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Thurlestone Estates Limited
Annual Report and Consolidated Financial Statements
Year Ended 31 October 2025

Registration number: 00271793

Thurlestone Estates Limited

Contents

Company Information | 1
Strategic Report | 2
Directors' Report | 3 to 4
Statement of Directors' Responsibilities | 5
Independent Auditor's Report | 6 to 9
Consolidated Profit and Loss Account | 10
Consolidated Statement of Comprehensive Income | 11
Consolidated Balance Sheet | 12
Balance Sheet | 13
Consolidated Statement of Changes in Equity | 14
Statement of Changes in Equity | 15
Consolidated Statement of Cash Flows | 16
Notes to the Financial Statements | 17 to 35

Thurlestone Estates Limited

Company Information

Directors | M D C Grose T A Hassell G R E Grose L C S Harrison S E M Grose D W P Grose V Hill C D Thomas N E Grose

Company secretary | C D Thomas

Registered office | Thurlestone Hotel Thurlestone Kingsbridge Devon TQ7 3NN

Auditors | PKF Francis Clark Statutory AuditorMelville Building East Unit 18, 23 Royal William Yard Plymouth Devon PL1 3GW

Thurlestone Estates Limited

Strategic Report

Year Ended 31 October 2025

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

Principal activity

The principal activity of the company, and group, is hotel management.

Fair review of the business

Group turnover increased £184k, due to a modest increase in demand in the year following increased promotional offers and discounting. This followed a similar trend experienced by many other holiday destination hotels in the UK, where demand still remains supressed due to higher costs of living and the continued general slow growth in the wider economy. Room rates at a relatively high level were still achieved reflecting the high standard of product being delivered. The gross margin has increased by 1% which reflects a softening of inflationary pressure on direct costs but also due the realisation of efficiency gains. Management believes the quality of service remains at a high level, and further efficiency gains continue to be sought.
Net current liabilities increased by £766k due in part to a new development bank loan of £1.01M which was outstanding at year end. This loan was fully repaid on 6th February 2026 by a new 5-year term loan. Disregarding the outstanding development loan, net current liabilities would have reduced by £292k compared to the prior year. Net assets increased by £198k on the prior year and continued to remain strong.

The group's key financial and other performance indicators during the year were as follows:

Financial KPIs | Unit | 2025 | 2024
Gross margin | % | 46 | 45
Net margin | % | 3 | -
Combined room occupancy rate | % | 50 | 49
Net assets | £'000 | 18,605 | 18,405

Principal risks and uncertainties

The principal risk and uncertainty facing the group is the potential impact of downturns in the general economy. The group manages this risk by maintaining good communication and relationships with long standing guests and tight control of costs.

Approved by the Board on 8 July 2026 and signed on its behalf by:

......................................... C D Thomas Director |  |

Thurlestone Estates Limited

Directors' Report

Year Ended 31 October 2025

The directors present their report and the for the year ended 31 October 2025.

Directors of the group

The directors who held office during the year were as follows:

M D C Grose

C M Clapp (Resigned 13 June 2025)

T A Hassell

G R E Grose

L C S Harrison

S E M Grose

D W P Grose

V Hill

C D Thomas

N E Grose

Dividends

The directors recommend a final dividend payment of £188,982 be made in respect of the financial year ended 31 October 2025. This dividend has not been recognised as a liability in the financial statements.

Financial risk management objectives and policies

The risks facing the company are set out below:

Price risk, credit risk, liquidity risk and cash flow risk

The directors consider that the hotel's activities do not expose the group to any undue financial risks. The only risk identified was in the area of liquidity and this risk is managed by careful budgeting and forecasting and maintenance of good relationships with the lending bank.

Going concern

The financial statements have been prepared on a going concern basis.
At the year end the group is in a net current liabilities position £2,272k (2024 - £1,584k). During the year net current liabilities increased by £766k due to a new development bank loan of £1.01M which was outstanding at year end. This loan was fully repaid on 6th February 2026 by a new 5-year term loan. Current liabilities also include payments on account arising from guest deposits amounting to £431k (2024- £395k), which are offset against future sales and represent a liability that is satisfied by the provision of future hotel stays rather than direct cash outflows. The directors have reviewed the composition of current liabilities and timing and cash requirement to meet these liabilities and have satisfied themselves that the group is able to generate sufficient cash to meet its debts as they fall due and hence are satisfied that the group is a going concern.

Thurlestone Estates Limited

Directors' Report

Year Ended 31 October 2025

Disclosure of information to the auditor

Each director has taken steps that they ought to have taken as a director in order to make themselves aware of any relevant audit information and to establish that the company's auditor is aware of that information. The directors confirm that there is no relevant information that they know of and of which they know the auditor is unaware.

Approved by the Board on 8 July 2026 and signed on its behalf by:

......................................... C D Thomas Director |  |

Thurlestone Estates Limited

Statement of Directors' Responsibilities

The directors acknowledge their responsibilities for preparing the Annual Report and the financial statements in accordance with applicable law and regulations.

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the group and the company 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 and apply them consistently;

• | make judgements 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; and

• | prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the group's and the company's transactions and disclose with reasonable accuracy at any time the financial position of the group and the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the group and the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

Thurlestone Estates Limited

Independent Auditor's Report to the Members of Thurlestone Estates Limited

Opinion

We have audited the financial statements of Thurlestone Estates Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 October 2025, which comprise the Consolidated Profit and Loss Account, Consolidated Statement of Comprehensive Income, Consolidated Balance Sheet, Balance Sheet, Consolidated Statement of Changes in Equity, Statement of Changes in Equity, Consolidated Statement of Cash Flows, and Notes to the Financial Statements, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

• | give a true and fair view of the state of the group's and the parent company's affairs as at 31 October 2025 and of the group's profit for the year then ended;
• | have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
• | have been prepared in accordance with the requirements of the Companies Act 2006.

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 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 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 group and parent company's ability to continue as a going concern for a period of at least twelve months from when the original financial statements were authorised for issue.

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

Other information

The directors are responsible for the other information. The other information comprises the information included in the annual report, other than the financial statements and our auditor’s report thereon. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon.

Thurlestone Estates Limited

Independent Auditor's Report to the Members of Thurlestone Estates Limited

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.

Opinion on other matter 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 Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and

• | the Strategic Report and 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 our 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 and the Directors' Report.

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

• | adequate accounting records have not been kept 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 Statement of Directors' Responsibilities set out on page 5, 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.

Thurlestone Estates Limited

Independent Auditor's Report to the Members of Thurlestone Estates Limited

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:

Based on our understanding of the company and industry, we identified that the principal risks of non-compliance with laws and regulations related to acts by the company which were contrary to applicable laws and regulations, including fraud.
We considered those laws and regulations that have a direct impact on the preparation of the financial statements, including, but not limited to the reporting framework (FRS 102 and Companies Act 2006) and the relevant tax compliance regulations in the UK. We evaluated management’s incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to fraudulent financial reporting.
Audit procedures performed by the engagement team include, but were not limited to, discussion and inquiries with management of compliance with laws and regulations and review of correspondence and contracts with third parties. We also addressed the risk of management override of internal controls, including testing of journals and evaluating whether there was evidence of bias by the Directors that represented a risk of material misstatement due to fraud.

Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements. The risk of not detecting a material misstatement due to fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate omissions, collusion, forgery, misrepresentations, or the override of internal controls. We are also less likely to become aware of instances of non-compliance with laws and regulations that are not closely related to events and transactions reflected in the financial statements.

A further description of our responsibilities is available on the Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Thurlestone Estates Limited

Independent Auditor's Report to the Members of Thurlestone Estates Limited

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.

......................................
Nicola Cornish BSc BFP FCA CTA (Senior Statutory Auditor)
PKF Francis Clark, Statutory Auditor
Melville Building East
Unit 18, 23 Royal William Yard
Plymouth
Devon
PL1 3GW

9 July 2026

Thurlestone Estates Limited

Consolidated Profit and Loss Account

Year Ended 31 October 2025

| Note | 2025 £ | 2024 £
Turnover | 3 | 8,692,973 | 8,508,870
Cost of sales |  | (4,659,050) | (4,680,921)
Gross profit |  | 4,033,923 | 3,827,949
Administrative expenses |  | (3,256,452) | (3,389,032)
Other operating income | 4 | 10,000 | 10,000
Operating profit | 5 | 787,471 | 448,917
Interest payable and similar charges | 9 | (367,813) | (408,223)
Profit before tax |  | 419,658 | 40,694
Taxation | 10 | (127,946) | (29,164)
Profit for the financial year |  | 291,712 | 11,530
Profit/(loss) attributable to: |  |  |
Owners of the company |  | 291,712 | 11,530

The group has no recognised gains or losses for the year other than the results above.

Thurlestone Estates Limited

Consolidated Statement of Comprehensive Income

Year Ended 31 October 2025

| Note | 2025 £ | 2024 £
Profit for the year |  | 291,712 | 11,530
Deferred tax movement on revalued fixed assets |  | - | 79,638
(Deficit) / surplus on revaluation of fixed assets |  | - | (519,291)
|  | - | (439,653)
Total comprehensive income for the year |  | 291,712 | (428,123)
Total comprehensive income attributable to: |  |  |
Owners of the company |  | 291,712 | (428,123)

Thurlestone Estates Limited

Consolidated Balance Sheet

31 October 2025

| Note | 2025 £ | 2024 £
Fixed assets |  |  |
Intangible assets | 11 | 72,513 | 145,028
Tangible assets | 12 | 27,084,126 | 26,232,497
|  | 27,156,639 | 26,377,525
Current assets |  |  |
Stocks | 14 | 198,423 | 188,327
Debtors | 15 | 265,775 | 274,141
Cash at bank and in hand |  | 96,402 | 45,564
|  | 560,600 | 508,032
Creditors: Amounts falling due within one year | 16 | (2,911,181) | (2,092,437)
Net current liabilities |  | (2,350,581) | (1,584,405)
Total assets less current liabilities |  | 24,806,058 | 24,793,120
Creditors: Amounts falling due after more than one year | 16 | (3,903,608) | (4,218,462)
Provisions for liabilities | 20 | (2,297,347) | (2,169,401)
Net assets |  | 18,605,103 | 18,405,257
Capital and reserves |  |  |
Called up share capital | 22 | 10,499 | 10,499
Share premium reserve |  | 24,750 | 24,750
Capital redemption reserve |  | 10,751 | 10,751
Revaluation reserve |  | 5,779,108 | 5,779,108
Profit and loss account |  | 12,779,995 | 12,580,149
Equity attributable to owners of the company |  | 18,605,103 | 18,405,257
Total equity |  | 18,605,103 | 18,405,257

Approved and authorised by the Board on 8 July 2026 and signed on its behalf by:

......................................... M D C Grose Director

Company Registration Number: 00271793

Thurlestone Estates Limited

Balance Sheet

31 October 2025

| Note | 2025 £ | 2024 £
Fixed assets |  |  |
Tangible assets | 12 | 21,548,084 | 20,671,488
Investments | 13 | 1,812,290 | 1,812,290
|  | 23,360,374 | 22,483,778
Current assets |  |  |
Stocks | 14 | 143,378 | 130,458
Debtors | 15 | 174,762 | 181,478
Cash at bank and in hand |  | 85,060 | 29,278
|  | 403,200 | 341,214
Creditors: Amounts falling due within one year | 16 | (2,675,668) | (1,890,790)
Net current liabilities |  | (2,272,468) | (1,549,576)
Total assets less current liabilities |  | 21,087,906 | 20,934,202
Creditors: Amounts falling due after more than one year | 16 | (2,687,644) | (2,842,304)
Provisions for liabilities | 20 | (1,941,611) | (1,816,385)
Net assets |  | 16,458,651 | 16,275,513
Capital and reserves |  |  |
Called up share capital |  | 10,499 | 10,499
Share premium reserve |  | 24,750 | 24,750
Capital redemption reserve |  | 10,751 | 10,751
Revaluation reserve |  | 5,542,272 | 5,542,272
Profit and loss account |  | 10,870,379 | 10,687,241
Total equity |  | 16,458,651 | 16,275,513

The company made a profit after tax for the financial year of £275,004 (2024 - profit of £50,746).

Approved and authorised by the Board on 8 July 2026 and signed on its behalf by:

......................................... M D C Grose Director

Company Registration Number: 00271793

Thurlestone Estates Limited

Consolidated Statement of Changes in Equity

Year Ended 31 October 2025

| Share capital £ | Share premium £ | Capital redemption reserve £ | Revaluation reserve £ | Profit and loss account £ | Total £
At 1 November 2024 | 10,499 | 24,750 | 10,751 | 5,779,108 | 12,580,149 | 18,405,257
Profit for the year | - | - | - | - | 291,712 | 291,712
Total comprehensive income | - | - | - | - | 291,712 | 291,712
Dividends | - | - | - | - | (91,866) | (91,866)
At 31 October 2025 | 10,499 | 24,750 | 10,751 | 5,779,108 | 12,779,995 | 18,605,103

| Share capital £ | Share premium £ | Capital redemption reserve £ | Revaluation reserve £ | Profit and loss account £ | Total £
At 1 November 2023 | 10,499 | 24,750 | 10,751 | 6,218,761 | 12,660,485 | 18,925,246
Profit for the year | - | - | - | - | 11,530 | 11,530
Other comprehensive income | - | - | - | (439,653) | - | (439,653)
Total comprehensive income | - | - | - | (439,653) | 11,530 | (428,123)
Dividends | - | - | - | - | (91,866) | (91,866)
At 31 October 2024 | 10,499 | 24,750 | 10,751 | 5,779,108 | 12,580,149 | 18,405,257

Thurlestone Estates Limited

Statement of Changes in Equity

Year Ended 31 October 2025

| Share capital £ | Share premium £ | Capital redemption reserve £ | Revaluation reserve £ | Profit and loss account £ | Total £
At 1 November 2024 | 10,499 | 24,750 | 10,751 | 5,542,272 | 10,687,241 | 16,275,513
Profit for the year | - | - | - | - | 275,004 | 275,004
Total comprehensive income | - | - | - | - | 275,004 | 275,004
Dividends | - | - | - | - | (91,866) | (91,866)
At 31 October 2025 | 10,499 | 24,750 | 10,751 | 5,542,272 | 10,870,379 | 16,458,651

| Share capital £ | Share premium £ | Capital redemption reserve £ | Revaluation reserve £ | Profit and loss account £ | Total £
At 1 November 2023 | 10,499 | 24,750 | 10,751 | 5,542,272 | 10,728,361 | 16,316,633
Profit for the year | - | - | - | - | 50,746 | 50,746
Total comprehensive income | - | - | - | - | 50,746 | 50,746
Dividends | - | - | - | - | (91,866) | (91,866)
At 31 October 2024 | 10,499 | 24,750 | 10,751 | 5,542,272 | 10,687,241 | 16,275,513

Thurlestone Estates Limited

Consolidated Statement of Cash Flows

Year Ended 31 October 2025

| Note | 2025 £ | 2024 £
Cash flows from operating activities
Profit for the year |  | 291,712 | 11,530
Adjustments to cash flows from non-cash items |  |  |
Depreciation and amortisation | 5 | 594,058 | 601,253
(Profit)/loss on disposal of tangible assets |  | (7,696) | 3,850
Finance costs | 9 | 367,813 | 408,223
Income tax expense | 10 | 127,946 | 29,164
|  | 1,373,833 | 1,054,020
Working capital adjustments |  |  |
Increase in stocks | 14 | (10,096) | (20,391)
Decrease/(increase) in trade debtors | 15 | 8,366 | (29,425)
Increase in trade creditors | 16 | 116,593 | 15,040
Cash generated from operations |  | 1,488,696 | 1,019,244
Income taxes paid | 10 | (65,123) | -
Net cash flow from operating activities |  | 1,423,573 | 1,019,244
Cash flows from investing activities |  |  |
Acquisitions of tangible assets |  | (1,342,600) | (334,887)
Proceeds from sale of tangible assets |  | 39,252 | -
Net cash flows from investing activities |  | (1,303,348) | (334,887)
Cash flows from financing activities |  |  |
Interest paid | 9 | (357,504) | (398,052)
Proceeds from bank borrowing draw downs |  | 1,015,050 | 2,903,750
Repayment of bank borrowing |  | (264,872) | (2,806,485)
Payments to finance lease creditors |  | (97,612) | (66,509)
Dividends paid |  | (91,866) | (91,866)
Net cash flows from financing activities |  | 203,196 | (459,162)
Net increase in cash and cash equivalents |  | 323,421 | 225,195
Cash and cash equivalents at 1 November |  | (234,550) | (459,745)
Cash and cash equivalents at 31 October |  | 88,871 | (234,550)

Thurlestone Estates Limited

Notes to the Financial Statements

Year Ended 31 October 2025

1 | General information

The company is a private company limited by share capital, incorporated in England and Wales.

The address of its registered office is:
Thurlestone Hotel
Thurlestone
Kingsbridge
Devon
TQ7 3NN

2 | Accounting policies

Summary of significant accounting policies and key accounting estimates

The principal accounting policies applied in the preparation of these financial statements are set out below. These policies have been consistently applied to all the years presented, unless otherwise stated.

Statement of compliance

These financial statements were prepared in accordance with Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland'.

Basis of preparation

These financial statements have been prepared using the historical cost convention except that as disclosed in the accounting policies certain items are shown at fair value.

Basis of consolidation

The consolidated financial statements consolidate the financial statements of the company and its subsidiary undertakings drawn up to 31 October 2025.
As a consolidated profit and loss account is published, a separate profit and loss account for the parent company is omitted from the group financial statements by virtue of section 408 of the Companies Act 2006.

A subsidiary is an entity controlled by the company. Control is achieved where the company has the power to govern the financial and operating policies of an entity so as to obtain benefits from its activities.
Inter-company transactions, balances and unrealised gains on transactions between the company and its subsidiaries, which are related parties, are eliminated in full.
Intra-group losses are also eliminated but may indicate an impairment that requires recognition in the consolidated financial statements.
Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the group.

Thurlestone Estates Limited

Notes to the Financial Statements

Year Ended 31 October 2025

Going concern

The financial statements have been prepared on a going concern basis.
At the year end the group is in a net current liabilities position £2,272k (2024 - £1,584k). During the year net current liabilities increased by £766k due to a new development bank loan of £1.01M which was outstanding at year end. This loan was fully repaid on 6th February 2026 by a new 5-year term loan. Current liabilities also include payments on account arising from guest deposits amounting to £431k (2024- £395k), which are offset against future sales and represent a liability that is satisfied by the provision of future hotel stays rather than direct cash outflows. The directors have reviewed the composition of current liabilities and timing and cash requirement to meet these liabilities and have satisfied themselves that the group is able to generate sufficient cash to meet its debts as they fall due and hence are satisfied that the group is a going concern.

Judgements and key sources of estimation uncertainty

In the application of the Group’s accounting policies, which are described in this note, management is required to make judgements, estimates and assumptions about the carrying value of assets and liabilities that are not readily apparent from other sources. The estimates and underlying assumptions are based on historically known factors and experience and include the following: Depreciation - The directors consider that no depreciation should be provided on freehold properties. This is on the basis that any possible depreciation charge would be expected to be immaterial as the hotel's residual value is considered to be materially equivalent to its carrying value. Further details are provided in the depreciation policy below.

Revenue recognition

Turnover comprises the fair value of the consideration received or receivable for the sale of rooms, food, beverages and related goods or services. Turnover is shown net of value added tax, returns, rebates and discounts and after eliminating sales within the company. Revenue from the sale of rooms, food and beverages is recognised as the service is provided and entitlement to revenue is earned.

Tax

Tax is recognised in profit or loss, except that a change attributable to an item of income or expense recognised as other comprehensive income is also recognised directly in other comprehensive income.

Deferred tax is recognised on all timing differences at the balance sheet date unless indicated below. Timing differences are differences between taxable profits and the results as stated in the consolidated profit and loss account and other comprehensive income. Deferred tax is determined using tax rates and laws that have been enacted or substantively enacted by the reporting date.

Thurlestone Estates Limited

Notes to the Financial Statements

Year Ended 31 October 2025

Tangible assets

Freehold land and buildings are stated in the balance sheet at their revalued amounts. The revalued amounts equate to the fair value at the date of revaluation, less any subsequent accumulated impairment losses. Revaluations are carried out regularly so that the carrying amounts do not materially differ from using the fair value at the date of the balance sheet. Any revaluation increase or
decrease is credited to the Revaluation reserve.
Tangible assets, excluding freehold land and buildings, are stated in the balance sheet at cost, less any subsequent accumulated depreciation and subsequent accumulated impairment losses. The cost of tangible assets, excluding freehold land and buildings, includes directly attributable incremental costs incurred in their acquisition and installation.

Depreciation

Depreciation is charged so as to write off the cost of assets, other than land and properties under construction over their estimated useful lives, as follows:

Asset class | Depreciation method and rate
Plant and machinery | 10% reducing balance
Fixtures and fittings | 10% reducing balance
Motor vehicles | 25% straight line
Freehold land and buildings | Not depreciated

The directors consider that no depreciation should be provided on freehold land and buildings. This is on the basis that any possible depreciation charge would be expected to be immaterial as the hotels' residual values are considered to be materially equivalent to their carrying value. The directors maintain the residual value of the hotels, as evidenced by stability in their star ratings, through heavy and continuous investment in repairs and maintenance.

Intangible assets

Positive goodwill is capitalised, classified as an asset on the Balance Sheet and amortised on a straight line basis over its expected useful economic life. It is reviewed for impairment at the end of the first full financial year following the acquisition and in other periods if events or changes in circumstances indicate that the carrying value may not be recoverable.

Amortisation

Amortisation is provided on intangible assets so as to write off the cost, less any estimated residual value, over their useful life as follows:

Asset class | Amortisation method and rate
Goodwill | 20 years straight line

Goodwill is amortised over a period in excess of 10 years. This is justified by the directors on the basis that the goodwill represents the premium paid for a profitable hotel in a prime location that will be in existence for longer than 10 years.

Thurlestone Estates Limited

Notes to the Financial Statements

Year Ended 31 October 2025

Investments

Investments in equity shares which are not publicly traded and where fair value cannot be measured reliably are measured at cost less impairment. Investments in equity shares which are publicly traded or where the fair value can be measured reliably are initially measured at fair value, with changes in fair value recognised in profit or loss.

Stocks

Stocks are stated at the lower of cost and estimated selling price less costs to complete and sell. Cost is determined using the first-in, first-out (FIFO) method.

Leases

Leases in which substantially all the risks and rewards of ownership are retained by the lessor are classified as operating leases. Payments made under operating leases are charged to profit or loss on a straight-line basis over the period of the lease.
Leases are classified as finance leases whenever the terms of the lease transfer substantially all the risks and rewards of ownership to the lessee.
Assets held under finance leases are recognised at the lower of their fair value at inception of the lease and the present value of the minimum lease payments. These assets are depreciated on a straight-line basis over the shorter of the useful life of the asset and the lease term. The corresponding liability to the lessor is included in the balance sheet as a finance lease obligation.
Lease payments are apportioned between finance costs in the profit and loss account and reduction of the lease obligation so as to achieve a constant periodic rate of interest on the remaining balance of the liability.

Defined contribution pension obligation

A defined contribution plan is a pension plan under which fixed contributions are paid into a pension fund and the group has no legal or constructive obligation to pay further contributions even if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods.
Contributions to defined contribution plans are recognised as employee benefit expense when they are due. If contribution payments exceed the contribution due for service, the excess is recognised as a prepayment.

Thurlestone Estates Limited

Notes to the Financial Statements

Year Ended 31 October 2025

Financial instruments

Classification
The company holds the following financial instruments:
• Short term trade and other debtors and creditors;
• Bank loans; and
• Cash and bank balances.
All financial instruments are classified as basic.
Recognition and measurement
The company has chosen to apply the recognition and measurement principles in FRS102.
Financial instruments are recognised when the company becomes party to the contractual provisions of the instrument and derecognised when in the case of assets, the contractual rights to cash flows from the assets expire or substantially all the risks and rewards of ownership are transferred to another party, or in the case of liabilities, when the company’s obligations are discharged, expire or are cancelled.
Except for bank loans, such instruments are initially measured at transaction price, including transaction costs, and are subsequently carried at the undiscounted amount of the cash or other consideration expected to be paid or received, after taking account of impairment adjustments.
Bank loans are initially measured at transaction price, including transaction costs, and are subsequently carried at amortised cost using the effective interest method.

3 | Turnover

The analysis of the group's Turnover for the year from continuing operations is as follows:

| 2025 £ | 2024 £
Revenues from hotel operations | 8,692,973 | 8,508,870

4 | Other operating income

The analysis of the group's other operating income for the year is as follows:

| 2025 £ | 2024 £
Sub lease rental income | 10,000 | 10,000

Thurlestone Estates Limited

Notes to the Financial Statements

Year Ended 31 October 2025

5 | Operating profit

Arrived at after charging/(crediting)

| 2025 £ | 2024 £
Depreciation expense | 521,543 | 528,738
Amortisation expense | 72,515 | 72,515
(Profit)/loss on disposal of property, plant and equipment | (7,696) | 3,850

6 | Staff costs

The aggregate payroll costs (including directors' remuneration) were as follows:

| 2025 £ | 2024 £
Wages and salaries | 3,223,798 | 3,284,790
Social security costs | 308,497 | 275,428
Pension costs, defined contribution scheme | 143,815 | 202,206
Other employee expenses | 47,528 | 49,086
| 3,723,638 | 3,811,510

The average number of persons employed by the group (including directors) during the year, analysed by category was as follows:

| 2025 No. | 2024 No.
Management staff | 6 | 6
Other staff | 132 | 121
| 138 | 127

7 | Directors' remuneration

The directors' remuneration for the year was as follows:

| 2025 £ | 2024 £
Remuneration | 425,609 | 393,538
Contributions paid to money purchase schemes | 68,681 | 111,506
| 494,290 | 505,044

Thurlestone Estates Limited

Notes to the Financial Statements

Year Ended 31 October 2025

During the year the number of directors who were receiving benefits and share incentives was as follows:

| 2025 No. | 2024 No.
Accruing benefits under money purchase pension scheme | 3 | 3

In respect of the highest paid director:

| 2025 £ | 2024 £
Remuneration | 127,282 | 120,410
Company contributions to money purchase pension schemes | 34,999 | 41,435

During the year the highest paid director.

8 | Auditor's remuneration

| 2025 £ | 2024 £
Audit of these financial statements | 22,608 | 13,200

9 | Interest payable and similar expenses

| 2025 £ | 2024 £
Interest on bank overdrafts and borrowings | 357,504 | 398,052
Interest on obligations under finance leases and hire purchase contracts | 10,309 | 10,171
| 367,813 | 408,223

10 | Taxation

Tax charged/(credited) in the profit and loss account

| 2025 £ | 2024 £
Current taxation |  |
UK corporation tax | - | 65,123
Deferred taxation |  |
Arising from origination and reversal of timing differences | 127,946 | (35,959)
Tax expense in the income statement | 127,946 | 29,164

Thurlestone Estates Limited

Notes to the Financial Statements

Year Ended 31 October 2025

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

| 2025 £ | 2024 £
Profit before tax | 419,658 | 40,694
Corporation tax at standard rate | 104,915 | 10,174
Effect of expense not deductible in determining taxable profit (tax loss) | 23,031 | 18,990
Total tax charge | 127,946 | 29,164

Deferred tax

Group

Deferred tax assets and liabilities

2025 | Liability £
Difference between accumulated depreciation and capital allowances | 1,243,861
Revaluation gains on property, plant and equipment | 1,055,273
Other timing differences | (285)
| 2,298,849

2024 | Liability £
Difference between accumulated depreciation and capital allowances | 1,114,486
Revaluation gains on property, plant and equipment | 1,055,273
Other timing differences | (358)
| 2,169,401

Thurlestone Estates Limited

Notes to the Financial Statements

Year Ended 31 October 2025

Company

Deferred tax assets and liabilities

2025 | Liability £
Difference between accumulated depreciation and capital allowances | 888,032
Revaluation gains on property, plant and equipment | 1,055,273
Other timing differences | (110)
| 1,943,195

2024 | Liability £
Difference between accumulated depreciation and capital allowances | 761,217
Revaluation gains on property, plant and equipment | 1,055,273
Other timing differences | (105)
| 1,816,385

11 | Intangible assets

Group

| Goodwill £
Cost or valuation
At 1 November 2024 | 1,450,290
At 31 October 2025 | 1,450,290
Amortisation
At 1 November 2024 | 1,305,262
Amortisation charge | 72,515
At 31 October 2025 | 1,377,777
Carrying amount
At 31 October 2025 | 72,513
At 31 October 2024 | 145,028

Thurlestone Estates Limited

Notes to the Financial Statements

Year Ended 31 October 2025

12 | Tangible assets

Group

| Land and buildings £ | Fixtures and fittings £ | Motor vehicles £ | Plant and machinery £ | Total £
Cost or valuation
At 1 November 2024 | 21,626,901 | 6,940,873 | 110,565 | 3,840,057 | 32,518,396
Additions | 415,032 | 454,868 | 66,128 | 468,700 | 1,404,728
Disposals | - | (15,551) | (76,321) | (25,733) | (117,605)
At 31 October 2025 | 22,041,933 | 7,380,190 | 100,372 | 4,283,024 | 33,805,519
Depreciation
At 1 November 2024 | - | 4,220,050 | 91,484 | 1,974,365 | 6,285,899
Charge for the year | - | 291,654 | 16,532 | 213,357 | 521,543
Eliminated on disposal | - | (10,835) | (57,240) | (17,974) | (86,049)
At 31 October 2025 | - | 4,500,869 | 50,776 | 2,169,748 | 6,721,393
Carrying amount
At 31 October 2025 | 22,041,933 | 2,879,321 | 49,596 | 2,113,276 | 27,084,126
At 31 October 2024 | 21,626,901 | 2,720,823 | 19,081 | 1,865,692 | 26,232,497

Revaluation

The fair value of the group's freehold land & buildings, except Thurlestone Court, was valued on 21 September 2022 by an independent valuer. The name and qualification of the independent valuer is Savills (UK) Limited, a RICS Registered Valuer.
Had this class of asset continued to be measured on a deemed cost basis, following the transition to FRS102, the carrying amount would have been £13,448,263 (2024 - £13,033,231).

The fair value of the group's freehold land & building, Thurlestone Court, was valued on 15 April 2024 by an independent valuer. The name and qualification of the independent valuer is Savills (UK) Limited, a RICS Registered Valuer.
Had this class of asset continued to be measured on a deemed cost basis, following the transition to FRS102, the carrying amount would have been £1,474,279 (2024 - £1,474,279).

Thurlestone Estates Limited

Notes to the Financial Statements

Year Ended 31 October 2025

Assets held under finance leases and hire purchase contracts

The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:

| 2025 £ | 2024 £
Plant and machinery | 145,224 | 161,354
Motor vehicles | 46,596 | 19,081
| 191,820 | 180,435

Restriction on title and pledged as security

Land and buildings with a carrying amount of £18,269,076 (2024 - £18,115,996) has been pledged as security for the group's bank loans and overdraft facilities.

Company

| Land and buildings £ | Fixtures and fittings £ | Motor vehicles £ | Plant and machinery £ | Total £
Cost or valuation
At 1 November 2024 | 17,458,511 | 5,262,848 | 106,120 | 2,379,222 | 25,206,701
Additions | 415,032 | 429,932 | 62,128 | 366,062 | 1,273,154
Disposals | - | (12,027) | (76,321) | (19,713) | (108,061)
At 31 October 2025 | 17,873,543 | 5,680,753 | 91,927 | 2,725,571 | 26,371,794
Depreciation
At 1 November 2024 | - | 3,297,802 | 87,039 | 1,150,372 | 4,535,213
Charge for the year | - | 213,667 | 15,532 | 139,700 | 368,899
Eliminated on disposal | - | (8,341) | (57,240) | (14,821) | (80,402)
At 31 October 2025 | - | 3,503,128 | 45,331 | 1,275,251 | 4,823,710
Carrying amount
At 31 October 2025 | 17,873,543 | 2,177,625 | 46,596 | 1,450,320 | 21,548,084
At 31 October 2024 | 17,458,511 | 1,965,046 | 19,081 | 1,228,850 | 20,671,488

Revaluation

The fair value of the company's freehold land & buildings, except Thurlestone Court, was revalued on 21 September 2022 by an independent valuer. The name and qualification of the independent valuer is Savills (UK) Limited, a RICS Registered Valuer.
Had this class of asset continued to be measured on a deemed cost basis, following the transition to FRS102, the carrying amount would have been £8,990,188 (2024 - £8,575,156).

Thurlestone Estates Limited

Notes to the Financial Statements

Year Ended 31 October 2025

The fair value of the company's freehold land & building, Thurlestone Court, was revalued on 15 April 2024 by an independent valuer. The name and qualification of the independent valuer is Savills (UK) Limited, a RICS Registered Valuer.
Had this class of asset continued to be measured on a deemed cost basis, following the transition to FRS102, the carrying amount would have been £1,474,279 (2024 - £1,474,279).

Assets held under finance leases and hire purchase contracts

The net carrying amount of tangible assets includes the following amounts in respect of assets held under finance leases and hire purchase contracts:

| 2025 £ | 2024 £
Plant and machinery | 145,224 | 161,354
Motor vehicles | 46,596 | 19,081
| 191,820 | 180,435

Restriction on title and pledged as security

Land and buildings with a carrying amount of £16,396,082 (2024 - £15,981,049) has been pledged as security for the company's bank loan and overdraft facility.

13 | Investments

Company

| 2025 £ | 2024 £
Investments in subsidiaries | 1,812,290 | 1,812,290

Subsidiaries | £
Cost or valuation
At 1 November 2024 | 1,812,290
At 31 October 2025 | 1,812,290
Provision
At 1 November 2024 | -
At 31 October 2025 | -
Carrying amount
At 31 October 2025 | 1,812,290
At 31 October 2024 | 1,812,290

Thurlestone Estates Limited

Notes to the Financial Statements

Year Ended 31 October 2025

Details of undertakings

Details of the investments (including principal place of business of unincorporated entities) in which the company holds 20% or more of the nominal value of any class of share capital are as follows:

Undertaking | Registered office | Holding | Proportion of voting rights and shares held
|  |  | 2025 | 2024
Subsidiary undertakings
Tracertec Limited | Thurlestone Hotel, Thurlestone, Kingsbridge TQ7 3NN England and Wales | Ordinary | 100% | 100%

The principal activity of Tracertec Limited is hotel management.

14 | Stocks

| Group | Company
| 2025 £ | 2024 £ | 2025 £ | 2024 £
Raw materials | 15,667 | 15,454 | 1,329 | 458
Goods for resale | 182,756 | 172,873 | 142,049 | 130,000
| 198,423 | 188,327 | 143,378 | 130,458

15 | Debtors

| Group | Company
| 2025 £ | 2024 £ | 2025 £ | 2024 £
Trade debtors | 105,588 | 82,006 | 62,339 | 47,393
Prepayments | 160,187 | 192,135 | 112,423 | 134,085
| 265,775 | 274,141 | 174,762 | 181,478

Thurlestone Estates Limited

Notes to the Financial Statements

Year Ended 31 October 2025

16 | Creditors

|  | Group | Company
| Note | 2025 £ | 2024 £ | 2025 £ | 2024 £
Due within one year |  |  |  |  |
Loans and borrowings | 17 | 1,365,394 | 598,120 | 1,193,168 | 443,891
Trade creditors |  | 370,077 | 349,507 | 297,402 | 274,108
Amounts due to group undertakings | 25 | - | - | 351,124 | 347,330
Social security and other taxes |  | 517,239 | 510,395 | 393,496 | 385,602
Outstanding defined contribution pension costs |  | 2,374 | 1,847 | 895 | 838
Other creditors |  | 117,492 | 70,249 | 113,675 | 70,249
Accruals |  | 107,165 | 102,358 | 71,882 | 69,366
Corporation tax | 10 | - | 65,123 | - | 39,832
Payments on account |  | 431,440 | 394,838 | 254,026 | 259,574
|  | 2,911,181 | 2,092,437 | 2,675,668 | 1,890,790
Due after one year |  |  |  |  |
Loans and borrowings | 17 | 3,903,608 | 4,218,462 | 2,687,644 | 2,842,304

17 | Loans and borrowings

Current loans and borrowings

| Group | Company
| 2025 £ | 2024 £ | 2025 £ | 2024 £
Bank borrowings | 1,313,094 | 275,196 | 1,148,399 | 120,967
Bank overdrafts | 7,531 | 280,114 | - | 280,114
Hire purchase contracts | 44,769 | 42,810 | 44,769 | 42,810
| 1,365,394 | 598,120 | 1,193,168 | 443,891

Non-current loans and borrowings

| Group | Company
| 2025 £ | 2024 £ | 2025 £ | 2024 £
Bank borrowings | 3,853,528 | 4,141,248 | 2,637,564 | 2,765,090
Hire purchase contracts | 50,080 | 77,214 | 50,080 | 77,214
| 3,903,608 | 4,218,462 | 2,687,644 | 2,842,304

Thurlestone Estates Limited

Notes to the Financial Statements

Year Ended 31 October 2025

Group

Bank borrowings

Bank borrowings are denominated in pounds sterling, £, with a nominal interest rates of base rate plus 1.8 - 2.56%, and the final instalment is due on 11 October 2035. The carrying amount at year end is £5,166,622 (2024 - £4,416,444). Bank borrowings are secured by an unlimited debenture, an omnibus guarantee and Group set off agreement, a first legal charge over the Thurlestone Hotel, a first legal charge over the Cellar House Apartments and Trenowyth House, and by fixed and floating charges over all assets of Tracertec Limited both present and future.

Other borrowings

The hire purchase liabilities of £94,849 (2024 - £120,024) are secured against the assets to which they relate.

Included in the loans and borrowings are the following amounts due after more than five years:

| 2025 £ | 2024 £
After more than five years by instalments | 476,172 | 2,831,630

Company

Bank borrowings

Previous bank borrowings are denominated in pounds sterling, £, with a nominal interest rates of base rate plus 1.8 - 2.0%, and the final instalment is due on 19 November 2030. The carrying amount at year end is £Nil (2024 - £Nil). Bank borrowings are secured by a first legal charge over the Thurlestone Hotel. These loans were settled in the year and replaced by the following loan.
Bank borrowings are denominated in pounds sterling, £, with a nominal interest rates of base rate plus 2.0%, and the final instalment is due on 20 August 2029. The carrying amount at year end is £3,785,963 (2024 - £2,886,056). Bank borrowings are secured by an unlimited debenture, an omnibus guarantee and Group set off agreement, and by a first legal charge over the Thurlestone Hotel.

Other borrowings

The hire purchase liabilities of £94,849 (2024 - £120,024) are secured against the assets to which they relate.

Included in the loans and borrowings are the following amounts due after more than five years:

| 2025 £ | 2024 £
After more than five years by instalments | - | 2,186,305

| - | -

Thurlestone Estates Limited

Notes to the Financial Statements

Year Ended 31 October 2025

18 | Analysis of changes in net debt

Group

| At 1 |  | Other | At 31
| November |  | non cash | October
| 2024 | Cash flow | changes | 2025
| £ | £ | £ | £
Cash at bank and on hand | 45,564 | 50,838 | - | 96,402
Bank overdrafts | (280,114) | 272,583 | - | (7,531)
Cash and cash equivalents | (234,550) | 323,421 | - | 88,871
Finance leases | (120,024) | 85,631 | (60,456) | (94,849)
Bank loans | (4,416,444) | (750,178) | - | (5,166,622)
Net debt | (4,771,018) | (341,126) | (60,456) | (5,172,600)

19 | Obligations under leases and hire purchase contracts

Group

Finance leases

The total of future minimum lease payments is as follows:

| 2025 £ | 2024 £
Not later than one year | 52,554 | 57,916
Later than one year and not later than five years | 59,051 | 78,261
| 111,605 | 136,177

Operating leases

The total of future minimum lease payments is as follows:

| 2025 £ | 2024 £
Not later than one year | 13,789 | 12,523
Later than one year and not later than five years | 17,752 | 25,421
| 31,541 | 37,944

The amount of non-cancellable operating lease payments recognised as an expense during the year was £13,050 (2024 - £12,523).

Thurlestone Estates Limited

Notes to the Financial Statements

Year Ended 31 October 2025

Company

Finance leases

The total of future minimum lease payments is as follows:

| 2025 £ | 2024 £
Not later than one year | 52,554 | 57,916
Later than one year and not later than five years | 59,051 | 78,261
| 111,605 | 136,177

20 | Deferred tax and other provisions

Group

| Deferred tax £
At 1 November 2024 | 2,169,401
Increase (decrease) in existing provisions | 127,946
At 31 October 2025 | 2,297,347

Company

| Deferred tax £
At 1 November 2024 | 1,816,385
Increase (decrease) in existing provisions | 125,226
At 31 October 2025 | 1,941,611

21 | Pension and other schemes

Defined contribution pension scheme

The group operates a defined contribution pension scheme. The pension cost charge for the year represents contributions payable by the group to the scheme and amounted to £143,815 (2024 - £202,206).
Contributions totalling £2,374 (2024 - £1,847) were payable to the scheme at the end of the year and are included in creditors.

Thurlestone Estates Limited

Notes to the Financial Statements

Year Ended 31 October 2025

22 | Share capital

Allotted, called up and fully paid shares

| 2025 | 2024
| No. | £ | No. | £
Ordinary shares of £1 each | 10,499 | 10,499 | 10,499 | 10,499

23 | Dividends

Final dividends paid

|  | 2025 £ |  | 2024 £
Final dividend in respect of year ended 2023 of £17.50 per each ordinary share |  | 91,866 |  | 91,866

The directors are recommending a final dividend of £18.00 (2024 - £Nil) per share totalling £188,982 (2024 - £Nil). This dividend has not been accrued in the balance sheet.

24 | Contingent liabilities

Company

The company has a letter of set off against the bank facilities of Tracertec Limited, its subsidiary company. The maximum full potential liability at year end is £1,380,658 (2024 - 1,530,387).

25 | Related party transactions

Group and company

The company has taken advantage of exemptions in FRS 102 "Related Party Disclosures" from disclosing transactions with other wholly owned members of the Thurlestone Estates Limited group.

Key management personnel

The directors do not consider any employees other than statutory directors, whose remuneration is disclosed in note 7, to be key management personnel within the definition contained in FRS 102.

Dividends paid to directors

|  | 2025 £ |  | 2024 £
The Directors |  |  |  |
Ordinary share dividends |  | 34,808 |  | 37,625

Thurlestone Estates Limited

Notes to the Financial Statements

Year Ended 31 October 2025

Summary of transactions with other related parties

Dividends of £21,368 (2024 - £17,675) were paid to spouses and children of the directors. Further dividends of £19,688 (2024 - £19,688) were paid to trusts in which the directors or the directors' children are beneficiaries.

26 | Control

The ultimate controlling party is the directors who own 59% (2024 - 62%) of the called up share capital.