Sankara Hotels Gatwick Limited - Limited company accounts 25.1

REGISTERED NUMBER: 08309527 (England and Wales)

Annual Report and

Financial Statements for the Year Ended 31 August 2025

for

Sankara Hotels Gatwick Limited

Page

Company Information

1

Report of the Directors

2

Statement of Directors' Responsibilities

4

Independent Auditor's Report

5

Statement of Comprehensive Income

9

Statement of Financial Position

10

Statement of Changes in Equity

11

Notes to the Financial Statements

12

DIRECTORS:

D Hart

A Robb

REGISTERED OFFICE:

c/o Taylor Wessing

5 New Street Square

London

EC4A 3TW

REGISTERED NUMBER:

08309527 (England and Wales)

AUDITOR:

BDO LLP

2 Atlantic Square

31 York Street

Glasgow, UK

G2 8NJ

BANKERS:

Santander UK PLC

17 Ulster Terrace

Regent's Park House

London

NW1 4PJ

The directors present their report with the financial statements of the company for the year ended 31 August 2025.

PRINCIPAL ACTIVITY

The principal activity of the company is the operation of a Hampton by Hilton hotel at Gatwick Airport.

REVIEW OF BUSINESS

Turnover fell to £8,432,640 in 2025 from £8,710,907 in 2024 - while occupancy remained high, there was pressure on room rate. The operating result fell to an operating loss of £318,134 in 2025 from a loss of £231,110 in 2024 - the fall in revenue was offset by lower rent. No dividends were recommended or paid for the year (2024 - £nil).

EVENTS SINCE THE END OF THE YEAR

After year end, a lease contract was entered into for the year to 31 August 2026 for £2,150,000 (2024 - £2,750,000 for year ended 31 August 2025). The rent lease is a short term lease due within one year.

DIRECTORS

The directors shown below have held office during the whole of the period from 1 September 2024 to the date of this report.

D Hart

A Robb

GOING CONCERN

The directors have assessed the principal risks and reviewed detailed projections - this leads them to believe that the company will continue to meet its financial obligations and remain in operational existence for at least one year from the date of approval of these financial statements.

The company has net liabilities and net current liabilities of £376,308 (2024 - £137,181), but in making the going concern assessment the directors have taken the following factors into account:

•The landlord sets rent annually to reflect anticipated performance - the rent for the coming year has been set at a level that anticipates a £500k profit and current forecasts show that the company is anticipated to meet this.

•The landlord has provided financial support in the past with working capital loans. The financial projections indicate that further support in the form of working capital loans is not required.

•Trading performance between September 2025 and January 2026 has been cash generative.

•The cash flow forecast for the entity to the end of February 2027, being at least twelve months from the date of approval of these financial statements, indicates that the entity has sufficient cash to meet liabilities as they fall due.

Accordingly, it is considered appropriate to adopt the going concern basis of preparation. The financial statements do not include adjustments that would result if the company was unable to continue as a going concern.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITOR

So far as the directors are aware, there is no relevant audit information (as defined by Section 418 of the Companies Act 2006) of which the company's auditor is unaware, and each director has taken all the steps that he ought to have taken as a director in order to make himself aware of any relevant audit information and to establish that the company's auditor is aware of that information.

AUDITOR

Pursuant to Section 487 of the Companies Act 2006, the auditor will be deemed to be reappointed and BDO LLP will therefore continue in office.

This report has been prepared in accordance with the provisions of Part 15 of the Companies Act 2006 relating to small companies.

ON BEHALF OF THE BOARD:

A Robb - Director

24 February 2026

The directors are responsible for preparing the Annual 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 Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law), including Financial Reporting Standard 101 'Reduced Disclosure Framework'. 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 and then apply them consistently;

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

• 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 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.

Opinion

In our opinion, the financial statements:

-

give a true and fair view of the state of the company's affairs as at 31 August 2025 and of its
loss for the year then ended;

-

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

-

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

We have audited the financial statements of Sankara Hotels Gatwick Limited (the 'company') for the year ended 31 August 2025 which comprise the statement of comprehensive income, the statement of financial position, the statement of changes in equity and notes to the financial statements, including material accounting policy information. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 101 Reduced Disclosure Framework (United Kingdom Generally Accepted Accounting Practice).

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 believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We are independent of the 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.

Conclusions relating to going concern

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.

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 directors are responsible for the other information. The other information comprises the information in the Annual Report and financial statements, other than the financial statements and our Auditor's Report thereon.

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 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.

Other Companies Act 2006 reporting

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

-	the information given in the Report of the Directors for the financial year for which the financial statements are prepared is consistent with the financial statements; and

-	the Report of the Directors has 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 Report of the Directors.

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; or

-

the directors were not entitled to prepare the financial statements in accordance with the
small companies regime and take advantage of the small companies' exemption from the
requirement to prepare a Strategic Report or in preparing the Report of the Directors.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities, 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 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.

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 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 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:

Non-compliance with laws and regulations

Based on:

-

Our understanding of the company and the industry in which it operates;

-

Discussion with management and those charged with governance; and

-

Obtaining an understanding of the company's policies and procedures regarding compliance

with laws and regulations;

we considered the significant laws and regulations to be applicable accounting framework, UK tax legislation and the Companies Act 2006.

Our procedures in respect of the above included:

-

Enquiry with management and those charged with governance regarding any instances of

non-compliance with laws and regulations;

-

Review of minutes of meetings of those charged with governance for any instances of

non-compliance with laws and regulations; and

-

Review of financial statement disclosures and agreeing to supporting documentation.

Fraud

We assessed the susceptibility of the financial statements to material misstatement, including fraud. Our risk assessment procedures included:

-

Enquiry with management and those charged with governance regarding any known or

suspected instances of fraud;

-

Obtaining an understanding of the company's policies and procedures relating to:

• Detecting and responding to the risks of fraud; and

• Internal controls established to mitigate risks related to fraud.

-

Review of minutes of meetings of those charged with governance for any known or

suspected instances of fraud;

-

Discussion amongst the engagement team as to how and where fraud might occur in the

financial statements; and

-

Performing analytical procedures to identify any unusual or unexpected relationships that

may indicate risks of material misstatement due to fraud.

Based on our risk assessment, we considered the areas most susceptible to fraud to be management override of control and the risk of fraud in revenue recognition from manual journals posted to revenue.

-

Testing a sample of journal entries throughout the year which met a defined risk criteria, by

agreeing to supporting documentation;

-

Performing audit procedures on the entity's reconciliation between revenue and cash

received in the year;

-

Carrying out a review of manual journals posted to revenue in the year; and

-

Assessing significant accounting estimates for bias.

We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members who were all deemed to have appropriate competence and capabilities and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit.

Our audit procedures were designed to respond to risks of material misstatement in the financial statements, 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, misrepresentations or through collusion. There are inherent limitations in the audit procedures performed 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 are to become aware of it.

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 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.

Stuart Macdougall (Senior Statutory Auditor)

for and on behalf of BDO LLP (Statutory Auditor)

2 Atlantic Square

31 York Street

Glasgow, UK

G2 8NJ

25 February 2026

BDO LLP is a limited liability partnership registered in England and Wales (with registered number OC305127).

TURNOVER

3

8,432,640

8,710,907

Cost of sales

(2,241,719

)

(2,234,551

)

GROSS PROFIT

6,190,921

6,476,356

Administrative expenses

(6,509,056

)

(6,707,466

)

OPERATING LOSS and

LOSS BEFORE TAXATION

5

(318,135

)

(231,110

)

Tax on loss

6

79,008

43,363

LOSS FOR THE FINANCIAL YEAR

(239,127

)

(187,747

)

OTHER COMPREHENSIVE INCOME

-

TOTAL COMPREHENSIVE LOSS

FOR THE YEAR

(239,127

)

(187,747

)

CURRENT ASSETS

Stocks

7

11,592

12,835

Debtors

8

248,768

364,891

Prepayments and accrued income

268,023

266,877

Cash at bank and in hand

421,680

625,797

950,063

1,270,400

CREDITORS

Amounts falling due within one year

9

(1,326,371

)

(1,407,581

)

NET CURRENT LIABILITIES

(376,308

)

(137,181

)

TOTAL ASSETS LESS CURRENT

LIABILITIES

(376,308

)

(137,181

)

CAPITAL AND RESERVES

Called up share capital

12

1

Accumulated deficit

13

(376,309

)

(137,182

)

SHAREHOLDER DEFICIT

(376,308

)

(137,181

)

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

The financial statements were approved by the Board of Directors and authorised for issue on 24 February 2026 and were signed on its behalf by:

A Robb - Director

Called up

share

Accumulated

Total

capital

deficit

equity

£

Balance at 1 September 2023

1

50,565

50,566

Changes in equity

Total comprehensive loss

-

(187,747

)

(187,747

)

Balance at 31 August 2024

1

(137,182

)

(137,181

)

Changes in equity

Total comprehensive loss

-

(239,127

)

(239,127

)

Balance at 31 August 2025

1

(376,309

)

(376,308

)

1.	STATUTORY INFORMATION

Sankara Hotels Gatwick 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 preparation

These financial statements have been prepared in accordance with Financial Reporting Standard 101 "Reduced Disclosure Framework" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

The company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by FRS 101 "Reduced Disclosure Framework":

•

the requirements of paragraph 52, the second sentence of paragraph 89, and

paragraphs 90, 91 and 93 of IFRS 16 Leases;

the requirements of paragraph 58 of IFRS 16;

•

the requirements of the second sentence of paragraph 110 and paragraphs 113(a), 114,

115, 118, 119(a) to (c), 120 to 127 and 129 of IFRS 15 Revenue from Contracts with

Customers;

•

the requirement in paragraph 38 of IAS 1 Presentation of Financial Statements to

present comparative information in respect of:

-

paragraphs 53(a), (h) and (j) of IFRS 16;

-

paragraph 79(a)(iv) of IAS 1; and

-

paragraph 73(e) of IAS 16 Property, Plant and Equipment;

•

the requirements of paragraphs 10(d), 10(f), 16, 38A, 38B, 38C, 38D, 40A, 40B, 40C,

40D, 111 and 134 to 136 of IAS 1;

•

the requirements of

-

paragraphs 1 to 44E, 44H(b)(ii) and 45 to 63 of IAS 7 Statement of Cash Flows; and

-

paragraphs 44F, 44G, 44H(a), 44H(b)(i), 44H(b)(iii) and 44H(c) of IAS 7;

•

the requirements of paragraphs 30 and 31 of IAS 8 Accounting Policies, Changes in

Accounting Estimates and Errors;

•

the requirements of paragraphs 88C and 88D of IAS 12 Income Taxes;

•

the requirements of paragraph 74(b) of IAS 16;

•

the requirements of paragraphs 17 and 18A of IAS 24 Related Party Disclosures;

•

the requirements in IAS 24 Related Party Disclosures to disclose related party

transactions entered into between two or more members of a group;

Functional currency

These financial statements are presented in Sterling, being the functional currency of the company. All financial information presented in Sterling has been rounded to the nearest pound, except where otherwise stated.

Use of estimates and judgements

In preparing these financial statements management has made judgements, estimates and assumptions that affect application of the company accounting policies and the reported amounts of assets, liabilities, income and expenses. Such estimates and judgements are based on historical experience and other factors, including expectation of future events that are believed to be reasonable. Actual outcomes may differ from these estimates.

Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates are recognised prospectively. Significant judgements include:

Lease commitment - company as lessee

The company has entered into a property lease on a hotel property. The company has determined, based on an evaluation of the terms and conditions of the arrangement (such as the rental amounts being set for one year periods at a time and being set with reference to EBITDA), that the lease should not be brought on balance sheet as a right of use asset.

Debtors

Debtors are assessed for indicators of impairment at each balance sheet date. If there is objective evidence that a debtor balance is not recoverable, a provision is created.

Going concern

The directors have assessed the principal risks and reviewed detailed projections - this leads them to believe that the company will continue to meet its financial obligations and remain in operational existence for at least one year from the date of approval of these financial statements.

The company has net liabilities and net current liabilities of £376,308 (2024 - £137,181), but in making the going concern assessment the directors have taken the following factors into account:

•The landlord sets rent annually to reflect anticipated performance - the rent for the coming year has been set at a level that anticipates a £500k profit and current forecasts show that the company is anticipated to meet this.

•The landlord has provided financial support in the past with working capital loans. The financial projections indicate that further support in the form of working capital loans is not required.

•Trading performance between September 2025 and January 2026 has been cash generative.

•The cash flow forecast for the entity to the end of February 2027, being at least twelve months from the date of approval of these financial statements, indicates that the entity has sufficient cash to meet liabilities as they fall due.

Accordingly, it is considered appropriate to adopt the going concern basis of preparation. The financial statements do not include adjustments that would result if the company was unable to continue as a going concern.

Measurement of fair values

A number of the company's accounting policies and disclosures require the measurement of fair values. When measuring the fair value of an asset or liability the company uses market observable data as far as possible.

Turnover

Revenue is primarily derived from hotel operations, including the rental of rooms and food and beverage sales from the leased hotel operated under the brand name Hampton by Hilton. The customer is made aware of the terms of the contract when a reservation is made. Performance obligations usually take the form of a room and breakfast, which are easily distinguishable. Variable considerations/financing components are not used in calculating hotel charges. Revenue is recognised when the customer checks in and food and beverages are sold.

Deferred income

Deferred income represents deposits received in advance of the period to which the accommodation income relates. Deferred income is recognised as a liability and transferred to income in the period to which the income relates.

Stocks

Stocks are valued at the lower of cost and net realisable value, after making due allowance for obsolete and slow moving items.

Taxation

Tax on the profit or loss for the year comprises current and deferred tax. Tax is recognised in the profit or loss except to the extent that it relates to items recognised directly in equity or other comprehensive income, in which case it is recognised directly in equity or other comprehensive income.

Current tax is the expected tax payable or receivable on the taxable income or loss for the year, using tax rates enacted or substantively enacted at the balance sheet reporting date, and any adjustment to tax payable in respect of previous years.

Deferred tax is provided on temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation purposes. The following temporary differences are not provided for: the initial recognition of goodwill; the initial recognition of assets or liabilities that affect neither accounting nor taxable profit other than in a business combination, and differences relating to investments in subsidiaries, associates and joint arrangements to the extent that they will probably not reverse in the foreseeable future. The amount of deferred tax provided is based on the expected manner of realisation or settlement of the carrying amount of assets and liabilities, using tax rates enacted or substantively enacted at the balance sheet date.

A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against which the temporary difference can be utilised.

Leases

Leases are classified on balance sheet whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee. The exception to this is for:

- leases of low value assets;

- leases with a duration of 12 months or less; and

- leases with an entirely variable rental.

Leases that fall into the above categories fall outwith the scope of IFRS16 and so lease payments are recognised as an expense in the Statement of Comprehensive Income over the lease term.

Employee benefits

Short-term employee benefits

Short-term employee benefits are expensed as the related service is provided. A liability is recognised for the amount expected to be paid if the company has a present legal or constructive obligation to pay this amount as a result of past service provided by the employee and the obligation can be estimated reliably.

Retirement benefits

Obligations for contributions to defined contribution plans are expensed as the related service is provided. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in future payments is available.

Debtors

Debtors are stated initially at their fair value and subsequently at amortised cost less any allowance for doubtful amounts. An allowance is made when collection of the full amount is no longer considered probable.

Creditors

Liabilities for creditors and other amounts payable are carried at amortised cost which is the fair value of the consideration to be paid in the future for goods and services received, whether or not billed to the company.

Creditors to related parties are carried at amortised cost. Where the time value of money is insignificant for short term creditors and other payables they are recognised at cost.

Cash and cash equivalents

Cash and cash equivalents comprise cash balances and call deposits with maturities of three months or less.

Cash equivalents are short-term highly liquid investments with an original maturity of three months or less from the date of acquisition that are readily convertible to known amounts of cash and subject to insignificant risk of changes in value.

Financial assets

The company's financial assets include trade and other debtors and cash and short term deposits.

Initial recognition and measurement

Financial assets are measured at fair value, being the transaction price plus, in the case of financial assets not at fair value, through the statement of comprehensive income, directly attributable transaction costs.

Subsequent measurement

Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market, do not qualify as trading assets and have not been designated as either fair value through the statement of comprehensive income or available-for-sale. Such assets are carried at amortised cost using the effective interest method if the time value of money is significant. Amortised cost is computed using the effective interest method less any allowance for impairment and principal repayment or reduction. The calculation takes into account any premium or discount on acquisition. This method uses an effective interest rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the net carrying amount of the financial asset and includes transaction costs and fees that are an integral part of the effective interest rate. Gains and losses are recognised in the statement of comprehensive income when the loans and receivables are derecognised or impaired, as well as through the amortisation process.

Impairment of Financial Assets

The company assesses at each balance sheet date whether a financial asset or company of financial assets is impaired. A financial asset or a company of financial assets is deemed to be impaired if, and only if, there is objective evidence of impairment as a result of one or more events that has occurred after the initial recognition of the asset (an incurred 'loss event') and that loss event has an impact on the estimated future cash flows of the financial asset or the company of financial assets that can be reliably estimated.

The carrying amount of the asset is reduced, through the use of an allowance account. The amount of the loss shall be recognised in administration costs. Loans together with the associated allowance are written off when there is no realistic prospect of future recovery and all collateral has been realised or has been transferred to the company. If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognised, the previously recognised impairment loss is reversed. Any subsequent reversal of an impairment loss is recognised in the statement of comprehensive income, to the extent that the carrying value of the asset does not exceed its amortised cost at the reversal date. In relation to trade receivables, a provision for impairment is made when there is objective evidence (such as the probability of insolvency or significant financial difficulties of the debtor) that the Company will not be able to collect all of the amounts due under the original terms of the invoice. The carrying amount of the receivable is reduced through use of an allowance account. Impaired debts are derecognised when they are assessed as irrecoverable.

Trade and other debtors

Trade debtors, which generally have 30 day terms, are recognised and carried at the lower of their original invoiced value and recoverable amount. Where the time value of money is material, receivables are carried at amortised cost. Provision for impairment is made through the statement of comprehensive income where there is objective evidence that the company will not be able to recover the debt.

Cash at bank and in hand

Cash and short term deposits in the balance sheet comprise cash at bank and in hand and cash in transit.

Financial Liabilities

The company's financial liabilities include trade and other payables and short term deposits from guests.

Initial Recognition

Financial liabilities within the scope of IFRS 9 are classified as financial liabilities at fair value through the statement of comprehensive income, loans and borrowings, or as derivatives designated as hedging instruments in an effective hedge, as appropriate. The company determines the classification of its financial liabilities at initial recognition. Financial liabilities are recognised initially at fair value and in the case of loans and borrowings, directly attributable transaction costs.

De-recognition of Financial Assets and Financial Liabilities

The company derecognises a financial asset only when the contractual rights to the cash flows from the asset expire, or when it transfers the financial asset and substantially all the risks and rewards of ownership of the asset to another entity. If the company neither transfers nor retains substantially all the risks and rewards of ownership and continues to control the transferred asset, the company recognises its retained interest in the asset and an associated liability for amounts it may have to pay. If the company retains substantially all the risks and rewards of ownership of a transferred financial asset, the company continues to recognise the financial asset and also recognises a collateralised borrowing for the proceeds received.

The company derecognises financial liabilities when, and only when, the company's obligations are discharged, cancelled or they expire.

Loans and Borrowings

After initial recognition, interest bearing loans and borrowings are subsequently measured at amortised cost using the effective interest rate method. Gains and losses are recognised in the statement of comprehensive income when the liabilities are derecognised as well as through the amortisation process.

Equity

Equity comprises the following:

- "Share capital" represents the nominal value of equity shares.

- "Retained earnings" represents the retained profit of the company less any dividends paid or payable.

3.

TURNOVER

The turnover and loss before taxation are attributable to the one principal activity of the company.

All turnover arose in the United Kingdom.

4.	EMPLOYEES AND DIRECTORS

2025

2024

£

Wages and salaries

1,182,133

1,112,264

Social security costs

112,398

95,560

Other pension costs

23,675

23,677

1,318,206

1,231,501

The average number of employees during the year was as follows:

2025

2024

Operational

46

45

The directors are also directors of other companies within the RBH group and their remuneration is borne by another group company.

5.	LOSS BEFORE TAXATION

The loss before taxation is stated after charging:

2025

2024

£

Cost of inventories recognised as expense

274,878

261,362

Property lease

2,750,000

3,280,000

Auditor's remuneration

8,400

7,665

Auditor's remuneration for non-audit work

2,783

2,678

6.

TAXATION

Analysis of tax income

2025

2024

£

Current tax:

Group relief payable

(79,535

)

(43,318

)

Origination and reversal of

timing differences

527

(45

)

Total tax income in statement of comprehensive income

(79,008

)

(43,363

)

Factors affecting the tax income

The tax assessed for the year is higher than the standard rate of corporation tax in the UK. The difference is explained below:

2025

2024

£

Loss before income tax

(318,135

)

(231,110

)

Loss multiplied by the standard rate of corporation tax in the

UK of 25% (2024 - 25%)

(79,534

)

(57,778

)

Effects of:

Expenses not deductible

24

51

Group relief surrendered

79,535

57,682

Receipt for group relief

(79,535

)

(43,318

)

Movement in deferred tax not recognised

502

-

Tax income

(79,008

)

(43,363

)

7.

STOCKS

2025

2024

£

Stocks

11,592

12,835

8.

DEBTORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

Trade receivables

177,259

150,697

Amounts owed by group undertakings

70,244

153,784

Amounts owed by associates

408

-

Other receivables

857

-

Corporation tax

-

59,883

Deferred tax asset

-

527

248,768

364,891

9.

CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR

2025

2024

£

Trade payables

447,212

351,147

Amounts owed to group undertakings

27,244

5,079

Amounts owed to associates

14,458

159,060

Social security and other taxes

27,009

23,316

VAT

166,540

149,609

Other payables

14,842

8,700

Accruals and deferred income

629,066

710,670

1,326,371

1,407,581

10.

LEASING

All leases within this entity are outwith the scope of IFRS 16. In line with the accounting policy detailed in Note 2, no further disclosures are required.

11.	DEFERRED TAX

£

Balance at 1 September 2024

527

Charge to Statement of Comprehensive Income during year

(527)

Balance at 31 August 2025

-

The deferred tax balance at 31 August 2025 has been calculated at 25% (2024 - 25%).

Recognised deferred tax assets

A deferred tax asset was recognised for the following:

2025

2024

£

Short term timing differences

-

527

Deferred tax asset

-

527

Unrecognised deferred tax assets

A deferred tax asset has not been recognised for the following:

2025

2024

£

Short term temporary differences

502

-

502

-

12.	CALLED UP SHARE CAPITAL

Allotted, issued and fully paid:

Number:

Class:

Nominal

2025

2024

value:

£

1

Ordinary

£1

1

Holders of ordinary shares are entitled to dividends as declared from time to time and are entitled to one vote per share at general meetings of the company.

13.

RESERVES

Accumulated

deficit

£

At 1 September 2024

(137,182

)

Deficit for the year

(239,127

)

At 31 August 2025

(376,309

)

14.	CONTINGENT LIABILITIES

Fixed and floating charges over certain assets and contracts held by the company have been entered into as security against the borrowings of the landlord's parent company, International Hotel Properties Limited, with Santander. The outstanding value of the loan facility, to which the company is a party, is £27.5m (2024 - £34.5m).

15.	RELATED PARTY DISCLOSURES

The company has availed itself of the exemptions available under FRS 101 from disclosing transactions entered into between two or more members of a group and also key management personnel compensation disclosures.

During the year the company entered into the following transactions with fellow subsidiaries of RBH Hotel Group Limited and with related parties.

Sales

Purchases

2025

2024

2025

2024

£

Fellow subsidiaries

RBH Hotel Management Limited

-

33,276

39,308

RBH Hotels UK Limited

-

301,276

49,858

RBH Hospitality Management Limited

-

69,991

51,547

Edinburgh Opco Limited

24,706

-

Related parties

Gatwick Propco Limited*

-

2,757,354

3,945,690

At 31 August, the following balances were outstanding with fellow subsidiaries of RBH Hotel Group Limited and with related parties.

Amounts due from

Amounts due to

2025

2024

2025

2024

£

Fellow subsidiaries

RBH Hotel Management Limited

-

3,282

4,452

RBH Hotels UK Limited

-

153,784

23,962

-

RBH Hospitality Management Limited

66,486

-

627

Edinburgh Opco Limited

3,758

-

Related parties

Gatwick Propco Limited*

408

-

In addition to the above, the company received £85,798 (2024 - £258,709) from International Hotel Properties Limited *, of which £230,400 (2024 - £110,103) was spent on assets. The

balance outstanding to this company at 31 August 2025 totalled £14,458 (2024 - £159,060)

*Associate

16.	EVENTS AFTER THE REPORTING PERIOD

After year end, a lease contract was entered into for the year to 31 August 2026 for £2,150,000 (2024 - £2,750,000 for year ended 31 August 2025). The rent lease is a short term lease due within one year.

17.	ULTIMATE CONTROLLING PARTY

The company is a wholly owned subsidiary of IHL Tenant Holdco Limited. The ultimate

controlling party is RBH Hotel Group Limited, which is incorporated in the British Virgin

Islands. IHL Tenant Holdco Limited consolidated financial statements, which include the

results of the company, are available from c/o Taylor Wessing, 5 New Street Square, London, EC4A 3TW .