A.B. Hotels (Five Lakes) Limited Company accounts

COMPANY REGISTRATION NUMBER: 09985535

A.B. Hotels (Five Lakes) Limited

Financial Statements

31 December 2025

A.B. Hotels (Five Lakes) Limited

Financial Statements

Year ended 31 December 2025

Contents	Pages

Officers and professional advisers	1

Strategic report	2 to 4

Director's report	5 to 7

Independent auditor's report to the members	8 to 11

Statement of comprehensive income	12

Statement of financial position	13

Statement of changes in equity	14

Notes to the financial statements	15 to 22

A.B. Hotels (Five Lakes) Limited

Officers and Professional Advisers

Director	Mr John Hector Potter

Registered office	2 Westbrook Court
	Sharrow Vale Road
	Sheffield
	South Yorkshire
	S11 8YZ

Auditor	Hebblethwaites
	Chartered accountants & statutory auditors
	2 Westbrook Court
	Sharrow Vale Road
	Sheffield
	S11 8YZ

Business address Potters Resorts Five Lakes

Colchester Road

Essex

CM9 8HX

A.B. Hotels (Five Lakes) Limited

Strategic Report

Year ended 31 December 2025

The director presents the strategic report for the period ended 31 December 2025. The principal activity of the business continued to be that of hoteliers, hospitality and leisure . Financial Performance and fair review of business Business performance within the UK staycation market has remained exceptionally strong. Although international travel has recovered significantly in recent years, domestic holidays continue to experience sustained demand. The Potters brand has been well positioned to benefit from this trend through its premium guest experience, convenient location, value certainty, and commitment to sustainability. Market research continues to demonstrate that a substantial proportion of UK consumers plan domestic breaks each year, while ongoing geopolitical uncertainty and disruption to international travel have further supported demand for UK-based holiday destinations. As a result, the resort has maintained strong occupancy levels and a healthy forward booking position. The year under review has delivered a further period of revenue growth, with turnover increasing by 7%, following strong growth of 15% and 31% in the preceding two years. This sustained performance reflects the continued strength of the brand, increasing customer loyalty, and the success of ongoing investment in the resort's facilities and guest experience. Despite ongoing inflationary pressures affecting the hospitality sector, the Company has successfully maintained a gross profit margin of 45%. This has been achieved through careful cost management, operational efficiencies, and the identification of economies of scale, while ensuring that the premium standards and quality expected by guests have been maintained. Administrative and overhead costs continue to be closely monitored, with management actively seeking opportunities to improve efficiency and reduce expenditure where possible. Previous investments in sustainability initiatives, including the installation of solar panels on the roof of the main building, are now delivering tangible financial benefits through reduced utility costs at a time of increasing energy prices. In addition, these measures have enhanced the resort's environmental credentials and support the Company's long-term commitment to sustainable operations. Notwithstanding the continued programme of refurbishment and capital expenditure undertaken throughout the year, the Company has reported a profit for the financial year ended 31 December 2025. The substantial investment made in recent years has begun to generate the anticipated financial returns, while also strengthening the resort's competitive position within the market. The Company continues to explore additional opportunities for revenue growth and operational improvement, and based on recent trading performance and forward bookings, the directors anticipate a further strengthening of profitability and a return to positive reserves during the next financial year.

Key performance indicators Turnover growth 2025: 7% (2024: 15%) Gross Profit Percentage 2025: 45% (2024: 45%) Profit/(loss) before tax 2025: £2.8m (2024: £1.30m) Principal risks and uncertainties FRAUD Risk of fraud exists in misappropriation of assets, theft of stock and theft of cash takings. The company mitigates this risk through the management structure and regular financial review with, and extensive use of, business systems. MARKET RISK FACTORS General Economic Conditions The disposable income of guests will be affected by changes in general economic environment and this may result in a fall in the number of guests and/or a decrease in on-site expenditure. The directors regularly review its product offering and engages with guests to ensure value for money, with the resort having a strong forward booking position. If this risk and uncertainty materialised, it could result in a material change in the forecast liquidity position of the company. Competition The company offers high quality premium all-inclusive breaks, but the company competes with other holiday options available to guests. The Director believes that this risk is mitigated by the strength and reputation of the brand and the high volume of return guests who enjoy the continual investment in the accommodation and central facilities. FINANCIAL RISKS The Director and senior management monitor the financial requirements of the company and associated risks. The company finances its operations and developments via group borrowings. Bank loan facilities have been made available to the group, and are held in the parent company Potters Resorts Limited. As a subsidiary of the group, the company has a fixed and floating charge over their assets. The director has assessed future compliance with financial covenants and at this time does not foresee any breach. Interest rate risk Principal sources of group borrowings are subject to variable rates of interest. Rates are not currently prohibitive, nor are they anticipated to be per continual detailed forecasts. Liquidity risk The company maintains sufficient levels of cash and liquidity to meet its medium-term working capital and funding obligations. Rolling forecasts of liquidity requirements are prepared and monitored. Credit risk Credit risk from revenue streams is limited as customers are required to pay in advance of their holiday. Financial reporting risks The company's financial systems are required to process a large number of transactions, weaknesses could result in the incorrect reporting of financial results. This risk is mitigated by the production of detailed management accounts which are compared to budgets and forecasts on a monthly basis. Position of the business at the year end The company has significant advanced bookings deep into 2026, and there are further plans to expand the site in terms of guest capacity. It is anticipated that the significant investment made on the resort during the earlier years, the current year and post year end, will enable the company to grow it's revenues and profitability further whilst enhancing the guest experience.

This report was approved by the board of directors on 30 June 2026 and signed on behalf of the board by:

Mr John Hector Potter
Director

Registered office:

2 Westbrook Court

Sharrow Vale Road

Sheffield

South Yorkshire

S11 8YZ

A.B. Hotels (Five Lakes) Limited

Director's Report

Year ended 31 December 2025

The director presents his report and the financial statements of the company for the year ended 31 December 2025 .

Director

The director who served the company during the year was as follows:

Mr John Hector Potter

Dividends

The director does not recommend the payment of a dividend.

Greenhouse gas emissions and energy consumption

	Unit	2025	2024
Electricity grid and renewable	tCO2e	1,022	954
Petrol and diesel	tCO2e	44	44
Natural gas	tCO2e	256	268
		-------	-------
Total emissions	tCO2e	1,322	1,266
Greenhous Gas Emissions Intensity Ratio: CO2 per £100,000 of revenue		6.56	7.34
		-------	-------

Methodologies for energy and emissions calculations

Data has been collected in respect of the period ended 31 December 2025 and reported on a consistent basis with that used for the Company's Energy Savings Opportunity Scheme (ESOS) reporting.

Principal measures taken to increase energy efficiency

The Company has implemented a number of energy efficiency actions to limit emissions, including the following: - Installation of Voltage Reduction Equipment to help reduce overall electricity usage, net saving of 6.9%. - A significant programme of changing lighting to LED across the resort. - A significant programme of gas boiler modern replacements to reduce emissions and gas consumption. - Installation of EV charge points for resort and guest use and expand use of EV in company fleet. - Implement additional sub-metering where appropriate to support targeted efficiency actions. - Introduction of an Energy Awareness Team to establish resort wide good working practice to reduce unnecessary usage. - Review & implement cost effective opportunities to implement large scale carbon reduction schemes. - Ongoing development of long-term energy usage and emissions plans to support UK government aims for 2030 & beyond. - Both ESOS 1 & ESOS 2 are complete and the Company is now working with engaged consultants on ESOS 3. - The company has embarked on a significant solar energy generation investment. The headline 2025 CO2e tonnes per £100,000 of revenue ratio of 6.56 has been substantially reduced from 2024, 2023, 2022, 2021 and 2020 following the significant impact of resort closures as a direct result of the UK government lockdown actions to tackle the Covid-19 pandemic.

Employment of disabled persons

The company has a policy of equal opportunities and is committed to training, developing and promoting employees of all nationalities, religions, gender or physical ability.

Employee involvement

The company has continued its' policy of consultation with employees relative to the provision of information and in the context of performance and awareness of factors affecting the company.

Strategic report

The company has chosen in accordance with Companies Act 2006, s. 414C(11) to set out in the company's strategic report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Sch. 7 to be contained in the director's report.

Director's responsibilities statement

The director is responsible for preparing the strategic report, director's report and the financial statements in accordance with applicable law and regulations. Company law requires the director to prepare financial statements for each financial year. Under that law the director has 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 director must not approve the financial statements unless he is satisfied that they give a true and fair view of the state of affairs of the company and the profit or loss of the company for that period. In preparing these financial statements, the director is required to: - select suitable accounting policies 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 director is 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. He is also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities. Auditor

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

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

This report was approved by the board of directors on 30 June 2026 and signed on behalf of the board by:

Mr John Hector Potter
Director

Registered office:

2 Westbrook Court

Sharrow Vale Road

Sheffield

South Yorkshire

S11 8YZ

A.B. Hotels (Five Lakes) Limited

Independent Auditor's Report to the Members of A.B. Hotels (Five Lakes) Limited

Year ended 31 December 2025

Opinion

We have audited the financial statements of A.B. Hotels (Five Lakes) Limited (the 'company') for the year ended 31 December 2025 which comprise the statement of comprehensive income, statement of financial position, 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 FRS 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice). In our opinion the financial statements: - give a true and fair view of the state of the company's affairs as at 31 December 2025 and of its profit for the year then ended; - have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; - have been prepared in accordance with the requirements of the Companies Act 2006.

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the 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 director's 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 director with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. The director is responsible for the other information. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether there is a material misstatement in the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

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

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

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

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the strategic report or the director's report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion: - adequate accounting records have not been kept, 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 director's remuneration specified by law are not made; or - we have not received all the information and explanations we require for our audit.

Responsibilities of the director

As explained more fully in the director's responsibilities statement, the director is 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 director determines 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 director is 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 director either intends to liquidate the company or to cease operations, or has no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below: We identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and then design and perform audit procedures responsive to those risks, including obtaining audit evidence that is sufficient and appropriate to provide a basis for our opinion. In identifying and assessing risks of material misstatement in respect of irregularities, including fraud and non-compliance with laws and regulations, we considered the following: - the nature of the industry and sector, control environment and business performance, including the identification of related party transactions, and matters which could potentially impact on the company's continuation as a going concern; - results of our enquiries of management and assessment of the risks of irregularities; - any matters we identified having obtained and reviewed the company's documentation of their policies and procedures relating to: - identifying, evaluating and complying with laws and regulations and whether they were aware of any instances of non-compliance; - detecting and responding to the risks of fraud and whether they have knowledge of any actual, suspected or alleged fraud; - the internal controls established to mitigate risks of fraud or non-compliance with laws and regulations; - the matters discussed among the audit engagement team, including how and where fraud might occur in the financial statements and any potential indicators of fraud. As a result of these procedures, we considered the opportunities and incentives that may exist within the organisation for fraud and identified the greatest potential for fraud in relation to revenue recognition. In common with all audits under ISAs (UK), we are also required to perform specific procedures to respond to the risk of management override. We also obtained an understanding of the legal and regulatory frameworks that the company operates in, focusing on provisions of those laws and regulations that had a direct effect on the determination of material amounts and disclosures in the financial statements. The key laws and regulations we considered in this context included the UK Companies Act, UK Corporate Governance Code and local tax legislation. In addition, we considered provisions of other laws and regulations that do not have a direct effect on the financial statements but compliance with which may be fundamental to the company's ability to operate or to avoid a material penalty. We also communicated relevant identified laws and regulations and potential fraud risks to all engagement team members, and remained alert to any indications of fraud or non-compliance with laws and regulations throughout the audit. As part of an audit in accordance with ISAs (UK), we exercise professional judgment and maintain professional scepticism throughout the audit. We also: - Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. - Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the internal control. - Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the director. - Conclude on the appropriateness of the director's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the company's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the company to cease to continue as a going concern. - Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. Use of our report

This report is made solely to the company's members, as a body, in accordance with chapter 3 of part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Richard Murdoch FCA

(Senior Statutory Auditor)

For and on behalf of

Hebblethwaites

Chartered accountants & statutory auditors

2 Westbrook Court

Sharrow Vale Road

Sheffield

S11 8YZ

1 July 2026

A.B. Hotels (Five Lakes) Limited

Statement of Comprehensive Income

Year ended 31 December 2025

		2025	2024
Note		£	£
Turnover	4	20,147,807	18,805,416

Cost of sales	10,997,694	10,279,179
	-------------	-------------
Gross profit	9,150,113	8,526,237

Administrative expenses		6,302,662	7,228,885
		------------	------------
Operating profit	5	2,847,451	1,297,352

Interest payable and similar expenses	8	17,825	16,341
		------------	------------
Profit before taxation		2,829,626	1,281,011

Tax on profit	9	635,084	1,174,174
		------------	------------
Profit for the financial year and total comprehensive income		2,194,542	106,837
		------------	------------

All the activities of the company are from continuing operations.

A.B. Hotels (Five Lakes) Limited

Statement of Financial Position

31 December 2025

	2025	2024
Note	£	£

Fixed assets

Tangible assets	10	21,034,793	19,736,067

Current assets

Stocks	11	199,297	165,488
Debtors	12	1,430,786	95,818
Cash at bank and in hand		484,358	98,616
		------------	---------
		2,114,441	359,922

Creditors: amounts falling due within one year	13	16,911,699	15,850,274
		-------------	-------------
Net current liabilities		14,797,258	15,490,352
		-------------	-------------
Total assets less current liabilities		6,237,535	4,245,715

Creditors: amounts falling due after more than one year	14	44,334	126,380

Provisions	16	1,507,902	1,628,578
		------------	------------
Net assets		4,685,299	2,490,757
		------------	------------

Capital and reserves

Called up share capital	19	10,000	10,000
Share premium account	20	5,990,000	5,990,000
Profit and loss account	20	( 1,314,701)	( 3,509,243)
		------------	------------
Shareholders funds		4,685,299	2,490,757
		------------	------------

These financial statements were approved by the board of directors and authorised for issue on 30 June 2026 , and are signed on behalf of the board by:

Mr John Hector Potter
Director

Company registration number: 09985535

A.B. Hotels (Five Lakes) Limited

Statement of Changes in Equity

Year ended 31 December 2025

	Called up share capital	Share premium account	Profit and loss account	Total
	£	£	£	£
At 1 January 2024	10,000	5,990,000	( 3,616,080)	2,383,920

Profit for the year			106,837	106,837
	--------	------------	------------	------------
Total comprehensive income for the year	–	–	106,837	106,837

At 31 December 2024	10,000	5,990,000	( 3,509,243)	2,490,757

Profit for the year			2,194,542	2,194,542
	--------	------------	------------	------------
Total comprehensive income for the year	–	–	2,194,542	2,194,542

	--------	------------	------------	------------
At 31 December 2025	10,000	5,990,000	( 1,314,701)	4,685,299
	--------	------------	------------	------------

A.B. Hotels (Five Lakes) Limited

Notes to the Financial Statements

Year ended 31 December 2025

1. General information

The company is a private company limited by shares, registered in England and Wales. The address of the registered office is 2 Westbrook Court, Sharrow Vale Road, Sheffield, South Yorkshire, S11 8YZ.

2. Statement of compliance

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

3. Accounting policies

Basis of preparation

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

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

Going concern

The director acknowledges that there is a net current liability position at the balance sheet date. This net liability position is due to two core reasons:- - In order to restrict external borrowings to a minimum, the company has used working capital to fund a small element of the expansion and renovation of the resort. - The company has borrowed funds from a fellow subsidiary. The group loan has no formal repayment terms and is interest free and is classified for accounting purposes as due within one year. The reality is that the loan will not be recalled within one year, but will gradually be repaid as and when cash flow permits. The management and director keep liquidity under constant review, reporting various financial ratios at group level to the group's bankers, on a quarterly basis, which is a requirement of the group loan facility. The group loan is secured on the assets and future assets of all companies within the group. Despite the position outlined above, the director is forecasting the company liquidity position to improve relatively quickly, as a return on the investment by way of increased profitability starts to to take effect. The company has strong forward bookings with adequate support from fellow group members - the director continues to adopt the going concern basis of accounting in preparing the financial statements, and has considered a period in excess of 12 months from the approval date of the financial statements.

Disclosure exemptions

The entity satisfies the criteria of being a qualifying entity as defined in FRS 102. Its financial statements are consolidated into the financial statements of Potters Resorts Limited which can be obtained from Companies House. As such, advantage has been taken of the following disclosure exemptions available under paragraph 1.12 of FRS 102: (a) No cash flow statement has been presented for the company.

Judgements 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. These estimates and judgements are continually reviewed and are based on experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances. In the opinion of management, there are no areas of judgement or key sources of estimation uncertainty that have a significant effect on the financial statements, other than those highlighted below. The director reviews the estimated useful lives of property, plant and equipment at the end of each reporting period. During the current year, the director has concluded that no revision is required to these estimates and that residual values exceed carrying values.

Revenue recognition

The turnover shown in the profit and loss account is exclusive of Value Added Tax and represents both residential income and daily income from operations. Residential income is recognised on completion of the guests stay, adjusted for breaks spanning the year end. Daily income from operations is recognised on the day of receipt.

Taxation

The taxation expense represents the aggregate amount of current and deferred tax recognised in the reporting period. Tax is recognised in profit or loss, except to the extent that it relates to items recognised in other comprehensive income or directly in equity. In this case, tax is recognised in other comprehensive income or directly in equity, respectively. Current tax is recognised on taxable profit for the current and past periods. Current tax is measured at the amounts of tax expected to pay or recover using the tax rates and laws that have been enacted or substantively enacted at the reporting date.

Deferred tax is recognised in respect of all timing differences at the reporting date. Unrelieved tax losses and other deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Deferred tax is measured using the tax rates and laws that have been enacted or substantively enacted by the reporting date that are expected to apply to the reversal of the timing difference.

Tangible assets

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

Depreciation

Depreciation is calculated so as to write off the cost or valuation of an asset, less its residual value, over the useful economic life of that asset as follows:

	Fixtures, fittings and equipment	-	2 - 10 years straight line

The estimated residual value of freehold buildings is such that their depreciable amount is insignificant. Accordingly, no depreciation is charged on freehold buildings.

Impairment of fixed assets

A review for indicators of impairment is carried out at each reporting date, with the recoverable amount being estimated where such indicators exist. Where the carrying value exceeds the recoverable amount, the asset is impaired accordingly. Prior impairments are also reviewed for possible reversal at each reporting date. For the purposes of impairment testing, when it is not possible to estimate the recoverable amount of an individual asset, an estimate is made of the recoverable amount of the cash-generating unit to which the asset belongs.

Stocks

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

Finance leases and hire purchase contracts

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

Provisions

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

Financial instruments

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument. Debtors and creditors with no stated interest rate and receivable or payable within one year are measured at transaction price. Any losses from impairment are recognised in the profit and loss account.

Defined contribution plans

Contributions to defined contribution plans are recognised as an expense in the period in which the related service is provided. Prepaid contributions are recognised as an asset to the extent that the prepayment will lead to a reduction in future payments or a cash refund.

4. Turnover

Turnover arises from:

	2025	2024
	£	£
Provision of holiday accommodation and associated guest spend	20,147,807	18,805,416
	-------------	-------------

The whole of the turnover is attributable to the principal activity of the company wholly undertaken in the United Kingdom.

5. Operating profit

Operating profit or loss is stated after charging/crediting:

	2025	2024
	£	£
Depreciation of tangible assets	2,111,027	1,672,066
Gains on disposal of tangible assets	–	( 51,000)
	------------	------------

6. Auditor's remuneration

	2025	2024
	£	£
Fees payable for the audit of the financial statements	11,250	10,950
	--------	--------

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

Taxation advisory services	2,000	2,500
Other non-audit services	2,000	2,000
	--------	--------
	4,000	4,500
	--------	--------

7. Staff costs

The average number of persons employed by the company during the year, including the director, amounted to:

	2025	2024
	No.	No.
Production staff	289	284
Administrative staff	12	12
	----	----
	301	296
	----	----

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

	2025	2024
	£	£
Wages and salaries	7,041,472	6,578,263
Social security costs	724,391	498,695
Other pension costs	118,016	98,883
	------------	------------
	7,883,879	7,175,841
	------------	------------

8. Interest payable and similar expenses

	2025	2024
	£	£
Interest on obligations under finance leases and hire purchase contracts	17,825	16,341
	--------	--------

9. Tax on profit

Major components of tax expense

	2025	2024
	£	£

Current tax:

UK current tax expense	755,760	60,060

Deferred tax:

Origination and reversal of timing differences	( 120,676)	1,114,114
	---------	------------
Tax on profit	635,084	1,174,174
	---------	------------

Reconciliation of tax expense

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

	2025	2024
	£	£
Profit on ordinary activities before taxation	2,829,626	1,281,011
	------------	------------
Profit on ordinary activities by rate of tax	707,406	320,252
Utilisation of tax losses	( 72,322)	853,368
Unused tax losses	–	554
	------------	------------
Tax on profit	635,084	1,174,174
	------------	------------

10. Tangible assets

	Freehold land and buildings	Fixtures, fittings and equipment	Total
	£	£	£
Cost
At 1 January 2025	8,976,067	14,740,926	23,716,993
Additions	1,214,685	2,195,068	3,409,753
	-------------	-------------	-------------
At 31 December 2025	10,190,752	16,935,994	27,126,746
	-------------	-------------	-------------
Depreciation
At 1 January 2025	–	3,980,926	3,980,926
Charge for the year	–	2,111,027	2,111,027
	-------------	-------------	-------------
At 31 December 2025	–	6,091,953	6,091,953
	-------------	-------------	-------------
Carrying amount
At 31 December 2025	10,190,752	10,844,041	21,034,793
	-------------	-------------	-------------
At 31 December 2024	8,976,067	10,760,000	19,736,067
	-------------	-------------	-------------

Finance leases and hire purchase contracts

Included within the carrying value of tangible assets are the following amounts relating to assets held under finance leases or hire purchase agreements:

	Fixtures, fittings and equipment
	£
At 31 December 2025	184,656
	---------
At 31 December 2024	281,293
	---------

11. Stocks

	2025	2024
	£	£
Stocks of food, beverages and consumables	199,297	165,488
	---------	---------

12. Debtors

	2025	2024
	£	£
Trade debtors	31,426	17,696
Amounts owed by group undertakings	1,289,290	–
Prepayments and accrued income	98,755	78,122
Other debtors	11,315	–
	------------	--------
	1,430,786	95,818
	------------	--------

13. Creditors: amounts falling due within one year

	2025	2024
	£	£
Payments received on account	3,943,015	3,797,562
Trade creditors	877,169	620,715
Amounts owed to group undertakings	10,240,902	10,198,365
Accruals and deferred income	199,229	328,604
Corporation tax	755,760	60,060
Social security and other taxes	754,484	712,326
Obligations under finance leases and hire purchase contracts	82,046	107,948
Other creditors	59,094	24,694
	-------------	-------------
	16,911,699	15,850,274
	-------------	-------------

Included within creditors falling due within one year, is an amount of £82,046 (2024: £107,948) in relation to hire purchase contracts, which are secured on the assets which they relate to.

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

	2025	2024
	£	£
Obligations under finance leases and hire purchase contracts	44,334	126,380
	--------	---------

Included within creditors falling due after one year, is an amount of £44,334 (2024: £126,380) in relation to hire purchase contracts, which are secured on the assets which they relate to.

15. Finance leases and hire purchase contracts

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

	2025	2024
	£	£
Not later than 1 year	82,046	107,948
Later than 1 year and not later than 5 years	44,334	126,380
	---------	---------
	126,380	234,328
	---------	---------

16. Provisions

	Deferred tax (note 17)
	£
At 1 January 2025	1,628,578
Additions	( 120,676)
	------------
At 31 December 2025	1,507,902
	------------

17. Deferred tax

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

	2025	2024
	£	£
Included in provisions (note 16)	1,507,902	1,628,578
	------------	------------

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

	2025	2024
	£	£
Accelerated capital allowances	1,507,902	1,628,578
	------------	------------

18. Employee benefits

Defined contribution plans

The amount recognised in profit or loss as an expense in relation to defined contribution plans was £ 118,016 (2024: £ 98,883 ).

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

19. Called up share capital

Issued, called up and fully paid

	2025		2024
	No.	£	No.	£
Ordinary shares of £ 1 each	10,000	10,000	10,000	10,000
	--------	--------	--------	--------

There is a single class of ordinary shares. There are no restrictions on the distribution of dividends and the repayment of capital.

20. Share premium account

This reserve represents the premium on shares issued at a value that exceeds their nominal value.

21. Related party transactions

During the year, the company received net loans from Potters Leisure Limited, a fellow group subsidiary, for a total of £42,537 (2024: net loans repaid of £683,862). At the year end date, loans owing to Potters Leisure Limited total £10,240,902 (2024: £10,198,365), and these are included within creditors due within one year. The loans are interest free with no formal terms of repayment. During the year, the company paid on behalf of Potters Resorts Limited £1,289,290 of loan interest. At the year end, this amount is due to the Company from Potters Resorts Limited. This balance is included in Debtors within 1 year. The loans are interest free and with no formal terms of repayment.

22. Controlling party

The ultimate controlling company is Potters Resorts Limited , a company registered in the United Kingdom, by virtue of its ownership of the entire issued share capital of the company. There is no ultimate controlling party of this company. Both the registered address and the principal place of business of Potters Resorts Limited are the same as the company's addresses as given on the Officers and Professional Advisers page of these financial statements.