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Registered number: 01518773 T.M. HOTELS (HEATHROW) LIMITED ANNUAL REPORT AND FINANCIAL STATEMENTS FOR THE YEAR ENDED 31 DECEMBER 2025
T.M. HOTELS (HEATHROW) LIMITED Company Information
Directors | Ibrahim A Mussallam
| Sultan Ali Bin Mussallam
Company secretary | Mohamed Mouilah
Registered number | 01518773
Registered office | 10th Floor
| 240 Blackfriars Road
| London
| SE1 8NW
Trading Address | Sheraton Heathrow Hotel
| Colnbrook Bypass
| West Drayton
| Middlesex
| UB7 0HJ
Independent auditor | Sayers Butterworth LLP
| Chartered Accountants & Statutory Auditor
| 3rd Floor
| 12 Gough Square
| London
| EC4A 3DW
T.M. HOTELS (HEATHROW) LIMITED Contents
| Page
Strategic Report | 1 - 2
Directors' Report | 3 - 4
Independent Auditor's Report | 5 - 8
Statement of Comprehensive Income | 9
Statement of Financial Position | 10
Statement of Changes in Equity | 11
Statement of Cash Flows | 12
Notes to the Financial Statements | 13 - 23
T.M. HOTELS (HEATHROW) LIMITED Strategic report For the Year Ended 31 December 2025
Introduction
The directors present their strategic report for the year ended 31 December 2025.
Business review
In the year ended 31 December 2025, the company again achieved record high turnover. This growth is due to an increase in the average room rate driven by increases in inventory for higher rated transient and corporate groups as well as the upgrade to the hotel’s conference facilities. Total revenue for 2025 increased by 9.1% to £14.9m, occupancy for 2025 decreased to 83.5% (2024 – 84.9%) and total RevPAR (Revenue Per Available Room) increased in 2025 to £95.55 (2024 – £87.34). As a result of decreasing energy costs, total operating costs remained similar to the 2024 level and so the revenue growth in the year has resulted in a further significant increase in operating profit. Accordingly, the directors consider that the company traded well in the year. Total loans, provided by a company under common control and related entities and shareholders, decreased to £12.0m (2024 - £12.5m). Further detail of these loans is provided in note 14. A transfer of £2.5m from the FFE reserve to operating bank accounts in 2021, as agreed with Sheraton Hotels, has now been paid back in full. Revenue for the first quarter of 2026 is showing an increase of 1.5% from the same period in 2025 and Gross Operating Profit and RevPAR for 2026 to date are also in excess of 2025 levels and the 2026 budget. This revenue growth has been due to an increase in average rate and a large group booking in March. However, revenue and profitability for the rest of 2026 may be adversely affected by the impact on passenger numbers of recent global events.
Principal risks and uncertainties
The directors have considered and reviewed the provisions included within Chapter 4a Section 414C Paragraph (2)(b) of the Companies Act 2006, relating to the financial risk management objectives and policies of the company, including any associated use of financial instruments. An overall assessment has been made of the company's exposure to risk as below. Competitive environment risk The hotel, especially given its location, is operating within an extremely competitive environment. The directors' strategy for dealing with the competitive environment is to continuously invest in the property to meet the demands of the market. Marriott also make regular improvements to the Brand to enhance reputation. The directors do not see any environmental or legislative risks at this point. The directors aim to keep fighting to maintain their market share, and maintain costs and wages in order to avoid any losses. Page 1
T.M. HOTELS (HEATHROW) LIMITED Strategic report (continued) For the Year Ended 31 December 2025
Financial key performance indicators
The directors consider the key performance indicators for the company to be occupancy, turnover and operating profit. The table below summarises the key performance indicators for the year:
| 2025 | 2024
Turnover | £14,926k | £13,681k
Operating Profit/(Loss) | £2,480k | £1,665k
RevPAR | £95.55 | £87.34
Average Rate | £85.33 | £79.11
Total Occupancy | 83.5% | 84.9%
This report was approved by the board and signed on its behalf.
Ibrahim A Mussallam Director
Date: 5 June 2026
Page 2
T.M. HOTELS (HEATHROW) LIMITED Directors' report For the Year Ended 31 December 2025 The directors present their report and the financial statements for the year ended 31 December 2025.
Directors' responsibilities statement
The directors are responsible for preparing the Strategic report, the 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 applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland'. 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 for the Company's financial statements and then apply them consistently; ∙make judgments and accounting estimates that are reasonable and prudent; ∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; ∙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 to 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.
Principal activity
The principal activity of the company during the year continued to be that of a hotel operator.
Results and dividends
The profit for the year, after taxation, amounted to £1,797k (2024 - £771k). The directors recommend that no dividend is to be paid.
Directors
The directors who served during the year were:
Ibrahim A Mussallam
Sultan Ali Bin Mussallam
Future developments
The directors will continue to ensure the hotel properly is maintained to the highest standards in line with the Sheraton branding. Page 3
T.M. HOTELS (HEATHROW) LIMITED Directors' report (continued) For the Year Ended 31 December 2025
Going Concern
The Company will not have sufficient liquidity to repay loans due for repayment in instalments and on demand, however management expects the loans to be successfully refinanced. The ultimate parent company has issued a letter of financial support with the backing of the ultimate shareholder, the Mussallam family, which confirms that the ultimate parent company can and will be able to support the Company for the 12 month period from the date of signing of the financial statements. The financial information of the ultimate parent company is not publicly available, and management has not been able to conclude on whether the ultimate parent company could provide the financial support it has pledged if this were to be called. Therefore, the potential lack of liquidity to repay loans constitutes a material uncertainty that casts significant doubt upon the Company’s ability to continue as a going concern. The financial statements do not contain any adjustments to the carrying value of any assets of liabilities that would result if the Company was unable to continue as a going concern.
Qualifying third party indemnity provisions
As permitted by the Articles of Association, the Directors have the benefit of an indemnity which is a qualifying third party indemnity provision as defined by Section 234 of the Companies Act 2006. The indemnity was in force throughout the last financial year and is currently in force. The Company also purchased and maintained throughout the financial year Directors’ and Officers’ liability insurance in respect of itself and its Directors.
Disclosure of information to auditor
Each of the persons who are directors at the time when this Directors' report is approved has confirmed that: ∙so far as the director is aware, there is no relevant audit information of which the Company's auditor is unaware, and ∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company's auditor is aware of that information.
Auditor
The auditor, Sayers Butterworth LLP, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006. This report was approved by the board and signed on its behalf.
Ibrahim A Mussallam Director
Date: 5 June 2026
Page 4
T.M. HOTELS (HEATHROW) LIMITED Independent auditor's report to the members of T.M. Hotels (Heathrow) Limited
Disclaimer of Opinion
We have audited the financial statements of T.M. Hotels (Heathrow) Limited (the 'Company') for the year ended 31 December 2025, which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of cash flows, the Statement of changes in equity 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 Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice). We do not express an opinion on the accompanying financial statements of the company. Because of the significance of the matter described in the basis for disclaimer of opinion section of our report, we have not been able to obtain sufficient, appropriate audit evidence to provide a basis for any audit opinion on these financial statements.
Basis for disclaimer of opinion
As set out in note 2.2, the company is reliant on the continued support of its ultimate parent undertaking and ultimate controlling party. Although the company has received a letter of financial support from the ultimate parent undertaking, we have not been able to determine whether that undertaking is in a position to provide support to the company to enable us to conclude on the going concern of the company as that undertaking does not prepare annual financial statements. Consequently, we were unable to determine whether any additional disclosures or adjustments in relation to this matter were necessary.
Opinion 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. Page 5
T.M. HOTELS (HEATHROW) LIMITED Independent auditor's report to the members of T.M. Hotels (Heathrow) Limited (continued)
Matters on which we are required to report by exception
Notwithstanding our disclaimer of opinion on the financial statements, in the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit performed subject to the pervasive limitation described above, we have not identified material misstatements in the Strategic report or the Directors' report. Arising from the limitation of our work referred to above: ∙We have not obtained all the information and explanations that we considered necessary for the purposes of our audit. 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.
Responsibilities of directors
As explained more fully in the directors’ responsibilities statement set out on page 3, 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 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. Page 6
T.M. HOTELS (HEATHROW) LIMITED Independent auditor's report to the members of T.M. Hotels (Heathrow) Limited (continued)
Auditor's responsibilities for the audit of the financial statements
Our responsibility is to conduct an audit of the company’s financial statements in accordance with International Standards on Auditing (UK) and to issue an auditor’s report. However, because of the matter described in the basis for disclaimer of opinion section of our report, we were not able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on these financial statements. 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 ethical responsibilities in accordance with these requirements. Explanation as to what extent the audit was considered 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 irregularities, including fraud. 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 or intentional misrepresentations, or through collusion. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below. However, because of the matters described in the Basis of Disclaimer of Opinion section of our report, we were not able to obtain sufficient appropriate audit evidence to provide a basis for an audit opinion on the financial statements. The primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the entity and management. ∙We obtained an understanding of the legal and regulatory frameworks that are applicable to the company and determined that the most significant are those that relate to the reporting framework (FRS 102 and Companies Act 2006) and compliance with the relevant direct and indirect tax regulation in the United Kingdom. In addition, the Company has to comply with laws and regulations relating to its operations, including heath and safety and GDPR. ∙We understood how the company is complying with those frameworks by making enquires of management and those charged with governance to understand how the company maintains and communicates its policies and procedures in these areas. We understood any controls put in place by management to reduce the opportunities for fraudulent transactions. ∙We assessed the susceptibility of the company’s financial statements to material misstatement, including how fraud might occur through internal team conversations and inquiry of management and those charged with governance. Through these procedures we determined there to be a risk of management override and fraud risks in relation to revenue recognition. ♦In relation to management override, we sampled from the entire population of journals, identifying specific transactions which did not meet our expectations based upon specific criteria. Our additional procedures included investigating the transactions to gain understanding and testing them back to source information. In relation to revenue recognition, we performed tests on revenue recgonised, trade receivables and cash collected. ♦In relation to revenue recognition, we performed tests on revenue recognised, trade receivables and cash collected. We have also performed cut-off testing relating to manual adjustments to revenue for sales. We selected a sample of items around year-end to perform detailed cut off testing, including understanding the nature of transactions and corroborating that the revenue was recorded in the appropriate period. Page 7
T.M. HOTELS (HEATHROW) LIMITED Independent auditor's report to the members of T.M. Hotels (Heathrow) Limited (continued) ∙Based on this understanding we designed our audit procedures to identify noncompliance with such laws and regulations. Our procedures included: inquiries of management and those charged with governance as to whether the entity complies with such laws and regulations and enquiries of the same concerning any actual or potential litigation or claims. No instances of material non-compliance were identified. A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s website at https:/www.frc.org.uk/auditresponsibilities. This description forms part of our auditors 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. Andrew Burch (Senior statutory auditor) for and on behalf of Sayers Butterworth LLP Chartered Accountants & Statutory Auditor 3rd Floor 12 Gough Square London EC4A 3DW 5 June 2026 Page 8
T.M. HOTELS (HEATHROW) LIMITED Statement of comprehensive income For the Year Ended 31 December 2025
| 2025 | 2024
Note | £000 | £000
Turnover | 3 | 14,926 | 13,679
Cost of sales |  | (7,699) | (7,291)
Gross profit |  | 7,227 | 6,388
Administrative expenses |  | (4,747) | (4,723)
Operating profit | 4 | 2,480 | 1,665
Interest payable and similar expenses | 7 | (683) | (894)
Profit before taxation |  | 1,797 | 771
Profit for the financial year |  | 1,797 | 771
The notes on pages 13 to 23 form part of these financial statements.
Page 9
T.M. HOTELS (HEATHROW) LIMITED Registered number: 01518773 Statement of financial position As at 31 December 2025
|  | 2025 |  | 2024
Note |  | £000 |  | £000
Fixed assets |  |  |  |  |
Tangible assets | 8 |  | 21,687 |  | 22,390
|  |  | 21,687 |  | 22,390
Current assets |  |  |  |  |
Stocks | 9 | 14 |  | 15 |
Debtors: amounts falling due within one year | 10 | 1,737 |  | 1,572 |
Cash at bank and in hand | 11 | 6,997 |  | 5,167 |
|  | 8,748 |  | 6,754 |
Creditors: amounts falling due within one year | 12 | (9,130) |  | (9,030) |
Net current liabilities |  |  | (382) |  | (2,276)
Total assets less current liabilities |  |  | 21,305 |  | 20,114
Creditors: amounts falling due after more than one year | 13 |  | (4,860) |  | (5,466)
Net assets |  |  | 16,445 |  | 14,648
Capital and reserves |  |  |  |  |
Called up share capital | 16 |  | 1 |  | 1
Revaluation reserve |  |  | 7,888 |  | 8,340
Profit and loss account |  |  | 8,556 |  | 6,307
|  |  | 16,445 |  | 14,648
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 5 June 2026.
Ibrahim A Mussallam
Director
The notes on pages 13 to 23 form part of these financial statements. Page 10
T.M. HOTELS (HEATHROW) LIMITED Statement of changes in equity For the Year Ended 31 December 2025
| Called up share capital | Revaluation reserve | Profit and loss account | Total equity
| £000 | £000 | £000 | £000
At 1 January 2025 | 1 | 8,340 | 6,307 | 14,648
Comprehensive income for the year |  |  |  |
Profit for the year | - | - | 1,797 | 1,797
Surplus on revaluation of freehold property | - | (452) | 452 | -
Total comprehensive income for the year | - | (452) | 2,249 | 1,797
At 31 December 2025 | 1 | 7,888 | 8,556 | 16,445
Statement of changes in equity For the Year Ended 31 December 2024
| Called up share capital | Revaluation reserve | Profit and loss account | Total equity
| £000 | £000 | £000 | £000
At 1 January 2024 | 1 | 8,792 | 5,084 | 13,877
Comprehensive income for the year |  |  |  |
Profit for the year | - | - | 771 | 771
Surplus on revaluation of freehold property | - | (452) | 452 | -
Total comprehensive income for the year | - | (452) | 1,223 | 771
At 31 December 2024 | 1 | 8,340 | 6,307 | 14,648
| The notes on pages 13 to 23 form part of these financial statements.
Page 11
T.M. HOTELS (HEATHROW) LIMITED Statement of cash flows For the Year Ended 31 December 2025
|  |  | 2025 | 2024
|  |  | £000 | £000
Cash flows from operating activities |  |
Profit for the financial year | 1,797 | 771
Adjustments for: |  |
Depreciation of tangible assets | 1,306 | 1,433
Loss on disposal of tangible assets | (8) | -
Interest paid | 683 | 894
Decrease/(increase) in stocks | 1 | (4)
(Increase) in debtors | (167) | (242)
(Decrease)/increase in creditors | (63) | 170
Net cash generated from operating activities | 3,549 | 3,022
Cash flows from investing activities |  |
Purchase of tangible fixed assets | (603) | (435)
Sale of tangible fixed assets | 8 | -
Net cash from investing activities | (595) | (435)
Cash flows from financing activities |  |
Repayment of loans | - | (6,798)
Other new loans | - | 6,852
Repayment of other loans | (441) | -
Interest paid | (683) | (894)
Net cash used in financing activities | (1,124) | (840)
Net increase in cash and cash equivalents | 1,830 | 1,747
Cash and cash equivalents at beginning of year | 5,167 | 3,420
Cash and cash equivalents at the end of year | 6,997 | 5,167
Cash and cash equivalents at the end of year comprise: |  |
Cash at bank and in hand | 6,997 | 5,167
| 6,997 | 5,167
The notes on pages 13 to 23 form part of these financial statements.
Page 12
T.M. HOTELS (HEATHROW) LIMITED Notes to the financial statements For the Year Ended 31 December 2025
1. | General information
T M Hotels (Heathrow) Limited (the "Company") is a company limited by shares and incorporated in England and Wales. 2.Accounting policies
| 2.1 | Basis of preparation of financial statements
The financial statements have been prepared under the historical cost convention as modified by the revaluation of freehold property and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland and the Companies Act 2006. The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgment in applying the Company's accounting policies.
| 2.2 | Going concern
The Company will not have sufficient liquidity to repay loans due for repayment in instalments and on demand, however management expects the loans to be successfully refinanced. The ultimate parent company has issued a letter of financial support with the backing of the ultimate shareholder, the Mussallam family, which confirms that the ultimate parent company can and will be able to support the Company for the 12 month period from the date of signing of the financial statements. The financial information of the ultimate parent company is not publicly available, and management has not been able to conclude on whether the ultimate parent company could provide the financial support it has pledged if this were to be called. Therefore, the potential lack of liquidity to repay loans constitutes a material uncertainty that casts significant doubt upon the Company’s ability to continue as a going concern. The financial statements do not contain any adjustments to the carrying value of any assets of liabilities that would result if the Company was unable to continue as a going concern.
| 2.3 | Judgements in applying accounting policies and key sources of estimation uncertainty
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect the amounts reported for assets and liabilities as at the balance sheet date and the amounts reported for revenues and expenses during the year. However,the nature of estimation means that actual outcomes could differ from those estimates. The following judgements have had the most significant effect on amounts recognised in the financial statements: ∙Determining whether fixed assets are impaired requires an estimation of the value in use of cash generating unit. The value in use calculation requires the directors to estimate the future cash flows expected to arise from the cash generating unit and a suitable discount rate in order to calculate present value. ∙Tangible fixed assets are depreciated over their useful lives taking into account residual values, where appropriate. The actual lives of the assets and residual values are assessed annually and may vary depending on the number of factors. In re-assessing asset lives, factors such as technological innovation and the hotel's maintenance programmes are taken into account. Residual value assessments consider issues such as future market conditions, the remaining life of the asset and projected disposal values. Page 13
T.M. HOTELS (HEATHROW) LIMITED Notes to the financial statements For the Year Ended 31 December 2025 2.Accounting policies (continued)
| 2.4 | Turnover and revenue recognition
Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Company and the revenue can be reliably measured. Revenue is measured as the fair value of the consideration received or receivable, excluding discounts, rebates, value added tax and other sales taxes. The following criteria must also be met before revenue is recognised: Sale of goods Revenue from the sale of goods is recognised when all of the following conditions are satisfied: ∙the Company has transferred the significant risks and rewards of ownership to the buyer; ∙the Company retains neither continuing managerial involvement to the degree usually associated with ownership nor effective control over the goods sold; ∙the amount of revenue can be measured reliably; ∙it is probable that the Company will receive the consideration due under the transaction; and ∙the costs incurred or to be incurred in respect of the transaction can be measured reliably. Rendering of services Revenue from a contract to provide services is recognised in the period in which the services are provided in accordance with the stage of completion of the contract when all of the following conditions are satisfied: ∙the amount of revenue can be measured reliably; ∙it is probable that the Company will receive the consideration due under the contract; ∙the stage of completion of the contract at the end of the reporting period can be measured reliably; and ∙the costs incurred and the costs to complete the contract can be measured reliably. The revenue is wholly attributable to the operation of the hotel. Revenue from hotel rooms is recognised when the rooms are being occupied. Revenue from events is recognised when the events are held. Other income is recognised when the above conditions have been met for all other services and goods.
| 2.5 | Operating leases: the Company as lessee
Rentals paid under operating leases are charged to profit or loss on a straight-line basis over the lease term. Benefits received and receivable as an incentive to sign an operating lease are recognised on a straight-line basis over the lease term, unless another systematic basis is representative of the time pattern of the lessee's benefit from the use of the leased asset.
| 2.6 | Finance costs
Finance costs are charged to profit or loss over the term of the debt using the effective interest method so that the amount charged is at a constant rate on the carrying amount. Issue costs are initially recognised as a reduction in the proceeds of the associated capital instrument. Page 14
T.M. HOTELS (HEATHROW) LIMITED Notes to the financial statements For the Year Ended 31 December 2025 2.Accounting policies (continued)
| 2.7 | Borrowing costs
All borrowing costs are recognised in profit or loss in the year in which they are incurred.
| 2.8 | Foreign currency translation
Foreign currency transactions are translated into the functional currency using the spot exchange rates at the dates of the transactions. At each period end foreign currency monetary items are translated using the closing rate. Non- monetary items measured at historical cost are translated using the exchange rate at the date of the transaction and non-monetary items measured at fair value are measured using the exchange rate when fair value was determined. Foreign exchange gains and losses resulting from the settlement of transactions and from the translation at period-end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss except when deferred in other comprehensive income as qualifying cash flow hedges. Foreign exchange gains and losses that relate to borrowings and cash and cash equivalents are presented in the Statement of Comprehensive Income within 'finance income or costs'. All other foreign exchange gains and losses are presented in profit or loss within 'other operating income'.
| 2.9 | Current and deferred taxation
Tax is recognised in profit or loss except that a charge attributable to an item of income and expense recognised as other comprehensive income or to an item recognised directly in equity is also recognised in other comprehensive income or directly in equity respectively. The current income tax charge is calculated on the basis of tax rates and laws that have been enacted or substantively enacted by the reporting date in the countries where the Company operates and generates income. Deferred tax balances are recognised in respect of all timing differences that have originated but not reversed by the reporting date, except that: ∙The recognition of deferred tax assets is limited to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits; and ∙Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met. Deferred tax balances are not recognised in respect of permanent differences except in respect of business combinations, when deferred tax is recognised on the differences between the fair values of assets acquired and the future tax deductions available for them and the differences between the fair values of liabilities acquired and the amount that will be assessed for tax. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date. Page 15
T.M. HOTELS (HEATHROW) LIMITED Notes to the financial statements For the Year Ended 31 December 2025 2.Accounting policies (continued)
| 2.10 | Property plant and equipment
Property plant and equipment is stated at cost less accumulated depreciation and any accumulated impairment losses. Such 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. The Company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the Company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to Statement of Comprehensive income during the period in which they are incurred. Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method. The estimated useful lives range as follows: Depreciation is provided on the following basis:
|  |  |  | Freehold property | - | 50 years straight line
|  |  |  | Plant & machinery | - | 5 years straight line
|  |  |  | Fixtures & fittings | - | 1.5-7 years straight line
|  |  |  | Improvement to freehold property | - | 15-30 years straight line
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date. Land is not depreciated as it is considered to have an indefinite life. The carrying values of tangibles fixed assets are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable.
| 2.11 | Revaluation of tangible fixed assets
The freehold property is carried at deemed cost equal to the fair value of the property at the date of the 1997 revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The surplus depreciation charge resulting on revaluation is transferred from the profit and loss account to the revaluation reserve.
| 2.12 | Impairment of fixed assets
The Company assesses at each reporting date whether an asset may be impaired. If any such indication exists the company estimates the recoverable amount of the asset. If it is not possible to estimate the recoverable amount of the individual asset, the Company estimates the recoverable amount of the cash generating unit to which the asset belongs. The recoverable amount of an asset or cash generating unit is the higher of its fair value less costs to sell and its value in use. If the recoverable amount is less than its carrying amount, the carrying amount of the asset is impaired and it is reduced to its recoverable amount through an impairment in the Statement of Comprehensive Income unless the asset is carried at a revalued amount where the impairment loss of a revalued asset is a revaluation decrease. An impairment loss recognised for all assets is reversed in a subsequent period if and only if the reasons for the impairment loss have ceased to apply. Page 16
T.M. HOTELS (HEATHROW) LIMITED Notes to the financial statements For the Year Ended 31 December 2025 2.Accounting policies (continued)
| 2.13 | Stocks
Stock is valued at the lower of cost and net realisable value. A provision is made for obsolete, slow moving or defective items where appropriate.
| 2.14 | Short term debtors and creditors
Short term debtors and creditors are measured at transaction price, less any impairment. Loans receivable are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method, less any impairment.
| 2.15 | Cash and cash equivalents
Cash is represented by cash in hand and deposits with financial institutions repayable without penalty on notice of not more than 24 hours. Cash equivalents are highly liquid investments that mature in no more than three months from the date of acquisition and that are readily convertible to known amounts of cash with insignificant risk of change in value.
| 2.16 | Holiday pay accrual
A liability is recognised to the extent of any unused holiday pay entitlement which is accrued at the reporting date and carried forward to future periods. This is measured at the undiscounted salary cost of the future holiday entitlement so accrued at the reporting date.
| 2.17 | Provisions for Liabilities
A provision is recognised when the Company has a legal or constructive obligation as a result of past event and it is probable that an outflow of economic benefit will be required and a reliable estimate can be made of the amount of the obligation. Provisions are charged as an expense to the Statement of Comprehensive Income in the year that the Company becomes aware of the obligation, and are measured at the best estimate at the Statement of Financial Position date of the expenditure required to settle the obligation, taking into account relevant risks and uncertainties. When payments are eventually made, they are charged to the provision carried in the Statement of Financial Position.
3. | Turnover
| An analysis of turnover by country of destination:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £000 | £000
| United Kingdom | 14,926 | 13,679
|  | 14,926 | 13,679
Page 17
T.M. HOTELS (HEATHROW) LIMITED Notes to the financial statements For the Year Ended 31 December 2025
4. | Operating profit
| The operating profit is stated after charging:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £000 | £000
| Depreciation of tangible fixed assets | 1,306 | 1,434
| Exchange differences | (62) | (41)
| Other operating lease rentals | 2 | -
| During the year no director received any emoluments for their services to the company (2024: £nil). The Directors consider that the level of their qualifying services as directors of T M Hotels (Heathrow) Limited are incidental and negligible compared to the services provided to the group. There are no management charges to T M Hotels (Heathrow) Limited from the parent company for these services. Consequently the Directors determine that given the limited level of services required, their remuneration for these qualifying services is £nil.
5. | Auditor's remuneration
| During the year, the Company obtained the following services from the Company's auditor:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £000 | £000
| Fees payable to the Company's auditor for the audit of the Company's financial statements | 42 | 40
| Non-audit services | 10 | 10
|  | 52 | 50
Page 18
T.M. HOTELS (HEATHROW) LIMITED Notes to the financial statements For the Year Ended 31 December 2025
6. | Employees
|  |  |  |  | 2025 | 2024
|  |  |  |  | £000 | £000
| Wages and salaries | 2,863 | 2,581
| Social security costs | 391 | 352
| Cost of defined contribution scheme | 75 | 77
|  | 3,329 | 3,010
| The average monthly number of employees, including the directors, during the year was as follows:
|  |  | 2025 | 2024
|  |  | No. | No.
|  | Office management | 20 | 18
|  | Hotel Operations | 83 | 82
|  | Directors | 2 | 2
|  |  | 105 | 102
7. | Interest payable and similar charges
|  |  |  |  | 2025 | 2024
|  |  |  |  | £000 | £000
| Bank interest payable | - | 260
| Other loan interest payable | 683 | 634
|  | 683 | 894
Page 19
T.M. HOTELS (HEATHROW) LIMITED Notes to the financial statements For the Year Ended 31 December 2025
8. | Tangible fixed assets
|  | Freehold property | Plant & machinery | Fixtures & fittings | Other fixed assets | Total
|  | £000 | £000 | £000 | £000 | £000
| Cost or valuation |  |  |  |  |
| At 1 January 2025 | 31,047 | 85 | 12,104 | 16,618 | 59,854
| Additions | - | - | 438 | 165 | 603
| At 31 December 2025 | 31,047 | 85 | 12,542 | 16,783 | 60,457
| Depreciation |  |  |  |  |
| At 1 January 2025 | 21,013 | 63 | 11,265 | 5,123 | 37,464
| Charge for the year on owned assets | 540 | 9 | 373 | 384 | 1,306
| At 31 December 2025 | 21,553 | 72 | 11,638 | 5,507 | 38,770
| Net book value |  |  |  |  |
| At 31 December 2025 | 9,494 | 13 | 904 | 11,276 | 21,687
| At 31 December 2024 | 10,034 | 22 | 839 | 11,495 | 22,390
| Included within Freehold land and buildings is freehold land with a cost of £4,067,000 (2024: £4,067,000) which is not depreciated. If the land and building had not been included at valuation they would have been included under the historic cost convention as follows:
|  | 2025 | 2024
|  | £000 | £000
| Cost | 8,485 | 8,485
| Accumulated depreciation | (5,123) | (5,035)
| Net book value | 3,362 | 3,450
Page 20
T.M. HOTELS (HEATHROW) LIMITED Notes to the financial statements For the Year Ended 31 December 2025
9. | Stocks
|  |  |  |  | 2025 | 2024
|  |  |  |  | £000 | £000
| Finished goods and goods for resale | 14 | 15
|  | 14 | 15
10. | Debtors
|  |  |  |  | 2025 | 2024
|  |  |  |  | £000 | £000
| Trade debtors | 1,327 | 1,188
| Other debtors | 204 | 198
| Prepayments and accrued income | 206 | 186
|  | 1,737 | 1,572
11. | Cash and cash equivalents
|  |  |  |  | 2025 | 2024
|  |  |  |  | £000 | £000
| Cash at bank and in hand | 6,997 | 5,167
|  | 6,997 | 5,167
12. | Creditors: Amounts falling due within one year
|  |  |  |  | 2025 | 2024
|  |  |  |  | £000 | £000
| Other loans | 7,173 | 7,009
| Trade creditors | 445 | 545
| Other taxation and social security | 355 | 390
| Other creditors | 228 | 192
| Accruals and deferred income | 929 | 894
|  | 9,130 | 9,030
Page 21
T.M. HOTELS (HEATHROW) LIMITED Notes to the financial statements For the Year Ended 31 December 2025
13. | Creditors: Amounts falling due after more than one year
|  |  |  |  | 2025 | 2024
|  |  |  |  | £000 | £000
| Other loans | 4,860 | 5,466
|  | 4,860 | 5,466
14. | Loans
| Analysis of the maturity of loans is given below:
|  |  |  |  | 2025 | 2024
|  |  |  |  | £000 | £000
| Amounts falling due within one year |  |
| Other loans | 7,173 | 7,009
| Amounts falling due 2-5 years |  |
| Other loans | 2,827 | 4,030
| Amounts falling due after more than 5 years |  |
| Other loans | 2,033 | 1,436
|  | 12,033 | 12,475
| Other loans comprise: −A loan of £5,881k (2024 - £6,589k) from an entity under common control which was subject to interest at 6.5% during the year and is repayable in equal instalments from March 2024 until repaid in full; −Loans totalling £6,152k (2024 - £5,886k) from related entities and shareholders which are repayable on demand and accrue interest at 5%.
Page 22
T.M. HOTELS (HEATHROW) LIMITED Notes to the financial statements For the Year Ended 31 December 2025
15. | Financial instruments
|  |  |  |  | 2025 | 2024
|  |  |  |  | £000 | £000
| Financial assets |  |
| Financial assets that are debt instruments measured at amortised cost | 1,531 | 1,386
| Financial liabilities |  |
| Financial liabilities measured at amortised cost | (13,637) | (14,122)
| Financial assets measured at amortised cost comprise trade debtors and other debtors.
| Financial liabilities measured at amortised cost comprise bank and other loans, trade creditors, other creditors and accruals.
16. | Share capital
|  |  |  |  | 2025 | 2024
|  |  |  |  | £000 | £000
|  | Allotted, called up and fully paid |  |
|  | 1,000 (2024 - 1,000) Ordinary shares of £1 each | 1 | 1
17. | Controlling party
The company is a subsidiary of Nearland (UK) Limited. The ultimate parent undertaking is Nearland Properties Inc., a company incorporated in British Virgin Islands. In the opinion of the directors, the ultimate controlling party is the Mussallam family interests.
Page 23