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Registered number: 05064131









SUN HOTEL LIMITED









Annual report and financial statements

For the Year Ended 30 June 2025

 
SUN HOTEL LIMITED
 
 
Company Information


Directors
Sampath Kumar Mallaya 
Kevin John Davis (resigned 12 August 2025)
Veerakumar Krishnasamy (resigned 21 October 2025)
Kitana Manni Mallaya (resigned 12 August 2025)
Karthikeyan Nagaraj (resigned 21 October 2025)
Komathy Sampathkumar (resigned 1 January 2026)
Ravi Shankar Vasudevan (resigned 21 October 2025)




Registered number
05064131



Registered office
Unit 7 & 8C Kingston House Estate
Portsmouth Road Long Ditton

Surbiton

Surrey

KT6 5QG




Independent auditors
Mantax Lynton
Chartered Accountants & Statutory Auditors

2nd Floor Equitable House

7 General Gordon Square

London

United Kingdom




Bankers
HSBC Bank PLC UK
54 Clarence St

Kington Upon Thames

KT1 1NP





 
SUN HOTEL LIMITED
 

Contents



Page
Group strategic report
1 - 2
Directors' report
3 - 4
Independent auditors' report
5 - 8
Consolidated income statement
9
Consolidated statement of comprehensive income
10
Consolidated statement of financial position
11 - 12
Company statement of financial position
13 - 14
Consolidated statement of changes in equity
15 - 16
Company statement of changes in equity
17
Consolidated statement of cash flows
18
Consolidated analysis of net debt
19
Notes to the financial statements
20 - 47


 
SUN HOTEL LIMITED
 
 
Group strategic report
For the Year Ended 30 June 2025

Introduction
 
The director presents the strategic report of the group for the year ended 30 June 2025.

Business review
 
During the year, the parent company recommenced trading its hotel business to the general public following the termination of government contracts. This transition required a substantial refurbishment programme, which temporarily disrupted operations and adversely affected revenue and profitability.
Group turnover decreased to £5.98 million from £7.79 million in 2024. Operating profits has also been affected by the write off of  advances provided in earlier accounting period which is an exceptional and non -recurring expense.
The directors have continued to focus on improving operational efficiency, reviewing the Group’s cost structure and positioning the business for future stability and growth. Although the refurbishment programme reduced turnover during the year, the directors believe that the investment and strategic repositioning will enhance the quality of the Group’s assets and support revenue growth over the longer term.
The Group continues to maintain a strong net asset position and the directors remain focused on prudent financial management, liquidity control and ensuring sufficient resources are available to support the Group’s ongoing operations and future development.

Principal risks and uncertainties
 
The Group’s activities expose it to a number of financial and operational risks. The Directors regularly review these risks and take appropriate measures to manage and mitigate their potential impact on the Group’s performance and financial position.
Price Risk
The Group is exposed to price risk driven by inflationary pressures on the procurement of goods and services, including utilities and labour. While these rising costs can partially be mitigated through strategic pricing adjustments, local market competition imposes certain constraints on elasticity. However, given the Group’s positioning within the premium leisure and hospitality sector and its strategic geographic proximity to London, management remains confident that its premium service offering provides strong pricing power to mitigate this risk.
Credit Risk
Credit risk is considered low for standard hotel operations, as a significant majority of customers settle balances at the point of sale. For higher-value transactions—such as large-scale conference bookings and new tenancy agreements—the Group enforces stringent credit assessment policies. Counterparty credit exposure is capped via defined limits, which are continuously evaluated based on historical recovery patterns and collection performance. For revenue streams where immediate payment is mandated, residual credit risk is effectively eliminated.
Liquidity Risk
The Group actively manages its liquidity position through a structured combination of third-party debt facilities and shareholder financing. This funding structure is intentionally managed to ensure robust working capital reserves—accounting for inherent seasonal fluctuations—while providing the capital depth necessary to support scheduled capital expansion initiatives.
 

Page 1

 
SUN HOTEL LIMITED
 

Group strategic report (continued)
For the Year Ended 30 June 2025

Financial key performance indicators
 
The key performance indicators used to monitor business performance are occupancy levels and EBITDA. These levels have been skewed in recent years due to transitioning between hotel services and government contracts.

Future Outlook
 
The Group is undertaking a strategic restructuring programme to enhance its operational efficiency, strengthen governance and create a clearer framework for future growth. As part of this process, the director are reviewing the existing Group structure with the intention of separating property ownership activities from operational activities through a Property Company (PropCo) and Operating Company (OpCo) structure.


This report was approved by the board on 10 July 2026 and signed on its behalf.



................................................
Sampath Kumar Mallaya
Director

Page 2

 
SUN HOTEL LIMITED
 
 
 
Directors' report
For the Year Ended 30 June 2025

The directors present their report and the financial statements for the year ended 30 June 2025.

Directors' responsibilities statement

The directors are responsible for preparing the Group strategic report, the Directors' report and the consolidated 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 the Group and of the profit or loss of the Group for that period.

 In preparing these financial statements, the directors are required to:


select suitable accounting policies for the Group's financial statements and then apply them consistently;

make judgments and accounting estimates that are reasonable and prudent;

prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group 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 the Group and to enable them to ensure that the financial statements comply with the Companies Act 2006They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Results and dividends

The loss for the year, after taxation, amounted to £5,853,831 (2024 - loss £913,817).

No dividend has been paid during the year (2024 - Nil).

Directors

The directors who served during the year were:

Sampath Kumar Mallaya 
Kevin John Davis (resigned 12 August 2025)
Veerakumar Krishnasamy (resigned 21 October 2025)
Kitana Manni Mallaya (resigned 12 August 2025)
Karthikeyan Nagaraj (resigned 21 October 2025)
Komathy Sampathkumar (resigned 1 January 2026)
Ravi Shankar Vasudevan (resigned 21 October 2025)

Page 3

 
SUN HOTEL LIMITED
 
 
 
Directors' report (continued)
For the Year Ended 30 June 2025

Disclosure of information to auditors

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 and the Group's auditors are 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 and the Group's auditors are aware of that information.

Auditors

The auditorsMantax Lyntonwill be proposed for reappointment in accordance with section 485 of the Companies Act 2006.

This report was approved by the board on 10 July 2026 and signed on its behalf.
 





................................................
Sampath Kumar Mallaya
Director

Page 4

 
SUN HOTEL LIMITED
 
 
 
Independent auditors' report to the members of SUN HOTEL LIMITED
 

Opinion


We have audited the financial statements of SUN HOTEL LIMITED (the 'Parent Company') and its subsidiaries (the 'Group') for the year ended 30 June 2025, which comprise the Consolidated income statement, the Consolidated statement of comprehensive income, the Consolidated analysis of net debt, the Consolidated statement of financial position, the Company statement of financial position, the Consolidated statement of cash flows, the Consolidated statement of changes in equity, the Company statement of changes in equity and the related notes, including a summary of significant accounting policiesThe financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).


In our opinion the financial statements:


give a true and fair view of the state of the Group's and of the Parent Company's affairs as at 30 June 2025 and of the Group's loss for the year then ended;
have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
have been prepared in accordance with the requirements of the Companies Act 2006.


Basis for opinion


We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.


Conclusions relating to going concern


In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.


Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the Parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.


Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.


Page 5

 
SUN HOTEL LIMITED
 
 
 
Independent auditors' report to the members of SUN HOTEL LIMITED (continued)


Other information


The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The directors are responsible for the other information contained within the Annual ReportOur 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. 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 course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.


We have nothing to report in this regard.


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 Group 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 Group strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.


Matters on which we are required to report by exception
 

In the light of the knowledge and understanding of the Group and the Parent Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Group strategic report or the Directors' report.


We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:


adequate accounting records have not been kept by the Parent Company, or returns adequate for our audit have not been received from branches not visited by us; or
the Parent Company financial statements are not in agreement with the accounting records and returns; or
certain disclosures of directors' remuneration specified by law are not made; or
we have not received all the information and explanations we require for our audit.


Responsibilities of directors
 

As explained more fully in the Directors' responsibilities statement 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 Group's and the Parent Company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or the Parent Company or to cease operations, or have no realistic alternative but to do so.

Page 6

 
SUN HOTEL LIMITED
 
 
 
Independent auditors' report to the members of SUN HOTEL LIMITED (continued)


Auditors' responsibilities for the audit of the financial statements
 

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' 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 Group 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 obtained an understanding of the legal and regulatory frameworks within which the company operates, focusing on those laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements. The laws and regulations we considered in this context were the Companies Act 2006 and relevant taxation legislation.
 
We identified the greatest risks of material impact on the financial statements from irregularities, including fraud, to be override of controls by management, inappropriate revenue recognition, carrying value of intangibles and going concern. Our audit procedures to respond to these risks included enquiries of management about their own identification and assessment of the risks of irregularities, reviewing accounting estimates for biases, corroborating revenue recognised by the company through agreements to supporting documentation and ensuring accounting policies are appropriate under United Kingdom Generally Accepted Accounting Practice and applicable law.
 
Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. We are not responsible for preventing non-compliance and cannot be expected to detect non-compliance with all laws and regulations.
 
These inherent limitations are particularly significant in the case of misstatement resulting from fraud as this may involve sophisticated schemes designed to avoid detection, including deliberate failure to record transactions, collusion or the provision of intentional misrepresentations.


A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.


Page 7

 
SUN HOTEL LIMITED
 
 
 
Independent auditors' report to the members of SUN HOTEL LIMITED (continued)


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 2006Our 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 Auditors' 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.





Janak Raj Pokhrel (Senior statutory auditor)
  
for and on behalf of
Mantax Lynton
 
Chartered Accountants & Statutory Auditors
  
2nd Floor Equitable House
7 General Gordon Square
London
United Kingdom

10 July 2026
Page 8

 
SUN HOTEL LIMITED
 
 
Consolidated income statement
For the Year Ended 30 June 2025

As restated
2025
2024
Note
£
£

  

Turnover
 4 
5,983,804
7,790,881

Cost of sales
  
(1,890,656)
(1,948,967)

Gross profit
  
4,093,148
5,841,914

Administrative expenses
  
(5,682,111)
(4,858,431)

Other operating income
 5 
734,581
555,776

Exceptional items
 12 
(1,920,031)
(946,057)

Operating (loss)/profit
 6 
(2,774,413)
593,202

Interest payable and similar expenses
 10 
(1,645,079)
(1,411,948)

Loss before tax
  
(4,419,492)
(818,746)

Tax
 11 
(1,434,339)
(95,071)

Loss for the financial year
  
(5,853,831)
(913,817)

Loss for the year attributable to:
  

Owners of the Parent Company
  
(5,853,831)
(913,817)

  
(5,853,831)
(913,817)

The notes on pages 20 to 47 form part of these financial statements.

Page 9

 
SUN HOTEL LIMITED
 

Consolidated statement of comprehensive income
For the Year Ended 30 June 2025

2025
2024
Note
£
£


Loss for the financial year

  

(5,853,831)
(913,817)

Other comprehensive income
  


Revaluation gain
  
6,769,022
100,000

Deferred tax
  
(1,850,923)
(25,000)

Other comprehensive income for the year
  
4,918,099
75,000

Total comprehensive income for the year
  
(935,732)
(838,817)

The notes on pages 20 to 47 form part of these financial statements.

Page 10

 
SUN HOTEL LIMITED
Registered number: 05064131

Consolidated statement of financial position
As at 30 June 2025

As restated
2025
2024
Note
£
£

Fixed assets
  

Intangible assets
 13 
2,212,714
2,498,226

Tangible assets
 14 
41,794,324
33,555,942

Investment property
  
3,500,000
3,424,000

  
47,507,038
39,478,168

Current assets
  

Stocks
 17 
31,201
30,963

Debtors: amounts falling due after more than one year
 18 
-
1,150,000

Debtors: amounts falling due within one year
 18 
13,754,064
6,625,409

Cash at bank and in hand
 19 
260,533
151,787

  
14,045,798
7,958,159

Creditors: amounts falling due within one year
 20 
(41,110,983)
(11,999,664)

Net current liabilities
  
 
 
(27,065,185)
 
 
(4,041,505)

Total assets less current liabilities
  
20,441,853
35,436,663

Creditors: amounts falling due after more than one year
 21 
(370,592)
(18,822,806)

Provisions for liabilities
  

Deferred taxation
 24 
(3,753,191)
(1,902,268)

  
 
 
(3,753,191)
 
 
(1,902,268)

Net assets excluding pension asset
  
16,318,070
14,711,589

Net assets
  
16,318,070
14,711,589


Capital and reserves
  

Called up share capital 
 25 
3,000,001
3,000,001

Revaluation reserve
 26 
15,931,428
11,160,721

Investment property reserve
 26 
1,532,609
1,456,609

Other reserves
 26 
351,501
351,501

Profit and loss account
 26 
(4,497,469)
(1,257,243)

Equity attributable to owners of the Parent Company
  
16,318,070
14,711,589

  
16,318,070
14,711,589

Page 11

 
SUN HOTEL LIMITED
Registered number: 05064131
    
Consolidated statement of financial position (continued)
As at 30 June 2025


The financial statements were approved and authorised for issue by the board and were signed on its behalf on 10 July 2026.




................................................
Sampath Kumar Mallaya
Director

The notes on pages 20 to 47 form part of these financial statements.

Page 12

 
SUN HOTEL LIMITED
Registered number: 05064131

Company statement of financial position
As at 30 June 2025

As restated
2025
2024
Note
£
£

Fixed assets
  

Tangible assets
 14 
26,979,651
20,064,818

Investments
 15 
10,660,501
10,660,501

  
37,640,152
30,725,319

Current assets
  

Stocks
 17 
13,774
8,060

Debtors: amounts falling due after more than one year
 18 
-
1,150,000

Debtors: amounts falling due within one year
 18 
7,290,554
7,814,961

Cash at bank and in hand
 19 
143,746
41,995

  
7,448,074
9,015,016

Creditors: amounts falling due within one year
 20 
(30,736,234)
(9,806,125)

Net current liabilities
  
 
 
(23,288,160)
 
 
(791,109)

Total assets less current liabilities
  
14,351,992
29,934,210

  

Creditors: amounts falling due after more than one year
 21 
(370,592)
(18,812,297)

Provisions for liabilities
  

Deferred taxation
 24 
(2,682,521)
(1,211,665)

  
 
 
(2,682,521)
 
 
(1,211,665)

Net assets excluding pension asset
  
11,298,879
9,910,248

Net assets
  
11,298,879
9,910,248


Capital and reserves
  

Called up share capital 
 25 
3,000,001
3,000,001

Revaluation reserve
 26 
12,882,225
8,469,657

Profit and loss account
  
(4,583,347)
(1,559,410)

  
11,298,879
9,910,248


Page 13

 
SUN HOTEL LIMITED
Registered number: 05064131
    
Company statement of financial position (continued)
As at 30 June 2025

The financial statements were approved and authorised for issue by the board and were signed on its behalf on 10 July 2026.




................................................
Sampath Kumar Mallaya
Director

The notes on pages 20 to 47 form part of these financial statements.

Page 14
 

 
SUN HOTEL LIMITED


 

Consolidated statement of changes in equity
For the Year Ended 30 June 2025



Called up share capital
Revaluation reserve
Investment property revaluation reserve
Other reserves
Profit and loss account
Total equity


£
£
£
£
£
£



At 1 July 2023 (as previously stated)
3,000,001
11,250,846
1,456,609
351,501
(524,301)
15,534,656


Prior year adjustment - correction of error
-
-
-
-
15,750
15,750



At 1 July 2023 (as restated)
3,000,001
11,250,846
1,456,609
351,501
(508,551)
15,550,406





Loss for the year
-
-
-
-
(913,817)
(913,817)


Surplus on revaluation of freehold property
-
75,000
-
-
-
75,000


Transfer to/from profit and loss account
-
(165,125)
-
-
165,125
-





At 1 July 2024 (as previously stated)
3,000,001
11,160,721
1,456,609
351,501
(1,212,112)
14,756,720


Prior year adjustment - correction of error
-
-
-
-
(45,131)
(45,131)



At 1 July 2024 (as restated)

3,000,001

11,160,721

1,456,609

351,501

(1,257,243)

14,711,589





Loss for the year
-
-
-
-
(5,853,831)
(5,853,831)


Surplus on revaluation of freehold property
-
6,693,022
-
-
691,290
7,384,312


Surplus on revaluation of investment property
-
-
76,000
-
-
76,000


Transfer to/from profit and loss account
-
(1,922,315)
-
-
1,922,315
-



At 30 June 2025
3,000,001
15,931,428
1,532,609
351,501
(4,497,469)
16,318,070



Page 15

 

 
SUN HOTEL LIMITED


 


Consolidated statement of changes in equity (continued)
For the Year Ended 30 June 2025

The notes on pages 20 to 47 form part of these financial statements.

Page 16
 
SUN HOTEL LIMITED
 

Company statement of changes in equity
For the Year Ended 30 June 2025


Called up share capital
Revaluation reserve
Profit and loss account
Total equity

£
£
£
£


At 1 July 2023 (as previously stated)
3,000,001
8,535,262
(1,361,586)
10,173,677

Prior year adjustment - correction of error
-
-
15,750
15,750


At 1 July 2023 (as restated)
3,000,001
8,535,262
(1,345,836)
10,189,427


Comprehensive income for the year

Loss for the year
-
-
(354,179)
(354,179)

Surplus on revaluation of freehold property
-
75,000
-
75,000
Total comprehensive income for the year
-
75,000
(354,179)
(279,179)

Transfer to/from profit and loss account
-
(140,605)
140,605
-



At 1 July 2024 (as previously stated)
3,000,001
8,469,657
(1,575,160)
9,894,498

Prior year adjustment - correction of error
-
-
15,750
15,750


At 1 July 2024 (as restated)
3,000,001
8,469,657
(1,559,410)
9,910,248


Comprehensive income for the year

Loss for the year
-
-
(4,942,512)
(4,942,512)

Surplus on revaluation of freehold property
-
5,883,424
447,719
6,331,143
Total comprehensive income for the year
-
5,883,424
(4,494,793)
1,388,631

Transfer to/from profit and loss account
-
(1,470,856)
1,470,856
-


At 30 June 2025
3,000,001
12,882,225
(4,583,347)
11,298,879


The notes on pages 20 to 47 form part of these financial statements.

Page 17

 
SUN HOTEL LIMITED
 

Consolidated statement of cash flows
For the Year Ended 30 June 2025

2025
2024
£
£

Cash flows from operating activities

Loss before tax
(4,419,492)
(818,746)

Adjustments for:

Amortisation of intangible assets
285,512
285,512

Depreciation of tangible assets
775,767
774,696

Impairments of fixed assets
-
464,915

Interest paid
1,645,079
1,411,948

(Increase)/decrease in stocks
(238)
(4,844)

(Increase) in debtors
(5,531,401)
(2,320,736)

Increase/(decrease) in creditors
2,253,591
1,040,762

Corporation tax paid
(27,785)
(92,715)

Net cash generated from operating activities

(5,018,967)
740,792


Cash flows from investing activities

Purchase of tangible fixed assets
(1,629,836)
(1,173,282)

HP interest paid
(16,885)
(12,867)

Net cash from investing activities

(1,646,721)
(1,186,149)

Cash flows from financing activities

New secured loans
26,820,510
661,951

Repayment of loans
(18,559,557)
-

Net movement in HP Loan
141,675
135,708

Interest paid
(1,628,194)
(1,399,081)

Net cash used in financing activities
6,774,434
(601,422)

Net increase/(decrease) in cash and cash equivalents
108,746
(1,046,779)

Cash and cash equivalents at beginning of year
151,787
1,198,566

Cash and cash equivalents at the end of year
260,533
151,787


Cash and cash equivalents at the end of year comprise:

Cash at bank and in hand
260,533
151,787

260,533
151,787


The notes on pages 20 to 47 form part of these financial statements.

Page 18

 
SUN HOTEL LIMITED
 

Consolidated analysis of net debt
For the Year Ended 30 June 2025




At 1 July 2024
Cash flows
At 30 June 2025
£

£

£

Cash at bank and in hand

151,787

108,746

260,533

Debt due after 1 year

(18,549,311)

18,549,311

-

Debt due within 1 year

(5,184,877)

(27,062,265)

(32,247,142)

Finance leases

(135,708)

(141,675)

(277,383)


(23,718,109)
(8,545,883)
(32,263,992)

The notes on pages 20 to 47 form part of these financial statements.

Page 19

 
SUN HOTEL LIMITED
 
 
 
Notes to the financial statements
For the Year Ended 30 June 2025

1.


General information

Sun Hotel Limited is a company, limited by shares, registered in England and Wales. The company's registration number is 05064131 and has its registered office address at Units7 & 8C Kingston House Estate, Portsmouth Road Long Ditton, Surbiton, Surrey, KT6 5QG.
The principal activity of the Company is the operation of a hotel and the provision of hospitality services.

2.Accounting policies

 
2.1

Basis of preparation of financial statements

The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the UK 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 Group management to exercise judgment in applying the Group's accounting policies (see note 3).

The Company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own Income statement in these financial statements.

The following principal accounting policies have been applied:

 
2.2

Basis of consolidation

The consolidated financial statements present the results of the Company and its own subsidiaries ("the Group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the Statement of financial position, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the Consolidated income statement from the date on which control is obtained. They are deconsolidated from the date control ceases.
In accordance with the transitional exemption available in FRS 102, the Group has chosen not to retrospectively apply the standard to business combinations that occurred before the date of transition to FRS 102.

Therefore, the Group continues to recognise a merger reserve which arose on a past business combination that was accounted for as a merger in accordance with UK GAAP as applied at that time.

Page 20

 
SUN HOTEL LIMITED
 
 
 
Notes to the financial statements
For the Year Ended 30 June 2025

2.Accounting policies (continued)

 
2.3

Revenue

Revenue is recognised to the extent that it is probable that the economic benefits will flow to the Group 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:

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 Group 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.

 
2.4

Operating leases: the Group 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.

 
2.5

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.

 
2.6

Borrowing costs

All borrowing costs are recognised in profit or loss in the year in which they are incurred.

 
2.7

Pensions

Defined contribution pension plan

The Group operates a defined contribution plan for its employees. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity. Once the contributions have been paid the Group has no further payment obligations.

The contributions are recognised as an expense in profit or loss when they fall due. Amounts not paid are shown in accruals as a liability in the Statement of financial position. The assets of the plan are held separately from the Group in independently administered funds.

Page 21

 
SUN HOTEL LIMITED
 
 
 
Notes to the financial statements
For the Year Ended 30 June 2025

2.Accounting policies (continued)

 
2.8

Current and deferred taxation

The tax expense for the year comprises current and deferred tax. 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 and the Group operate and generate 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;
Any deferred tax balances are reversed if and when all conditions for retaining associated tax allowances have been met; and
Where they relate to timing differences in respect of interests in subsidiaries, associates, branches and joint ventures and the Group can control the reversal of the timing differences and such reversal is not considered probable in the foreseeable future.

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.


 
2.9

Exceptional items

Exceptional items are transactions that fall within the ordinary activities of the Group but are presented separately due to their size or incidence.

Page 22

 
SUN HOTEL LIMITED
 
 
 
Notes to the financial statements
For the Year Ended 30 June 2025

2.Accounting policies (continued)

 
2.10

Intangible assets

Goodwill

Goodwill represents the difference between amounts paid on the cost of a business combination and the acquirer’s interest in the fair value of the Group's share of its identifiable assets and liabilities of the acquiree at the date of acquisition. Subsequent to initial recognition, goodwill is measured at cost less accumulated amortisation and accumulated impairment losses. Goodwill is amortised on a straight-line basis to the Consolidated income statement over its useful economic life.

Other intangible assets

Intangible assets are initially recognised at cost. After recognition, under the cost model, intangible assets are measured at cost less any accumulated amortisation and any accumulated impairment losses.

All intangible assets are considered to have a finite useful life. If a reliable estimate of the useful life cannot be made, the useful life shall not exceed ten years.

 
2.11

Tangible fixed assets

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

Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives, using the straight-line method.

Depreciation is provided on the following basis:

Freehold property
-
1%
straight line
Long-term leasehold property
-
2%
straight line
Plant and machinery
-
5%
straight line
Motor vehicles
-
25%
straight line
Fixtures and fittings
-
10%
straight line
Office equipment
-
33%
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.

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

Page 23

 
SUN HOTEL LIMITED
 
 
 
Notes to the financial statements
For the Year Ended 30 June 2025

2.Accounting policies (continued)

 
2.12

Revaluation of tangible fixed assets

Individual freehold and leasehold properties are carried at current year value at fair value at the date of the revaluation less any subsequent accumulated depreciation and subsequent accumulated impairment losses. Revaluations are undertaken with sufficient regularity to ensure the carrying amount does not differ materially from that which would be determined using fair value at the reporting date.
Fair values are determined from market based evidence normally undertaken by professionally qualified valuers.

Revaluation gains and losses are recognised in other comprehensive income unless losses exceed the previously recognised gains or reflect a clear consumption of economic benefits, in which case the excess losses are recognised in profit or loss.

 
2.13

Impairment of fixed assets and goodwill

Assets that are subject to depreciation or amortisation are assessed at each reporting date to determine whether there is any indication that the assets are impaired. Where there is any indication that an asset may be impaired, the carrying value of the asset (or cash-generating unit to which the asset has been allocated) is tested for impairment. An impairment loss is recognised for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's (or CGU's) fair value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately identifiable cash flows (CGUs). Non-financial assets that have been previously impaired are reviewed at each reporting date to assess whether there is any indication that the impairment losses recognised in prior periods may no longer exist or may have decreased.

 
2.14

Investment property

Investment property is carried at fair value determined annually by external valuers and derived from the current market rents and investment property yields for comparable real estate, adjusted if necessary for any difference in the nature, location or condition of the specific asset. No depreciation is provided. Changes in fair value are recognised in profit or loss.

 
2.15

Valuation of investments

Investments in subsidiaries are measured at cost less accumulated impairment.

Investments in unlisted Group shares, whose market value can be reliably determined, are remeasured to market value at each reporting date. Gains and losses on remeasurement are recognised in the Consolidated income statement for the period. Where market value cannot be reliably determined, such investments are stated at historic cost less impairment.

Investments in listed company shares are remeasured to market value at each reporting date. Gains and losses on remeasurement are recognised in profit or loss for the period.

Page 24

 
SUN HOTEL LIMITED
 
 
 
Notes to the financial statements
For the Year Ended 30 June 2025

2.Accounting policies (continued)

 
2.16

Stocks

Stocks are stated at the lower of cost and net realisable value, being the estimated selling price less costs to complete and sell. Cost is based on the cost of purchase on a first in, first out basis. Work in progress and finished goods include labour and attributable overheads.

At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in profit or loss.

 
2.17

Debtors

Short-term debtors 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.

 
2.18

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.

In the Consolidated statement of cash flows, cash and cash equivalents are shown net of bank overdrafts that are repayable on demand and form an integral part of the Group's cash management.

 
2.19

Creditors

Short-term creditors are measured at the transaction price. Other financial liabilities, including bank loans, are measured initially at fair value, net of transaction costs, and are measured subsequently at amortised cost using the effective interest method.

 
2.20

Provisions for liabilities

Provisions are recognised when an event has taken place that gives rise to a legal or constructive obligation, a transfer of economic benefits is probable and a reliable estimate can be made.
Provisions are measured as the best estimate of the amount required to settle the obligation, taking into account the related risks and uncertainties.
 
Increases in provisions are generally charged as an expense to profit or loss.

 
2.21

Financial instruments

The Group has elected to apply the provisions of Section 11 “Basic Financial Instruments” of FRS 102 to all of its financial instruments.

Financial instruments are recognised in the Group's Statement of financial position when the Group 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.
Page 25

 
SUN HOTEL LIMITED
 
 
 
Notes to the financial statements
For the Year Ended 30 June 2025

2.Accounting policies (continued)


2.21
Financial instruments (continued)


Basic financial assets

Basic financial assets, which include trade and other debtors, cash and bank balances, are initially measured at their transaction price (adjusted for transaction costs except in the initial measurement of financial assets that are subsequently measured at fair value through profit and loss) and are subsequently carried at their amortised cost using the effective interest method, less any provision for impairment, 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.

Discounting is omitted where the effect of discounting is immaterial. The Group's cash and cash equivalents, trade and most other debtors due with the operating cycle fall into this category of financial instruments.

Basic financial liabilities

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 Group after the deduction of all its liabilities.

Basic financial liabilities, which include trade and other creditors, bank loans, other loans and loans due to fellow group companies are initially measured at their transaction price (adjusting for transaction costs except in the initial measurement of financial liabilities that are subsequently measured at fair value through profit and loss). When this constitutes a financing transaction, whereby the debt instrument is measured at the present value of the future payments discounted at a market rate of interest, discounting is omitted where the effect of discounting is immaterial.

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

Trade creditors are obligations to pay for goods and services that have been acquired in the ordinary course of business from suppliers. Trade creditors are classified as current liabilities if the payment is due within one year. If not, they represent non-current liabilities. Trade creditors are initially recognised at their transaction price and subsequently are measured at amortised cost using the effective interest method. Discounting is omitted where the effect of discounting is immaterial.

Page 26

 
SUN HOTEL LIMITED
 
 
 
Notes to the financial statements
For the Year Ended 30 June 2025

3.


Judgments in applying accounting policies and key sources of estimation uncertainty

The preparation of the financial statements requires management to make judgments, estimates and assumptions that affect the amounts reported. These estimates and judgments 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 the directors, the items in the financial statements where there are estimates and judgments made include:
Valuation of freehold property and investment property
Freehold property and investment property is stated at fair value based on the valuation performed by an independent professional valuer or at directors valuation. Independent professional valuations are completed with sufficient frequency to provide comfort that they are held at their fair value. The valuation process includes reviewing observable market prices adjusted as necessary for any difference in the future, location or condition of the specific asset. As this data is generally based on historical trends, there is a degree of judgement and uncertainty involved in the property valuation.
Valuation of Goodwill
The Group reassesses the recoverable amount of goodwill at the end of each financial reporting period. An impairment charge is recognised if management determines that the future economic benefits derivable from a Cash-Generating Unit (CGU) are insufficient to support its carrying value.
Lease Commitments
The Group enters into commercial lease agreements as a lessee to obtain the use of property, plant, and equipment. The classification of these arrangements as either operating or finance leases requires management to evaluate the underlying terms and conditions to determine whether the Group retains or acquires the significant risks and rewards of ownership. Accordingly, this assessment dictates whether an asset and a corresponding liability must be recognised on the balance sheet. Management is required to make key judgments regarding initial direct costs incurred at lease inception. The Group considers the economic substance of these transactions over their legal form, evaluating whether such costs represent a right to obtain the lease or constitute prepaid rent. This determination incorporates factors such as prevailing market conditions at inception, contractual rent obligations, specific lease terms and the expected future economic benefits of the incurred costs.
I
nvestment in Subsidiaries
The Parent Company reassesses the recoverable amount of its investments in subsidiaries at the end of each financial reporting period. An impairment charge is recognised if management assessments indicate that the future economic benefits are insufficient to justify the carrying value of the investment. 

Page 27

 
SUN HOTEL LIMITED
 
 
 
Notes to the financial statements
For the Year Ended 30 June 2025

4.


Turnover

An analysis of turnover by class of business is as follows:


2025
2024
£
£

Hotel income
5,092,568
6,249,173

Rental income
891,236
963,271

Management recharges
-
578,437

5,983,804
7,790,881


All turnover arose within the United Kingdom.


5.


Other operating income

2025
2024
£
£

Other operating income
734,581
555,776

734,581
555,776



6.


Operating (loss)/profit

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

2025
2024
£
£

Other operating lease rentals
33,534
30,959


7.


Auditors' remuneration

During the year, the Group obtained the following services from the Company's auditors:


2025
2024
£
£

Fees payable to the Company's auditors for the audit of the consolidated and Parent Company's financial statements
12,500
20,500

Page 28

 
SUN HOTEL LIMITED
 
 
 
Notes to the financial statements
For the Year Ended 30 June 2025

8.


Employees

Staff costs, including directors' remuneration, were as follows:


Group
Group
Company
Company
2025
2024
2025
2024
£
£
£
£


Wages and salaries
2,283,866
1,849,954
907,964
863,062

Social security costs
224,096
150,430
88,300
76,038

Cost of defined contribution scheme
20,496
18,438
5,094
6,596

2,528,458
2,018,822
1,001,358
945,696


The average monthly number of employees, including the directors, during the year was as follows:



Group
Group
Company
Company
        2025
        2024
        2025
        2024
            No.
            No.
            No.
            No.









Average employees
94
86
38
36


9.


Directors' remuneration

2025
2024
£
£

Directors' emoluments
55,000
70,000

Group contributions to defined contribution pension schemes
450
1,200

55,450
71,200


During the year retirement benefits were accruing to 1 director (2024 - 1) in respect of defined contribution pension schemes.


10.


Interest payable and similar expenses

2025
2024
£
£


Bank interest payable
1,615,690
1,397,618

Finance leases and hire purchase contracts
16,885
12,867

Other interest payable
12,504
1,463

1,645,079
1,411,948

Page 29

 
SUN HOTEL LIMITED
 
 
 
Notes to the financial statements
For the Year Ended 30 June 2025

11.


Taxation


2025
2024
£
£

Corporation tax


Current tax on profits for the year
-
153,596

Adjustments in respect of previous periods
30,671
-


30,671
153,596


Total current tax
30,671
153,596

Deferred tax


Origination and reversal of timing differences
1,403,668
(58,525)

Total deferred tax
1,403,668
(58,525)


Tax
1,434,339
95,071

Factors affecting tax charge for the year

The tax assessed for the year is higher than (2024 - higher than) the standard rate of corporation tax in the UK of 25% (2024 - 25%). The differences are explained below:

2025
2024
£
£


Loss on ordinary activities before tax
(4,419,492)
(818,746)


Loss on ordinary activities multiplied by standard rate of corporation tax in the UK of 25% (2024 - 25%)
(1,104,873)
(204,687)

Effects of:


Expenses not deductible for tax purposes, other than goodwill amortisation and impairment
496,550
72,836

Depreciation in excess of capital allowance
96,846
(63,756)

Utilisation of tax losses
-
(34,481)

Non taxable incomes
-
(1,585)

Unrelieved tax losses carried forward
511,477
138,922

Deferred tax
1,403,668
187,822

Under provision in previous year
30,671
-

Total tax charge for the year
1,434,339
95,071

Page 30

 
SUN HOTEL LIMITED
 
 
 
Notes to the financial statements
For the Year Ended 30 June 2025
 
11.Taxation (continued)


Factors that may affect future tax charges

There were no factors that may affect future tax charges.


12.


Exceptional items

2025
2024
£
£


Loans waived
-
(157,067)

Advances written off
1,979,038
638,209

Misc credit balances written back
(59,007)
-

Impairment of fixed assets
-
464,915

1,920,031
946,057

During the year, the Company wrote off advances of £1.9 millions (2024: £638,209). The advances were determined to be irrecoverable following an assessment of the likelihood of recovery. Also, the Company reversed unidentified miscellaneous credit balances totaling £59,007 (2024: £157,067) which in the opinion of directors are no longer payable. 


13.


Intangible assets

Group




Goodwill

£





At 1 July 2024
2,855,116



At 30 June 2025

2,855,116





At 1 July 2024
356,890


Charge for the year on owned assets
285,512



At 30 June 2025

642,402



Net book value



At 30 June 2025
2,212,714


Page 31

 
SUN HOTEL LIMITED
 
 
 
Notes to the financial statements
For the Year Ended 30 June 2025
 
           13.Intangible assets (continued)

Company



Goodwill

£





At 1 July 2024
48,098



At 30 June 2025

48,098





At 1 July 2024
48,098



At 30 June 2025

48,098



Net book value



At 30 June 2025
-

Page 32

 
SUN HOTEL LIMITED
 
 
 
Notes to the financial statements
For the Year Ended 30 June 2025

14.


Tangible fixed assets

Group



Freehold property
Long-term leasehold property
Plant and machinery, fixtures, fittings and equipments
Motor vehicles
Total

£
£
£
£
£



Cost or valuation


At 1 July 2024
30,913,501
2,163,770
9,645,610
208,450
42,931,331


Additions
1,377,284
134,660
283,247
91,130
1,886,321


Transfers between classes
-
(245,118)
(11,367)
-
(256,485)


Revaluations
6,693,022
-
-
-
6,693,022



At 30 June 2025

38,983,807
2,053,312
9,917,490
299,580
51,254,189



Depreciation


At 1 July 2024
434,942
820,164
8,082,791
37,492
9,375,389


Charge for the year on owned assets
256,348
37,381
407,141
74,896
775,766


On revalued assets
(691,290)
-
-
-
(691,290)



At 30 June 2025

-
857,545
8,489,932
112,388
9,459,865



Net book value



At 30 June 2025
38,983,807
1,195,767
1,427,558
187,192
41,794,324

Included in freehold property is freehold land of £5,096,296 (2024: £5,096,296) which is not subject to depreciation.
No capital commitments were outstanding at the end of the year.

Page 33

 
SUN HOTEL LIMITED
 
 
 
Notes to the financial statements
For the Year Ended 30 June 2025

           14.Tangible fixed assets (continued)

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2025
2024
£
£



Motor vehicles
170,692
146,208

170,692
146,208

Cost or valuation at 30 June 2025 is as follows:

Land and buildings
£


At cost
23,762,202
At valuation:

2025
17,274,917



41,037,119

Land and Buildings are revalued by external valuers, Colliers International Property Consultants Limited, on 14 May 2025 for Warren House Hotels Ltd and on 10 October 2025 for Sun Hotels Ltd on an existing use as an operational entity including trading potential.


If the land and buildings had not been included at valuation they would have been included under the historical cost convention as follows:

2025
£

Group


Cost
21,708,893

Accumulated depreciation
(2,519,607)

Net book value
19,189,286

Page 34

 
SUN HOTEL LIMITED
 
 
 
Notes to the financial statements
For the Year Ended 30 June 2025

           14.Tangible fixed assets (continued)


Company






Freehold property
Long-term leasehold property
Plant and machinery, fixtures, fittings and equipments
Motor vehicles
Total

£
£
£
£
£

Cost or valuation


At 1 July 2024
18,104,242
1,380,976
6,807,877
208,450
26,501,545


Additions
970,889
-
18,364
91,130
1,080,383


Revaluations
5,883,424
-
-
-
5,883,424



At 30 June 2025

24,958,555
1,380,976
6,826,241
299,580
33,465,352



Depreciation


At 1 July 2024
293,220
457,829
5,648,186
37,492
6,436,727


Charge for the year on owned assets
154,499
30,688
236,610
74,896
496,693


On revalued assets
(447,719)
-
-
-
(447,719)



At 30 June 2025

-
488,517
5,884,796
112,388
6,485,701



Net book value



At 30 June 2025
24,958,555
892,459
941,445
187,192
26,979,651





The net book value of land and buildings may be further analysed as follows:


2025
2024
£
£

Freehold
24,958,555
17,811,022

Long leasehold
892,459
923,147

25,851,014
18,734,169


Page 35

 
SUN HOTEL LIMITED
 
 
 
Notes to the financial statements
For the Year Ended 30 June 2025

           14.Tangible fixed assets (continued)

The net book value of assets held under finance leases or hire purchase contracts, included above, are as follows:


2025
2024
£
£



Motor vehicles
170,692
146,208

170,692
146,208

Land and Buildings are revalued by external valuers, Colliers International Property Consultants Limited, on 10 October 2025 for Sun Hotels Ltd on an existing use as an operational entity including trading potential.
Cost or valuation at 30 June 2025 is as follows:

Land and buildings
£


At cost
12,480,439
At valuation:

2025
13,859,092



 26,339,531

Page 36

 
SUN HOTEL LIMITED
 
 
 
Notes to the financial statements
For the Year Ended 30 June 2025

15.


Fixed asset investments

Group





Other fixed asset investments

£



Cost or valuation


At 1 July 2024
150,000



At 30 June 2025

150,000



Impairment


At 1 July 2024
150,000



At 30 June 2025

150,000



Net book value



At 30 June 2025
-

Company





Investments in subsidiary companies

£



Cost or valuation


At 1 July 2024
10,660,501



At 30 June 2025
10,660,501






Net book value



At 30 June 2025
10,660,501

Page 37

 
SUN HOTEL LIMITED
 
 
 
Notes to the financial statements
For the Year Ended 30 June 2025

Subsidiary undertakings


The following were subsidiary undertakings of the Company:

Name

Registered office

Class of shares

Holding

Sun TV UK Limited
Units7 & 8C Kingston House Estate, Portsmouth Road Long Ditton, Surbiton, Surrey, KT6 5QG
Ordinary
100%
Warren House Hotels Limited
Warren Road, Kington Upon Thames, Surrey, KT2 7HY
Ordinary
100%
Infinite London Limited
Units7 & 8C Kingston House Estate, Portsmouth Road Long Ditton, Surbiton, Surrey, KT6 5QG
Ordinary
100%
4you Hospitality Services Limited
Units7 & 8C Kingston House Estate, Portsmouth Road Long Ditton, Surbiton, Surrey, KT6 5QG
Ordinary
100%
Whcc2 Limited
Warren Road, Kington Upon Thames, Surrey, KT2 7HY
Ordinary
100%

The aggregate of the share capital and reserves as at 30 June 2025 and the profit or loss for the year ended on that date for the subsidiary undertakings were as follows:

Name
Aggregate of share capital and reserves
Profit/(Loss)
£
£

Sun TV UK Limited
1,874,871
66,727

Warren House Hotels Limited
12,372,176
(356,894)

Infinite London Limited
1,350,301
(555)

4you Hospitality Services Limited
(2,129,375)
(337,089)

Whcc2 Limited
995
-

Page 38

 
SUN HOTEL LIMITED
 
 
 
Notes to the financial statements
For the Year Ended 30 June 2025

16.


Investment property

Group


Freehold investment property

£



Valuation


At 1 July 2024
3,424,000


Surplus on revaluation
76,000



At 30 June 2025
3,500,000

The 2025 valuations were made by the director based on the valuation by Colliers International Property Consultants Limited, chartered surveyors, on 10 October 2025 as per lender's requirement, on an open market value for existing use basis.







17.


Stocks

Group
Group
Company
Company
2025
2024
2025
2024
£
£
£
£

Finished goods and goods for resale
31,201
30,963
13,774
8,060

31,201
30,963
13,774
8,060


The difference between purchase price or production cost of stocks and their replacement cost is not material.

Page 39

 
SUN HOTEL LIMITED
 
 
 
Notes to the financial statements
For the Year Ended 30 June 2025

18.


Debtors

Group
Group
Company
Company
2025
2024
2025
2024
£
£
£
£

Due after more than one year

Other debtors
-
1,150,000
-
1,150,000

-
1,150,000
-
1,150,000


Group
Group
Company
Company
2025
2024
2025
2024
£
£
£
£

Due within one year

Trade debtors
528,585
522,426
210,930
210,701

Amounts owed by group undertakings
-
-
2,034,624
2,602,093

Amounts owed by companies under common control
9,838,723
3,239,053
2,686,830
2,839,145

Other debtors
393,268
2,164,351
315,347
1,719,189

Prepayments and accrued income
2,374,602
527,948
1,632,730
443,833

Deferred taxation
618,886
171,631
410,093
-

13,754,064
6,625,409
7,290,554
7,814,961




19.


Cash and cash equivalents

Group
Group
Company
Company
2025
2024
2025
2024
£
£
£
£

Cash at bank and in hand
260,533
151,787
143,746
41,995

260,533
151,787
143,746
41,995


Page 40

 
SUN HOTEL LIMITED
 
 
 
Notes to the financial statements
For the Year Ended 30 June 2025

20.


Creditors: Amounts falling due within one year

Group
Group
Company
Company
2025
2024
2025
2024
£
£
£
£

Bank loans
26,820,510
10,246
16,100,000
-

Trade creditors
2,335,471
1,593,363
1,054,526
621,275

Amounts owed to group undertakings
-
-
3,583,985
62,999

Amounts owed to companies under common control
4,942,754
3,759,152
4,368,530
3,420,131

Corporation tax
157,018
154,132
92,896
78,225

Other taxation and social security
509,377
392,061
123,979
246,227

Obligations under finance lease and hire purchase contracts
48,035
15,227
48,035
15,227

Other creditors
6,033,984
5,829,215
5,236,098
5,229,863

Accruals and deferred income
263,834
246,268
128,185
132,178

41,110,983
11,999,664
30,736,234
9,806,125


The bank loans are secured by a first fixed and floating charge over the company's assets together with a legal charge over the company's property. These loans carry interest @7.80% above Bank of England base rate and are repayable in full on maturity.  Bank loans have been fully repaid after the year end.
The hire purchase liabilities are secured on the motor vehicles financed under the agreements. These loans are repayable in monthly installments with varying interest rates.

Group
Group
Company
Company
2025
2024
2025
2024
£
£
£
£


PAYE/NI control
(186,793)
(36,409)
(74,488)
(13,873)

VAT control
(322,584)
(355,652)
(49,491)
(232,354)

(509,377)
(392,061)
(123,979)
(246,227)


Page 41

 
SUN HOTEL LIMITED
 
 
 
Notes to the financial statements
For the Year Ended 30 June 2025

21.


Creditors: Amounts falling due after more than one year

Group
Group
Company
Company
2025
2024
2025
2024
£
£
£
£

Bank loans
-
18,549,311
-
18,538,802

Net obligations under finance leases and hire purchase contracts
229,348
120,481
229,348
120,481

Other creditors
141,244
153,014
141,244
153,014

370,592
18,822,806
370,592
18,812,297





22.


Loans


Analysis of the maturity of loans is given below:


Group
Group
Company
Company
2025
2024
2025
2024
£
£
£
£

Amounts falling due within one year

Bank loans
26,820,510
10,246
16,100,000
-


26,820,510
10,246
16,100,000
-

Amounts falling due 1-2 years

Bank loans
-
18,549,311
-
18,538,802


-
18,549,311
-
18,538,802



26,820,510
18,559,557
16,100,000
18,538,802


Page 42

 
SUN HOTEL LIMITED
 
 
 
Notes to the financial statements
For the Year Ended 30 June 2025

23.


Hire purchase and finance leases


Minimum lease payments under hire purchase fall due as follows:

Group
Group
Company
Company
2025
2024
2025
2024
£
£
£
£

Within one year
48,035
15,227
48,035
15,227

Between 1-5 years
229,348
120,481
229,348
120,481

277,383
135,708
277,383
135,708


24.


Deferred taxation


Group



2025


£






At beginning of year
(1,730,637)


Charged to profit or loss
(1,403,668)



At end of year
(3,134,305)

Page 43

 
SUN HOTEL LIMITED
 
 
 
Notes to the financial statements
For the Year Ended 30 June 2025
 
24.Deferred taxation (continued)

Company


2025


£






At beginning of year
(1,211,665)


Charged to profit or loss
(1,060,763)



At end of year
(2,272,428)

Group
Group
Company
Company
2025
2024
2025
2024
£
£
£
£

Accelerated capital allowances
237,262
(11,168)
28,469
(11,168)

Revaluation gain on freehold property
(3,753,191)
(1,719,469)
(2,682,521)
(1,200,497)

Deferred tax on losses C/F
381,624
-
381,624
-

(3,134,305)
(1,730,637)
(2,272,428)
(1,211,665)

Comprising:

Deferred tax Asset
618,886
171,631
410,093
-

Deferred tax Liability
(3,753,191)
(1,902,268)
(2,682,521)
(1,211,665)

(3,134,305)
(1,730,637)
(2,272,428)
(1,211,665)



25.


Share capital

2025
2024
£
£
Allotted, called up and fully paid



3,000,001 (2024 - 3,000,001) Ordinary Shares shares of £1.00 each
3,000,001
3,000,001


Page 44

 
SUN HOTEL LIMITED
 
 
 
Notes to the financial statements
For the Year Ended 30 June 2025

26.


Reserves

Revaluation reserve

Revaluation reserve represents surplus on revaluation of the freehold property. This is non-distributable reserve.

Investment property revaluation reserve

Investment property revaluation reserve represents surplus on revaluation of the investment property. This is non-distributable reserve.

Other reserves

Other reserves represents a merger reserve being the difference between the consideration paid and the net assets of a subsidiary acquired under common control that was accounted for by applying the method merger accounting principles.

Profit and loss account

Profit and loss account represents accumulated retained earnings and is a distributable reserve.


27.


Prior year adjustment

Sun TV UK Limited
The comparative figures have been restated to correct the omission of corporation tax provision of £60,881 from the prior period financial statements.
Due to this error, corporation tax liabilities were understated and retained earnings were overstated by £60,881 in prior period financial statements.
Also, various items of assets and liabilities have been regrouped and restated in comparatives for better presentation. However these changes do not have any impact on either net assets or on retained earnings.
Sun Hotel Limited
In the earlier accounting period, the credit card expenses totaling £71,192 were omitted and business rates of £86,942 was overstated.  Due to these  errors other debtors were overstated by £71,192, current liabilities were overstated by £86,942 and retained earnings were understated by £15,750 in the prior period financial statements.  
 





As
previously
reported
Adjustment
As restated
at 30 June
2023
        £
        £
        £
Other debtors


4,629,526

(71,192)
 
4,558,334
 
Trade creditors


(708,217)

86,942
 
(621,275)
 
Retained earnings


1,361,586

(15,750)
 
1,345,836
 

Page 45

 
SUN HOTEL LIMITED
 
 
 
Notes to the financial statements
For the Year Ended 30 June 2025

28.


Contingent liabilities

The Company has entered into a joint guarantee with group companies. The companies have jointly agreed to guarantee the net bank borrowings of each other. As at 30 June 2025, the net bank borrowing by respective companies at the balance sheet date has been repaid in full from the proceeds of new loan obtained after the year end as summarised below:
 
Portsmouth Town Property Limited: £16,489,707
The Warren House Property Limited: £2,297,249
Portsmouth Road Apartments Limited: £8,674,010
The River Club Property Limited: £3,514,034

The following companies have provided corporate Guarantee for the above facility:
 
The Borrowers and
Portsmouth House Property Limited
Sun Hotel Limited
Warren House Hotels Limited
Sun TV UK Limited
The River Club Limited (effective from 01 July 2025)
Samko Services Limited
Asgard Ventures Limited


29.


Pension commitments

The Group operates a defined contributions pension scheme. The assets of the scheme are held separately from those of the Group  in an independently administered fund. The pension cost charge represents contributions payable by the Group  to the fund and amounted to £20,495 (2024 - £20,150) . 
Contributions totaling £11,289 (2024 - £11,792) were payable to the fund at the balance sheet date and are included in creditors.


30.


Commitments under operating leases

At 30 June 2025 the Group and the Company had future minimum lease payments due under non-cancellable operating leases for each of the following periods:


Group
Group
Company
Company
2025
2024
2025
2024
£
£
£
£

Not later than 1 year
22,162
201,491
99,646
99,975

Later than 1 year and not later than 5 years
498,064
499,709
392,000
393,645

Later than 5 years
2,136,351
3,102,750
1,347,500
2,287,383

2,656,577
3,803,950
1,839,146
2,781,003

Page 46

 
SUN HOTEL LIMITED
 
 
 
Notes to the financial statements
For the Year Ended 30 June 2025

31.


Related party transactions

The group has taken advantage of the exemption available under FRS 102 for "Related Party Disclosures" not to disclose transactions with wholly owned subsidiaries in the group which are eliminated on consolidation. 
During the year, the group received advances totaling £570,300 from the director and repaid £662,692 to the director. At balance sheet date, amount owed to the directors was £5,448,843 (2024: £5,541,235) which is included in other creditors. These are unsecured, interest free advances and are repayable on demand.
The group utilises property owned by Maxx Meridian Ltd, a company under common control, for annual rent of £384,000. Also the group utilises another property from a company under common control without paying any rent. Annual rent for such property is estimated to be £98,000.   
The director has provided a personal guarantee of £2.2 millions for the bank loan.
During the year, the group charged consultancy fees of £37,200 (2024: £37,200) to companies under common control. Also the group charged management fees of £707,333 (2024: £485,000) to the companies under common control which is included in prepayment and accrued  income.
During the year, the group provided as well as received various advances from companies under common control as shown below. These advances are unsecured, interest free and are repayable on demand.





Opening
Payments
Receipts
Closing
        £
        £
        £
        £
Amount owed by companies under common
control

3,239,053

7,208,215

(608,545)
 
9,838,723
 
Amount owed to companies under common
control

(3,759,152)

118,340

(1,301,943)
 
(4,942,755)
 


32.


Post balance sheet events

After the year end, the group has been restructured and freehold properties have been transferred across group undertakings. The ultimate ownership and control of the group remained unchanged following the group restructure.
At the reporting date, the freehold property had a carrying value of £38,428,579 as disclosed in note 13 and investment property had a carrying value of 3,500,000 as disclosed in note 15. These properties were transferred at their carrying value and accordingly, no gain or loss arose on the transfer.
After the reporting date, the group has repaid the bank loan in full from the proceeds of new loan.


33.


Controlling party

The ultimate controlling party is considered to be Mr Sampath Kumar Mallaya by virtue of his shareholding in the ultimate parent company. 

Page 47

 
SUN HOTEL LIMITED
 
 
 Page 48