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

The directors of the company have elected not to include a copy of the profit and loss account within the financial statements.true

Acre Heathrow Limited is a private company limited by shares incorporated in England and Wales. The registered office is 7 Churchill Court, Station Road, North Harrow, Harrow, England, HA2 7SA.

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006 as applicable to companies subject to the small companies regime. The disclosure requirements of section 1A of FRS 102 have been applied other than where additional disclosure is required to show a true and fair view.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

In early 2025, following changes within the senior finance management team, the Company did not submit the required covenant and reporting information to Natwest bank for period ending December 2024. As a result of this led to a technical covenant breach, with the bank issuing a reservation of rights letter in 2025 and the loan liability being shown as a current liability. Management has continued to maintain regular communication with the bank and a constructive dialogue remains ongoing.true

On review of the covenants, the Debt Service Coverage Ratio and Dividend covenant were compliant as at December 2025. The Leverage Ratio was marginally above the covenant threshold and therefore did not meet the required target at that date. Management subsequently implemented measures to improve financial performance such as increased room prices and better cost management.

Management have continued to monitor the covenants and keep regular contact with the bank, as at April 2026, all covenant ratios were compliant with the facility requirements, reflecting improved financial performance during the period and demonstrating the Company's ability to return to covenant compliance. Throughout this period, all capital and interest payments due under the facility were made in accordance with the agreed repayment schedule.

As part of their going concern assessment, should the bank recall the loan, despite having net assets of £859k there is currently insufficient funds in the company, however the directors have received letters of support from other connected directors and connected group entities if necessary, to support the Company's financial obligations. They have considered the availability of property assets owned by the shareholder and group entities which could be realised, if required, to support repayment of the NatWest facility.

The market values used in this assessment are based on 3rd party valuations and management's assessment. A 5% reduction has been applied to these values to provide a prudent allowance for selling costs and market uncertainties. The net funds available represent the estimated sale proceeds after repayment of any existing mortgages or secured borrowings.

Based on this assessment, the estimated net funds available amount to approximately £7.7 million, which exceeds the outstanding NatWest facility of £7.5 million. This provides additional support to the directors' conclusion that sufficient resources would be available to meet the Company's obligations should repayment of the facility be required.

Given the continued strong performance of the company, posting another profit after tax, with net assets and further letters of confirmation that connected companies will not recall their liabilities of £920k. The directors continue to maintain a constructive relationship with NatWest and no repayment demand has been made. Accordingly, the potential disposal of these assets has been considered solely as part of the downside scenario assessment performed in support of the going concern review and the directors having considered the cashflow forecasts for at least the next 12 months have concluded that the company continues to be a going concern.

Turnover represents amounts receivable during the period in respect of accommodation services provided, together with the associated sale of food and beverages.

Turnover is recognised at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

Tangible fixed assets are initially measured at cost and subsequently measured at cost, net of depreciation and any impairment losses.

Freehold land is not depreciated.

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 credited or charged to profit or loss.

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

Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows have not been adjusted.

If the recoverable amount of an asset is estimated to be less than its carrying amount, the carrying amount of the asset is reduced to its recoverable amount. An impairment loss is recognised immediately in profit or loss.

Stocks of food and beverages are stated at the lower of cost and estimated selling price less costs to complete and sell.

At each reporting date, an assessment is made for impairment.

Cash at bank and in hand are basic financial assets and include cash in hand and deposits held at call with banks.

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

Basic financial liabilities, including creditors and bank loans, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future receipts discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less.

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

The tax expense represents the sum of the tax currently payable and deferred tax.

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax liabilities are generally recognised for all timing differences and 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.

The costs of short-term employee benefits are recognised as a liability and an expense.

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

Government grants, which include amounts received under the Coronavirus Job Retention Scheme, are recognised at the fair value of the grant received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received. The income is recognised in other income on a systematic basis over the periods in which the associated costs are incurred, using the accrual model.

Government grants, which include the amounts received from the Bounce Back Loan Scheme that cover interest and fees payable to the lender, are recognised at the fair value of the grant received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received. The income is recognised in other income on a systematic basis over the periods in which the associated costs are incurred, using the accrual model.

Rates Relief

Business rates holidays received are set off against the applicable rate expense for the period covered by the holiday.

Reporting period

During the previous period the reporting period was extended to 31 December 2023. The reporting period in the previous period is from 1 July 2022 to 31 December 2023. The reporting period is now from 1 January 2024 to 31 December 2024 and therefore the comparatives for the period ended 31 December 2023 are not entirely comparable.

In the application of the 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.

The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows.

An external valuation was completed in March 2024, which valued the freehold land and buildings at £14,000,000. The directors deem the carrying value of land and buildings to be appropriate.

The directors deem the amounts due from companies under common control to be recoverable on the basis that an offset letter has been obtained from another company under common control to whom monies are owed.

The average monthly number of persons employed by the company during the year was 30 (2023: 27).

The following security is provided on the bank loan:

- A first legal charge over the land and buildings and an adjacent piece of land owned by the company;

- A debenture over the assets of the company;

- A guarantee for £600,000 from two of the directors;

- A Deed of subordination whereby Trellis Estates Limited, a company owned by a trust whose settlor is one of the directors of the company, also makes available a loan of £3,000,000 to the company. Other borrowings comprise of this loan from Trellis Estates Limited.

As the income statement has been omitted from the filing copy of the financial statements, the following information in relation to the audit report on the statutory financial statements is provided in accordance with s444(5B) of the Companies Act 2006.

The auditor's report is unqualified and includes the following:

In our opinion the financial statements:

• give a true and fair view of the state of the company's affairs as at 31 December 2024 and of its profit 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.