REGISTERED NUMBER: 10666336 (England and Wales)

Strategic Report, Report of the Directors and

Financial Statements for the Year Ended 31 August 2025

for

Denham Grove Hotel Limited

Page

Company Information

1

Strategic Report

2

Report of the Directors

4

Report of the Independent Auditors

6

Income Statement

10

Other Comprehensive Income

11

Balance Sheet

12

Statement of Changes in Equity

13

Cash Flow Statement

14

Notes to the Cash Flow Statement

15

Notes to the Financial Statements

17

DIRECTORS:

V K Khanna

Mrs V Khanna

N Khanna

REGISTERED OFFICE:

Garlands

Sandy Lane

Northwood

Middlesex

HA6 3ER

REGISTERED NUMBER:

10666336 (England and Wales)

AUDITORS:

Prestons

Chartered Accountants

Statutory Auditors

364-368 Cranbrook Road

Gants Hill

Ilford

Essex

IG2 6HY

The directors present their strategic report for the year ended 31 August 2025.

REVIEW OF BUSINESS

Principal activity

The principal activity of the company during the year continued to be the operation of a hotel and events venue, providing accommodation, conferencing facilities, training space and facilities for weddings and private events. There has been no significant change in the nature of the company's activities during the year.

Business review

The company's turnover for the year increased to £4,529,647 compared with £4,357,047 in the previous year. Gross profit increased to £2,390,912 compared with £2,204,247 in the previous year, reflecting improved trading margin and control over direct costs.

The company made an operating profit of £94,454 compared with an operating profit of £45,863 in the previous year. After interest receivable, finance costs and taxation, the company reported a loss after tax of £523,848 compared with a loss after tax of £757,146 in the previous year.

The company continued to generate positive operating cash flows. Cash generated from operations amounted to £709,623 compared with £1,067,323 in the previous year. Net cash from operating activities was £106,080 compared with £170,390 in the previous year.

At the year end, the company had cash at bank and in hand of £2,042,025 compared with £1,914,638 at the previous year end. The company had net current liabilities of £6,234,345 and net liabilities of £1,825,545 at 31 August 2025. The directors have considered this position in conjunction with the company's trading forecasts, available cash resources, banking arrangements and continued group support.

Financial key performance indicators

The directors monitor the company's performance by reference to the following financial key performance indicators:

Key performance indicators

2025

2024

Turnover

£4,529,647

£4,357,047

Gross profit

£2,390,912

£2,204,247

Gross profit margin

52.8%

50.6%

Operating profit

£94,454

£45,863

Loss before taxation

£463,218

£749,783

Cash generated from operations

£709,623

£1,067,323

Cash at bank and in hand

£2,042,025

£1,914,638

Net current liabilities

£6,234,345

£6,189,620

Net liabilities

£1,825,545

£1,301,697

The directors consider that the improvement in turnover, gross profit and operating profit demonstrates an improvement in underlying trading performance during the year. The company remains loss-making after finance costs and continues to have net liabilities; however, the directors continue to monitor cash flow and financing requirements closely.

PRINCIPAL RISKS AND UNCERTAINTIES

The principal risks and uncertainties facing the company are set out below.

Trading and market risk

The company operates in the hospitality and events sector, which is affected by general economic conditions, customer demand, discretionary spending, corporate travel and competition. A reduction in hotel occupancy, event bookings or pricing could adversely affect turnover and profitability. The directors manage this risk by monitoring bookings, pricing, customer demand and operating performance.

Cost inflation and staffing risk

The company is exposed to increases in payroll, utilities, food, maintenance and other operating costs. The quality and availability of staff also remain important to the successful operation of the hotel and events business. The directors manage this risk through cost control, supplier review, operational monitoring and workforce planning.

Interest rate and financing risk

The company has external borrowings and is exposed to changes in interest rates. Increases in interest rates may increase finance costs and reduce profitability and cash flow. The directors monitor finance costs, cash flow forecasts and the company's banking arrangements on an ongoing basis.

Liquidity and going concern risk

The company had net current liabilities and net liabilities at the year end. The directors therefore continue to monitor the company's cash position, working capital and forecasts carefully. The company also benefits from continued support from group undertakings. Based on the forecasts prepared and the support available, the directors consider that the company has adequate resources to continue in operational existence for the foreseeable future.

Property and asset utilisation risk

The company holds significant tangible fixed assets relating to the hotel and associated facilities. The recoverability of these assets is dependent on the continued successful operation and utilisation of the hotel and events venue. The directors monitor trading performance, asset condition and future plans for the property.

Future outlook

The directors' strategy is to continue improving trading performance through revenue growth, margin control, development of the events and corporate business, and careful management of costs and cash flow. The directors remain focused on improving profitability while maintaining the quality and condition of the hotel and events venue.

ON BEHALF OF THE BOARD:

N Khanna - Director

29 May 2026

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 in the year under review was that of a hotel and venue hiring for conferences, training and weddings.

DIVIDENDS

No dividends will be distributed for the year ended 31 August 2025.

DIRECTORS

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

V K Khanna

Mrs V Khanna

N Khanna

FINANCIAL RISK MANAGEMENT

Treasury operations and financial instruments

The company operates a treasury function which is responsible for managing the liquidity, interest and foreign currency risks associated with the company's activities.

Liquidity risk

The company manages its cash and borrowing requirements in order to maximise interest income and minimise interest expense, whilst ensuring the company has sufficient liquid resources to meet the operating needs of the business.

Interest rate risk

The company is exposed to fair value interest rate risk on its fixed rate borrowings and cash flow interest rate risk on bank overdrafts and loans.

Credit risk

Investments of cash surpluses, borrowings and derivative instruments are made through banks and companies which must fulfil credit rating criteria approved by the board.

Price risk and cash flow risk

The board continually monitors pricing strategy to ensure that margins are maintained in light of market competition and input cost volatility. The company reviews its price list periodically to reflect changes in supplier costs and market conditions. There is a risk that competitive pressures may limit the company's ability to pass on cost increases in full, which could impact profitability. The board mitigates this risk through regular margin analysis and cost control procedures.

All customers who wish to trade on credit terms are subject to credit verification procedures. Trade debtors are reviewed on a regular basis and provision is made for doubtful debts when necessary.

GOING CONCERN

The financial statements have been prepared on a going concern basis. The directors have reviewed cash flow forecasts for a period of at least twelve months from the date of approval of the financial statements. Based on forecast trading performance, available cash resources, long-term financing arrangements and continued support from The Clay Oven UK Limited, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future.

STATEMENT OF DIRECTORS' RESPONSIBILITIES

The directors are responsible for preparing the Strategic Report, the Report of the Directors 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 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;

-	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.

STATEMENT AS TO DISCLOSURE OF INFORMATION TO AUDITORS

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 auditors are unaware, and each director has taken all the steps that he or she ought to have taken as a director in order to make himself or herself aware of any relevant audit information and to establish that the company's auditors are aware of that information.

AUDITORS

The auditors, Prestons, will be proposed for re-appointment at the forthcoming Annual General Meeting.

ON BEHALF OF THE BOARD:

N Khanna - Director

29 May 2026

Opinion

We have audited the financial statements of Denham Grove Hotel Limited (the 'company') for the year ended 31 August 2025 which comprise the Income Statement, Other Comprehensive Income, Balance Sheet, Statement of Changes in Equity, Cash Flow Statement and Notes to the Cash Flow Statement, Notes to the Financial Statements, 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 Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

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

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

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

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. 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. 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 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 Strategic Report and the Report of the Directors, but does not include the financial statements and our Report of the Auditors 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.

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 this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

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

-	the Strategic Report and the Report of the Directors 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 company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic Report or the Report of the Directors.

We have nothing to report in respect of the following matters where 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.

Responsibilities of directors

As explained more fully in the Statement of Directors' Responsibilities set out on page five, 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 a Report of the Auditors 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.

The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, with particular regard to the nature of the company's activities as a hotel and venue hiring for conferences, training and weddings. Our procedures include:

- We obtained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, including Companies Act 2006, UK tax legislation, employment law, health and safety regulations, and environmental regulations relevant to the company's operations.

- We discussed with management how the company ensures compliance with laws and regulations and considered whether there were any known or suspected instances of non-compliance.

- We assessed the susceptibility of the financial statements to material misstatement, including how fraud might occur, by considering the company's operations, internal controls, management judgement, revenue recognition, stock valuation, supplier arrangements, customer credit risk and the risk of management override of controls.

- We evaluated the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the directors.

- We tested journal entries and other adjustments, with particular focus on unusual or non-routine transactions, year-end adjustments, post balance sheet adjustments, and entries affecting revenue, stock, margins, creditors and related party balances.

- We reviewed significant transactions outside the normal course of business and considered whether there was any indication of inappropriate accounting treatment or lack of commercial rationale.

- We reviewed correspondence with relevant authorities where available, including HMRC and other regulatory bodies, and considered the financial statement impact of any matters identified.

- We assessed whether the disclosures in the financial statements appropriately reflected the company's principal risks, including working capital, customer credit risk, stock valuation, supply chain pressures, raw material cost movements and funding arrangements.

- We concluded on the appropriateness of the directors' use of the going concern basis of accounting and, based on the evidence obtained, considered whether any material uncertainty existed that may cast significant doubt on the company's ability to continue as a going concern.

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with International Standards on Auditing (UK). 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 controls. We are not responsible for preventing non-compliance with laws and regulations or fraud and cannot be expected to detect non-compliance with all laws and regulations or every incidence of fraud.

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 Report of the Auditors.

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 a Report of the Auditors 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.

Anwer Patel BA (Hons) FCA, BFP (Senior Statutory Auditor)

for and on behalf of Prestons

Chartered Accountants

Statutory Auditors

364-368 Cranbrook Road

Gants Hill

Ilford

Essex

IG2 6HY

29 May 2026

TURNOVER

4,529,647

4,357,047

Cost of sales

2,138,735

2,152,800

GROSS PROFIT

2,390,912

2,204,247

Administrative expenses

2,296,458

2,345,838

94,454

(141,591

)

Other operating income

-

187,454

OPERATING PROFIT

5

94,454

45,863

Interest receivable and similar income

45,871

-

140,325

45,863

Interest payable and similar expenses

6

603,543

795,646

LOSS BEFORE TAXATION

(463,218

)

(749,783

)

Tax on loss

7

60,630

7,363

LOSS FOR THE FINANCIAL YEAR

(523,848

)

(757,146

)

LOSS FOR THE YEAR

(523,848

)

(757,146

)

OTHER COMPREHENSIVE INCOME

-

-

TOTAL COMPREHENSIVE INCOME FOR THE YEAR

(523,848

)

(757,146

)

FIXED ASSETS

Tangible assets

8

10,435,524

11,131,502

CURRENT ASSETS

Stocks

9

29,624

31,256

Debtors

10

1,676,977

1,360,646

Cash at bank and in hand

2,042,025

1,914,638

3,748,626

3,306,540

CREDITORS

Amounts falling due within one year

11

9,982,971

9,496,160

NET CURRENT LIABILITIES

(6,234,345

)

(6,189,620

)

TOTAL ASSETS LESS CURRENT LIABILITIES

4,201,179

4,941,882

CREDITORS

Amounts falling due after more than one year

12

(5,561,290

)

(5,778,145

)

PROVISIONS FOR LIABILITIES

14

(465,434

)

(465,434

)

NET LIABILITIES

(1,825,545

)

(1,301,697

)

CAPITAL AND RESERVES

Called up share capital

15

100

100

Retained earnings

16

(1,825,645

)

(1,301,797

)

SHAREHOLDERS' FUNDS

(1,825,545

)

(1,301,697

)

The financial statements were approved by the Board of Directors and authorised for issue on 29 May 2026 and were signed on its behalf by:

N Khanna - Director

Called up

share

Retained

Total

capital

earnings

equity

£

£

£

Balance at 1 September 2023

100

(544,651

)

(544,551

)

Changes in equity

Total comprehensive income

-

(757,146

)

(757,146

)

Balance at 31 August 2024

100

(1,301,797

)

(1,301,697

)

Changes in equity

Total comprehensive income

-

(523,848

)

(523,848

)

Balance at 31 August 2025

100

(1,825,645

)

(1,825,545

)

Cash flows from operating activities

Cash generated from operations

1

709,623

1,092,509

Interest paid

(603,543

)

(795,646

)

Tax paid

-

(101,287

)

Net cash from operating activities

106,080

195,576

Cash flows from investing activities

Purchase of tangible fixed assets

(153,679

)

(288,867

)

Sale of tangible fixed assets

-

1,139

Interest received

45,871

-

Net cash from investing activities

(107,808

)

(287,728

)

Cash flows from financing activities

Loan repayments in year

(216,855

)

(177,300

)

Capital repayments in year

-

(40,470

)

Amount owed by/to group undertakings

345,970

166,345

Net cash from financing activities

129,115

(51,425

)

Increase/(decrease) in cash and cash equivalents

127,387

(143,577

)

Cash and cash equivalents at beginning of year

2

1,914,638

2,058,215

Cash and cash equivalents at end of year

2

2,042,025

1,914,638

1.	RECONCILIATION OF LOSS BEFORE TAXATION TO CASH GENERATED FROM OPERATIONS

31.8.25

31.8.24

£

£

Loss before taxation

(463,218

)

(749,783

)

Depreciation charges

849,657

905,685

Profit on disposal of fixed assets

-

(1,139

)

Finance costs

603,543

795,646

Finance income

(45,871

)

-

944,111

950,409

Decrease in stocks

1,632

60

(Increase)/decrease in trade and other debtors

(316,331

)

68,671

Increase in trade and other creditors

80,211

73,369

Cash generated from operations

709,623

1,092,509

2.	CASH AND CASH EQUIVALENTS

The amounts disclosed on the Cash Flow Statement in respect of cash and cash equivalents are in respect of these Balance Sheet amounts:

Year ended 31 August 2025

31/8/25

1/9/24

£

£

Cash and cash equivalents

2,042,025

1,914,638

Year ended 31 August 2024

31/8/24

1/9/23

£

£

Cash and cash equivalents

1,914,638

2,058,215

3.	ANALYSIS OF CHANGES IN NET DEBT

At 1/9/24

Cash flow

At 31/8/25

£

£

£

Net cash

Cash at bank and in hand

1,914,638

127,387

2,042,025

1,914,638

127,387

2,042,025

Debt

Debts falling due after 1 year

(5,778,145

)

216,855

(5,561,290

)

(5,778,145

)

216,855

(5,561,290

)

Total

(3,863,507

)

344,242

(3,519,265

)

1.	STATUTORY INFORMATION

Denham Grove Hotel Limited is a private company, limited by shares, registered in England and Wales. The company's registered number is 10666336 and registered office address is Garlands, Sandy Lane, Northwood, Middx, United Kingdom, HA6 3ER.

2.	ACCOUNTING POLICIES

Basis of preparing the financial statements

These financial statements have been prepared in accordance with Financial Reporting Standard 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.

Judgements and key sources of estimation uncertainty

In the application of company'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 estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

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

Turnover

Turnover represents net income receivable from sale of goods and services in the year, excluding value added tax. Hotel turnover represents primarily room rentals, food and beverage sales and venue hiring for conferences, training and weddings.

Tangible fixed assets

Tangible fixed assets are stated at historical cost less accumulated depreciation and any accumulated impairment losses. Historical cost includes expenditure that is directly attributable to bringing the asset to the location and condition necessary for it to be capable of operating in the manner intended by management.

Depreciation is charged so as to allocate the costs of assets less their residual value over their estimated useful lives, using either a straight line or reducing balance method, as indicated below.

Depreciation is provided on the following basis:

Freehold land and buildings

-

10 years straight line

Leasehold improvements

-

7 years straight line

Plant and equipments

-

7 years straight line

Fixtures and fittings

-

7 years straight line

Motor vehicles

-

3 years straight line

Other fixed assets

-

7 years straight line

The asset's residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.

Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit and loss account.

Stocks

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

Taxation

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

Current or deferred taxation assets and liabilities are not discounted.

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

Deferred tax

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

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

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

Pension costs and other post-retirement benefits

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

Impairment of assets

At each reporting period end date, the company reviews the carrying amounts of its tangible, intangible and other assets to determine whether there is any indication that those assets have suffered an impairment loss. If such an indication exists, the recoverable amount of asset is estimated in order to determine the extent of the impairment loss (if any).

Cash and cash equivalents

Cash and cash equivalents comprise cash in hand, deposits held at call with banks, and other short-term highly liquid investments with original maturities of three months or less.

3.	CRITICAL ACCOUNTING JUDGEMENTS

The following are the judgements (apart from those involving estimation) that have had the most significant effect on the amounts recognised in the financial statements:

Classification of related party loans

The company has loan arrangements that are repayable on demand with related parties. The directors have exercised judgement in classifying these balances as current assets and liabilities in accordance with the contractual terms of the agreements.

Going concern

The financial statements have been prepared on a going concern basis, the validity of which is dependent upon the continuing financial support of The Clay Oven UK Limited, a company under common control and directors of the parent company. A loan has been provided by The Clay Oven UK Limited which enabled the company to acquire the land, buildings and fittings of Denham Grove Hotel Limited. The Clay Oven UK Limited have confirmed that this facility will not be withdrawn if it were to prevent the company from meeting its obligations as and when they fall due.

Based on forecast trading performance, available cash resources, long-term financing arrangements and continued support from The Clay Oven UK Limited, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future and therefore continue to adopt the going concern basis of accounting.

Debtors and creditors receivable/ payable within one year

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

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.

Employee benefits

The company provides a range of benefits to employees, including short-term benefits such as salaries and paid holiday arrangements.

Short-term benefits are recognised as an expense in the period in which the service is received.

4.	EMPLOYEES AND DIRECTORS

31.8.25

31.8.24

£

£

Wages and salaries

1,579,863

1,571,780

Social security costs

109,740

115,798

Other pension costs

24,865

26,434

1,714,468

1,714,012

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

31.8.25

31.8.24

Operational and management

68

77

31.8.25

31.8.24

£

£

Directors' remuneration

-

-

5.	OPERATING PROFIT

The operating profit is stated after charging/(crediting):

31.8.25

31.8.24

£

£

Hire of plant and machinery

3,559

5,191

Depreciation - owned assets

849,657

905,686

Profit on disposal of fixed assets

-

(1,139

)

Auditors' remuneration

12,000

15,647

6.

INTEREST PAYABLE AND SIMILAR EXPENSES

31.8.25

31.8.24

£

£

Bank loan interest

328,543

520,646

Loan Interest

275,000

275,000

603,543

795,646

7.

TAXATION

Analysis of the tax charge

The tax charge on the loss for the year was as follows:

31.8.25

31.8.24

£

£

Current tax:

UK corporation tax

60,630

29,312

Deferred tax

-

(21,949

)

Tax on loss

60,630

7,363