held for sale. Items that are damaged, obsolete or no longer capable of providing service are written down to their recoverable amount.

Taxation

Taxation for the period comprises current and deferred tax. Tax is recognised in the Income Statement, except to the extent that it relates to items recognised in other comprehensive income or directly in equity.

Current or deferred taxation assets and liabilities are not discounted.

Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date.

Deferred tax

Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date.

Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the period end and that are expected to apply to the reversal of the timing difference.

Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.

Foreign currencies

Assets and liabilities in foreign currencies are translated into sterling at the rates of exchange ruling at the balance sheet date. Transactions in foreign currencies are translated into sterling at the rate of exchange ruling at the date of transaction. Exchange differences are taken into account in arriving at the operating result.

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.

Cash and cash equivalents

Cash and cash equivalents includes 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. Cash in transit is treated as cash and cash equivalent on transaction date.

Share capital

Ordinary shares are classified as equity.

Trade and other debtors

Trade and other debtors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest method less impairment losses for bad and doubtful debts, except where the effect of discounting would be immaterial. In such cases, the receivables are stated at cost less impairment losses for bad and doubtful debts.

Trade and other creditors

Trade and other creditors are initially recognised at fair value and thereafter stated at amortised cost using the effective interest rate method, unless the effort of discounting would be immaterial, in which case they are stated at cost.

Financial instruments

The Company has chosen to adopt Section 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.

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

If there is a decrease in the impairment loss arising from an event occurring after the impairment was recognised, the impairment is reversed. The reversal is such that the current carrying amount does not exceed what the carrying amount would have been had the impairment not previously been recognised. The impairment reversal is recognised in profit or loss.

Financial assets are derecognised when (a) the contractual rights to the cash flows from the asset expire or are settled, or (b) substantially all the risks and rewards of the ownership of the asset are transferred to another party or (c) despite having retained some significant risks and rewards of ownership, control of the asset has been transferred to another party who has the practical ability to unilaterally sell the asset to an unrelated third party without imposing additional restrictions.

ii) Financial liabilities

Basic financial liabilities, including trade and other payables, bank loans and loans from fellow group companies, are initially recognised at transaction price.

Financial liabilities are derecognised when the liability is extinguished, that is when the contractual obligation is discharged, cancelled or expires.

Going concern

At the period end, the company has net liabilities of £868,619. The director has assessed the Company’s financial position, cash flow forecasts and future trading expectations, and has considered the potential impacts of relevant risks and uncertainties. Based on this review, the director has a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. Accordingly, the director considered it appropriate to prepare the financial statements on a going concern basis.

3.	EMPLOYEES AND DIRECTORS

The average number of employees during the period was 32 .

4.	TANGIBLE FIXED ASSETS

Improvements

Fixtures

to

Plant and

and

Computer

property

machinery

fittings

equipment

Totals

£

£

£

£

£

COST

Additions

187,222

278,667

1,291,552

108,633

1,866,074

At 30th September 2025

187,222

278,667

1,291,552

108,633

1,866,074

DEPRECIATION

Charge for period

12,900

14,591

110,542

14,151

152,184

At 30th September 2025

12,900

14,591

110,542

14,151

152,184

NET BOOK VALUE

At 30th September 2025

174,322

264,076

1,181,010

94,482

1,713,890

5.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

£

Trade debtors

57,775

Other debtors

3,398

Prepayments and accrued income

116,748

177,921

6.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

£

Trade creditors

65,566

Amounts owed to group undertakings

2,569,756

Social security and other taxes

28,750

VAT

67,180

Other creditors

10,341

Accruals and deferred income

353,735

3,095,328

7.	SECURED DEBTS

On 5 March 2025, Zeal Hotel (Exeter) Ltd entered into a term loan facility with Coutts & Co. Zeal Operations Exeter Limited is not a borrower under this facility; however, it has provided security and support in connection with it. This security comprises a mortgage debenture dated 5 March 2025, creating fixed and floating charges over the company’s assets, together with a composite cross-guarantee between the company and Zeal Hotel (Exeter) Ltd in favour of the bank.

The group’s parent company has also provided a corporate guarantee in support of the facility.

8.	CALLED UP SHARE CAPITAL

Allotted and issued:

Number:

Class:

Nominal

value:

£

100

Ordinary

1

100

100 Ordinary shares of 1 each were allotted at par during the period.

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

The Report of the Auditors was unqualified.

Alberto Di Lorenzo (FCA) (Senior Statutory Auditor)

for and on behalf of HW Bedford Limited

10.	RELATED PARTY DISCLOSURES

During the year, there were procurement fees paid to Red Construction Group, a company in which Mr S Lousada is a director, to the value of £53,746 (2024: £nil). There was no amount outstanding at year end.

During the year, there were purchases to the value of £7,080 from Zeal Gin Limited, a company in which Mr S Lousada is a director. There was no amount outstanding at year end.

During the year, fixed assets to the value of £626,549 were purchased from Form (Midlands), a company in which Mr S Lousada is a director. There was no amount outstanding at year end.

During the year, Zeal Hotel (Exeter) Ltd recharged costs to the company amounting to £2,575,657 (2024: £817,853). At the year end, the full amount of £2,569,756 (2024: £817,853) was owed to Zeal Hotel (Exeter) Ltd. The company operates from hotel premises owned by its parent company, Zeal Hotel (Exeter) Ltd. No rent is charged for the use of these premises. The director considers this arrangement to be in the best interests of the group and have included this disclosure to ensure the financial statements present a true and fair view.

11.	ULTIMATE CONTROLLING PARTY

The parent company is Zeal Hotel (Exeter) Limited.

The ultimate parent company is Lousada Holdings Limited, a company incorporated in the United Kingdom. Group accounts are available from the registered company address:

Estate Office

Oakley House

Oakley

Bedford

MK43 7ST

The ultimate controlling party is Mr S C Lousada by virtue of his controlling interest in Lousada Holdings Limited.

12.	COMPARATIVE FIGURES

Comparative figures have not been included as the current period represents the Company’s first period of trading.