Castlewood Hotels Holding Limited Group accounts (Group and Company)

COMPANY REGISTRATION NUMBER: 11172745

Castlewood Hotels Holding Limited

Financial Statements

31 August 2025

Castlewood Hotels Holding Limited

Financial Statements

Year ended 31 August 2025

Contents	Page

Strategic report	1

Directors' report	3

Independent auditor's report to the members	5

Consolidated statement of comprehensive income	9

Consolidated statement of financial position	10

Company statement of financial position	11

Consolidated statement of changes in equity	12

Company statement of changes in equity	13

Consolidated statement of cash flows	14

Notes to the financial statements	15

Castlewood Hotels Holding Limited

Strategic Report

Year ended 31 August 2025

The directors present the strategic report for the year ended 31 August 2025. The result for the year and the financial position at the year-end was slightly improved when compared to prior year performance, however despite being below budget the directors remain confident in the group's profitability. As the current financial position reflects the impact of ongoing investments, the group is well-positioned for sustainable growth and long-term profitability. The financial key performance indicators for the period are as follows:

	2025	2025
	£	£
Turnover	5,528,856	4,942,853
Gross Profit	2,464,949	2,332,698
Gross Profit Margin %	45	47
Net Profit Margin (Before Tax) %	7	6

Trading turnover of the Group increased by 12%, with the Abbots Barton Hotel having the most growth despite still running at reduced capacity. The refurbishment programme has experienced delays but is ongoing, expected to enhance the hotel's appeal, drive higher occupancy rates and improve revenue generation in the future periods. The Group's gross profit margin has remained similar to previous year. The decrease in gross profit margin indicates increased costs relative to revenue. This is attributed to higher operating costs in particular relating to staff, inflationary pressures and changes in the revenue mix. Principal risks and uncertainties The business is subject to a number of risks which are monitored by the Board. The principal risks facing the Group remains the public demand for hotel accommodation as well as rising costs relating to running a hotel group; increasing staff, food and beverage costs, and utility costs. The Government's policies on National Insurance rates and threshold changes have the potential to reduce profitability across the hotel sector as well as the Business Rates review and the new possibility of a "tourist tax". The group has carefully considered the impact of these changes and is well placed to mitigate these challenges and continue on a growth trajectory. The Group's finances are supervised at Board level. Its financial instruments comprise cash, trade creditors, long-term loans, hire purchase and finance leases which arise from its trade. The Group depends on key personnel and staff and to mitigate the risks of retention issues the Group provides training and reward schemes. It is the policy of the Board to settle trade and other debts within the terms agreed. Future developments The directors have considered the forecasted future operations of the company and that the ultimate parent undertaking has confirmed to provide continuing support to the company and have concluded that the company will have adequate resources to continue in business for the foreseeable future alongside third party bank funding in place. With this, the directors continue to adopt the going concern basis of accounting in preparing these financial statements. Over the next 12 months, the plans at Abbots Barton Hotel, include fitting out the two-story extension built to add 20 new bedrooms, upgrading the mechanical and electrical systems, and refurbishing six premium existing bedrooms.

This report was approved by the board of directors on 13 May 2026 and signed on behalf of the board by:

Mr A Sangiuseppe

Director

Registered office:

3-5 Earls Avenue

Folkestone

Kent

England

CT20 2HR

Castlewood Hotels Holding Limited

Directors' Report

Year ended 31 August 2025

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

Directors

The directors who served the company during the year were as follows:

Mr D A Sangiuseppe
Mr A Sangiuseppe
Mrs M Sangiuseppe

Dividends

The directors do not recommend the payment of a dividend.

Disclosure of information in the strategic report

The directors have chosen to incorporate their assessment of the performance of the business, future developments, and the principal risks and uncertainties facing the company in the Strategic Report.

Directors' responsibilities statement

The directors are responsible for preparing the strategic report, directors' report and the financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). 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 group and the company and the profit or loss of the group for that period. In preparing these financial statements, the directors are required to: - select suitable accounting policies and then apply them consistently; - make judgments and accounting estimates that are reasonable and prudent; - prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business. The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and 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. Auditor

Each of the persons who is a director at the date of approval of this report confirms that:

- so far as they are aware, there is no relevant audit information of which the group and the company's auditor is unaware; and - they have taken all steps that they ought to have taken as a director to make themselves aware of any relevant audit information and to establish that the group and the company's auditor is aware of that information.

This report was approved by the board of directors on 13 May 2026 and signed on behalf of the board by:

Mr A Sangiuseppe

Director

Registered office:

3-5 Earls Avenue

Folkestone

Kent

England

CT20 2HR

Castlewood Hotels Holding Limited

Independent Auditor's Report to the Members of Castlewood Hotels Holding Limited

Year ended 31 August 2025

Opinion

We have audited the financial statements of Castlewood Hotels Holding Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 August 2025 which comprise the consolidated statement of comprehensive income, consolidated statement of financial position, company statement of financial position, consolidated statement of changes in equity, company statement of changes in equity, consolidated statement of cash flows and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including FRS 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 of the parent company's affairs as at 31 August 2025 and of the group's profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - 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 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 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 group's or the 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 directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The directors are responsible for the other information. 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. In connection with our audit of the financial statements, 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 there is a material misstatement in the financial statements or a material misstatement of the other information. 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 the audit:

- the information given in the strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

- the strategic report and the directors' report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept 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.

Responsibilities of directors

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

Auditor's 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. 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. 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 nature of the industry, control environment and business performance. We also consider the results of our enquiries of management and the finance team, relating to their own identification and assessment of the risks of irregularities and possible related fraud. This includes asking questions and reviewing available documentation on their policies and procedures and performing tests of controls to evidence their effectiveness. Throughout the audit testing we are considering the incentives that may exist within the organisation for fraud. Key areas include timing of recognising income around the year end and posting of unusual journals. 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 ensure we have an understanding of the relevant laws and regulations and remain alert to possible non-compliance throughout the audit. Despite proper planning and audit work in accordance with auditing standards there are inherent limitations and unavoidable risk that we may not detect some irregularities and material misstatements in the financial statements. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the group's internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors. - Conclude on the appropriateness of the directors' use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the group's or the parent company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the group or the parent company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. - Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. 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.

Alexander Baker

(Senior Statutory Auditor)

For and on behalf of

Burgess Hodgson Audit Limited

Chartered accountants & statutory auditor

Camburgh House

27 New Dover Road

Canterbury

Kent

CT1 3DN

20 May 2026

Castlewood Hotels Holding Limited

Consolidated Statement of Comprehensive Income

Year ended 31 August 2025

		2025	2024
Note		£	£
Turnover	4	5,528,856	4,942,853

Cost of sales	3,063,907	2,610,155
	------------	------------
Gross profit	2,464,949	2,332,698

Distribution costs		322,519	280,907
Administrative expenses		1,679,555	1,857,497
Other operating income	5	58,736	79,677
		------------	------------
Operating profit	6	521,611	273,971

Other interest receivable and similar income	10	83,549	154,629
Interest payable and similar expenses	11	248,324	112,884
		------------	------------
Profit before taxation		356,836	315,716

Tax on profit	12	73,824	72,572
		---------	---------
Profit for the financial year and total comprehensive income		283,012	243,144
		---------	---------

All the activities of the group are from continuing operations.

Castlewood Hotels Holding Limited

Consolidated Statement of Financial Position

31 August 2025

	2025	2024
Note	£	£

Fixed assets

Tangible assets	13	18,999,390	19,419,221
Investments	14	522,934	522,934
		-------------	-------------
		19,522,324	19,942,155

Current assets

Stocks	15	55,650	54,808
Debtors	16	281,403	197,407
Cash at bank and in hand		3,372,195	1,660,685
		------------	------------
		3,709,248	1,912,900

Creditors: amounts falling due within one year	17	2,730,615	3,423,315
		------------	------------
Net current assets/(liabilities)		978,633	( 1,510,415)
		-------------	-------------
Total assets less current liabilities		20,500,957	18,431,740

Creditors: amounts falling due after more than one year	18	3,012,082	1,144,584

Provisions	20	1,397,105	1,448,527
		-------------	-------------
Net assets		16,091,770	15,838,629
		-------------	-------------

Capital and reserves

Called up share capital	24	2,134,420	2,164,291
Other reserves	25	1,645,765	1,645,765
Capital redemption reserve	25	247,875	247,875
Profit and loss account	25	12,063,710	11,780,698
		-------------	-------------
Shareholders funds		16,091,770	15,838,629
		-------------	-------------

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

These financial statements were approved by the board of directors and authorised for issue on 13 May 2026 , and are signed on behalf of the board by:

Mr A Sangiuseppe

Director

Company registration number: 11172745

Castlewood Hotels Holding Limited

Company Statement of Financial Position

31 August 2025

	2025	2024
Note	£	£

Fixed assets

Tangible assets	13	38,237	52,423
Investments	14	2,000	2,000
		--------	--------
		40,237	54,423

Current assets

Debtors	16	3,846,292	5,383,839
Cash at bank and in hand		2,823,125	1,290,739
		------------	------------
		6,669,417	6,674,578

Creditors: amounts falling due within one year	17	2,859,873	2,791,809
		------------	------------
Net current assets		3,809,544	3,882,769
		------------	------------
Total assets less current liabilities		3,849,781	3,937,192

Creditors: amounts falling due after more than one year	18	–	5,729

Provisions	20	( 879)	1,825
		------------	------------
Net assets		3,850,660	3,929,638
		------------	------------

Capital and reserves

Called up share capital	24	2,134,420	2,164,291
Profit and loss account	25	1,716,240	1,765,347
		------------	------------
Shareholders funds		3,850,660	3,929,638
		------------	------------

The loss for the financial year of the parent company was £ 53,137 (2024: £ 946 profit).

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

These financial statements were approved by the board of directors and authorised for issue on 13 May 2026 , and are signed on behalf of the board by:

Mr A Sangiuseppe

Director

Company registration number: 11172745

Castlewood Hotels Holding Limited

Consolidated Statement of Changes in Equity

Year ended 31 August 2025

	Called up share capital	Other reserves	Capital redemption reserve	Profit and loss account	Total
	£	£	£	£	£
At 1 September 2023	2,000	1,645,765	247,875	11,537,554	13,433,194

Profit for the year				243,144	243,144
	-------	------------	---------	-------------	-------------
Total comprehensive income for the year	–	–	–	243,144	243,144

Issue of shares	2,162,291	–	–	–	2,162,291
	------------	------------	---------	-------------	-------------
Total investments by and distributions to owners	2,162,291	–	–	–	2,162,291

At 31 August 2024	2,164,291	1,645,765	247,875	11,780,698	15,838,629

Profit for the year				283,012	283,012
	------------	------------	---------	-------------	-------------
Total comprehensive income for the year	–	–	–	283,012	283,012

Redemption of shares	( 29,871)	–	–	–	( 29,871)
	--------	----	----	----	--------
Total investments by and distributions to owners	( 29,871)	–	–	–	( 29,871)

	------------	------------	---------	-------------	-------------
At 31 August 2025	2,134,420	1,645,765	247,875	12,063,710	16,091,770
	------------	------------	---------	-------------	-------------

Castlewood Hotels Holding Limited

Company Statement of Changes in Equity

Year ended 31 August 2025

	Called up share capital	Profit and loss account	Total
	£	£	£
At 1 September 2023	2,000	1,764,401	1,766,401

Profit for the year		946	946
	-------	------------	------------
Total comprehensive income for the year	–	946	946

Issue of shares	2,162,291	–	2,162,291
	------------	------------	------------
Total investments by and distributions to owners	2,162,291	–	2,162,291

At 31 August 2024	2,164,291	1,769,377	3,933,668

Loss for the year		( 53,137)	( 53,137)
	------------	------------	------------
Total comprehensive income for the year	–	( 53,137)	( 53,137)

Redemption of shares	( 29,871)	–	( 29,871)
	--------	----	--------
Total investments by and distributions to owners	( 29,871)	–	( 29,871)

	------------	------------	------------
At 31 August 2025	2,134,420	1,716,240	3,850,660
	------------	------------	------------

Castlewood Hotels Holding Limited

Consolidated Statement of Cash Flows

Year ended 31 August 2025

	2025	2024
	£	£

Cash flows from operating activities

Profit for the financial year	283,012	243,144

Adjustments for:
Depreciation of tangible assets	168,408	155,731
Government grant income	(14,091)	–
Other interest receivable and similar income	( 83,549)	( 154,629)
Interest payable and similar expenses	248,324	112,884
Loss/(gains) on disposal of tangible assets	19,338	( 4,167)
Tax on (loss)/profit	73,824	72,572
Accrued income	( 118,531)	( 26,474)

Changes in:
Stocks	( 842)	13,034
Trade and other debtors	( 86,580)	181,302
Trade and other creditors	132,425	( 1,255,249)
	---------	------------
Cash generated from operations	621,738	( 661,852)

Interest paid	( 248,324)	( 112,884)
Interest received	83,549	154,629
Tax paid	( 33,536)	( 203,049)
	---------	---------
Net cash from/(used in) operating activities	423,427	( 823,156)
	---------	---------

Cash flows from investing activities

Purchase of tangible assets	( 180,415)	( 954,147)
	---------	---------
Net cash used in investing activities	( 180,415)	( 954,147)
	---------	---------

Cash flows from financing activities

Proceeds from borrowings	1,834,620	–
Repayments of borrowings	( 366,463)	( 322,055)
Government grant income	14,091	–
Payments of finance lease liabilities	( 13,750)	( 12,528)
	------------	---------
Net cash from/(used in) financing activities	1,468,498	( 334,583)
	------------	---------

Net increase/(decrease) in cash and cash equivalents	1,711,510	( 2,111,886)
Cash and cash equivalents at beginning of year	1,660,685	3,772,571
	------------	------------
Cash and cash equivalents at end of year	3,372,195	1,660,685
	------------	------------

Castlewood Hotels Holding Limited

Notes to the Financial Statements

Year ended 31 August 2025

1. General information

Castlewood Hotels Holding Limited ("the company") is a private limited company domiciled and incorporated in England and Wales. The registered office is 3-5 Earls Avenue, Folkestone, Kent, UK, CT20 2HR. The group consists of Castlewood Hotels Holding Limited and its subsidiaries. The principal activity of the group during the year continued to be that of hotel property holding, operation, and management of hotel trades alongside property investment. The principal activity of the company during the year continued to be that of a holding company and group head office function.

2. Statement of compliance

These financial statements have been prepared in compliance with FRS 102, 'The Financial Reporting Standard applicable in the UK and the Republic of Ireland'.

3. Accounting policies

Basis of preparation

The financial statements have been prepared on the historical cost basis, as modified by the revaluation of certain financial assets and liabilities and investment properties measured at fair value through profit or loss.

The financial statements are prepared in sterling, which is the functional currency of the entity.

Other reserves

The value held in other reserves comprises that of the merger account value. As there was a group reconstruction in the prior year, these are outside the scope of business combination and therefore merger accounting can be continued to be used.

Under merger accounting, the carrying values of the assets and liabilities of the parties to the combination are not adjusted to fair value on consolidation. Any difference between the cost of investment and the nominal value of the share capital acquired is put to a merger reserve.

Disclosure exemptions

The parent company satisfies the criteria of being a qualifying entity as defined in FRS 102. As such, advantage has been taken of the following reduced disclosures available under FRS 102: a) Disclosures in respect of share-based payments have not been presented. b) No cash flow statement has been presented for the company. c) Disclosures in respect of financial instruments have not been presented. d) No disclosure has been given for the aggregate remuneration of key management personnel.

Consolidation

The financial statements consolidate the financial statements of Castlewood Hotels Holding Limited and all of its subsidiary undertakings.

The results of subsidiaries acquired or disposed of during the year are included from or to the date that control passes.

The parent company has applied the exemption contained in section 408 of the Companies Act 2006 and has not presented its individual profit and loss account.

Judgements and key sources of estimation uncertainty

In the application of the group's accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimated 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.

Revenue recognition

Revenue from the sale of goods is recognised when the significant risks and rewards of ownership of the goods have passed to the buyer (usually on dispatch of the goods), the amount of revenue can be measured reliably, it is probable that the economic benefits associated with the transaction will flow to the entity and the costs incurred or to be incurred in respect of transaction can be measured reliably. Turnover represents amounts receivable in respect of the provision of hotel accommodation, conference facilities and meals during the year, excluding value added tax. Income for accommodation is recognised on a daily basis of the customers use of the facility. Food and beverage income is recognised at the point of sale to the customer. Rental income is recognised on an accruals basis during the course of the year.

Income tax

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other 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. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Foreign currencies

Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in the profit or loss.

Operating leases

Lease income is recognised in profit or loss on a straight line basis over the lease term. The aggregate cost of lease incentives are recognised as a reduction to income over the lease term on a straight-line basis. Costs, including depreciation, incurred in earning the lease income are recognised as an expense. Any initial direct costs incurred in negotiating and arranging the operating lease are added to the carrying amount of the lease and recognised as an expense over the lease term on the same basis as the lease income.

Tangible assets

Tangible assets are initially recorded at cost, and subsequently stated at cost less any accumulated depreciation and impairment losses.

Depreciation

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.

Freehold land and buildings	-	2% straight line
Leasehold land and buildings	-	10% straight line
Plant and machinery	-	20% straight line
Fixtures and fittings	-	20% straight line

Motor vehicles	-	20% straight line
Equipment	-	20% straight line

Investments

Fixed asset investments are initially recorded at cost, and subsequently stated at cost less any accumulated impairment losses.

Listed investments are measured at fair value with changes in fair value being recognised in profit or loss.

Investment property

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.

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs. The cash-generating unit is the smallest identifiable group of assets that includes the asset and generates cash inflows that largely independent of the cash inflows from other assets or groups of assets.

Stocks

Stocks are measured at the lower of cost and estimated selling price less costs to complete and sell. Cost includes all costs of purchase, costs of conversion and other costs incurred in bringing the stock to its present location and condition.

Finance leases and hire purchase contracts

Assets held under finance leases and hire purchase contracts are recognised in the statement of financial position as assets and liabilities at the lower of the fair value of the assets and the present value of the minimum lease payments, which is determined at the inception of the lease term. Any initial direct costs of the lease are added to the amount recognised as an asset. Lease payments are apportioned between the finance charges and reduction of the outstanding lease liability using the effective interest method. Finance charges are allocated to each period so as to produce a constant rate of interest on the remaining balance of the liability.

Government grants

Government grants are recognised using the accrual model. Under the accrual model, government grants relating to revenue are recognised on a systematic basis over the periods in which the company recognises the related costs for which the grant is intended to compensate. Grants that are receivable as compensation for expenses or losses already incurred or for the purpose of giving immediate financial support to the entity with no future related costs are recognised in income in the period in which it it becomes receivable.

Provisions

Provisions are recognised when the entity has an obligation at the reporting date as a result of a past event, it is probable that the entity will be required to transfer economic benefits in settlement and the amount of the obligation can be estimated reliably. Provisions are recognised as a liability in the statement of financial position and the amount of the provision as an expense. Provisions are initially measured at the best estimate of the amount required to settle the obligation at the reporting date and subsequently reviewed at each reporting date and adjusted to reflect the current best estimate of the amount that would be required to settle the obligation. Any adjustments to the amounts previously recognised are recognised in profit or loss unless the provision was originally recognised as part of the cost of an asset.

Financial instruments

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. Debtors and creditors with no stated interest rate and receivable or payable within one year are recorded at transaction price. Any losses arising from impairment are recognised in the profit and loss account in other administrative expenses. Loans and borrowings are initially recognised at the transaction price including transaction costs. Subsequently, they are measured at amortised cost using the effective interest rate method, less impairment. If an arrangement constitutes a finance transaction it is measured at present value.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund. When contributions are not expected to be settled wholly within 12 months of the end of the reporting date in which the employees render the related service, the liability is measured on a discounted present value basis. The unwinding of the discount is recognised as a finance cost in profit or loss in the period in which it arises.

4. Turnover

Turnover arises from:

	2025	2024
	£	£
Hotel sales	5,528,856	4,942,853
	------------	------------

The whole of the turnover is derived from the United Kingdom. An analysis of turnover by business operation is given below:

	2025	2024
	£	£
UK	5,487,123	4,919,142
EU	41,733	23,711
	------------	------------
	5,528,856	4,942,853
	------------	------------

5. Other operating income

	2025	2024
	£	£
Rental income	35,850	73,882
Government grant income	14,091	–
Other operating income	8,795	5,795
	--------	--------
	58,736	79,677
	--------	--------

6. Operating loss

Operating profit or loss is stated after charging/crediting:

	2025	2024
	£	£
Depreciation of tangible assets	168,408	155,731
Loss/(gains) on disposal of tangible assets	19,338	( 4,167)
Impairment of trade debtors	–	299
Foreign exchange differences	24,087	( 1,928)
	---------	---------

7. Auditor's remuneration

	2025	2024
	£	£

Fees payable to the company's auditor and its associates for other services:

Audit-related assurance services	22,250	22,250
	--------	--------

During the year, the company's auditor changed from Burgess Hodgson LLP to Burgess Hodgson Audit Limited following a change in legal structure of the audit firm. The responsible individual remains the same.

8. Staff costs

The average number of persons employed by the group during the year, including the directors, amounted to:

	2025	2024
	No.	No.
Administrative staff	108	113
Management staff	3	14
	----	----
	111	127
	----	----

The aggregate payroll costs incurred during the year, relating to the above, were:

	2025	2024
	£	£
Wages and salaries	2,012,596	1,826,151
Social security costs	223,935	85,860
Other pension costs	32,756	28,299
	------------	------------
	2,269,287	1,940,310
	------------	------------

9. Directors' remuneration

The directors' aggregate remuneration in respect of qualifying services was:

	2025	2024
	£	£
Remuneration	34,006	33,556
	--------	--------

10. Other interest receivable and similar income

	2025	2024
	£	£
Interest on bank deposits	83,549	154,629
	--------	---------

11. Interest payable and similar expenses

	2025	2024
	£	£
Interest on banks loans and overdrafts	220,188	110,026
Interest on obligations under finance leases and hire purchase contracts	–	82
Other interest payable and similar charges	28,136	2,776
	---------	---------
	248,324	112,884
	---------	---------

12. Tax on (loss)/profit

Major components of tax expense

	2025	2024
	£	£

Current tax:

UK current tax (income)/expense	125,246	33,536
Adjustments in respect of prior periods	–	( 112)
	---------	--------
Total current tax	125,246	33,424
	---------	--------

Deferred tax:

Origination and reversal of timing differences	( 51,422)	39,148
	--------	--------
Tax on (loss)/profit	73,824	72,572
	--------	--------

Reconciliation of tax expense

The tax assessed on the profit on ordinary activities for the year is lower than (2024: lower than) the standard rate of corporation tax in the UK of 25 % (2024: 25 %).

	2025	2024
	£	£
Profit on ordinary activities before taxation	356,836	315,716
	---------	---------
Profit on ordinary activities by rate of tax	89,209	76,855
Adjustment to tax charge in respect of prior periods	–	( 112)
Effect of expenses not deductible for tax purposes	18,215	55,109
Effect of capital allowances and depreciation	15,058	( 87,258)
Effect of revenue exempt from tax	2,764	( 40,691)
Utilisation of tax losses	–	58,154
Group relief	–	( 28,633)
Deferred tax	( 51,422)	39,148
	---------	---------
Tax on (loss)/profit	73,824	72,572
	---------	---------

13. Tangible assets

Group	Land and buildings	Plant and machinery	Fixtures and fittings	Motor vehicles	Assets under construction	Total
	£	£	£	£	£	£
Cost
At 1 Sep 2024	18,538,791	1,198,671	3,930,660	88,085	608,757	24,364,964
Additions	17,387	–	56,326	–	106,702	180,415
Disposals	( 423,555)	–	( 49,700)	–	–	( 473,255)
	-------------	------------	------------	--------	---------	-------------
At 31 Aug 2025	18,132,623	1,198,671	3,937,286	88,085	715,459	24,072,124
	-------------	------------	------------	--------	---------	-------------
Depreciation
At 1 Sep 2024	359,195	1,187,484	3,373,298	25,766	–	4,945,743
Charge for the year	42,034	3,782	109,225	13,367	–	168,408
Disposals	–	–	( 41,417)	–	–	( 41,417)
	-------------	------------	------------	--------	---------	-------------
At 31 Aug 2025	401,229	1,191,266	3,441,106	39,133	–	5,072,734
	-------------	------------	------------	--------	---------	-------------
Carrying amount
At 31 Aug 2025	17,731,394	7,405	496,180	48,952	715,459	18,999,390
	-------------	------------	------------	--------	---------	-------------
At 31 Aug 2024	18,179,596	11,187	557,362	62,319	608,757	19,419,221
	-------------	------------	------------	--------	---------	-------------

Company	Motor vehicles	Equipment	Total
	£	£	£
Cost
At 1 September 2024 and 31 August 2025	75,732	25,822	101,554
	--------	--------	---------
Depreciation
At 1 September 2024	25,766	23,365	49,131
Charge for the year	13,367	819	14,186
	--------	--------	---------
At 31 August 2025	39,133	24,184	63,317
	--------	--------	---------
Carrying amount
At 31 August 2025	36,599	1,638	38,237
	--------	--------	---------
At 31 August 2024	49,966	2,457	52,423
	--------	--------	---------

14. Investments

Group	Investment Property
	£
Cost
At 1 September 2024 and 31 August 2025	522,934
	---------
Impairment
At 1 September 2024 and 31 August 2025	–
	---------

Carrying amount
At 1 September 2024 and 31 August 2025	522,934
	---------
At 31 August 2024	522,934
	---------

Company	Shares in group undertakings
	£
Cost
At 1 September 2024 and 31 August 2025	2,000
	-------
Impairment
At 1 September 2024 and 31 August 2025	–
	-------

Carrying amount
At 1 September 2024 and 31 August 2025	2,000
	-------
At 31 August 2024	2,000
	-------

This investment relates to a 100% shareholding in subsidiaries: Abbots Barton Hotel Holdings Limited, Burlington Hotel Holdings Limited, Euro-Study Limited and York House Hotel (Eastbourne) Holdings Limited.

Subsidiaries, associates and other investments

Details of the investments in which the group and the parent company have an interest of 20% or more are as follows:

	Registered office	Class of share	Percentage of shares held
Subsidiary undertakings
Abbots Barton Hotel Holdings Limited	2-6 Earls Avenue, Folkestone, Kent, CT20 2HR, UK	Ordinary	100
	Hotel property and holding company
Abbots Barton Hotel Limited	3-5 Earls Avenue, Folkestone, Kent, CT20 2HR, UK	Ordinary	100
	Hotel management company
Burlington Hotel Holdings Limited	3-5 Earls Avenue, Folkestone, Kent, CT20 2HR, UK	Ordinary	100
	Hotel property and holding company
The Burlington Hotel Limited	3-5 Earls Avenue, Folkestone, Kent, CT20 2HR, UK	Ordinary	100
	Hotel management company

Euro-Study Limited	3-5 Earls Avenue, Folkestone, Kent, CT20 2HR, UK	Ordinary	100
	Property Company
York House Hotel (Eastbourne) Holdings Limited	3-5 Earls Avenue, Folkestone, Kent, CT20 2HR, UK	Ordinary	100
	Hotel property and holding company
York House Hotel (Eastbourne) Limited	3-5 Earls Avenue, Folkestone, Kent, CT20 2HR, UK	Ordinary	100
	Hotel management company
La Font Salada Mar I Muntanya S.L.	Ctra Nacional 332, Km 210, Calle Sant Pere s/n , 46780 Olivia (Valencia), Spain	Ordinary	100
	Hotel property and management company

15. Stocks

	Group		Company
	2025	2024	2025	2024
	£	£	£	£
Finished goods and goods for resale	55,650	54,808	–	–
	--------	--------	----	----

16. Debtors

	Group		Company
	2025	2024	2025	2024
	£	£	£	£
Trade debtors	29,506	9,525	9,912	5,798
Amounts owed by group undertakings	–	–	3,834,082	5,370,301
Prepayments and accrued income	31,619	34,148	2,298	4,112
Other debtors	220,278	153,734	–	3,628
	---------	---------	------------	------------
	281,403	197,407	3,846,292	5,383,839
	---------	---------	------------	------------

In the company, the amounts due from group undertakings are interest free and repayable on demand.

17. Creditors: amounts falling due within one year

	Group		Company
	2025	2024	2025	2024
	£	£	£	£
Bank loans and overdrafts	168,797	208,918	–	–
Trade creditors	439,877	294,214	3,582	8,261
Amounts owed to group undertakings	–	–	1,820,551	1,593,206
Accruals and deferred income	33,096	154,211	20,247	16,033
Corporation tax	124,304	32,594	–	–
Social security and other taxes	413,657	312,423	42,950	1,147
Obligations under finance leases and hire purchase contracts	5,729	13,750	5,729	13,750
Director loan accounts	421,235	765,410	264,782	341,839
Other creditors	1,123,920	1,641,795	702,032	817,573
	------------	------------	------------	------------
	2,730,615	3,423,315	2,859,873	2,791,809
	------------	------------	------------	------------

Bank loans and overdrafts are secured with a fixed charge over the respective property. Thereafter floating charges, cross guarantees and debentures are secured against their respective operation companies within the group excluding Euro-Study Limited. All finance leases are secured over the asset to which they relate.

18. Creditors: amounts falling due after more than one year

	Group		Company
	2025	2024	2025	2024
	£	£	£	£
Bank loans and overdrafts	2,991,308	1,138,855	–	–
Obligations under finance leases and hire purchase contracts	–	5,729	–	5,729
Other creditors	20,774	–	–	–
	------------	------------	----	-------
	3,012,082	1,144,584	–	5,729
	------------	------------	----	-------

19. Finance leases and hire purchase contracts

The total future minimum lease payments under finance leases and hire purchase contracts are as follows:

	Group		Company
	2025	2024	2025	2024
	£	£	£	£
Not later than 1 year	5,729	13,750	5,729	13,750
Later than 1 year and not later than 5 years	–	5,729	–	5,729
	-------	--------	-------	--------
	5,729	19,479	5,729	19,479
	-------	--------	-------	--------

20. Provisions

Group	Deferred tax (note 21)
	£
At 1 September 2024	1,448,527
Additions	( 18,357)
Charge against provision	( 33,065)
	------------
At 31 August 2025	1,397,105
	------------

Company	Deferred tax (note 21)
	£
At 1 September 2024	1,825
Additions	( 2,704)
	-------
At 31 August 2025	( 879)
	-------

21. Deferred tax

The deferred tax included in the statement of financial position is as follows:

	Group		Company
	2025	2024	2025	2024
	£	£	£	£
Included in provisions (note 20)	1,397,105	1,448,527	( 879)	1,825
	------------	------------	----	-------

The deferred tax account consists of the tax effect of timing differences in respect of:

	Group		Company
	2025	2024	2025	2024
	£	£	£	£
Revaluation of tangible assets	1,397,105	1,448,527	–	–
	------------	------------	----	----

22. Employee benefits

Defined contribution plans

The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 32,756 (2024: £ 28,299 ).

23. Government grants

The amounts recognised in the financial statements for government grants are as follows:

Group		Company
2025	2024	2025	2024
£	£	£	£

Recognised in other operating income:

Government grants recognised directly in income	14,091	–	–	–
	--------	----	----	----

24. Called up share capital

Issued, called up and fully paid

	2025		2024
	No.	£	No.	£
Ordinary A shares of £ 0.001 each	2,000,000	2,000	2,000,000	2,000
Ordinary B shares of £ 1 each	2	2	2	2
Preference shares of £ 0.001 each	2,132,418,000	2,132,418	2,162,289,000	2,162,289
	---------------	------------	---------------	------------
	2,134,418,002	2,134,420	2,164,289,002	2,164,291
	---------------	------------	---------------	------------

25. Reserves

Other reserves - This reserve comprises that of a merger account value. There was a group reconstruction in prior periods that were outside the scope of business combinations and therefore merger accounting can continue to be used. Capital redemption reserve - This reserve records the nominal value of shares repurchased by the company. Profit and loss account - This reserve records retained earnings and accumulated losses.

26. Analysis of changes in net debt

	At 1 Sep 2024	Cash flows	At 31 Aug 2025
	£	£	£
Cash at bank and in hand	1,660,685	1,711,510	3,372,195
Debt due within one year	(988,078)	392,317	(595,761)
Debt due after one year	(1,144,584)	(1,846,724)	(2,991,308)
	------------	------------	------------
	( 471,977)	257,103	( 214,874)
	------------	------------	------------

27. Other financial commitments

Barclays Bank Plc have a fixed and floating charge over the assets and trade of the company, alongside a cross-company guarantee between Castlewood Hotels Holding Limited and all related entities in the Castlewood Hotels Holding Limited Group.

28. Related party transactions

Group

At year end, the Group owed the Directors £421,235 (2024: £765,410).

Key management personnel include all persons that have authority and responsibility for planning, directing and controlling the activities of the company. The total compensation paid to key management personnel for services provided to the group was £ 34,006 (2024: £ 33,556 ).

Company

At year end, the company owed the directors £264,782 (2024: £341,839).

29. Controlling party

In the opinion of the directors there is no one single controlling party of Castlewood Hotels Holding Limited .